{"id":169905,"date":"2019-02-07T08:45:43","date_gmt":"2019-02-07T13:45:43","guid":{"rendered":"https:\/\/www.practicalecommerce.com\/?p=169905"},"modified":"2024-10-18T20:25:15","modified_gmt":"2024-10-19T00:25:15","slug":"5-tips-for-selling-without-discounting","status":"publish","type":"post","link":"https:\/\/www.practicalecommerce.com\/5-tips-for-selling-without-discounting","title":{"rendered":"5 Tips for Selling without Discounting"},"content":{"rendered":"

Most business owners and managers desire to increase sales without discounting prices. But many observers insist that issuing coupons is a must for boosting ecommerce conversions. Regardless, do you want more sales or more profit?<\/p>\n

Increasing sales via discounts, coupons, and undercutting competitors (or a combination of all three) isn\u2019t typically the best practice for smaller companies. Shoppers that have a \u201cno discount, no purchase\u201d mentality may not be ideal customers if you intend to turn a profit. Moreover, offering cheap prices can generate too many orders for some businesses to handle.<\/p>\n

Here’s an example. Say the cost of a product is $10. The selling price determines the number of sales and gross profit. What\u2019s not necessarily factored, though, is the amount of additional work it takes to sell more. Selling 4,000 at $3 off can take four times the amount of work. Selling 8,000 products at $4 off can take considerably more work for the same amount of gross profit as selling half as many.<\/p>\n\n\n\n\n\t\n\n\t\n\t\n\t
<\/td>Selling Price<\/th>Product Cost<\/th># Units Sold<\/th>Gross Profit<\/th>\n<\/tr>\n<\/thead>\n
Full Price<\/td>$15
\n<\/td>		$10<\/td>1,000<\/td>$5,000<\/td>\n<\/tr>\n
$3 Off
\n<\/td>		$12<\/td>$10<\/td>4,000<\/td>$8,000<\/td>\n<\/tr>\n
$4 Off<\/td>$11<\/td>$10<\/td>8,000<\/td>$8,000
\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

Selling more also increases the amount of time spent on post-order support, such as returns and exchanges and answering general questions. Plus, those who pay less tend to require more support, and they often complain on social media if dissatisfied.<\/p>\n

The real problem is focusing on the conversion rate without considering the overall impact on profit.<\/p>\n

Here are five tips for driving sales without discounting prices.<\/p>\n

5 Tips for Selling without Discounting<\/h3>\n

Focus on unique selling points of the store and its products.<\/strong> Attract shoppers who understand the value of quality.<\/p>\n

Shop Gucci\u2019s website, for example, and you won\u2019t typically see sales or closeouts, nor a coupon code box at checkout. Luxury brands<\/a> rarely offer discounts, and when they do it\u2019s often on last-season leftovers.<\/p>\n

\"Gucci

Luxury brands like Gucci rarely offer regular discounting, and they often sell out of popular styles quickly.<\/p><\/div>\n

Certain grocery brands and product types also have premium pricing. This includes many baking goods, premier coffees, and select cuts of meat. People loyal to specific brands have come to expect higher price points, even if a competitive product costs less.<\/p>\n

Unique selling points vary by product type and target audience, but they typically include:<\/p>\n