You go to the store and find exactly what you are looking for. Maybe something even better than you are looking for. Perhaps even something that you were not even looking for!
And then you see the price. Ouch!
In this economy, many things are just too far out of reach for most people. Even the fabulously wealthy are trimming back their wild spending habits a little.
So, do you hold your breath and fork out the extra money? Chances are, you ask rather shyly if the salesman can lower the asking price a bit for you.
Yes, many times you can get a discount just by asking! Just be offering a discount, many companies entice and enhance all sorts of sales and upgrades. So, the inside stateroom is $499, but the oceanview is $649 and discounted to only $599, so you're saving $50! (Notice, in this example, you are also spending $100 more!)
Discounting products and services by even just a small percentage actually appeals to a much greater extent than most people realize! And the discounts, although taking some of the initial profits, also open the door to most people who are now able to afford or be willing to buy from you. That $649 room might have attracted 10 people, but now the $599 price tag makes 35 people interested instead! So, the cruise line might be losing $50 per room, they are also gaining 25 more room sales, which far outprofits the loss of initial revenue! $14,475 more, in fact!
So, which is better? a % (percentage) or a $ (dollar) discount? Psychologically, dollars off usually make things sound better than the percentage amount. Of course, 80% off a $10 item, which is the same as $8 off a $10 item, might be the better option.
Don't be too fast to give the price discounts, however. You could be digging a hole right through your profits and into your actual cost! That might work to create more incentives for people to come in, but your business certainly won't stay open long if you do that too often!
On the other hand, you can also forgo the discount altogether, and focus on selling the benefits and value of your product or service. This proves that, although it may be a little more expensive, it really is worth that extra little bit! So, if it's something that has value, make sure to charge for it!
If you do decide to go the route of the discount, try to (at least in your initial bargaining stages) stay away from whole number percentages, such as 10% or 25%. Be a little sneaky with, say, 9.79% or 23.36%, then change that percentage into dollars and announce that number to your customer. It will really sound like much more!
Of course, if you are going to offer a price discount, you should get something in return. Such as an added 3-year extended warranty instead of the 2-year, or in exchange for a business card or references, or perhaps even filling out a form with contact information!
