Just wondering what kind of discounts you have used that work. Get $10 off your next purchase of $75 or more, etc. The structure is more what I am asking about..if the increased business is worth the loss of profit. My market is performance automotive so most items will be in the hundreds of dollars, fyi.

Any tips, experience, or suggestions for what you use would be great.

Back when, I found discounts to just be a profit killer and didn't do a thing to increase business. What did work was a discount on related items.

Eg, get a 15% discount on premium plugs or wires when you buy a complete MSD system. That way you find the consumer less resistant to upselling.

Or make it a freebie on the next purchase of x dollars. Lets say for example you can get a deal on a volume purchase of Meguiars car wash strips (which seem pretty cool btw), and their NXT tech wax etc. Then run a promo for free Meguiars xxxxx with next purchase of $200 or more. By doing so, the consumer gets introduced to a new product for no additional cost, your costs are much less than a flat 15% discount, and Meguiars gets help with their new product introduction. In other words a 3 way win. Lastly if the freebie is a consumable (which is why I used wash and wax), you may well capture more recurrent business.

excellent suggestions. Thanks

I personally avoid discounts as much as possible. If you find the need to do one make sure you market it only to customers who maybe wouldn't normally drive to your store. For example I live in a city named Fairfield and the movie theatre in the next city over (about 10 mins from me) puts ads in the local coupon mailers for a free popcorn with and soda purchase. Now normally I wouldn't drive 10 mins to go to the movie when I have a theater 4 mins from my house but now i do because I get free popcorn. I also found that I like that theatre better so even when I don't have the coupon I drive there anyways

I operate a professional service business, and firmly believe that discounts are vital to obtaining new customers (1st timers). For instance, if I have a new potential client that needs a full-blown business plan to achieve 2-year revenue growth objectives, I will offer an initial discount of up to 30%-40% of fees (basically, I profit $0 but do cover all staff expenses).

The reason why is the value of follow-on business. Once I'm in the door with a client, and deliver outstanding results, I inherently know they will want more work. So, I price all of these follow-on engagements at full cost. When clients complain, I simply tell them that I offer discounts only to first-timer customers, as a way to convince them of our value-add and lower there risks. Now that they are a repeat customer, they know the value-add is imminent, the risks are non-existent, and the alternative is the start over with another professional advisor. I would love to do business with them, but cannot give them priority if other existing clients are willing to pay market rates.

Believe it or not, the honesty works well! Giving clients a choice - pay market for guaranteed results, do nothing for guaranteed $0 results, or start over with another advisor for $?? results - clients most always chose to stay. And, they don't often put up a fight. They are business people just like you and I are, and they appreciate the straightforward honesty. They want a good deal, yes, but the want guananteed performance with no risk much more so.

Thanks, Tim. I was thinking of such a discount and/or a frequent buyer program. Perhaps with the business card that gets holepunched so many times, then you get 10% off your next purchase.

Anybody have results for such an idea? info on what percent to give off, how many to sell beforehand, etc.

We too have discounted and doubt it's efficacy. Changed last fall to pay two nights and stay three during slow periods. Seemed to increase the number of 3 night stays which when occupancy is slow helped.

As the others have suggested, build packages at special values. That should build sales rather than leach them by diso****s.