If you look at your email, you are likely going to find hundreds of offers being distributed to you on a weekly basis. If you are wondering why there are so many retailers and brands offering key discounts, there are a few reasons for it.
Reasons We Get So Many Product Discounts:
- Get Rid Of Excess Inventory.
One of the main reasons we get so many different product discounts is due to retailers or manufacturers having excess product and inventory that they need to get rid of. If a manufacturer or retailer has too much of a particular product, it is going to be in their best interest to give you some sort of discount on it. That way, they will be able to get rid of some of the product they haven’t yet sold and have room to either stock new inventory or simply get cash flow from the inventory they are discounting.
- Built Into The Cost.
Another reason a lot of retailers and manufacturers hand out discounts a lot is due to the fact that they build it into the cost of the actual product. A lot of the brands and manufacturers actually build the discounts into the cost which allows them to make money on the products even when sold at a discount.
- Cheaper Than Marketing.
Another reason a lot of businesses and retailers end up offering this kind of discount has to do with the fact that it is often cheaper than spending the money on marketing. Rather than spending it on reaching customers, you can use the discount as a marketing strategy.
Another reason a lot of retailers do this is that they know it is going to not only offer them an incentive to purchase something, but it is going to be a good incentive to get them in their stores. Therefore, you will see a lot of brick and mortar retailers implementing the ‘loss leader’ strategy which is discounting a product where the retailer loses money just to drive a customer to their store.
- Buy Now.
Another reason a lot of companies end up doing it is due to the ability to get people to buy something right now. A lot of buyers will delay their purchasing decisions to the last moment. By offering a limited time discount or promotion, you will be able to speed up the process by which you get the customer to make a purchasing decision.
Overall, there are plenty of different reasons retailers and brands offer discounts to customers. Whether its to completely get rid of inventory that they have sitting around to stock their shelves with new inventory or to get a customer to make a quick buying decision, you can find a discount for pretty much anything. Whether you are buying something online or at a retailer, you will be able to find the discounts that you need in a variety of ways including in your email, mailbox, or at a coupon website.