The Pros and Cons of Offering Discounts and Incentives in a Tough Economy
Salesman’s are confronted with the day-to-day option of short-term discomfort versus long-lasting gain. Instead of depending on self-confidence in their capability to successfully interact the amount of their product or services, unskilled salesmen will start to provide discount rates, rate concessions and rewards in order to lure their potential customers into a closed sale. If they are successful, they have actually produced a consumer with expectations. Each time they approach the client for repeat business, the consumer will require a brand-new perk, a brand-new present, a brand-new circumstances of "free ride." Unless the sales representative locks in the 2nd sale in the exact same minute as the very first (such as time-limiting a discount rate of 30 days versus a long-lasting contract where the expense goes back to complete cost), they are playing a video game that they will never ever win.
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There are times in which these techniques are proper, and there are others that amount to a basic admission by the sales representative that they do not have the ability or psychological endurance to direct their possibility through the sales cycle.