New Year’s Eve is around the corner, and soon every big brand will introduce some closeout deals for their customers. These deals help them clearing their stocks out by providing huge discounts on every item. Closeout Deals are something customers enjoy, but have you ever thought that they could negatively impact your business? While discounts and deals are always going to give customers an immense sense of joy, they might not always be beneficial for businesses. Before introducing these sales to your business, read thoroughly about their pros and cons.
These will help you decide whether you should participate in the closeout deals and clearance sales or not; if these sales are not beneficial for you, you should completely avoid them. Though avoiding them will cost you nothing, putting them on could cause you a greater loss than profits. Here is our take on assembling a pros and cons list to decide whether or not you should introduce discounts at the end of the year.
PROS OF THE CLOSEOUT DEALS!
A Faster Way to Drive Sales:
Well, there is a valid reason why these big brands put discounts on their products. Discounts are the most effective way to increase sales. Nothing attracts customers more than a good deal for the amount they are paying. The greater the discount is, the greater your sales are going to be. So if you are thinking of increasing your sales, these deals will make it up for you.
A Magnet For New Customers:
These deals are going to be the best magnet for customers, especially for new customers. Having your potential customers is all good, but nothing is wrong with attracting some new customers with huge discounts on the products you are offering. So, you should introduce some deals to turn the heads of your new customers.
Clearing Out Stock:
Do you still have the products from the previous seasons and trends, eating up the whole place for new products? Well, now is the time to remove all sluggish items from your stock to make room for new products. Take out all the old items and put them on the sale rack; now, no one can stop these items from being long gone.
Making a Strong Bond With Your Potential Customers:
When you shop from one retailer, it feels nice to be treated with some special perks. Being a customer, if my dealer is going to reward me beyond having a good service and good product, I will more likely shop again from his store because he gave me the best overall experience and good impression. Customers like to be recognized and have some special discounts coming their way. That makes them more loyal to your shop, and one would never want to lose their potential customers.
CONS OF CLOSEOUT DEALS!
Attracting The Wrong Customers:
Sometimes discounts and big deals can end up attracting the wrong customers, customers who only appreciate the good bargain rather than what your shop is offering. This can result in a bad outcome in the future; these customers will leave your shop as soon as they find the discounted items have come to an end.
Customers Will Only Focus On Prices:
As the aforementioned point, the closing deal tactic will make customers focus only on the decreased price, and they’ll start expecting you to give them discounted prices always. This will take you to the cutthroat journey of cheap values of products. The saddest thing about this is your potential customers will also start expecting such behavior; always offering products at low prices.
Bigger Discounts Means Lower Quality:
If you think by putting unbelievable price tags, you will attract customers, then you certainly are wrong. By putting discounted tags, you are not attracting anyone, and in fact, you are repelling your customers. If something looks too good to be true, then as a customer, we tend to think that the product is not worth the price, or it may have some quality flaw which the shopkeeper is trying to hide through the lowest prices.
You Might Get Your Profit Cut:
If you are new to the business world and think about giving out Closeout Deals, you should think twice about it, as these deals might get your profit cut from the products.