Do The Math Before Discounting!February 15, 2017 (0 comments)
New York, NY—Between Blue Nile, Amazon, and Millennials’ well-known penchant for bargain-hunting, it can be tempting for even luxury retailers to slip in a discount to attract customers.
While many others would recoil from the idea, there are pros as well as the obvious cons to discounting. Will a lower price bring in more traffic, which might convert to other sales? How many of the item might you have sold at full price and gotten more margin?
This article in Entrepreneur magazine contains valuable mathematical formulas to determine the number of additional units a retailer must sell at a discounted price to achieve the same result as selling at full price. Without drawing a conclusion pro or con, the article walks through a variety of scenarios to help you figure out what works best for your bottom line.