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Discount customers as the name itself suggests are exclusively concerned with discount. Today the discount-buzz dins itself on all the customers and almost all small and somewhat big companies have resorted to discount mode.

Discount means selling a product at a lower price than it is usually sold. Now, like discount sale, ‘Buy one and Get one free’ is becoming the order of the day. Discount customers know the value of the product; but all the same, they buy only when there is discount. Of course, the discount customers do contribute to the business of the company and they cannot be neglected, particularly in the present context where business scenario is writ large with discount everywhere. To the extent they purchase on discount they promote business and therefore become a reliable source of revenue, profit to the company.

Discount sale is generally considered not as a good business strategy of lasting value to the company. Discount obviously costs the company. The practice of discount offer will never give room for more profit; not only that, when the cost of the raw materials, of the labour and other auxiliary services keeps escalating, the company may increase price of the product but the discount is bound to push the profit margin down. In short, you will be doing more work but your final returns remain almost stagnant. That is, as some analyst has said, you have won some little battles but you have already lost the war.

Unwittingly, you have given the impression that your company is a ‘Discount company’; this is not a good sign. Customers tend to think cheaply of you.

There is another great harm to your company which depends naturally on marketing personnel. Discount practice negatively impacts on your sales force; they tend to become less efficient. All their hopes become focused on mere discount; this does not hone their marketing capabilities.

Of course, when all is said and done, you cannot discount Discount. The idea of discount has entered the mind of the customers. You can standardize the discount practice so that the customers in the final analysis know that you just fall in line with the popular existing trend but you do not depend on it. You concern is ultimately quality.

Now in our next session we shall deal with the loyal customers.
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