Britain has a long-standing tradition of starting Christmas sales as early as mid-September, and it appears that for once, this tradition is paying off in the post-recession world. My name is Jeremy Powers and this post is about bargain hunters and how you can cater to them.
Bargain hunting is a phenomenon that gained particular momentum from 2008 onwards, thanks to the financial crisis, rise of unemployment levels and decreasing incomes. Discount shops have, and still are, experiencing a significant increase in customers on a daily basis. While the world is in a relatively better place economically than even five years ago, it’s still got a long way to go in terms of recession recovery. It’s unlikely, therefore, that bargain hunters are going anywhere anytime soon.
Various Discount Strategies
I don’t necessarily suggest that you should completely revamp your strategy in order to cater to obsessive coupon collectors (but if you feel that it would benefit your company, by all means go right ahead). You should, however, keep in mind that bargain hunters look for just that – bargains. Usually scoring a bargain means getting a product for a much lower price, or getting two products for the price of one, and so on. You should, therefore, consider how you can implement bargains into your client relationship strategy.
I should say that what one hunter might consider a bargain might not be so for another. After all, you’re catering to several segments of the population, even if you think them to be a part of a single target audience. Therefore, I suggest that you base your approaches to bargain with different people in mind. For example, you could sell two products for the price of one on certain dates, or have student discounts on certain items.
I really want to stress that at the end of the day, you’re a business and you need to make money. Discounts are a great way to attract and retain customers, but they are risky. If they’re not marketable or properly designed, they’re unlikely to be successful. If your bargain strategy doesn’t take into account the demand for the product and you end up with leftover items with no possibility of a clearance sale (e.g. if you’re in Food and Drink) as a result of low demand, you would be at a disadvantage.
Choose the Most Appropriate Discount Strategy
The solution to any potential issues associated with bargains is to be smart. Do some market research, get to know your target audience – when would they be more likely to need the discount? How can you sell them more products at a discount and make more money as a result? If you run a high street shop, consider your busiest days and times; if you sell products online, analyse your traffic and take into account the hours during which you get the most visitors. Base your strategies on the results of your research.
I can’t tell you a single bargain strategy that works for every player in every single industry. Each business model is different, and few bargain strategies work the same way for different ones. At the end of the day, it’s completely up to you to consider and select the best strategy for your company.