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Ally Stewart
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Ally Stewart   My Press Releases

That Is The Question.

Published on 11/29/2017
For additional information  Click Here

Do discount businesses work? That is the question!

This PR is not about me telling you why a discount business works or why it doesn't. It's about discussing with you through your comments how and why they don't or do work. So please do comment.

Personally, I don't think a discount business is a good thing for a number of reasons.

Yes, it's a competitive world and businesses are competing with other businesses selling the same products. The problem with discounting is that once one business starts, other businesses often try to sell the same product(s) even cheaper and this leads to a downward spiral of even cheaper prices and lower profit margins.

While it might be ok to sell one or two products in a range of related products at a discount I don't think it's a good idea to sell the whole range at a discount.

Tha large supermarkets can easily sell some products at a discount but again, I don't think it's a good idea to sell all their products at a discount. A practice known as a loss leader where the store/supermarket sells and item(S) at a loss to get customers in the store should be illegal in my opinion. I beleive this practice is unfair competition. The large supermarkets however, are good at marketing, good at convincing a large number of people they are the cheapest. The reality is that some things are cheaper but the prices of other things are higher.

Supermarkets such as Aldi and Lidl who sell all their products cheaply do this by employing less staff. They don't have to pay wages for people to stand at the checkout packing bags etc.

The truth is, if you offer your products to customers cheaply you need to cut something, cut the operating costs. That means a cut in wages a cut in staff training, turn down the heating, turn off some lights etc. All these things will affect the overall profit. Demoralised staff who are not properly trained will not give good customer service which will drive customers away. In addition, if there is a flood or some other emergency the low profit margins mean that the business hasn't been able to keep a reserve of money for such an emergency. This might mean the business closes.

Personally, I would rather sell at higher prices and give customers the service they deserve.

Food for thought. Think about it. What kind of business do you want? A business who gets loyal repeat business from their customers or a business who only gets the customers coming to them because they are the cheapest.

Anyone, and I mean anyone can get customers by offering cheap/cheapest prices.

Please leave your comments.





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