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Discounting for Profit???


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Discounts eat into profits. All of us understand this. In this economic climate it seems many businesses are offering discounts to increase sales. But at what cost? Another problem, it may to hard to increase prices when the economy turns around if you have established yourself as a discounter.

 

However, if discounting drives more traffic into your bays and gives you the opportunity to increase other related sales, is it wrong?

 

I would like to hear from other shops on how they feel on this topic.

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We do offer discounts, but they are mainly for a monthly special or something similar. I do also belong to a group called BNI (business network international - a networking group) and we do offer a 10% discount on parts to the members of the group or to a new customer that the refer to us. I have found that it doesn't eat into our profits to much and it brings customers in the door, so we have continued to do it.

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Do you find being a member of BNI a positive for your business? How long have you been a member? Thanks Steve

 

Hi Steve, We joined BNI a little over a year ago, and I just renewed for our second year if that tells you anything. I do think that it is worth the investment, we have had a great return from it, I think that I service all but two of the groups members and most of them have multiple cars and have also referred friends or family to us. So IMHO I think it is well worth it, I didn't track exactly how much of our business came from BNI members or referrals from them but I would bet that it is a fairly significant amount. Hope that helps. Eric

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