Why Discounts Help Businesses
Black Friday. Small Business Saturday. Cyber Monday. What do all of these days have in common? Other than being three days that occur right after Thanksgiving, they all provide savvy shoppers with great sales.
Sales, coupons, and price markdowns actually help businesses thrive. Wait, now, what am I saying? Yes, things that make it appear as if a company would lose money actually put them out ahead. Why? How?
Let me share how this helps businesses from my point of view, using an example from my own life.
Every once in awhile, I get an advertisement from Kohl’s in my mailbox. Now, I like Kohl’s, but I don’t go there very often. These ads at least get me thinking about going to Kohl’s. First mission accomplished- get me to think about the store.
Now, these usually have some sort of coupon with them, whether it’s a certain percentage off or $10 off any purchase. Not only have they achieved their goal of getting me to think about the store, but now I’m seriously considering going to the store. And 9 times out of 10, if I have time in the two week period that the coupon is valid, I will go to the store.
So with one little coupon, they’ve enticed me to go into the store. If you’ve been around here awhile, you know that I’m not always a fan of doing this. Anyway, I go to the store. Getting me in there is half the battle, now, I have to actually buy something.
The other day, I was in Kohl’s for over an hour. Why? Because I couldn’t figure out what I wanted to use my coupon on. I looked around at everything you could imagine: Socks, kitchen items, toys and games, sheets, and whatever else.
I came out with a paper towel holder.
Yes, I know that sounds silly, but that’s something that I needed for my house. I ended up spending only $2 on it, and it’s very high quality. Well, as high quality as paper towel holders can get. Granted, I’m an oddity. You see, when I take advantage of coupons and sales, I am quite picky. I go in there with a price range in my head. I never go out of that price range.
The true intent of getting you in the store is apparent on Black Friday. Most people get all of their Christmas shopping done on Black Friday, and sometimes buy things that they never intended to buy in the first place.
This, my friends, is where they profit. They probably break even on the discounts, but they make money when you buy other things. You get the good deal bug, and sometimes spend more than you should. That’s why I gave all those tips for holiday shopping: So you don’t fall into that same trap that so many others do during this time of the year.
I hope your Thanksgiving weekend of deals is wonderful, and that throughout the whole weekend, you continue to spend smart and save smart!
