Some of the reasons why price discounts do not always is a good choice for business

Often we see companies make products price discounts and it seems that it is a good sales strategy.

Listen to a 30% discount by purchasing a product always sounds very attractive for the client.

But do not always price discounts is good for a business idea and should never abuse of such a strategy. Moreover, depending on the nature of your business may not be advisable to use a strategy of price discounts as it perhaps could damage the image of your company.

The Young Entrepreneur site give us a number of reasons to do so, turn to outline some of them:

1. Too much emphasis to the price The price is an important aspect of a product but no undertaking should focus on price as an element of differentiation from your competition. The quality or additional services are much better than the price to differentiate ourselves and to make offers on price discounts we are giving too much emphasis on this element.

2. War of prices with your competitors If you start to make price discounts perhaps your competitors also do so in the end effect is neutralized and you lose more money with a range of discounts instead of winning with the same.

3. A bad impression with your customers for discounts If someone can pay less today... why should pay more tomorrow? the product will be of poor quality?

With this I do not mean that a strategy of pricing discounts must be discarded entirely. No, in some cases it may be desirable but it's adequately evaluate you enslaves and if indeed it is worth.

Often a variation of the very effective strategy is that instead of offering a discount on the price is it offer more for the same reason giving emphasis to the differentiating aspect of our company. So you can give as offer a month of after sales service for and highlight the importance of such a service.