We receive messages from online shopping apps or shopping stores notices about discounts, coupons, or half-price goods for VIP customers every day.
In the beginning, as consumers, we were so pleased as we would have benefited from it. But as it is widely spread, do you have the same happiness?
When we go shopping in the supermarket, some discounts are only for members. The same thing happens for some chain food stores now. Of course, you have to pay in advance for membership. Here in China, you can get cheaper prices from shopping apps, supermarkets, apparel, bags or shoe outlets, food stores, especially milk tea stores, coffee shops, etc.
Why the stores can offer us lower prices?
Some apps may tell you that they can offer you cheaper prices because they go directly to the factories. Some stores may explain that they purely use the discount to attract customers and have no profit at all. Some may highlight that they have a lean system to control the cost. Some may have other reasons.
Do consumers buy it?
Let’s check on the comments from some shopping App, or food comments Apps. Pretty much time, they comment the quality is not as good as the items without discount. Some complain that the prices of goods in a special discount season raised 10% -30%, then release us some discount coupon, which makes us have to buy more goods but pay the same price in daily time. Some stores closed quickly due to discount strategy.
Is it a strategy or a bad idea?
However, both consumers and sellers seem to have no other choices but are stuck in such a vicious circle. Because the stores are afraid of losing old customers and could not attract new customers, but the consumers changed their places to shop all the time because they are easily attempted by discounts, coupons, etc. Even most of the time, they found that would be a trap. But even though they kept their loyalty to the old shops, they may find the services or prices are not as good as before. They have to consider some other stores. Unfortunately, in this society, we are playing consumers and part of the seller's process at the same time. Don't you see through how exhausted we are driving by such endless cheaper prices business model now?
Any better solutions?
Some believed that the endless discount strategies are the best policy and boosted it in China. Some even preach that the loyalty of consumers is their weakness which can take advantage of. Some business books did mention that you are earning money since your consumers are innocent.
They are attended to tell you some philosophy that cheating is necessary for the business, which is the key to earn money quickly.
I disagree. No one is a fool in this world. In my opinion, the proper way is that we may sometimes need to go promotion or discount strategy to attract new customers, but we'd better pay more attention to our existing customers.
But how?
I think we can provide nicer products, better services to maintain and build the faith of your brands. These customers could be attracted by other stores' lower price ideas once for a while but you will always have your loyal consumers who value your efforts.
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