Especially in a tough economy, companies often discount their products and services to increase sales. The advantage of this approach is that it attracts attention–and has the potential to get prospects that ordinarily would not buy to try out your goods and services. The hope, of course, is that once they experience what you have to offer that they’ll buy again.
The question is does it work? And for whom?
Discounts do increase sales volumes
There’s no question that discounts increase sales volume. To find evidence, you need look no further than to a Reuters article that ran earlier this month about automobile industry sales.
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