What is a discount?

Discounts are a price reduction for goods or services. This is usually granted to customers over a certain period of time - for example during winter sales, the summer vacations or on special promotional days such as Black Friday. You can offer individual goods or entire product groups at a discount - 20% on everything except... you know.

What types of discount are there?

There are numerous different types of discount. Particularly well known are the volume discount when purchasing large quantities of goods and the loyalty discount for loyal customers.

From an anniversary discount to a staff discount for company employees only to a bonus point discount , pretty much anything is possible. With the journalist discount, there is even a discount that offers editors and press representatives certain benefits - for example when buying a car or booking a vacation trip. However, these professional discounts are now strictly regulated in order to prevent corruption.

How do I give a discount?

As a retailer, store owner or business owner, you will certainly use a digital POS system. If not, you should change that quickly. Because a digital POS system has numerous advantages, which we will explain in this guide in more detail in this guide. What we're getting at: Modern POS systems like the one from LocaFox offer you various options for granting a discount. Here are the most common discount options in retail at a glance:

• Position discount: You are a florist, baker or run a farm shop. farm shop? Then your customers will usually buy several goods at once - for example, different bouquets of flowers, bread rolls or types of cheese. With the item discount, you can reduce the price of one or more invoice items and thus give the customer a discount. With the POS system from LocaFox you have three different options to choose from. You can choose between a percentage discount, a euro value discount or a completely new price that you set yourself.
• Shopping cart discount: If you sell your goods online, you can also grant your customers the so-called shopping cart discount. This then applies to all items in the digital shopping cart. Here too, you can choose between a percentage discount (e.g. 10 percent discount from a shopping cart value of 500 euros), the euro value discount or a newly set price.
• Customer-specific discount: It makes sense to keep a customer database - especially if you want to offer discounts. Here you can define an individual customer discount that will benefit the respective customer permanently. Of course, this specific customer discount can be changed or removed at any time. Customer-specific discounts are a clever way to retain customers in your business in the long term. The "preferential treatment" means that customers gradually identify more strongly with your business and are happy to recommend you to others.

Another way to give discounts is to create product labels in the back office of your digital checkout. At LocaFox, individual products can be assigned a special discount during a promotional week, for example. This discount is automatically deducted at the checkout and is applied to selected products - for example, during a summer sale (SSV), a new store opening or discount campaigns for certain product groups (for example, if swimwear and summer fashion is still to be sold in the fall).

Retail: Do discounts make sense?

The question remains as to why you should give a discount at all. After all, you are selling your goods below value, right? Not quite. In fact, discounts are a very effective marketing tool, especially in retail. There are several reasons for this:

• You can attract new customers and increase customer frequency with targeted discount campaigns.
• You offer new customers and regular customers a financial incentive to buy goods that they might not otherwise consider.
• Customers that you attract to your store with your discount campaign may even buy other or more products than they had actually planned in addition to the reduced goods.
• Discounts allow you to sell surplus stock that would otherwise only take up valuable storage and floor space.
• Especially with longer discount campaigns in combination with customer registration, you receive exciting customer and contact data that is useful for a newsletter or after-sales measures.

Slogans such as "Geiz ist geil", brands such as "GUT & GÜNSTIG" or the infamous "20% off everything except pet food" are the best proof: Germany is the land of bargain hunters and discount fans! Use the "power of discounts" to increase your sales and tap into new customer groups. With clever discount campaigns, you can literally often save yourself expensive marketing campaigns!

Still have questions? We have the answers!

Would you like to find out more about our digital checkout system and discount options? We would be happy to advise you personally and look forward to your call or message.