1.Lack of Confidence
When you offer discounts on your products, it means you have no confidence in what you are selling and that you think you can sell it for the normal price. Immediately you offer discounts 10% off $75 or more, your customers lose interest in your products and lose confidence in you. When you lose confidence from your customers, you end up losing sales.
2. Bad Precedent
After offering a discount, you can never turn back. Your customer expects the same thing to happen every time he or she comes to the store. They will even wait until you offer them special offers and they will never pay full price for a commodity. When you can’t offer a discount, they can’t buy from you. This is a bad situation for business.
3. The Profit Cuts
Today, there is much competition in the business sector and everyone wants to get as much profit as possible. If you are going to offer a 50% discount, it means you are destroying your business. This is because to go back to your profit margin goal, you are going to sell twice as much of what you sold with a 50% discount. It will take a lot of time to reach there.
4.Lower perceived value
People value something depending on its cost. As a business person, you are going to find different ways in which you can sell the worth of your products. Convince your customers that the products you are selling can add great value to their lives. When you offer a discount on the same product, you diminish its value and customers will go elsewhere.