In every marketing management the most important function is the discounts of prices is offering, some business use it occasionally because it part of marketing strategy plan. Discount is an effective plan to control you business and having a clear objective in the market.

how to prepare for discounting prices.

If you have a business and it is not moving well in the market in the past year this are some few question you need to first ask yourself.

• Were prices reduced in response to seasonal price variations in your industry?

• Were prices reduced in a planned and organized way as part of an overall marketing strategy?

• How many times did you discount offerings as a reaction to competitor prices?

• How many times did competitors reduce their prices in reaction to you discounting your prices?

• What did you expect to accomplish in the short term each time prices were discounted?

• What did you expect to accomplish in the long term each time prices were discounted?

After doing all this in each discount you are offering now ask yourself.
• How much revenue was generated directly from the offerings that were discounted?

• What was the gross margin generated on these sales?

• How much revenue was generated from accessory or related products during the discount period?

• What was the gross margin generated on these offerings?

• If you combine the sales of the discounted products and the accessory and related products, how do these sales compare to a similar period when offerings were not discounted?

• How does the overall gross margin during the discounted period compare to the gross margin in a similar period when offerings were not discounted?

• How many times was total average inventory value turned over before offerings were discounted?

• How was the rate of inventory turnover affected by discounting offerings in the previous year?

NOTE ALL THIS FACT ARE GOTTING FOR RESECACH FROM DIFFERENT BUSINESS…

This are analysis and positive and negative guide the discount of pricing;

• Attract customers and thereby stimulate sales activity

• Meet competitive prices

• Accelerate the movement of slow-moving inventory, discontinued inventory, and obsolete inventory or damaged inventory

• Reduce inventory levels to increase inventory turnover ratios

• Reinvestment of cash realized from clearing out stock into inventory items with a higher turnover rate