Ask Bartercard Discuss How Discounting is Costing Your Business

Thursday 31 October 2019, 10:58PM
By Beckie Wright

Ask Bartercard have observed that discount websites are gaining in popularity, as we all like a bargain. These are great for the consumer, but are they good for the merchant and small business owner?  As a small business owner, have you worked out the real cost of discounting and the impact it will have on your business? Daily deal websites charge a fee of approximately 15-20% of the sale price and stipulate that the offer presented must be at least 50% off the original sale price. 

It’s common to think that by offering a discount you’ll attract new customers. That may be true, but have you considered the bigger picture and the long-term effects that discounting will have on your business?  Low prices may drive sales for a limited time, but they don’t help build customer loyalty and discounts cost money.

By reducing your price just by 10% on a margin of 40%, your sales have to increase by 33% in order to make the same profit. That’s a big ask in a competitive market, especially when you add a fee onto that. Discounting can put you quite far off your sales goals. Pursuing a discount pricing strategy increases the chance that your product will be perceived as lower in quality, impacting your brand and ultimately your bottom line.

Bartercard is not a discount service and while there are fees associated with being a member of the network, it’s small in comparison at 7.5%. Bartercard allows members to grow sales by 10% or more within the first 12 months of becoming a member (Dot Loves Data, 2014) – no discounts are required, so Ask Bartercard advise you don’t sell your own business short. By contacting Bartercard you will learn how to get more customers without undervaluing your products and services, and for more information on what is Bartercard, Bartercard members and how to get new customers for your business please go to .