Beyond the discount: How to use sales and discounts to grow your business 

Ever looked at your sales and thought, “Are these discounts really paying off?” You’re not alone. Slashing prices might seem like a quick win, but it can backfire if you’re not careful. The good news is, sales and offers could be a powerful tool when used smartly.  

Here at Tyro, we’re here to ensure nothing stands in the way of business success. So, let’s dive into the world of sales and offers and figure out how to increase sales to boost your bottom line without breaking the bank. 

The discount dilemma

Discounts can be tempting, but relying on them too much can be a little risky. Customers might start to expect them, and before you know it, you’re stuck in a cycle of slashing prices just to keep the tills ringing. This could hurt your brand as the growing customer perception might be that you’re “always on discount”. Plus, your bottom line could be impacted as your margins get squeezed. So before you discount, think carefully about the frequency and timing and check the ACCC guidelines on pricing, to ensure the promotion has the biggest chance of success. 

When sales and offers can work well

Product sales and offers can be effective when used at the right time. Here’s a few scenarios where they can come in handy:  

• Clear the clutter: Stuck with old stock? A targeted sale can help you clear it out and make room for new products. Tools like Tyro Connect can help you keep tabs on your inventory, making it easier to identify what needs a little push. 

• Beat the quiet times: Facing a slow period? A well-timed sale can drum up some excitement to help boost your cash flow. 

• Reward loyal fans: Show your best customers some love with exclusive discounts, offers or loyalty programs. Tyro for instance has partnered with Hello Clever, a loyalty platform which offers customers instant cashback when they shop with Tyro merchants. This can help turn one-off customers into regular buyers. Remember, it’s not just about slashing prices. The key is to offer something truly valuable to your customers.  

Craft irresistible offers

So, how do you create promotions that make a difference and increase revenue? Here are a few tips: 

• Know your customer: Who are you trying to impress?  What are they after?  Understanding what your customers want is key. Tailor your offers to their needs and preferences. 

• Set clear goals: What do you hope to achieve with your sale? More sales, less stock, or new customers? Having a clear goal helps you create targeted offers. 

• Offer amazing value: It’s not just about price, people tend to buy based on perceived value. So, instead of just offering a discount, try bundling products or services together (think buy one, get one free), or offering limited-edition items, or giving exclusive access to something special.  

• FOMO is your friend: Creating a sense of urgency or scarcity can help to increase sales. Think limited time offers to create that “gotta have it now’ feeling.  

• Use tech to your advantage: Personalise your offers with customer data. Birthday discounts, recommendations based on past purchases – you get the idea. 

• Track, track, track: See what’s working and what’s not. Data is your best ally when it comes to fine-tuning your sales strategy.
   

By following these tips, you can create sales and offers that not only increase your revenue but also strengthen your relationship with customers. Remember, it’s about more than just discounts. It’s about understanding your customers, offering value, and creating irresistible offers. 

Disclaimer: Tyro Payments Limited ACN 103 575 042 AFSL 471951 (Tyro) is the issuer of its own financial products. As Tyro does not take into account your personal circumstances, please consider if these products are suitable for you. T&Cs available at tyro.com. You can contact Tyro on 1300 00 TYRO (8976) or tyro.com/support/ and access Tyro’s dispute resolution process at tyro.com/complaint-resolution-process/

Tyro provides this article for general information and educational purposes and does not take into account the financial situation or need of any reader. The information provided must not be relied upon as financial product advice.