How to Use an Online Discount Calculator to increase the Customer base
Updated: 6 days ago
Everyone in the retail industry is aware of consumers' taste for low prices. This is generally done through coupons, discounts, seasonal prices, among other discounts related to the promotion.
There are several scenarios in which it is beneficial to apply the discount pricing strategy since it has been proven that it allows increasing the traffic of people through the store and reducing the difficult-to-sell inventory and attracting a more sensitive group of consumers.
Who doesn't like a store that offers discounts? This strategy is undoubtedly infallible despite being a classic and goes to the innermost emotions and instincts of the human being to attract attention.
Discounts and the way they are presented creates a very characteristic attraction in the client and can even achieve their loyalty since they will feel that the brands are aware of their needs in some way so that they are always satisfied with it.
But calculating them manually is somewhat hard, and there is a need for an online solution to access from anywhere in the world at any time. Using the discount calculator, you can find the reduced price of a product and the amount customers can save.
Formula to calculate the discount rate
To calculate the discount rate of a product, you can apply a simple formula that will help you obtain very good results:
Sales price = [(product cost) ÷ (100 - markup percentage)] x 100
Now let's see it better through the following example:
Suppose you want to calculate the discount rate that costs you $ 15 with a profit margin of 45%. To perform the calculation, you must apply the formula, and you will obtain the following result.
Sale Price = [(15.00) (100 - 45)] x 100
Sale Price = [(15.00 ÷ 55)] x 100 = $ 27.00
Importance of calculating the discount rate
Companies use discount prices to sell their low-priced products in large quantities, which is why it is important to reduce costs and stay competitive in the marketplace.
Advantages of offering discounts
Increase the number of sales.
Have greater visibility in magazines and periodicals.
Conquer a greater number of clients.
Motivate existing customers to buy more.
Achieve or strengthen customer loyalty.
Attract occasional customers.
Have a higher and better reputation.
Encourage customers to advertise word of mouth.
Create brand awareness, that is, make the company known.
Reward the loyalty of regular customers.
Encourage the return of old customers.
How can a discount calculator help you?
When calculating the discounts, it is important to keep a note of the profits and margins. By using the free online discount calculator, you can input the original price and the percentage discount. Then you can find the discounted price with the saving amount. When you use this calculator, repeat the operations whenever you need to make sure that the percentages it provides are correct and that you have entered the amounts you certainly needed to calculate. Also, remember that when you have obtained the price resulting from the discount, you will have to compare it with the initial price to see how much the product's final price varies.
In retail, it is necessary to decide the role to play in terms of prices; that is, you will have to decide if you want to offer higher prices for your products and a lower volume of sales or, on the contrary, sell lower-priced and higher-priced products. Hence, it would help if you used this discount calculator to calculate the profit margins correctly.