7 Ways to Offer B2B Discounts Without Hurting Your Profits
B2B discounts are a powerful way to attract and retain customers, but they can also hurt your profits if you don’t use them wisely. In this article, we’ll show you how to offer B2B discounts that benefit both you and your customers, without compromising your margins or your brand value.
Here are some tips to follow when offering B2B discounts:
1. Know your customer’s needs and goals
Before you offer a discount, make sure you understand what your customer is looking for and what their pain points are. This will help you tailor your offer to their specific situation and show them how your product or service can solve their problems.
2. Know your own costs and margins
Before you offer a discount, make sure you know how much it will affect your bottom line. Calculate your break-even point and your target profit margin, and don’t go below them. You can use tools like ProfitWell or Price Intelligently to help you with this.
3. Know your value proposition
Before you offer a discount, make sure you communicate the value of your product or service clearly and convincingly. Highlight the benefits and outcomes that your customer will get from working with you, and show them how you are different from your competitors. You can use tools like Value Proposition Canvas or Lean Canvas to help you with this.
4. Use discounts as incentives, not as concessions
Before you offer a discount, make sure you have a clear reason and a clear goal for doing so. Use discounts as incentives to encourage your customer to take a specific action, such as signing up for a longer contract, paying upfront, or referring other customers. Don’t use discounts as concessions to lower your price just because your customer asks for it or because your competitor does it.
5. Use discounts strategically, not randomly
Before you offer a discount, make sure you have a clear strategy and a clear plan for doing so. Use discounts sparingly and selectively, only for your most valuable or most loyal customers, or for special occasions or promotions. Don’t use discounts randomly or frequently, as this will devalue your product or service and train your customers to expect lower prices all the time.
6. Use discounts creatively, not generically
Before you offer a discount, make sure you have a clear idea and a clear format for doing so. Use discounts creatively and innovatively, such as offering free trials, free upgrades, free add-ons, free shipping, or free consultations. Don’t use discounts generically or boringly, such as offering flat percentages or fixed amounts off the list price.
7. Use discounts transparently, not deceptively
Before you offer a discount, make sure you have a clear policy and a clear communication for doing so. Use discounts transparently and honestly, such as showing the original price and the discounted price, explaining the terms and conditions, and honoring the expiration date. Don’t use discounts deceptively or dishonestly, such as hiding the original price, changing the terms and conditions, or extending the expiration date.
By following these tips, you can offer B2B discounts that will help you grow your business and delight your customers, without hurting your profits or damaging your reputation.
How B2B Discount Can Boost Your Business
B2B Discount is a global marketplace platform that connects wholesale traders with new buyers or suppliers on the global market. It offers a unique opportunity for businesses to sell or buy unclaimed cargo at a significant discount, minimizing the risk of losses and maximizing the profits.
The Rise of B2B Discount in the Global Market
According to a recent report by The Hackett Group, online B2B marketplaces can help businesses save an average of 5% on their purchases, compared to traditional channels. This is because online marketplaces offer more competitive prices, greater transparency, and easier access to a wider range of products and suppliers.
One of the leading online B2B marketplaces is B2B Discount, which specializes in unclaimed cargo. Unclaimed cargo refers to goods that have been shipped but not delivered or accepted by the original buyer, due to various reasons such as contract disputes, payment issues, or logistics problems. These goods are often stuck in warehouses or ports, costing the seller money and space.
B2B Discount helps the seller find a new buyer for the unclaimed cargo, and the buyer get the goods they need at a bargain price. The seller can list the goods for sale on the platform, providing the description, photos, and shipping documents. The seller also sets the price with a special discount of at least 5% of the contract value.
The buyer can browse through the available goods on the platform, filter by category, location, price, and other criteria. The buyer can also request a quantity discount from multiple suppliers for bulk purchases. Once the buyer finds the goods they want, they can contact the seller directly and negotiate the terms of the deal.
The Benefits of B2B Discount for Your Business
By using B2B Discount, both sellers and buyers can enjoy several benefits for their businesses. Some of these benefits are:
– Sellers can reduce their inventory costs and free up their cash flow by selling their unclaimed cargo quickly and easily.
– Buyers can save money and time by buying high-quality goods at a lower price and with faster delivery.
– Both parties can reduce their risk of fraud and scams by verifying the identity and reputation of each other on the platform.
– Both parties can expand their network and reach new markets by accessing a global pool of potential customers and suppliers.
References:
https://www.infosys.com/about/knowledge-institute/insights/Documents/future-customer-engagement.pdf
https://www.census.gov/data/tables/2015/econ/susb/2015-susb-annual.html
https://www.tandfonline.com/doi/abs/10.1080/00343409950081275
https://whatis.techtarget.com/definition/B2B2C-business-to-business-to-consumer
https://www.gov.uk/government/consultations/small-business-commissioner-role
https://www.profitwell.com/blog/b2b-discounts
https://www.priceintelligently.com/blog/bid/184676/How-to-Discount-Your-SaaS-Software-Product
https://www.strategyzer.com/canvas/value-proposition-canvas
https://leanstack.com/leancanvas
https://www.forbes.com/sites/theyec/2018/02/28/how-to-offer-discounts-without-cheapening-your-brand/?sh=5c0f9f8c6a9a
