In the current complicated context, companies must reconsider their strategies so as not to fall into the error of making aggressive discounts, since they could affect the positioning of their products in the medium and long term.
Ariel Baños, a specialist in price management and founder of Fijaciondeprecios.com, explains some of the important conditions that must be considered when deciding to make discounts in an environment of high uncertainty such as that which has generated the current crisis of covid-19.
Discount promotions expressed in percentage terms rather than absolute values are typically those that consumers prefer when analyzing available purchase options.
Ariel Baños, a price management specialist and founder of Fijaciondeprecios.com, explains how consumers value discounts more, depending on how they are expressed in promotions at sales points and in advertising spaces.
In Honduras, rebates and discounts applied to sales should be detailed on the invoice, a change with which the business sector would disagree if the government decides to collect taxes on the discounted amount.
On March 1, the changes to the invoices, which were imposed by Agreement 817-2018, came into effect. Among them, it is important to note that the fields for discounts and rebates must be included in the format of the document.
Properly establishing the criteria for the application of discounts or special conditions helps to wisely manage price reductions without compromising the company's profitability.
Price management specialist and Fijciondeprecios.com founder, Ariel Baños, explains how through the "strainer strategy" discounts to customers can be managed intelligently.
Estimating how much customers would pay if they bought from a competitor and defining how the product offered differs from others are some of the strategies used to help increase sales profitability.
Ariel Banos, specialist in price management and founder of Fijaciondeprecios.com, explains how through the "umbrella strategy" companies can stop using discounts as the only selling tool.
How do companies that permanently use large discounts and offers sustain their strategy?
In his analysis of setting prices, Ariel Baños, an expert on the subject, explains the elements that companies should take into account when offering discounts and promotions to their customers, warning how the cost assumed when providing a discount must be "shared", what kind of promotions should be avoided, depending on the business, and what limits should be established on the number of items that can be part of the discount strategy, among other things.
Description of the workings of the retail scheme for discounts, off-price and outlet formats, and expertise in selling products at low prices which are from previous seasons or have minor flaws.
The objective of this marketing model is to pass on low prices to consumers and "... stay competitive in different retail segments in the country." This is the case of the Best Brands shop, which uses the off-price model, which has reported a growth of 10% in 2014, compared to the previous year.
In Costa Rica there is a proliferation of commercial premises under the generic name of "outlets", enabling companies to get rid of, at discount prices, surplus products.
Elfinancierocr.com reports that "last year, the company Tecnología en Calzado S. A., operator of 50 shoe stores in the country, opened its fourth discount store or outlet in downtown Cartago. "... it has the other premises (about 300 square meters) in San Jose and Santa Ana."
A 20% discount will apply for less-urgent shipments to the U.S. from any Central American Country.
Dubbed 'DHL Economy Select', the service offers day-definite reliability with email updates and online tracking.
Roger Crook, CEO of DHL Express for the Americas Region, stated: "During times of economic uncertainty, finding cost-effective service alternatives like this is essential".
The measure applies to all flights within Central America and it is looking to reactivate the executive segment, among other things.
With the aim of reactivating the business class segment, which experienced a reduction of 18% in occupancy during the first quarter of this year compared with the same period last year, Taca announced a reduction in fares, in conjunction with corporate plans and several pricing packages.
The luxury segment of the hospitality industry has come to grips with the recession by offering steep discounts, hotel credits or a third or fourth night free.
The drop not only in wealthy vacationers, but also corporate travelers, has hit the segment hard.
“We are seeing special offers from luxury properties that have never had them in the past,” Tim MacDonald, president of Classic Vacations, told the International Herald Tribune.