What are the Limitations of Business Owners and Their Businesses?

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Some business will do anything to close a sale, including offering some major discounts. But at what point do these discounts hurt the profits, not help the profits? Below I will give you some tips on what to look for. These tips will explain why you are putting limitations on yourself and your company. They will also explain why these discounts might actually be contributing to your future downfall. 1) THE LIMITATIONS OF THESE DISCOUNTS Most retailers try to sell their products, at any cost. This is especially true when sales are slow and they are overstocked. What you have to keep in mind is the long-term outcome. Most of the discounts don't offer a window into a customer's long-term buying plan. They don't tell you how their decisions will change over the course of time. Even if you do sell something for 50%, you are essentially robbing yourself of profits. If these markdowns have already been considered into the plan, then that is one thing. But most retailers don't think long-term, they only think about their bottom line for that moment. That is a drawback, in it of itself. 2) ATTRACTING THE BOTTOM-FEEDERS This is happening to a lot of businesses, especially with retailers right now. If you continue to offer huge discounts and coupons all the time, you are going to slowly turn people off. You will also be attracting a low class of people to your business. This will turn others off too. The ones that were devoted in the beginning, won't be so devoted anymore. You might be losing more customers in the end, instead of keeping them. 3) DO THE DISCOUNTS MAKE SENSE FOR YOUR BUSINESS? Most big name people stay in touch with their vendors. So they can send back the merchandise that is not selling. They are referred to as "callbacks". Depending on the size and the way the stock sells, this might not be an option for you. It might be resourceful for businesses to offer discounts every so often, just to get rid of the back stock. But if you are doing it all the time, this could be a problem. Ask yourself if you have the protection to keep pushing the discounts that you are. Fred Reikowsky helps numerous business owners recognize their own limitations and issues, especially with regarding the offering of too many discounts. Reikowsky educates business owners through his experienced business coaching services in Ohio -