The practice of discounting has always been a contentious one with opposing camps of support and opposition heatedly debating their respective cases. Considering these antagonists many tales of woe or joy leads one to assume that there is no definitive, scientific answer to this age old question.

Rather it is up to the supplier to gauge what works best in his or her particular set of market conditions. This thorny issue is particularly relevant in today’s depressed economic environment and this article deals with some tips for discounting that worked in the recession.

Let’s face it, most pricing structures either have enough meat in them to allow discounts without decimating the bottom line or are specifically designed to include buyer incentives. Making a discounted sale is also certainly better than not making the sale at all.

So, where does one draw the line? When does one cross that vaguely defined line that makes discounting a threat?

Without overstating the obvious, the sale or no sale argument holds true as long as you don’t allow the inroads into your profit margins to exceed sensible levels. Customers are usually canny creatures and will quickly jump to take advantage of an over generous supplier.

This is where experience and a firm finger on the pulse of your day to day operations play a significant role.

Tips 1 - For this reason one should avoid establishing counter productive precedents when it comes to discounting and show that you are prepared to come to the party but not to being fleeced. This will build a healthy balance of customer loyalty and respect.

Tips 2 - Buyers are only interested in busting price levels are bound to move around anyway so are seldom worth the risk. The client dedicated to building relationships as well as pursuing competitive pricing will appreciate fair discounting, maintain their loyalty practice and stick around for the long run and.

Tips 3 - A good, solid grasp of what the market is doing and what incentives the competition is offering also goes a long way to establishing sound discounting practices. Customers are smart and just as committed to saving money as you are.

They know who is offering good discount rates and will look to their long time suppliers for like benefits. Staying abreast of current trends allows you to be better placed to make calls on when to offer discounts and when to stick to your guns on your pricing.

Tips 4 - The volatile nature of discount expectations makes realistic profit structures and built in discount relief practices a good start-up exercise for all businesses. Having room to manoeuvre makes negotiating the discount question a lot easier.

The existence of planned, periodic discount programs also largely eliminates the need to make sale-for-sale discount calls.

Tips 5 - At the end of the day these tips for discounting that worked in the recession may be no more than broad guidelines but then again there is no real right or wrong in the discount debate and it still remains a question of market knowledge and business savvy.