The Customers Nobody Wants: Can Your Small Business Profit from the Deal Seeker?

Posted by Adam_Gottlieb under Management
From http://frugalentrepreneur.com 4904 days ago

Nobody wants the deal seeker, those customers who incessantly scope out the lowest prices and deepest discounts. They swoop in, take the deal, then leave, never to be heard from again. But should you give up entirely on this segment of consumers?

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Comments

Written by businessavante
4904 days ago

Hi Adam.

My Dad was a coupon guy like Yoni's Mom - he'd use a coupon for an $8 lunch when across the street the standard meal was $6. The coupon was just too alluring. He had a basket in the kitchen with about 80 restaurant marmalades he'd pocketed (he figured he'd paid for them).

Duncan

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Written by Adam_Gottlieb
4904 days ago

Now that reminds me of *my* mother... except she preferred the little packets of sugar, salt, and ketchup :)

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Written by yoni67
4904 days ago

My Mom...the queen of coupon clipping. I swear that lady would drive two towns over to save a dollar on a purchase even if it cost her $2 in gas to make the trip.

It's a fine balance; when you are the customer, you're shopping for the best deal. When you're the business, giving the best deal can cause you to price yourself out of profitability.

Yoni

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Written by Adam_Gottlieb
4904 days ago

Yoni,

Your mom sounds like a lot of people today- just the fact that they seem to be saving a little money will be enough to make them go out of their way to capitalize on the sale/discount. It doesn't even dawn on them that they may be spending more in the process than they realize- so much so that they forgo the actual savings. Think: rewards cards, Groupon.

And offering "the best deal" doesn't necessarily have to price yourself out of profitability. There are many ways to offer discounts that either add a perceived value (ie the actual "discount" is quite nominal, but it *looks like* customers are getting a deal), or add some real value (ex in the form of added services or options). It really is a balancing act, but it's one that can be accomplished with the right effort and research.

As always, thanks for the comment.

Adam

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