Look…there’s no easy way to put it…as of October 2015, the United States economy is still in a state of flux.
While news reports tout record levels of the stock market, the truth is that the average American consumer is still squeezed to the limit and business owners are still scratching their heads while trying to figure out how to fix things.
The good news?
If your business is willing to take a short-term financial hit, it may just come out on top.
Giving Consumers Deals They Can’t Refuse
In a stable economy, providing deals, whether through coupons, online incentives, or previous-customer discounts might work best, but these days, business owners will need to go above and beyond to win a customer’s business.
The reason? Consumers are still fearful of spending funds and many are concentrating on saving and investing with any discretionary money.
It’s true that some wealthy Americans are able to spend at will, but these consumers are few and far between right now. The middle class, or most of America, is having a hard time paying bills, let alone buying things.
This is where providing special deal options come in.
How Used Car Prices Are a Demonstration
Due to the continuing financial stress that many middle-class Americans are feeling, used cars seem like a better deal than purchasing new, but used car prices have been rising for years.
In the article, “Used Cars Prices Expected to Finally Drop,” the author points out that several factors have caused an expected drop in used car prices.
First, the supply of used cars may begin soon as lease vehicles are beginning to be turned in.
Next, trade-in values are on the rise, so if you’re considering purchasing a new or used vehicle, now is the time to do so.
Remember, as inventory climbs, trade-in values will drop, so if the aforementioned lease vehicle trend continues, your trade may be worth less.
In a nutshell, dealerships are in the perfect position to offer great deals by working with economic factors and consumer wallets.
Take a Thorough Current and Future Inventory
In order to offer consumer deals at a temporary cost, take a current and expected inventory of products, revenue forecasts, growth potential, expenses, and anything else involving cash flow.
These figures can provide your company with an average profit margin that is acceptable when discounting products and services.
Keep in mind that these figures will need to be analyzed and adjusted regularly until the economy becomes normalized so that you don’t continue to provide unnecessary discounts in the future.
About the Author: Andrew Rusnak is an author who writes on topics that include economics and business development.