Learn why discounting is "lazy marketing" that creates discount conditioning and discover the cash back rewards system that builds loyalty while maintaining full pricing
Discounting can spike sales, but it creates "discount conditioning" - your customers will only be interested in your products and services at a discount. This causes long-term damage to your business.
Result: Diminished returns, low retention, and customers who only buy when prices are slashed.
"Sales discounts are an advertising expense."
Discounts are NOT recorded as expenses. They are contra accounts to revenue - a direct reduction of your gross revenue to arrive at net sales. You're literally reducing your price AND your net sales number.
Every bank credit card, grocery store, casino, airline and tons of other brands use cash back rewards as their marketing gold mine. But they're doing it wrong.
Webigo's Method: Sell everything at full price while providing rewards that trigger return visits and higher spending.
Even with large ticket items at Home Depot, a decent reward starts customers thinking about returning and spending more.
Issuing rewards is NOT an expense - only REDEMPTION creates an expense. And even then, redemption happens with future visits that generate profit margin.
If you think customers would return anyway, you're wrong about frequency - rewards dramatically increase visit frequency.
Stores rarely see more than 20% redemption of outstanding rewards in any given month. Customers love to save rewards like a built-in savings account.
Studies show up to 28% of rewards are never redeemed. This is pure profit that improves operating cash flow.
Many customers have over $100 in rewards after spending $500-$1,000, but merchants haven't paid any redemption expense yet.
Restaurant growing $1,000 per month with 20% rewards and 20% monthly redemption:
Offering customers 20% cash back rewards makes them "flop on the ground with excitement." The extra 10% push (from 10% to 20%) creates hysteria and barely adds expense.
Join Webigo Business Membership and implement the proven cash back rewards system that builds loyalty while maintaining full prices