Business Tips and Trends
Sales promotion is the process of persuading a potential customer to buy the product and is usually a short-term tactic to boost sales. The most common sales promo tactic is using COUPONS. The thought of having a certificate to entitle the holder to a price reduction, specific value, or gift, convinces the buyer they are getting the best ‘deal’ for a product or service. Coupons today are available online, along with several websites helping you get the most of coupons and are easy for the consumer to acquire. Inserts in the newspapers are generally considered to be more cost-efficient than direct mail. Coupons benefit the manufacturer as well as the consumer. Check out http://www.jillcataldo.com/ who understands coupons from the consumer-side more than anyone we know.
Sales promotions are big business but other techniques have proven results, too. Try using these other tactics for your next sales promotion:
- Contests or Sweepstakes – probably the most exciting sales promotion for the consumer are contests and sweepstakes. They seem to work best when a product or brand is not living up to its sales expectations. Experience shows that few sales promotions are as exciting as a sweepstake or contest. Mostly used in the 1960s and 70s, but they still exist today. An example of a successful sweepstakes promotion is the Publisher’s Clearing House.
- Stamp or Loyalty Plans – the reward for the promoter is that consumers come back often to fill their stamp card. My oil change service gives me a card and after the 12th return visit I get a free oil change. Loyalty is an extreme factor for the success of this kind of sales promotion.
- Bonus Pack – mostly this bonus pack is seen on food or over the counter drug products. For example, you’ll see ketchup with the ‘bonus pack’ in a larger container and claiming 25% more (for the same price). Bonus packs can be quite expensive. The cost for the additional product may not be much but the cost of the new container or the banding together with another product can be expensive to manufacture.
- Price-Offs – a price-off means a reduction in the price of the product. Price-offs are best suited when you have a competitive situation or you want to get rid of your current stock of product to introduce a ‘new and improved’ product and need to change the label or look of your product.
- In-packs, On-packs, and Reusable Containers – Just as the name implies, a pack promotion consist of free offers, premiums or packages that are given with the purchase of a product. My favorite promotions are the jelly jars that come with a reusable glass. I am a sucker for these promos, I know because I have a cupboard full of unmatched glass cups.
- Refund and Rebate Offers – As more and more shoppers seek methods to stretch their money, the refund offer or rebate program is really appealing. Refunds are usually instant and Rebates are something you have to send in to receive money back. Some manufactures offer a rebate with the hopes you don’t or forget to send in the rebate requirements. The purchase of several products from one manufacturer usually work really well in refund sales promotion. The refund promotion I recently used was 10% off my grocery bill when I got a flu shot at the pharmacy. It came out to cost me more but I truly felt as though I got a double dose of savings.
- Trade Deal – Usually in the form of a reduced selling price, the product is offered to the consumer as an incentive to stock the product, feature the product, and give the illusion the customer is “stepping” up with the trade. A perfect example of a ‘trade deal’ comes from the auto dealerships.
- Sampling – Sampling is one sure way of putting a product directly into the consumer’s hands. Over the years you will see fewer and fewer samplings being done due to the cost of trial sizing. Combined with coupons, this sampling can be a powerful tactic in sales promos.