Want to use sale as a promotional strategy without cutting the profits or product values? This guide and management checklist software like Nimbly can help you.
There are times when business owners need to drive up profits in a short amount of time. Choosing the right promotional strategy is important to increase profits without lowering the perceived values of your goods. Instead of simply lowering the prices, there are various temporary methods you can try, from coupons to special offers.
Here are some good reasons to hold a sale event occasionally:
Have you ever listed your inventory with management software just to find many excess goods clogging up its numbers? Having a sale is a perfect opportunity to remove those bulks.
If you have or develop new products but are unsure about the reception, start a sale. Offer lower prices for the special sale period. With this method, more people are willing to try a new product. If they like it, they are likely to come back even after the sale is stopped.
Certain events, like holidays, offer higher opportunities for business owners to attract customers and boost profits. This is the reason “holiday sale” or other similar events are limited. You can only sell until the “special events” end, but they cause significant profit boosts.
Interested in holding a sale without lowering your profits or product values? Here are the recommended strategies.
Coupons, especially digital ones, are still popular among shoppers. According to 2019 coupon survey by Valassis, 92 percent of its respondents have used coupons, with 42 percent downloaded online coupons to loyalty cards. You can use limited expiration dates on the voucher, encouraging people to shop “right now!”
Surprise and personal discounts are a great marketing strategy to boost your sale. Discount patterns make your selling technique predictable, but surprise or personal ones give your customers a more rewarding feeling. Personal discounts are especially great because you can target specific customers based on their shopping histories.
You can hold a sale by working on the shipping fees instead of the actual prices. However, make sure the shipping offers are conditional, allowing you to earn loyal customers from more specific categories. For example, you can give free shipping for items within certain weight limits, shipping destination ranges, or shopping hours.
Let’s face it: for certain customers, the word “sale” will immediately make them think low about your products. The more discerning customers probably think that your products are diminishing in values or qualities. Also, you might only target deal hunters in this case, not loyal premium customers who could take advantages of lower prices.
The solution? Change the language. Instead of “sale”, use “exclusive offer”. The wording will make your products hold their value in the eyes of customers.
Bundle products are common promotional pricing strategy. You can group several products that customers are likely to purchase together, such as coffee packs with mug and paper filter, or body wash with sponge and body lotion.
Another solution to boost a profitable sale program is by using Nimbly. This digital checklist software provides features to help you make sure your promotion programs is being run according to the plan: promotional materials are in place, products are available, visual merchandising is spot on, and your sales team's knowledge on the promotional activity is correct.
Every business will inevitably need to hold promotional activities from time to time, whether it's to turn excess inventory into revenue, testing the water toward new products, or increasing profits in special events. However, you should be extra careful in choosing promotional strategies so as not to reduce the perceived values of your goods.
Nimbly is a mobile solution that digitizes operations, improves efficiency, and generates cost savings by providing companies' management with data-driven insights from field operations remotely and in real-time.