Dealers are always looking at ways to increase sales. One historical favourite for increasing sales has been the percent off sale but with modern computer systems such as Evopos are there now better alternatives?
The trouble is that business is now so competitive, that it seems that there is a sale on almost every week, so plain discounts do not work as effectively as they used to. And this type of promotion substantially reduces margins without necessarily increasing turnover enough to cover the lost margin. The net effect can be reduced total profit during sale time, rather than the increase that you were expecting.
We have put together some modern promotion ideas that are designed to not only increase turnover, but to increase profit as well. None of these ideas is completely original, but you may find the list useful for when you are planning your next promotion.
1. X percent off second item. Example: buy one pair of gloves (at list price) and get a second pair at 50 percent off. Not only does this appear to be a better offer than the 25 percent off which it is equivalent to, but assuming your "normal" margin is at least 50 percent, then this offer is guaranteed to get at least the same amount of profit per sale as without the promotion, but the turnover should increase substantially with the promotion
2. 3 for 2. Example: 3 shirts for the price of 2. Again this promotion looks better than the equivalent 33 percent off. And with some price support from the relevant supplier, can be great for increasing brand awareness, turnover and profit.
3. Bonus item. Example: buy a new bike and get a free helmet from a specified range. This is again better than a flat discount as you are not sacrificing turnover. And depending on the quality, etc. of the bonus item, often the customer can be upgraded to a better quality item, complete with a healthy margin.
4. Package deal. Example: Matching Jacket, Trousers and Gloves for a package price of $$$. Ok you are giving a discount but they are buying more than what they would have done. Often once the customer is attracted into the store by the low cost advertised package, they can be upgraded to an alternate "package" at higher margins. And even if they take the promoted package, the profit from the deal is normally higher than if the customer only bought one component of the package at the regular price.
5. Bonus coupon. For example, buy any top range Helmet and get $20 off your next purchase. This has the great advantage that the customer has to come back to the store at a later date to take advantage of the discount. So the one promotion has actually generated two sales.
6. Loyalty Card. My personal favourite, you can award points on each sale, certain items can offer bonus points for promotion, and you can control how the points are spent. Typically points are equivalent to 1c to 5c in every dollar sent so it is a lot cheaper than giving discounts (imagine what some of your customers would say if you offered them 1% discount). Also you have additional benefit of knowing who is buying what. Also for those of us who are not brilliant at remembering names it is great to be shown all their details when you scan their card, a comment such as 'Still got the FZ6 Joey?' can turn a sceptical customer into a long lost friend.
Evopos is a modern Dealer Management Software that includes facilities to create and manage all these types of promotion and more. You can contact for more information or an obligation free on-line demonstration.
