Sales promotion is one of the most important things to consider when doing a business. If it’s done right you won’t only see a spike in sales, but also awareness from more audience, loyalty from customers, and more profits in the future.
But sales promotion isn’t just about reducing your prices and consequently reducing your own revenue. Here are 4 sales promotion ideas you can do that will attract customers and keep your business profitable.
1. Percentage discount
This is the most common type of sales promotion out there. The rule is simple: you offer X% discount off the original price of your products. Normaly, it’s between 5%-75%, depending on the products. The best-sellers or new-arrivals normally get lower discount while higher dicounts apply for items that don’t sell well or those that are already outdated.
2. Price cut
Just like percentage discount, you basically offer your products at lower prices. But in this case, you offer $X off the original price.
So which is better, price cut or percentage discount? We’ll have to tell you: it depends on the number. Let’s see an example. If a brand’s discounting a $200 item, which one sounds more appealing to you, a 20% discount or a $40 discount?
They’re the same! However, that $40 discount will sound like a better deal because it states higher number, right?
3. Buy one get one
This is another common form of sales promotion and is a good option especially if you want to move your inventory. So if you have products that haven’t been selling well and are nearing their expiration dates, you have to consider a buy one get one (BOGO) promotion.
There are several ways you can do the BOGO promo, the first being giving another product completely free with a purchase of another product of the same type or price. For a second option, you can give away a second product with a purchase of a first product with a higher type or a higher price.
4. Free gift
Free gift is also a good type of sales promotion if you want to move your inventory faster or if you want to introduce a new product that hasn’t hit the market yet.
But you have to be very careful when planning this type of promotion. There’s some studies showing that giving something as free gift will significantly decrease its value. Imagine selling a T-shirt for $30 plus a pair of socks as the free gift. People will perceive the socks to be worth less and will be less likely to purchase the socks at their normal price.
But of course not everyone thinks like that. A lot of us are aware that free gifts are just promotional items and they’re not going to be free forever. There’s a time limit a free gift can be “free.” So all you need to do is make sure your freebies are good enough, so people won’t mind spending their money to buy those products at their normal prices.
Ready to sell more products?
If you can see a huge sales increase already, expect increased workload too – especially when it comes to fulfilling orders. But don’t let the picking, packing, and shipping process keep you busy and distract you from other important aspects of your business.
Let 8Commerce take care of it all for you. Supported by the experts and updated technology, we’re committed to making your business easier and better. Find out more about our services by connecting with out team here.