EP.78. Rolling out the cases before you rollback on prices

Play
Before you slash on the price, ask yourself why?
Before you slash on the price, ask yourself why?

Season’s Greetings! That is what you probably saw hanging out on store windows during the holiday season. And underneath that are the red labels with bag bold letters spelling out S-A-L-E. In the spirit of Christmas and gift-giving, people flock stores in and out. Whether they are leaving with or without a purchase, you might be left thinking if you should be pulling a sale yourself.

David Counsell and David Pritchard talk about the things you should consider before hanging out the red tags or publish them in your online store. What are your reasons for having a sale: Do you have an overruns of products? Do you have a lifting cashflow? Or you want to attract new customers. These are only a few considerations but are definitely the main ones to think about. Otherwise, you want to put your brand labeled in line with the el cheapo products? Learn these now and for this offer, we’re not just giving a huge discount but we’re totally giving it out for free. Click on your link and have a listen.

In this Episode

00:00 Opener
00:43 Welcome to another episode of David versus David
00:56 Greetings from UK
01:06 Greetings from Hobart
01:13 Let’s talk about dreams
02:30 But in reality, we are talking about business and how to make the future better
02:47 For today’s topic, we will be discussing about having a sale
03:01 We see these on the high street or even online
03:05 Why are they having a sale?
03:14 Let’s talk about all the aspects of having a sale
03:24 It is really a tough question
03:41 You really have to be careful in doing a sale and should know that you’re doing it for the right reason
04:00 You can have a value-add sale where you add to the product being purchased
04:14 Many car dealers apply this
04:25 Ask yourself, “If you are reducing your margin, how much extra do you have to sell in order to make the same amount of money?”
04:37 Are you going to sale because your business is quiet?
04:44 Do you have a lifting cashflow?
04:04 Do you have a surplus?
04:58 There are other reasons but these are the main ones
05:10 Having a surplus is dangerous
05:28 You might have a viable product but selling it more compare to your competitors
05:53 Others may be using the mechanism of a sale to bring in new people
06:07 The fault was they have no strategy to follow up
06:48 You might be seeing telemarketers giving away so much and you think how they managed to earn
07:07 Their strategy could be with offering other products or send you emails
07:15 It’s not on the first sale that they make money but on the 25th next products that they will offer
07:55 just like in McDonald’s, we sometimes buy fries wit our burgers just because out of habit
08:10 They have now moved on offering some other products
08:35 When having a sale, think of your strategy not just a discount
08:47 You can have free shipping but it can be of high cost
09:41 You can offer service that’s already existing on the way through
09:50 You can have a buy 2 get 1 free option
10:13 You can position your products strategically may it be in the store or online
10:34 May use of the psychology of buying
10:42 Are you putting the right products at the right place at the right time?
10:47 With Amazon, before you check out completely, they provide recommendation of related products
11:29 Consider how often you go in to sale
11:46 If you are perceived as always having a sale, it can be damaging
11:57 Software can be easy to discount with because of the little amount of provision
12:30 If people perceived you have a regular sale, they will never gonna buy from you at full price
12:46 If you’re price was never intended for a full price, you can get slapped for that
13:26 You don’t want t o perceive your brand as a discount brand
13:42 If you have calendar discounts, people will wait for the sale and therefore months prior to that can be affected
14:40 Don’t give discounts just because customers are expecting it
15:02 If you’re competitors are doing sale at a certain time, you don’t have to follow that
15:26 Differentiate with them and give people reason to go to you instead
15:44 If you’re just competing in price and not value service, it can be a downward spiral move
16:19 In many industries, telling people that you provide value add service puts you in a good light
16:44 It makes you like a leader in your field and others are just like “me too”
17:09 It can be surprising how some shops can provide 200% off
17:26 Are you willing to endure loss of money just to dispose the product?
17:52 How fast do you need to put the product into cash?
18:36 Think of the things that you can earn more money by selling immediately
18:49 Think of the space value if you have a physical store
19:09 Many retailers don’t know about this and let the products sit long
19:30 Walk around or check your online list and check how long have you had the product
20:15 In supermarkets, they often provide value-added products in softdrinks
20:34 Pay attention what the big supermarkets do as they pay attention to the amount per square area of their shops
21:22 If they found a whole shelf is no longer selling, then they can provide a sale or add the products as freebies
21:32 Supermarkets are good with stock control
21:44 Scarcity is your friend
21:53 There are sales that are time based
22:08 In Jewelry stores, there are progressive sale where the percentage is increasing per day
23:00 You can work with time scarcity or quantity scarcity
24:13 What’s the best way to implement a sale to acquire new customers?
25:02 You can provide offers to non-existing customers and a loyalty sale to previous customers
26:01 There was a shop that offers store hours by invitational only
26:49 It can be annoying though if same privileges are given to new and existing customers
28:04 Wrapping up
28:11 Visit our website at www.davidversudavid.com
28:18 Like us on facebook, www.facebook.com/davidversusdavid
28:22 Give us 5-star review in iTunes and help be found by more people
28:47 You can also like our personal websites David Counsell’s www.infernopromotions.com.au and David Pritchard’s www.d10solutions.com
28:52 Goodbyes!