7 Ideas to Gain Sales and Margin this Year
How do you gain your best possible price in a time of penny pinching? I scanned some of the recent research and academic articles for ideas:
- Offer coupons. Coupon use is on the rise again. In 2009, companies issued 367 billion coupons and shoppers redeemed 3.3 billion of them, a 27% increase, according to Inmar. But who are these coupon clippers? A poll of more than 1,000 U.S. consumers conducted last year by Harris Interactive found that coupon use is highest among well-off (household income above $100K), college educated city dwellers. So consider offering coupons to your Facebook fans or local passer-bys via mobile offers.
- Swap time for money. Wharton marketing professor Cassie Mogilner finds that time is a more “personally meaningful resource” than money. “It’s more reflective of who you are”. Some customers may be more willing to prepare a dinner than treat to a restaurant, or assemble a piece of furniture rather than pay for the finished piece. Are there ways you can scale down your product / services so customers can swap time for money? This shift can appeal to the pocket book and the customer’s values.
- Organize around gift price levels. Most shoppers have a pre-conceived budget for each gift. Leading retailers like Etsy group products in the $25, $50 or $100 price groupings. Bundle several lower cost items together to create the perception of value and to fit within these targets.
- Make gift purchases quick and easy. Gift buyers tend to make quicker decisions and then move on. Make sure you have streamlined checkout and delivery processes, online and offline.
- Create quantity purchase incentives. Help your customers take care of even more people on their list with incentives to buy multiples.
- Offer personalized Gift certificates. Gift certificates are the perfect answer for a buyer unsure of size, color, taste, etc. Design the card or paper to be fast, customizable and attractive.
- Don’t forget about add on services. Items such as shipping, gift wrapping and personalization can either be included in a bundle to hit that price category above, or offered at checkout as an up-sell opportunity. One innovative idea is to bundle in a “basic” service such as simple gift-wrapping with an offer for more elaborate wrapping at $5-$10 extra. These last minute add-ons can dramatically increase perceived value and overall profit margins.
What pricing tactics are you planning on using this holiday season? Share in the comments section below.