Thoughtful Thursdays – On sales incentives
It is almost impossible to go through a day without being exposed to incentives to purchase goods and services. The majority of incentives quantify value and offer savings to the purchaser.
- Buy one, get one (BOGO)
- Four for the price of three
- Free shipping for a limited time
- Spring promotion – act now!
It can become a buyers paradise if they are in the market for goods and services at the right time. For the seller, it can become an customer expectation that ultimately lowers the market prices and erodes profits.
A successful campaign will boost sales and have customers returning to buy again. As a business owner, run through the numbers and have a clear strategy for your sales incentives. Weigh the possible consequences and ask yourself if the business can tolerate the worst case scenario.
Sales incentives can be a good way to increase cash flow. They can also lower the price bar if customers only buy when there is an incentive offered.
Before choosing to make sales incentives part of your business strategy, make sure that the bottom line remains acceptable. Ask yourself: “Will it worth it?” Be mindful of doing it just because everyone else is doing it.
Have a question about sales? Contact Sakanashi and Associates Inc. and I will be happy to respond.
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