Category Archives for "Marketing"

Tips for Retailers – How to Increase Your Sales the Week After Christmas

By Randall Orser | Employees , holiday season , Marketing , marketing strategy , Retail , Small Business

The week between Christmas and New Year can be a great opportunity to increase the profitability of your business.  If you do it right, you can net more from this week than any other week in the year.  Here are some tips to help you to have a profitable week.

Creating a Customer Experience – More than likely you will have customers in your store to spend those gift cards that they got for Christmas.  Many will be regulars but many of them will be visiting your store for the first time and you need to WOW them so that they will come back.  Think of little extras that you can offer to enhance their experience.  

Christmas is over, so freshen up your store.  Take down Christmas decorations and promotional signage and change the music.  For those customers who came in before Christmas a change of atmosphere may energize them to buy.

Sales and Incentives – Have your markdowns ready for the 26th of December.  The faster that you move this merchandise the sooner you can freshen up your store.  Some retailers believe in having a January sale instead, but this means that you will not be ordering new stock until February and your store will not have a new look until March.  Stuff bags with coupons to give customers incentives to return.

Full Price Merchandising -  Part of freshening up the store is putting new full priced merchandise out on the floor.  As many people are using gift cards, they might be more likely to buy new full priced items rather than those left over from the holiday season, giving you a greater profit margin.

Reduce your spending on Advertising – As it is after Christmas everyone is having sales. So instead of spending money on advertising use that money to motivate your staff to give exceptional customer service or use it on incentives for your customers.

Refocusing Staff -  The focus has changed from selling stuff, to keeping it sold.  Instead of having staff just concentrate on returns encourage them to focus on converting returns into exchanges and new sales.  Train them on suggestive selling techniques to use when they are processing a return. If you sell a lot of gift cards before Christmas ready your staff to sell prospective new customers.  This is also a good time to update your customer data base and to encourage customers to join your loyalty program.

Show Appreciation to Your Staff – They have just gone through the most hectic four weeks of the year and you are now asking them to do more.  This is a good time to show them that you care, coffee runs, catered lunches or even the services of a masseuse are ways to show your appreciation for their efforts. 

Remember most customers are just coasting until New Year and they don’t expect to find much in stores except sales on leftover Christmas items.  If you have made your target it can be tempting to sit back as well, but this is a great opportunity to create a good impression with customers by giving them new and interesting things to buy. 

Black Friday Shopping – Retailers “Dirty Secrets”

By Randall Orser | holiday season , Marketing , marketing strategy , Retail

Black Friday is upon us once again, and we have been bombarded with ads on tv and social media for the last few weeks.  Black Friday started in 1932 in the U.S. when it was considered the start of the Christmas Shopping season.  The name Black Friday originated from the most popular idea that businesses ran at a loss or “in the red” from January to November, but on the day after American Thanksgiving they would return to “operating in the black”. 

Nowadays people shop in person (if they are crazy), or online if they want to buy in the comfort of home.  Though Cyber Monday has now eclipsed Black Friday, it is still a huge shopping day when millions of consumers hunt for bargains and retailers find new and ingenious ways to get them to part with their money.  Here are some of the traps that shoppers can fall into if they are not careful:

Doorbuster Deals” are Scarce – although ads are not allowed to be totally misleading, or tell you something that is untrue, it can tell you something without focusing on the details.  For instance, that ad announcing 60% off a TV will also have small print to tell you that quantities are limited especially if it is a doorbuster deal, so even if you camp out all night you shouldn’t count on getting one.  Although these deals are known as “loss leaders” and stores certainly lose money on them, they recoup it and much more when people hoping to get the deal stay in the store and spend more money.  

Deals Often Require you to do Extra Work – When you see a heavily discounted product you may also see (after mail in rebate).  That means that you will pay the full price on the day and you will have to wait to get your money back, which could take some time.  Meanwhile stores are hoping that with the Christmas rush and activities you forget to claim it which is true for millions of people.

Price Matching Disappears Black Friday week – Most of the year retailers are happy to price match as it makes sense for them to make a smaller profit rather than none at all.  However, some retailers will have purchased extra stock of items at a cheaper price so they can offer doorbuster deals, heavy discounted promotions or be ready to take a loss to lure in customers.  Their competitors will not honour these discounted prices as it may mean that they will lose too much money.

Before and After Prices can be Sketchy – Consumers are easily persuaded to buy an item when they see “Was $100 now $60, and similar offers.  Be aware that retailers can offer an item at $99.99 and then on Black Friday “50% off now $99.99,”  same item, same price but the perception that the price is heavily discounted is more likely to create a sale.  Stores are able to get around the legality of this by being able to use a base price to discount from even if the item has only been at that base price for only one day out of the year.  They can also use a “suggested retail price” as their base price even it is ridiculously high.   Some stores actually charge more for an item on Black Friday than they do for the rest of the year when the item is on sale, hoping that consumers will buy into the signage and the shopping frenzy. You can also see “Before” pricing that was the price when the item first came into the store, when in reality it has been selling for 50% off for many months, so any “deal” that you are getting on Black Friday may only be a small amount off the previous regular price not actually 50% off that price. 

Watch out for Time Sensitive Deals – When checking out those ads make sure to read the small print to see if there is a time period when the item will be at that price.  The idea behind the time limit is to create a false sense of urgency and a shopping frenzy.  You can expect the price to go up significantly when the sale time is over.  You might see an item at $10 at 8am, it goes up to $20 at 10am and is $30 by noon so it is not a good idea to shop around in this case. 

Many Black Friday Deals are Discontinued, Obsolete or Poor Sellers – Black Friday is a wonderful opportunity for retailers to get rid of dead stock, so beware if that something seems to be a good deal, make sure that you are still able to get refills etc. for it and that it is not obsolete.  You might also see products that are a poorer stripped-down cousin to the one that you actually want.    Rule of thumb is always if it seems too good to be true then it usually is.

Retailers Want you to Shop In-store not On-line -  They create a Black Friday shopping frenzy on purpose to attract you into their brick and mortar stores so that you will spend more than you planned to.   However, shopping on-line is making the rush to stores obsolete, you can find the same Black Friday deals the same day or even the week before.

So, make sure that you aware of all the “tricks of the trade” before you rush out to get that deal on Black Friday.   It is really just a day of bargain shopping, some prices will be good, but some items will be available at the same price or better on other days.  If you don’t need to have the item straightaway, consider avoiding the rush and buying on-line.

From an article by Paul Suggett