Give It For FREE… (and still make money!)
June 4th, 2010 // 3:52 pm @ Admin
So many of us are doing 2 for the price of 1 promotions and 3 for the price of 2 and so on that it no longer gives us a competitive advantage, so how do we use product based promotions to give ourselves a competitive advantage, be different and still make money?
Well, if you’re bold enough – give it away for FREE! Now, I’m not completely mad so my suggestion is this:
Tell your customers that whatever they buy from you today, they can have for free tomorrow! You may want to run it on one of your quieter days, say Wednesday is quiet for you, then you might want to call it “Free Food Wednesday” and offer it only on Wednesdays which would mean that your customer would have their normal fare say this Wednesday and pay for it as normal, then they would keep their receipt and simply re-produce it next Wednesday to get the value of their receipt for free!
If you have even a 65% gross margin (and you should have a 70% gross margin, but that’s another story), then all you will be doing is reducing your margin on the two purchases combined to 30% which is exactly the same as doing 2 for the price of one but it allows you to communicate a much stronger message to your customer (and your competitors customer too!).
Remember, it’s not enough just to provide the offer, you have to communicate it properly for it to be successful. I suggest that you get a good graphic designer to do a quality poster concentrating on the word FREE and then display the posters everywhere you can inside and outside your premises and you can also use the poster artwork on your facebook & four square pages.
So, there you go – just like the food I’m suggesting you sell for FREE, this idea is FREE too. Good luck with it.
Category : Blog & Featured & General & Marketing Ideas