Product and Service Promotions
Great way to increase your sales
Dangerous way to eliminate your profit
Promotions have to be managed carefully and within the law, whether it is products or service promotions.
Get it wrong and not only will you lose money you will damage your reputation too.
Promotions is a science, the data of your historic sales can be used to predict the future promotion performance of your promotions vastly increasing the probablity to creating value-adding promotions.
Use art, guessing what promotions to do risks losing sales and profit.
What is a Promotion? the selling of a product/service by:
Reducing the price, 10%, 25%, 33% and 50% off.
Multi-buys, three products at the price of 2.
BOGO - Buy one get one.
Bundling products at a discount, buy A + B Products at 25% of the price.
Basket analysis/Project pricing, promote a key basket item to drive sales of ancillary products.
Voucher/Competition, with every A bought you get entry into a competition.
EDLP - Every Day Low Prices
Promotions can increase your turnover. However, it might not necessarily increase your profit. Get it right, and not only will you gain sales/share profit will grow too.
Remember, Profits are sanity, and Sales are vanity; anyone can sell something for nothing, so be smart and bout products to promote and at what discount.
We are experts in pricing with 25+ years of experience in Margin management, not price reduction.
Please note Scotland has different rules:
Scotland has laws on minimum pricing and volume discounts.
You can have a bulk discount. However, the single unit price must be the equivalent price.
Minimum pricing applied to alcohol; a unit of alcohol can't be sold, including promotions below £0.50.