Special offers: can they work for your business?Small Business Advice 23 August 2012
Special offers are a great idea in many respects; it’s just learning to use them effectively. A good business will use offers to promote a new brand or service, and there are several ways to do it. Here are some examples of how to set up special offers for your business:
Buy one, get one free
This is probably one of the most commonly known offers in the history of offers, but this is because it’s very effective. It’s a great way of getting attention on new products people may not usually buy and also getting rid of old stock if you can afford to do it this way.
Reduced items in your store are also a great idea if you want to get rid of products that are perhaps approaching an expiry date, or you wish to replace because of a new line of products about to come out and you want to make room.
This is something that different businesses can use effectively in different ways. It depends on the clients and/or customers you have. This is usually an offer that would apply to perhaps a wholesaler who offers a discount to those retailers who spend over a certain amount with them.
Printing coupons in the local press is a good idea to get people into your store, or perhaps putting flyers out in letterboxes etc. Although you will be required to lower your price or give something away as part of your offer, you will perhaps gain regular customers who may not have even considered coming to your place of business before.
Don’t overdo it
Special offers are very good at drawing in the customers and getting rid of stock you don’t require or need to replace, but if you do too much of it, you could end up having an adverse affect. Many stores that constantly have a sale on or offers all over the place can end up resembling a discount store like Poundland or something similar, where people do not necessarily associate the low prices with value for money. If this is not your aim, do not plaster your shelves with offers.
Of course, you’re going to know what price you bought your stock in at, so you will need to make sure that you only reduce the price of items, or give away items, to ensure you’re still turning a profit. Pricing yourself too low can lead to a loss, and no matter what anyone says, this is not a good way to generate business; simply because there is no need to do it. If your competition can price lower than you, it’s because they can afford to. Don’t for a minute think that they are not making a profit; they are.
Whether you’re going through a difficult patch, or you’re just trying to promote a new brand, special offers are an excellent way to increase exposure for your business and maximise profits. It may seem strange that you can actually make more money by having special offers, but it really does work. For more insights visit our small business advice section and don’t miss our guide on how to price a product in 5 simple steps.