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SMALL BUSINESS PROMOTIONS |
Created on
2009-09-21 12:28:03 |
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A promotion is some type of offer that entices a lead to become a customer. There are many ways to help your business grow through promotions, but be careful. You do not want to give too much for free. If you can’t afford a promotion, don’t offer it, because you won’t keep your promise. Think small and frequent in the realm of promotions.
Free Gifts
Free products and services should be earned. You really shouldn’t waste possible profit on someone who has not spent any money at all, unless the free gifts are samples. If you are a service business, do not go around offering free services. You will spend hours of work without seeing a penny, and how will this be encouraging to you? Never give for free more than 10% of a purchase value in the beginning. You’ll be spinning in circles.
Discounts
These are the most cost-effective promotions. Everyone loves the word “sale.” It implies a deal, and it also implies that something of value can be owned for less. Please, be careful with your discount percentage. Most profit-margins cannot afford a 50% off sale. If you want to attract customers, limit your sale timeframe. You don’t want to run out of inventory without a real profit. If you need to sell at 40% to break-even, you’re barely making a profit at 50% discounts, and customers are not likely to purchase the item at full price with the same passion. Be strategic.
Associations
Most customers do not like being automatically enrolled for anything, but sometimes it is nice to link yourself with another business. Associate yourself with another service or product. Offering it as a conditional perk per purchase can do two businesses a lot of good with the same dollar. Think locally for these types of “and also, you can get…” promotions. Make sure your networking is appropriate.
Guarantees
If you trust your product is excellent, by all means guarantee it until the cows come home. However, be mindful of customers who save receipts and love to get new replacements after regular wear and tear. Unless you are Sears, can you really afford to be so generous with your warranties? Many businesses wisely limit their liability in print. The same goes with services – how many times can you re-do a job? There are bad customers out there just as there are bad businesses. There is no reason not to protect your business from crafty leads. Assess your risks when it comes to guarantees.
As a rule of thumb, small business promotions should come and go. People should be sorry that they missed out, and looking for the next deal to come. Contact your leads and returning customers with a great excuse – a new promotion.
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