Products deals are offered to consumers in an effort to boost sales. These are usually available during product launches when companies want to override the fear of the unknown. Even if something isn’t tried and tested, the possibility of getting it for a very low price can be enough to generate purchases. Those initial buyers can then become brand evangelists once they experience the benefits. Although there is an initial loss due to low pricing, the long-term prospects can be good once the ball is rolling. Deals can also increase store revenue during lean times and ensure that old stocks are disposed of before they expire or become obsolete. The following are some examples of product deals:
Perhaps the most common way to get consumer attention is to offer discounts. This is usually in the form of a percentage deduction. For instance, a mall might have a grand sale on all items with prices cut by 5% to 50%. The prospect of being able to purchase items at a major discount can send droves of shoppers into stores as can be seen every Black Friday and similar events. Many of the budget-conscious households wait for these sales before buying expensive items and luxuries. For example, they can take this opportunity to get new shoes and accessories. On regular days, they stick to food and house needs.
Another way to make people open their wallets is to give them free stuff. Of course, there is a catch to this as they have to buy a product before they can get the freebie. The free item usually complements the main item. For example, fruit juice powder may come with a glass or a tumbler and oats may come with a bowl. The theory is that shoppers will probably want to purchase the additional stuff anyway so why not just opt for this product rather than the competing brand? To make this feasible, the freebie must be of relatively low value compared to the purchase price.
Buy One, Get One
This certainly turns heads whenever stores put up the sign. It is essentially a 50% discount on products except that it can be more beneficial to the store because they can dispose of items at double the rate. It is a good tactic to employ if there is a surplus of stocks which will soon expire or fall out of use. For example, clothing stores might run this type of deal at the end of every season. Look out to buy one, take one offers for jackets, sweaters, and other winter clothes right before spring.
This one has become popular thanks to the popularity of credit cards. Since the payments are made electronically, it is easy to trace the buyer and the items. Stores can give back part of the purchase if the shopper meets the minimum requirements for their promos. It is just another way to save money without really doing anything special rather than being a wise consumer.