Thursday, October 02, 2008

The perfect sale (or thereabouts)

What should a shop do when organizing a sale? Every Ram, Raju and Rahul stores has a sale these days proclaiming 50% off prefixed with a small barely discernible upto written beside it. How are you different?

The sale would be honest. Have a sale in a different place than your store is a good option. That has the added benefit does not make people ask around the entire store and find exactly 5 tables worth of stuff on discount. The problem is that once everybody does this, the whole value of a sale is lost. Yes, sure, each year you will get a new set of ullus walking up, but the customers you really value, will stop turning up. With a honest sale, you build your brand equity of a honest sale.

Second, instead of upto 50% say, more than 25% off - and advertise with the minimum value of your sale. Now that is really honest. That encourages people to walk inside, discover that you are delivering more than what you promised and builds more equity.

Third, if you just want to clear your stuff. Do not advertise. When your customers walk in, they will be happy to see a sale in the store. That rewards real loyalty. (If you have a list of regulars, inform only them and watch the word spread.)

In my experience, I have found Megamart to be the best when it comes to discount shopping. Their buy one get one free are usually buy one get one free and not something else. They give flat discounts on most merchandize. The Strand book sale each year is another decent sale - and I am not necessarily talking about choice here.

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