Entrepreneur Why Haven’t You At Least Tested Marketing Your So Called Closeout Inventory Like This?
One thing is definitely for sure. Practically every retailer through no fault of their own will have to decide on the most profitable way to market or promote their closeout sale inventory, right? And one of the proven keys to effectively marketing or promoting their closeout inventory is not have to waste a fortune advertising it to the general public first. Say what?
Think about this all too common occurrence among the retail world. They budget so X% of their extremely hard earned money goes to buying outrageously expensive, dismally performing traditional ad or promotional campaigns, right? Which means the usual suspects like not exactly cheap, local prime time radio or TV ad campaigns.
Bank account draining local billboard ads or full or half page ads in the local throwaway guides etc. These mediums are not only outrageously expensive. But the vast majority of their costs typically eat into you or your major competitors initial front end gross profits.
So much so, “if’ you don’t develop a reliable long term back end marketing strategy. You just remain on the marketing treadmill constantly grinding it out. And competing with fiercely competitive newcomers anxious to race you to the bottom with constant front end price wars. Unless or until you wise up and do things just a little bit different.
Who Else Wants To Discover How To Sell Dead Inventory And Still Make A Whole Lot Of Money?
On the initial surface it may seem like an extremely tall order. But just like systematically chopping down a rather large tree. You or your major competitors simply take things in tiny stages. Until your main goal or goals are all but accomplished.
Please seriously consider the following extremely humble beginnings. Back when mega Insurance conglomerate Allstate was just starting out as a relatively unknown player on the nation scene.
Their marketing or PR (Public Relationship) department successfully negotiated setting up tiny kiosks within (at the time) mega powerhouse retailers-Sears department stores.
And practically every day a percentage of Sears first time or long term repeat foot traffic would inquire about the Insurer-s different financial products.
And ultimately a percentage of them would not only become first time, but far more importantly long term repeat customers.
Who constantly referred close friends, close family members, in laws, current and future co-workers or current and future neighbors etc. And Allstate literally save a fortune in outrageously expensive, traditional advertising costs in their early and extremely humble beginnings.
So How Could Your Retail Store Adopt A Similar Marketing Or Promotional Strategy In Today’s Fiercely Competitive Market Place?
(Extremely important note: Coming up shortly in part two. You’ll ‘discover” at least three potentially untapped marketing goldmines and or potential profit centers.
Sears or you or your major competitors definitely could at least inexpensively test, in the initial arrangement Allstate set up with Sears or any other major retail with either regional or national stores. So you definitely don’t wanna miss that one entrepreneur.)
Pardon my digression. So imagine your single location, non franchised retail jewelry store at least inexpensively tested the following, non traditional lead generation strategies.
First rather than continuously wasting a fortune every month (or every quarter) on that outrageously expensive, dismally performing local billboard ad campaign. Which at last count cost at least $40,000 per month. Say what?
And seeing ‘how” you’re already a quarter into the year. In just three short moth a staggering $120,000 dollars has left your account. And most of it sadly, will never be seen again. Huh?
On the other hand ‘what” if you or your major competitors just allocated a third of this gross amount or initially $40,000 dollars.
And you did the following with it.
Entrepreneur While It May Not Seem Terribly Obvious Now! (But There Are Countless Local Non Directly Competing Vendors Who Would Be More Than Pleased For You To Help Them Grow Their Business Or Service While They Simultaneously Help You Grow Yours!
How so you so skeptically ask? First, you or your major competitors seek out a few local higher end retail businesses which sell women-s higher end bridal gowns and other must have women-s accessories.
And instead of spending your $40,000 or X amount of dollars on the dismally performing local billboard ad campaign. Instead you divide $40,000 dollars by $325 dollars. Huh? And you should get 177 as a practical matter, right? ($40,000 divided by $225 dollars = 177 local women with enough income to purchase either a high end wedding gown or high end night dress.)
Here’s how you or your major competitors translate this particular numbers. First of all you or your competitors will successfully setting up a temporary portable booth inside each of their stores. Just like Allstate did with Sears way back in the day. Say what?
And pay them 30-50% of their lease payment for the month. (Just think “how” much financial relief or stress you or your major competitors infusion of cash will provide for them.)
This Is The Type Of Non Traditional Lead Generation Strategy Which Can And Will Skyrocket Your Long Term Front And Back End Gross Profits!
In any event the 1st 177 or X number of local women who purchase a higher end wedding gown or higher end night dress of any kind. Which costs at least $1,200 or X number of dollars or more.
Provided they also join you or your major competitors opt in email list. For an extremely limited time they also get to purchase an extremely eye catching pair of diamond studded earrings from you or your major competitors.
And even though they would typically retail for at least $650 dollars a pair. They join your list and before leaving the store they can purchase them for your actual hard cost of a pair which usually retail for $450 dollars a pair. Say what?
So they actually only spend $225 dollars for a pair of extremely great looking bling. Say what? You know they’ll be constantly bragging both on and off of social media, right? No doubt. And you at least some of their brides maids, extremely close relatives, friends, current and future neighbors, current and future co-workers, nieces who are at least 18, will definitely want in as well, correct?
And since these 177 or X number of local women all know at least 25 other local women from literally all walks of life, correct? So of these 4,425 locals. (177 x 25 = 4,425.)
Are You Starting To Appreciate How The Few Systematically Roll into The Many?
On average about 30% of them will typically become one of you or your major competitors customers. Usually within 90 days or less.
And “if” the average, initial front end spend of these 1,327 local women is just $400 dollars each. You or your major competitors just grossed an additional $530, 800 dollars. Say what? (1,327 x $400 dollars each = $530,800 dollars)
At around a 70% initial front end gross profit. But far more importantly entrepreneur. Those X number of locals just became 24/7 walking, talking local billboards for you or your major competitors. (For literally pennies on the dollar.)And you’re just getting started. Don’t you agree?
If it’s not already, it should start to become obvious “how” you or your major competitors should at least A/B split test marketing and promoting your so called closeout inventory. So you can consistently make a ton of money. Don’t you agree?
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