How Extremely Savvy Marketers Leverage Their Closeout Sales Inventory!
(And How You Definitely Can Too!)
It’s definitely not at all that unusual for retailers to liquidate merchandise by going the evergreen closeout sales inventory route, correct? Sadly what the vast majority of these profit seeking retailers don’t see or readily appreciate is.
The liquidation sales event should be or quickly become the initial front end of their long term sales process.
Not the tail end. As you or your major competitors are about to discover. Let’s all face it already. Every body (including your ideal!) first time customers absolutely love an occasional “Everything must go sales!” event.
Especially when you or your major competitors strategically reduce pricing temporarily of course on certain lead magnet type items. Nothing draws a local crowd like a “grab them while the getting is good” fire sales event.
But it’s actual “what” typically happens before, during and after these periodic events that count. Turn the page and see for yourself…
Why Growing Your Business Or Service Doesn’t Automatically Have To Be Or Become An Uphill Battle!
Strictly for hypothetical marketing illustration purposes only. Let’s say a local women’s clothing store holds it’s annual “Blowout Sales” event. And because one of the top local JV (Joint Venture) or top cross promotional partners is a non franchised, local retailer jeweler.
Whose idea female customer currently has a total lifetime customer value metric of somewhere between $400 – $13,000 dollars. Give or take over the next five to seven year period.
Of course those hypothetical figures are gross not net profits. Nevertheless, the extremely marketing savvy retail jeweler could, (and probably definitely should decided!) not to waste an additional $40,000 – $75,000 dollars this month.
On another one of those outrageously expensive, dismally performing local billboard ad campaigns. Instead they’ll initially purchase at actual hard cost. One mid level bottle of high end perfume. Which typically retails for at least $650 dollars a bottle.
And gladly give it to the owner(s) of the women’s clothing and accessories store. Provided she agrees to let the retail jeweler set up a simply in store table inside her store during her/their X number of days “blowout sales” event.
And as an extra sweetener. The extremely marketing savvy retail jeweler will also purchase X number of 32 oz. sample bottles for each current employee. So during the event they’re all smelling extremely good and hopefully getting lots of compliments and extremely positive comments about the fragrance they’re wearing.
But This Is Just The Tip Of The Marketing Iceberg!
Of course the owner(s) will also be rocking some extremely eye catching $650 dollar a pair diamond studded earrings. Which they only pay the actual hard cost of $325 dollars a pair or X.
And each employee who’s scheduled to work for any of the “blowout sales” event days. They will also be strutting around wearing a pair of extremely eye catching diamond studded earrings which typically retail for $450 dollars pair.
But they only pay the actual hard cost of half or $225 dollars. But here’s the marketing twist. As long as the women’s retail clothing store produces X number of first time customers for the retail jeweler.
Regardless of “how” much each 1st time customer actually initially spends. Because remember the retail jeweler is literally banking on the long term repeat back sales over the next few years.
Strategically Building Out The Back End Of Your Long Term Sales Funnel Is Definitely Worth The Effort!
That’s how and where they’ll make the lions share of their gross profits. As long as they produce X number of 1st time customers for the retail jeweler. (Entrepreneur are you sitting down?)
They get their deposits on the bling back. (Say what?) So now they’re rocking their newly acquired for free. So you know they’re even more animated going forward. Wouldn’t you be?
Plus, as a potentially profitable (POS) Point Of Purchase upsell. Each customer who spends X amount of the retail clothing stores liquidation sale inventory. They automatically receive an extremely time sensitive discount coupon from the retail jeweler.
They can save 10% off their next purchase up to $200 dollars. But simply for entering the retail jewelers free monthly drawing. (By way of joining their opt in email list before they leave the clothing store owners store that day.)
For their chance to win a $2,500 dollar diamond studded necklace. They automatically save (for an extremely limited time!) is a chance to save up to 40% off up to $1,000 or X amount of dollars.
And each customer who purchases some new bling at a really nice discount. Going forward they now become an instant walking, talking billboard for the retail jeweler, do they not? For literally pennies on the dollar.
Are you starting to better appreciate how strategically utilizing closeout sales inventory. Can and should be the tip of the proverbial marketing iceberg?
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