So How Do You Increase Retail Sales Even Though Your Variable Cost Went Up!
Entrepreneur did you happen to read part two of my recent post on “how to” effectively craft business opportunities, so that they are practically irresistible?
If you didn’t, no matter.The reason I asked, is because rather than simply make this particular post a part three of that ongoing series, and try and razzle dazzle you even further, with more pro-active marketing prowess etc.
Instead,I want to take your mindset and focus (temporarily) in another direction.
(For sure there will be a bit of razzle dazzle yet to come 😎 , but first we need to address some extremely important and (far too often) overlooked issues as well.)
And (hopefully) by doing so, demonstrate how you can systematically increase retail sales , sometimes a lot in some particular instances, even when your major competitors (traditional) variables expenses are constantly going up!
With no potential end in sight. On the surface it sounds a little counter intuitive, but rest assured, it’s not.As you are about to discover.
So How Do You Continuously Increase Retail Sales Even Though Your Variables Costs Are Constantly Going Up?
As I pointed out earlier, this post is in essence, is actually part three of the ongoing series about “how to” effectively craft your business opportunities, so they are practically irresistible!
However,rather than just have you focus on more potential marketing strategies and or tactics etc.Instead, let’s focus on what happens to your bottom line, when you only utilize (potentially) outrageously expensive traditional advertising mediums, in order to get the word out about your business, products and or services.
So as we said in part two, a savvy retail jeweler that was currently number three in their local marketplace, decided not to merely spend their entire $30,000 dollar a month ad/marketing budget on the traditional local radio, TV and full page (Sunday) newspaper ads etc.
Because their number one major competitor easily spent upwards of $80,000 dollars per month in the exact same mediums and closer to $100,000 dollars per month, from early October right through the height of the holiday season!
Entrepreneur did you happen to notice “what” just took place there?Huh? This is what I mean with regards to variable expenses going up!
Did you forget that (each year) as the late year end, major holiday season onslaught begins.Guess what happens to practically all traditional advertising mediums rates? That’s right!They go up.And sometimes dramatically!
Who Else Just Wants To Focus On How To Increase Retail Sales?
That’s why this savvy jeweler (temporarily) turned (investigated) implementing some non traditionally marketing methods, so as to avoid and or greatly minimize the affects of ever increasing variable costs.
Case in point; let’s say both the summer and winter months are extremely brutal one particular year.
Which means, you’ll need to keep your place noticeably cooler during the summer and warmer during the brutal winter months as well!Correct?
And to do so means you’ll be using far more energy than normal, right? Bam!Welcome to the real world!
Plus, you also just hired a brand new (far more experienced) CFO and promoted two employees to higher positions within your company!Way to go! But again, your variable expenses just inched up,right?
And your fancy local ad agency firm really expects you to step things up this holiday season (because of increased local competition), and therefore they expect you to do far more local TV and radio spots this holiday season, as opposed to last year! (Read that as ), spend a lot more money on these really glitzy 30 & 60 second TV spots!
Of course you view these activities as progress and you should. But rest assured, they’ll mean you’re investing more money.So your annual baseline expenses just moved up again.Congratulations!
But as we mentioned in part two of this ongoing series, one of the “battlefield tested” strategies this extremely savvy jeweler did, was to partner up with local cruise ship directors and help sponsor/finance (one or two) day events, like the annual Valentines Day Sweetheart dinner dance and fashion show extravaganza!
(Which the local ladies just love!)
And remember how the fashion show director would showcase (at least) 25 extremely popular women’s designer handbags, that normally retail for anywhere from $250 to $1,700 dollars each!
And how inside of at least ten of those designer handbags the jeweler included ten pair of really eye catching diamond studded womens earrings,that normally retail for $400 dollars (or X!)
Right here is where I want to temporarily draw your focus!Entrepreneur, once those ten ladies leave that (one or two) night event.
Think about the total (potential) long term impact their (outrageously positive) goodwill advocacy will have on your bottom line, for weeks, if not months and months to come!
For one thing, they were not expecting to open a fancy designer handbag they just purchases (for say) $525 dollars and find a beautiful sparkling pair of womens diamond studded earrings, courtesy of the jeweler, correct? No way!
You May Not Be Able To Control Your Variable Expenses But You Can Control Your Marketing Strategies!
First, they’ll most certainly immediately call and or text their closet girlfriends, co- workers and or relatives right? They’ll definitely wear them to (either) their job or their own business the very next day, correct? You got that right!
And women from other (floors) and or other departments will be told to come see (just how) beautiful they are for themselves,right? And of course they’ve got to wear them to (both) show and tell their hairdresser the entire story,right?
And “what” about when they go to their daughter’s (or son’s) recital later on this month, they’ll need to be seen in them there too, right?
(And let’s not forget about all the continual social media activity as well!)
Ladies & gentlemen, do you see how all of these ongoing interactions will be free 24/7 publicity for both the local cruise ship owners and the extremely savvy jeweler as well!
And while the jewelers major competitors are dealing with ever rising variable expenses, such as local ad rates dramatically rising during the height of the annual holiday shopping season rush!Surprise! 😎
This savvy jeweler is not only by passing that (uncontrollable) variable expense increase, but all the while, they’re getting massive (non stop) positive on and offline word of mouth buzz 24/7!
Let Your Major Competitors Pay Retail For Their Very First Customers And Or Clients Until The Cows Come Home!
And remember, at least one of those designer handbags cost $1,700 dollars (or more) right? Guess what the purchaser of that one will find inside their bag?Because this extremely savvy jeweler definitely wants to infiltrate that particular purchasers immediate inner circle!
That’s why they always include a (time sensitive) VIP customer discount coupon, so the purchaser can pay (roughly) $500 dollars for a totally stunning diamond studded womens necklace, that typically retails for $2,500 to $3,000 dollars!Say what?
In other words, they sell that soon to be ( 24/7 goodwill ambassador) that eye catching monstrosity at their actual cost! 😉
And whoever that lucky lady is, you’ll never ever get her to stop talking about and telling about her extreme good fortune!Don’t you agree? 😎
And again, think about her immediate inner circle at (both) her place of business, job and general social circles!Chances are mighty good (entrepreneur), that if she can comfortably afford to pay $1,700 dollars or more for a fancy designer handbag!
So can her closets friends relatives and or associates etc! And the best part is, unlike their major competitors, this savvy jeweler didn’t have to dramatically increase their holiday season ad/marketing budget one nickel, in order to find this potential goldmine of an audience!
So I gotta ask you, which method do you prefer, when it comes to attempting to increase retail sales? Me too! 😎
Now as is customary during this part of our show.
Please share your extremely valuable comments (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!
As always, if you got any value out of this post, please Google Plus or tweet this.Thanks!
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