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Team Group UK

Registered Office

Team House,
208 Church Road
Hove, East Sussex BN3 2DJ
UNITED KINGDOM

Tel 01273 772 355
Fax 020 7748 2027

info@teamgroupuk.com
From o/seas please call:
(44) 1273 772 355

Team Telecom (Europe) Ltd
Company number 382 1103
Eurocom Marketing Ltd
Company number 04835378
Promolists Ltd
Company number 667 5901
Email Services (UK) Ltd
Company number 673 9535

 
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Sales Incentives

 
     
 
During these difficult economic times (and even in good times) the public needs to be given incentives in order to part with their hard cash and make purchases. The obvious and most commonly used way is through discounting, often heavy discounting – with some businesses having perpetual (or almost perpetual) sales. Two companies in this area that come to mind are Moss Bros and DFS Furniture whose businesses are now so oriented towards ‘sales’ that it would be difficult to see them selling any other way. Of course most people are sufficiently ‘savvy’ to know that these are not really sales in the true sense and that these businesses are still making generous profits even at the discounted price.

On the other hand there is the smaller business which, finding sales have slowed, immediately thinks ‘sales’ and discounting. Not having bought as well as the above mentioned retailers, these discounts eat into their profit margins – and unless they are substantial, the public is not particularly enticed.

Giving a 10% discount on a 210 item (ie down to 189) does not make for an arresting headline, and even if the retailer does make some sales each one is costing him 21 – and if his margin is 50% (say cost = 140 + gross profit of 70) then a 21 discount on 70 means that he is sacrificing 30% of his profit.

On the other hand, imagine a situation where, instead of giving a 10% discount the retailer announces that if his customer spends say 200 then he/she (the customer) will receive a certificate giving them up to 21 nights (or more) free hotel accommodation at participating hotels across the UK, paying only for meals. An offer like this has a perceived value of at least 1,000 or more and the best thing is not only does it boost sales, but the cost to the retailer starts at 10 and can drop to as low as 3 per booklet that they give their customer.

Another offer, gives 4 people 7 nights free accommodation at a variety of first class overseas holiday resorts, no strings attached, no requirement to attend a timeshare presentation and no requirement to book through any particular agency or airline.

On this the sales incentive service we offer a commission range of 10% to 15% that is price / volume related.

For more information on sales incentives please visit our dedicated sites

www.FreeHotelsUK.com  

www.FreeWeekInTheSun.com  
 
 
 

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