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Sales Incentives |
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During these difficult economic 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 7 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 £200 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 certificate that they give their customer.
On this offer we have designed a compensation package that could bring you as much as 36% commission.
For more information on sales incentives please visit our dedicated site
www.TopTravelRewards.com
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