By Steve Spence
When you are selling a product, wouldnâ€™t it be nice if every customer always ordered two or four of everything they ordered? Think what that would do to your bottom line?
Well, I donâ€™t know how to guarantee that but I know how to encourage it, and it really works.
I show prices for everything in my showroom. Nothing odd about that. But I also show on every price tag the price for buying two or four or even more of the same item on the each price tag.
Everyone loves a bargain and your customers are no different. â€œJust think, if I buy two, Iâ€™ll get one freeâ€. That is the magic word above all magic words in the retail world â€“ FREE.
I was in a big tool store recently that had sent out flyers offering a pair of free scissors if the customer visited in a certain time and brought in the coupon. This one guy was beside himself because they had run out of scissors before he got there. Now these werenâ€™t finely honed shears from Germany, they were $1 scissors made in Asia with cheap plastic handles! Yet, because they were free, he probably drove from the other end of town to get his prize.
To some extent, we are all like that and your customers are no exception. To try and cash in on this trait, I always offer a second product, with similar imprinting, for about half what the first costs.
Hereâ€™s the logic. I usually donâ€™t charge a set up so I build that into the price of the first item. That makes the first item, even if it is as simple as a nail file, worth my time and effort. But once I have the art work done, how much time does it take to change a name in the art and make a second product? Usually only seconds.
Of course, I donâ€™t make as much on the second product as I did the first but I donâ€™t have the set up time I had to invest in the first product either. What I want to do is to spark them into spending that extra $5, $10 or $50 dollars they might not have spent otherwise. In some cases, such as keepsake boxes, I offer a free one if they buy two at the regular price. Coffee cups are always an easy sell. For every grandfather who gets a cup, there are usually grandmothers or aunts or uncles who would appreciate one too. All you have to do is put the idea in their heads.
So, if you only have one price on all your products, consider going back and adding a â€œ2 forâ€¦.â€ price with it. On a few products, like luggage finders, I offer them in sets of 3. Of course, I will make just one if they want it but who owns only one suitcase? This helps the customer to see the added value of the product. You could also offer this item as a sale item, â€œBuy one, get two freeâ€ but I like the â€œ3 forâ€¦â€ price myself. There is no â€œwrongâ€ way to do this so long as it encourages more sales, and you make a reasonable profit. Have some fun with it and offer â€œTodayâ€™s Specialâ€ or â€œThis week onlyâ€. Whatever you can think of to add value to a sale will also add to your bottom line and thatâ€™s how we win this game â€“ by increasing the bottom line!