Increasing Sales By Using Incentives It's been an incredibly hot summer and
besides having to work the entire time your kids has no school and you had the
stress of having to help them with their summer. The local car dealership knows
that you will need a new car and they start advertising "buy a New Car and Get a
Cruise for Two". You're thinking this cruise is worth about $3,000 and you need
a new car. This way you can kill two birds with one stone. In reality the cruise
only cost the dealership a few hundred dollars but the perceived value is much
higher. rather than the dealership having to discount their cars a lot of money
with the cruise they are increasing sales, increasing revenue, and minimizing
their cost. The Dealership is using what is refereed to as travel incentives.
And it's not just cruises. I've seen Disney vacations, trips to Hawaii, Club
Med, Las Vegas, and there probably are a lot more.I used to sell on EBay and
I've tried selling at cost and making a profit an the shipping and handling and
I've also tried raising the price of the item and offering free shipping. With
both methods the free shipping always finished first. There are some people who
only search for items that have free shipping. I one bought some CaseLogic CD
Wallets on a closeout for a couple dollars. I knew they were selling in the
stores for $29 and up. I gave these away free with certain items and my sales
for those items were always the best.Rather than take something you would
normally sell for let's say $1000 and discounting it to let's say $500 why not
get one of these travel incentives that cost you less than $100 and bundle it
with your item. Doing the math this gives you an extra $400 plus it gives the
customer an item that has a much higher perceived value. Basically we are
creating a win/win situation. With pricing it's hard to go up in price. If you
normally sell a cup of coffee for a dollar and you decide you want to increase
the price to $3 unless you have made some improvements with the coffee the
chances of you getting the extra $2 are pretty slim.I use to sell cars many
years ago and the customer is always asking for a lower price. Finally by
offering a warranty for free which had a perceived value of $1000 and a cost of
less than a hundred I made the sale Louis
Vuitton outlet
. I was creating a win/win situation by giving the customer
more and not having to give a thousand dollar discount for my dealership. It all
boils down to perceived value. Just because you pay $200 for a cruise doesn't
mean it's only worth $200. fashion designer chenximei901
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