This is the time, especially coming up for Christmas and the mass increase in purchases that businesses are looking for that edge to get the sale over their competitor.
What is going to make the difference? Is it price? Yes, people want to find the best deal. But, you can keep your price higher than your competitors by raising the perceived value of your offer.
For example, big price items such as mattresses and furniture may have a big difference in price from store to store. Maybe one mattress is $500 at store A and the same mattress is $545 at store B. Who is going to get the sale? Store A of course. But, if store B offered an incentive with the purchase of the mattress of a $500 grocery voucher the perceived value is now greater and more attractive to the customer than store A.
Inside the customers head the conversation goes like this. “Well, I could buy from store A and save $45 now, or I could buy from store B and pay an extra $45, but get $500 back in groceries. Hey, that $500 will almost pay for the entire bed. That means I am almost getting the bed for free and groceries are definitely something I need and spend money on every month. Yes, it makes more sense to go with store B for it is greater value and a better deal overall”.
How much did the grocery coupon cost the business? Much less than the $45. So, store B is able to take business away from store A and even keep the price a little higher in order to keep their profits high.
Now, what do you think this is going to do for word of mouth advertising? The word will spread quickly that you can get a $500 grocery voucher when you purchase a mattress from store B. Now store B has twice the sales as the would usually have and still at a higher price than store A.
Business incentives like this work like a charm and are sometimes responsible for the complete success or failure of some businesses. What is going to be the incentive that will put you over the competition this season?
For a full list of business incentive products click here
