![]() ![]() ![]() Let’s say your product is something fairly inexpensive, like a supplement that regularly sells for $25 for a bottle that contains a one-month supply. This tells us that the “right” answer depends on your price points, customers, and the perceived value of your offer.Īs Craig writes, what matters to your customers is “their initial impression of what sounds like a good deal.” He proceeds to give the following examples (emphasis added): However, Craig Simpson at Entrepreneur cites a study which found that a $50 off coupon beat a 15% off promo. Krista at FitSmallBusiness found that percentage discounts typically outperform dollar amount deals. ![]() It’s difficult to tell whether this offer is better than percentage discounts, as studies and tests have shown mixed results. “xx dollars off”Īn alternative to “percent-off” deals, this promotion involves discounting items by a flat dollar amount (e.g., $5 off or $20 off). If net profit numbers don’t hold for a 20% discount, we move it to 15% off and still sell more than if we offered a flat amount, like “$5 off.” Oddly, even if “$5 off” has the greater savings after doing the math, the percent-promotion tends to convert better.” 2. “Percent-off sales are fairly simple to profit-test, too. ![]() Krista Fabregas, a retail analyst at, is also a fan of percentage discounts and says that they produce one of the highest conversions for discount promotions. “5% storewide, with few exceptions, will garner more attention and generate more sales than even a 60% off clearance, the next-best option.” “We’ve tracked coupon and offer usage over tens of millions of promotions for the past nine years, so we have a solid understanding of what types of deals convert the best.”Īs for how to implement this offer, Mike says that storewide percentage discounts typically work best. “Hands-down, the most popular style offer is n% off anything,” says Mike Catania, Chief Technology Officer of. “20% off” or “50% off”) is one of the most popular - and effective - types of promotions. What kind of promotion would work best for your store? To help you answer that, here’s a rundown of the different types of promos in retail, and how they typically perform. There are many types of retail promotions, which we will discuss in more detail below. It involves offering shoppers a deal that would enable them to either purchase a product for a lower price (e.g., $10 off) OR get more value of the sale (e.g., Buy One Get One Free). What are sales promotions?Ī sales promotion is a marketing tactic used by retailers to drive sales. We’re shedding light on the ins and outs of promos and listing the most common types of sales promotions in retail along with some handy tips to help you implement them correctly. To get the most out of them, you need to consider the type of promotions to offer as well as how to execute them.Īnd that’s precisely what we’ll talk about in this post. Promotions are almost always part of a retailer’s sales and marketing mix, and for good reason - they can drive sales and help you move inventory.īut running promos isn’t as simple as slashing prices or putting up a “SALE” sign on your window. This post shows you how to figure out what promo to run and how your POS system can help.From percentage discounts and “dollars off” to BOGO and free shipping, there’s are several promotion types you could try.To get the most out of them, you need to consider the type of promotions to offer as well as how to execute them.Quick take: Sales promotions can do wonders of your top line revenue, but running them successfully isn’t just about putting up a SALE sign in your shop. ![]()
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