Advertising and Marketing Ideas to Create Phenomenal Profits In YOUR Small Business

When advertising and marketing, Is there a difference between offering 20% off or 20% in free merchandise? PDF Print E-mail

When advertising and marketing, Is there a difference between offering 20% off or 20% in free merchandise?

If you ever discount your product in yur advertising, this will interest you.

Let’s say you sell a product for $500. If you discount by 20%, it costs you $100 to do it. If you give an extra 20% in free merchandise, you’re only paying your actual cost for the additional $100 in product. The difference would work out like this.

20% Discount off $500. Cost of goods $250.

Retail price $500

Discount - $100

Cost - $250

Profit - $150



20% Free stuff $500 sale. Cost $250 plus $50 on free items

Retail price - $500

Cost - $300 (including free stuff)

Profit - $200

I don’t know about you, but my cost of goods is less than 50% of the sale price. We’re using 50% as an example.

But see? Your profit increased by 33% on the same transaction. But wait..There’s more!

What if you gave the Free merchandise in the form of a Gift Certificate?

Industry average is that 18% of all Gift Certificates are never redeemed. You keep that. Soooo….

You make 51% more if you give a Gift Certificate for 20% in free merchandise, than if you just give a 20% discount.

This only applies if you mail them the Gift Certificate. If you give it to them right then at the store, they will always use it right then. Mail the Gift Certificate.

Neat, Eh?
 

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Reviews from Amazon.com.

Your Survival Guide to Ad Reps Who Don't Know Any Better!, January 23, 2010

By Gloria Steinman "Obsessive Compulsive Book Re... (Sandusky, OH)

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If you have ever been approached by an ad rep, you know the feeling of confusion and frustration. They tell you how much your business will increase and how you will get SOOO many new customers. Then you run the ad, nothing happens, and the rep comes back and tells you to run it again to see if it works next time. Surely if you continue to run the ad SOMETHING will happen!

After months of spending hundreds or even thousands of dollars, many business will throw up their hands and proclaim "ADVERTISING JUST DOESN'T WORK!"

 But what you don't know, and to be honest the ad rep doesn't know it either, is that the simple act of purchasing an ad does not mean you will get a response!

There are tried and true "rules" to advertising and Claude's book is very good at laying those "rules" out in an easy to understand way. It is not the last book you should ever read on advertising but it can be used to IMMEDIATELY improve the response to YOUR advertising!

 I highly recommend this book to any small business that operates on a local level.

The $20 bucks you'll spend (at Amazon.com) on this book will be well worth it and if you actually put some of Claude's principles to work you could see a return on investment worth thousands of times the cost of this book! Claude has spent 10 years in the school of harsh reality and has tested and tweaked these methods for the survival of his own business.

Claude Whitacre is My Hero!

 An Incredibly Valuable Book!, January 19, 2010

By Mike McGroarty

The Unfair Advantage is an excellent book that every small business owner should have on their desk. Not their bookshelf, on the desk, and the pages should be dogeared from constantly refering to this book. All businesses need to and should advertise aggressively and this book really does give you an unfair advantage by teaching you how to craft your advetisements, and where and where not to place those advertisements. Advertising that doesn't work is expensive. Advertising that REALLY works is libertating and will take your business and your life to the next level and beyond.

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