Sean has 8 years experience as a supervisor and has an MBA with a concentration in marketing.
Retailers must employ sales strategies to help differentiate themselves from competitors and generate profit. In this lesson, we will discuss how to utilize promotional pricing, how to display items appropriately, how to market products, and how to utilize online retail platforms.
Introduction to Sales Strategies
Working in the retail industry is not an easy task for business owners. Owners have to stay consistently in line with the popular trends in the industry. It's essential to put strategies in place to help differentiate the business from competitors. Utilizing promotional pricing, displaying items appropriately, marketing products, and utilizing online retailing are important strategies to help increase profit and gain brand awareness.
Utilizing Promotional Pricing
Utilizing promotional pricing allows a company to discount items and helps increase demand. The company can mark down products to help reduce prices of certain products in the store. Promotional pricing can be used to introduce new items, or it can help sell an older item by lowering the cost and increasing demand. Markdowns are also utilized during specific holidays or during special events. For instance, on Black Friday most retail companies mark down products to stay competitive with other businesses and to help increase demand for specific items.
Another sales strategy retail companies can use is bundling pricing. Bundling pricing is when a company offers a discount when a consumer buys more than one product. Examples of bundling pricing could be when a retail store offers customers a buy one item get one free sale, buy two items get one free, etc. Somewhat ironically, bundling pricing and discounted merchandise can actually encourage a customer to spend more money than he or she would otherwise.
Displaying Items Appropriately
Displaying items appropriately can help increase sales because customers are more drawn to the products. When working in retail, it's essential that you are aware of your customers' shopping habits. Strategically merchandising products in particular locations is a crucial part of maintaining successful sales volume. If a product is in the wrong place, it could decrease sales. It's really important for management to be aware of customers' sales patterns to determine what items are selling well and what products are declining in sales.
It is important to have signage around the store so customers know where products are located. When a retail store has an exclusive sale, the company should have signage to help market the potential savings. Having a specified sales rack also provides a one-stop destination for customers seeking discounted items. Additionally, all products that are considered impulse buys should be near the sales counter because this is typically the customer's last stop before leaving.
Imagine you're in a small clothing retail store looking for a new T-shirt. You find the V-neck t you were looking for and proceed to check out. By the register, though, you notice some unrelated yet irresistible items. You come across a selfie-stick, an item you've been wanting but simply couldn't justify, that is until now. This is a good example of strategic merchandise placement resulting in an impulse buy.
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Marketing products helps create brand awareness and helps increase profit for the company. Marketing is an essential part of the retail business. Retail is a competitive industry, which makes it important for companies to provide a unique product and message to consumers. Marketing merchandise allows customers to know about the products and will enable sales to increase. Coupons, sales, and promotional items draw customers to the retailer's physical and online stores.
Imagine you own a mid-sized company selling home, office, and school supplies. A back to school sale would be a great way to drum up business. As an owner, you would want to offer coupons and promote products through various marketing platforms. Facebook, Instagram, email, billboards, print, and online ads are some of the techniques that should be used to help promote this sale.
Utilizing Online Retail Platforms
Online retailing allows a customer to use the Internet to purchase products without leaving the comfort of his or her home. A majority of large companies utilize online retailing to help boost profits. If possible, it's important to use online retailing to help increase sales. For companies that use an online platform for sales, you should have a web page that is configured correctly and is secure for customers. Online sales will continue to grow and it is a vital part of a retail company.
Let's review what we've learned. It's really important to put strategies in place to help differentiate your business from competitors, as well as to create brand awareness and to help generate overall profit. Utilizing promotional pricing allows a company to discount items and helps increase demand. Bundling pricing is when a company offers a discount when a consumer buys more than one product. Displaying items appropriately can help increase sales because customers are more drawn to the products. Marketing products helps create brand awareness and helps increase profit for the company. Online retailing allows a customer to use the Internet to purchase products.
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