Marketing Strategy: Earn Money By Offering And Not The Opposite

September 20, 2009 · Posted in Marketing 

marketing strategyThe numbers are misleading, we have detected this problem when making a diagnosis of business growth, we recommend the ‘Care’, when working their offerings, see this example:

To you, it costs $ 100.00 to produce a product, you decide to earn 50% for each one that sells, then the final price to the public will be $ 150.00, easy way, then if you sell 10 a month its profit will be $ 500.00. At this point you think we are talking about, but this would serve to give an overall idea, suppose now that you dropped your company sales or want to increase your sales and decide at that time to create a quotation, which will offer its customers a discount of 25%, then here is where money is lost, please pay close attention, lest they be lost in the explanation. You think if he won 50% and now decides to make an offer for 25%, then if still selling the 10 items your profit will be $ 250.00 a quite logical, but what actually happens to make ends meet you will only $ 125.00 profit and not understand why, see that the discount offer will be made not on its projected profit of 50% and not on the actual selling price, meaning that if you take the 25% off your final price sales will be $ 150.00, the public paid for the product only $ 112.50, if, as you had mentioned at the beginning its cost price was $ 100.00, the difference is $ 12.5 and as sold 10 the total is $ 125.00.

So it actually made a discount of 37% on your win and a 25% discount on the selling price. Then you will take them into account because if you plan to increase their profits should create a point of equilibrium to really see from that sale will increase those gains in sales. Since they now must sell 40 and not 20, or 10 regular price, to reach their projected earnings and of that number in future we might consider our offer as successful. For this we will give these recommendations.

1. When raising a bid will not forget that a percentage offered to the public and one that is internally driven by you.
2. Tenders will be to compensate for loyal customers and attract new ones, remember that it is not the hunter looking for offers, seeks to create lasting customer relationships.
3. Note that the offers can help to better position within a market but if you handle.
4. Offers are limited time short, otherwise consumers will assume that is the fair value and are unwilling to return to the original price
5. Tenders are effective if well managed, if indeed attract new customers and must take into account to invest in informing their customers that these exist and are attractive.

We wish him well and hope this will allow you to get a better perspective of the pros and cons of them. In times of crisis sure to position itself better in a market and not minimize their profits. Gain ground creating loyalty and not to be hunting offers customers who buy once and then never revisit it, raise the opportunity cost to buy out the competition and increase the benefits to be loyal to your company. When you see an opportunity take advantage of it and get the advantage of it. Thanks for visiting and we hope to return soon to our blog.

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