“Going Out of Business” is the best way to bring in Customers
4 Dec
Final Sale! Inventory Blowout! End of Season!
There’s a reason why Retailers use these Signs.
image provided by Flickr
Especially in today’s economy, customers are looking for deals. If you want a sure fire way to build excitement in your business, find a way to offer a great specials and customers will come flocking in.
A colleague of mine was telling me today about how his staff mistakenly placed an order for twice the number of “Mumsettias” (a holiday potted flower mix with mums and a poinsettia in it) than what they really wanted. A mistake on their part, they had to find a way to deal with the extra inventory. Mumsettias are a holiday, potted flower that usually sells for $9.99 each. However because of the mix up, last Friday he changed his roads sign to read the following:
Oops…
Too many Mumsettias.
Reg. $9.99
Now $6.97
…and sold out completely by 3pm the next day.
Customers are looking for deals. They don’t care how or why there might be a deal, they just want to feel that they are getting bargain of some sort.
In this case, he basically admitted to making a mistake, which resulted a somewhat urgent need for him to give away more than he normally would have in order to sell through his inventory. In the message, he was able to convey that message, making it more believable and giving a reason for customers to come in and take advantage of this particular deal.
Why do you think that Going Out Of Business Sales are so successful? You could advertise 30% Off Everything all you want, and see some results. However if you advertised, Going Out Of Business Sale. 30% Off Everything. Your response will be ten times larger.
Why? It’s because people need to really feel that they are getting a deal. A simple 30% off might be a store promotional campaign, however a going out of business sale is a real deal to customers.
So what kind of reason do you have or can come up with to hold a sale? Some ideas could include:
- Inventory Overrun
- Inventory Clearance Sale
- End of Season Clearance
- Bought Too Much, Need to Move Product
The possibilities are huge. Find a reason why you are in a panic to sell merchandise, or why you have this rare opportunity for customers to save money. This will help build excitement and drive traffic into your store.
Andy Buyting has been in the retail industry since he was six years old. Today, he applies his entrepreneurial know-how to Green Village Home & Garden, one of Canada's most successful specialty garden stores. Green Village Home & Garden is currently expanding into multiple locations throughout eastern Canada.
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The inventory overrun/clearance is a great idea. I have a question about running the “Going out of Business” type of sale.
Say you’re running a campaign for “Going out of Business, up to whatever percent off everything in the store”. After your sale ends, and you’re still in business, would that give a negative image of your store to customers and reduce future business?
Peter,
I agree. I would not recommend using that promotion unless you were actually closing down a store. I only used the “Going out of business sale” example to demonstrate my point about how customers will respond to advertising that validates a good reason why they might find a deal. Going out of business is a valid reason why customers will find a deal, and that is why that particular message is so powerful and effective at drawing people in. But not one for an ongoing operation.
I once knew a local store who held “Going Out FOR Business Sales”. He would cover his front windows with newspaper and put those signs in the windows. That promotion was a huge success, the first time he did it. He then tried it a couple more times after that with very little success. The only feedback he got from customers then were lots of complaints, as most customers felt like he was trying to trick them. Not good for business. He is no longer in operation.
Find a valid and real reason why customers will get a deal at your place, and advertise it loudly. The better the reason, the better your chances of success.
Good luck.