Does business need a sellouts? Five stories - five strategies
A sale is one of the most powerful marketing tools. It is any promotion where the customer benefits (discount or bonus) by making a purchase.
Legend has it that the originator of the sale was Frank Winfield Woolworth, a junior salesman in a small American store. It was he who invented the system of customer service in the store and, without realising it, was the first to introduce the concept of sales into business: slashing prices on goods that were long outdated and no longer in demand. This approach proved successful and, over time, clearance sales became widespread in the retail industry.
To describe the key strategies of clearance sales, let's look at their history.
Legend has it that the originator of the sale was Frank Winfield Woolworth, a junior salesman in a small American store. It was he who invented the system of customer service in the store and, without realising it, was the first to introduce the concept of sales into business: slashing prices on goods that were long outdated and no longer in demand. This approach proved successful and, over time, clearance sales became widespread in the retail industry.
To describe the key strategies of clearance sales, let's look at their history.
Disposing of illiquid goods
The history of clearance sales dates back to the development of commerce in the 19th century. The main idea behind clearance sales was to get rid of old stock, obsolete goods or goods that had been on sale for a long time. At the time, merchants faced the problem of stocking and storing goods, and sales were a way of getting rid of them quickly. Sales attracted new customers and increased sales.
I Sales strategy: to get rid of stocks of illiquid goods, freeing up working capital to invest in more desirable goods or services.
Freeing up working capital
A concept as familiar to us today as "Black Friday" originated not so long ago, in the 50s and 60s of the twentieth century in the United States. Shops and retail chains were looking for a way to sell goods that had not sold out before Thanksgiving. This would help free up working capital to buy new merchandise before Christmas. That's when Sales Strategy II was born - selling off leftover merchandise to get money out of merchandise and into circulation quickly. The higher the turnover rate (a very important parameter in the merchandise business), the greater the profit.
When others are actively selling out - sell out
Planned sales help businesses overcome temporary sales slumps by keeping customers interested and maintaining a steady stream of revenue.
In 1993, China's "11.11" (November 11) sale - Bachelor's Day - was born. What started as a joke among students became a popular holiday. On this day in 2009, Alibaba Group founder Jack Ma held the first big sale on the Tmall platform. It has become an annual trend. To keep up with the competition, one brand after another began to organise sales. This is how the III strategy of selling out was born - when others are actively selling out, you have to act: you have to enter the market and offer discounts.
The history of clearance sales dates back to the development of commerce in the 19th century. The main idea behind clearance sales was to get rid of old stock, obsolete goods or goods that had been on sale for a long time. At the time, merchants faced the problem of stocking and storing goods, and sales were a way of getting rid of them quickly. Sales attracted new customers and increased sales.
I Sales strategy: to get rid of stocks of illiquid goods, freeing up working capital to invest in more desirable goods or services.
Freeing up working capital
A concept as familiar to us today as "Black Friday" originated not so long ago, in the 50s and 60s of the twentieth century in the United States. Shops and retail chains were looking for a way to sell goods that had not sold out before Thanksgiving. This would help free up working capital to buy new merchandise before Christmas. That's when Sales Strategy II was born - selling off leftover merchandise to get money out of merchandise and into circulation quickly. The higher the turnover rate (a very important parameter in the merchandise business), the greater the profit.
When others are actively selling out - sell out
Planned sales help businesses overcome temporary sales slumps by keeping customers interested and maintaining a steady stream of revenue.
In 1993, China's "11.11" (November 11) sale - Bachelor's Day - was born. What started as a joke among students became a popular holiday. On this day in 2009, Alibaba Group founder Jack Ma held the first big sale on the Tmall platform. It has become an annual trend. To keep up with the competition, one brand after another began to organise sales. This is how the III strategy of selling out was born - when others are actively selling out, you have to act: you have to enter the market and offer discounts.
Early sales
The growing popularity of online shopping and the desire to follow up Black Friday has prompted US companies to announce another day of sales. On the first Monday after Black Friday, offline and online retailers announce mass discounts. "Cyber Monday and IV strategy: for those who did not have time or forgot - repeat the sale. And it really works!
In pre-sales, the seller offers the buyer to change his decision and consider a more expensive or better version of the product he has chosen, but for some reason has not yet bought. The buyer can add related products to the main product at the time of purchase. Bundles (selling products in sets) with a discount of more than 50% increase both sales and the average cheque.
Optimise costs
In recent years, the "sale of the day" has become very popular on marketplaces. Such a tool promotes the goods of online shops at the top of views, allowing you to optimise advertising costs. And this is a V-strategy! Modern shoppers are increasingly looking for discounts and often wait for sales to buy at the best price.
The sales seasons in South Korea coincide with those in Europe. Twice a year, during the Korea Grand Sale and the Seoul Summer Sale, prices are reduced by up to 60%.
The growing popularity of online shopping and the desire to follow up Black Friday has prompted US companies to announce another day of sales. On the first Monday after Black Friday, offline and online retailers announce mass discounts. "Cyber Monday and IV strategy: for those who did not have time or forgot - repeat the sale. And it really works!
In pre-sales, the seller offers the buyer to change his decision and consider a more expensive or better version of the product he has chosen, but for some reason has not yet bought. The buyer can add related products to the main product at the time of purchase. Bundles (selling products in sets) with a discount of more than 50% increase both sales and the average cheque.
Optimise costs
In recent years, the "sale of the day" has become very popular on marketplaces. Such a tool promotes the goods of online shops at the top of views, allowing you to optimise advertising costs. And this is a V-strategy! Modern shoppers are increasingly looking for discounts and often wait for sales to buy at the best price.
The sales seasons in South Korea coincide with those in Europe. Twice a year, during the Korea Grand Sale and the Seoul Summer Sale, prices are reduced by up to 60%.
From goods into circulation
We've looked at the most common strategies for working with a sales tool. They will work for most businesses, especially if you're a B2C business.
Analyse which products are most popular and cross-promote them across all pages of your website. The more products you show visitors, the more likely they are to add them to their basket. Recommendations work well - Popular, Hits and Recommended blocks.
If a store doesn't work, it won't make a profit and will fail. It is important to recognise that every sale increases the engagement of the target audience and helps to move money out of the product and into circulation. Marketers at HLTS Co. Ltd. review partner websites and analyse their marketing strategies. The uniform policy of sales and discounts offered by HLTS is tested on specific groups of goods.
We've looked at the most common strategies for working with a sales tool. They will work for most businesses, especially if you're a B2C business.
Analyse which products are most popular and cross-promote them across all pages of your website. The more products you show visitors, the more likely they are to add them to their basket. Recommendations work well - Popular, Hits and Recommended blocks.
If a store doesn't work, it won't make a profit and will fail. It is important to recognise that every sale increases the engagement of the target audience and helps to move money out of the product and into circulation. Marketers at HLTS Co. Ltd. review partner websites and analyse their marketing strategies. The uniform policy of sales and discounts offered by HLTS is tested on specific groups of goods.
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