Our latest value-based offer is these heavily discounted Parker pens we found. While the stock is a couple of years old, they still work fine and come in nice packaging.
We find that the dump bin approach works well for this type of stock in our store. It does not detract too much from the overall front of store message yet presents a magnet for people in the mall looking for a good deal. Within the first four hours of putting these out we sold seven pens. This is nice basket-building revenue.
We took care to create a sign at the top that reflects value more than discount. We presented the stock in such a way that supports this too – neat, organised. yes, we have a pack open. No, they will not be stolen. We track inventory carefully and theft is rare in this business. This is in part due to the time team members spend on the shop floor.
Beyond attention to detail through shop floor execution, the key to success here is getting the right stock at an excellent price. This is where direct supplier relationships are crucial. Here are my suggestions:
- Ask your reps – sometimes they have end of line stock with them.
- Negotiate – sometimes the starting price is not what they will sell for.
- Plan – try and have a terrific shop floor deal at least once a month regardless of the seasons you are running.
- Manage the offer - don’t keep it out for too long, consider moving on price to quit the stock.
- Target margin - we look for at least 60% for floor offers like this as part of our overall business GP goal.
- Target basket builders – products regular shoppers will find easy to add to the item(s) they visit you to purchase.
- Target new traffic – make sure the offer will also attract new shoppers to your business.
This Parker pen meeds all these goals and it’s working a treat. We were able to acquire plenty of stock to keep the offer live for two weeks. This is our goal. We were not given special treatment with the offer. As I mention above, the key is to talk with reps, to cultivate relationships.
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