VIP discounting does work, but its incremental sales lifts are caused by the cannibalisation of existing revenue by selling at a discount, product. So what are the alternatives to bring people into the shop? One Is called "the long tail" which works by finding other goods and services that people want and will come to your shop to buy.
It works here is some wine that touch networks gave us because our clients have sold so much of their products (mainly telco products) but also many others over the year.
It brings into each of our clients that have an interface for an average shop about 120 people a month; the average profit on each sale is about $1.25 plus add-on sales. As you can appreciate with all the clients, we have it adds up to lot so explaining the wine we get.
Another service is the bill payment; we have. Here is an analysis of the breakdown of the bills that get paid in our clients' stores.
Although many are not aware, the fact is that bill payment is a colossal business today. I am not sure how many my clients are doing but a typical post office does about 200/day. If you remember when I spoke of many of our clients getting cut off Bill Payments here for a few hours a short time ago, based on what people were telling me it was costing them about 5 to 10 customers an hour, that a decent figure.
Here are two inexpensive ways, to draw people into your shop by using the "long tail," if you wish to read up more on the theory. please click here.
