Sale off and how to build a smart sales strategy
Surely you will be no stranger to always seeing “Sale off” in many stores. This method aims to help brands reach more customers and increase sales. To better understand the sale-off and its meaning in business, let’s find out with Cleverads in the article below.
1. What is a sale-off?
Sale off is a term often used in business. This is a direct selling discount of the product above the previously listed price. The purpose of this is to stimulate buyers and boost sales for businesses.
Currently, many businesses use the form of sale-off in their sales campaigns. This method can help businesses earn profits many times higher than usual. However, the sale off usually only takes place for a short time, depending on the goals and campaigns of the business in each period.
2. Advantages of sale off
Businesses that apply the sale-off form will be able to attract a large number of customers who are interested in the product. As a result, not only do old customers know the brand, but new customers will also have curiosity about the product.
In addition to attracting, selling off helps businesses solve inventory problems well. Inventory cost for each business is always a headache. Therefore, when the sale-off is held, the inventory will be settled, and new goods will be stored.
Of course, in this form of sale-off, customers are the ones who directly receive the benefits. Customers can buy at a bargain price but still have the good experience with the brand’s products.
3. Disadvantages of sale off
Promoting purchases and increasing revenue by selling off must be calculated and have a specific plan. Because in addition to the good aspects of the sale-off form, the disadvantages of the sale-off can also cause businesses to fall into crisis.
When the sale-off program is held, businesses can lose a “bargain” for the products being sold. The resulting revenue may be lower than usual instead of generating higher sales.
When the sale-off is happening regularly, customers will likely be inclined to wait for the sale-off to make a purchase. This is highly detrimental to businesses. There will be many incidents that make the store’s revenue not guaranteed.
4. Difference between Sale off and Sale up to
These two terms are used a lot in business and sometimes confuse users because both forms reduce the selling price of the product to motivate customers to make a purchase. However, there are distinct differences for each form.
Sale off is a form of discounting the sale of all products in the store with the same discount. For example, your store announced that it would have a 20% off sale in the next 2 days. This means that all your products currently in the store will simultaneously be 20% off the regular sale price.
Sale up to large is also a form of sale discount. However, this form is the maximum discount price per product. As an example, the store announced a weekend sale of up to 70%, which means that the products in the store will be discounted. But for each different product, there will also be an additional discount. The most discounted product will be limited to 70%.
5. Principles to be followed
For the sale-off plan to take place successfully, you need to develop a detailed plan and aim for a certain purpose. In addition, a few rules also need to be followed to achieve the goal quickly.
Before conducting the sale-off, you need to check about the products in stock from the previous season or those of little interest. Then, focus on high sales-off from 50% – 70% for these products. This will help your business handle inventory issues, reduce costs, and make room for new products.
A common way businesses use to attract customers to access new products is to sell off. With a new product, it will take time for customers to accept and approach it. A sale-off is a way to shorten this time.
Applying the sale-off form on holidays and special events such as Black Friday, Tet, etc., is necessary. These days, the shopping demand of consumers increases and the sale-off form is applied to help businesses attract more customers.
Sale-off should only be applied for a certain time. It will usually last from a few days to 2 weeks. This is to motivate customers to make a quick purchase decision. And customers are not bored when the sale off is applied too much.
6. Sale-off periods attract customers the most
According to many expert assessments, during the year, there will be a few opportunities for businesses to take advantage and use the sales-off form effectively and increase revenue many times:
- For cosmetics, footwear, perfumery, and chocolate: For this category, the sale-off should be held on Valentine’s Day. This is the perfect opportunity for businesses to implement plans to increase revenue and attract more customers.
- Fashion industry: The ideal sale time of this category is Flash Sale (at the beginning of June, July, or December); Mid season sale (from June to August and from December to February next year); Singles’ Day (November 11 every year)
- Electronics industry: Sale off needs to be done on Cyber Monday (the second day after Black Friday)
- Household and furniture industry: Christmas (December 24) is the ideal time to make a sale-off.
- Summary of categories: Black Friday (4th Friday of November). This is considered the biggest sale-off festival of the year.
7. Conclusion
The above article from Cleverads has helped readers understand more about the concepts and meanings of the sale-off form. Hopefully, through the article, you can apply and use the sale-off effectively and increase the highest revenue.
