Perceived Value Is Reality
The only way to keep up with the latest about promotions is to constantly stay on the lookout for new information. If you read everything you find about promotions, it won't take long for you to become an influential authority.
Perceived Value Is Reality
By Dennis Borsina
Why incentives close sales and cash is trash
Closing the sale is a delicate and at times unpredictable process.
Consumers have varying reasons to reject or accept an offer and often some
incentive is necessary. But what kind of incentive is most effective and
brings the most return for the retailer? A discount? A gift? Free
shipping?
The impact and value of the word "free" shouldn't be overlooked, but
neither should the cost of offering something for free. Especially,
though, retailers should consider what market researchers are calling the
"perceived value differential" or PVD for short.
On the consumer side, it's pretty simple math and the goal is
straightforward: get the absolute most for my hard-earned money. It's far
more complicated for the seller, who must develop a moneymaking strategy
via profits and loss equations or cease to do business at all.
Marketing researcher Dr. Flint McGlaughlin labels the cash discount as the
worst incentive one can offer. That's a general statement, and likely one
not applicable to all situations, but it makes sense on a few levels.
Offering $10 off is a straight cash loss to the retailer, and leaves that
$10 out in the Wild West of commerce. Better incentives would include a
$10 gift card, where a customer might spend more than that amount on a
second purchase at the retailer's store, not another place.
Perceived Value Is Reality
It seems like new information is discovered about something every day. And the topic of promotions is no exception. Keep reading to get more fresh news about promotions.
For online purchases, it doesn't take long for a consumer to weigh a cash
discount against the cost of shipping. It the shipping cost is more than
the discount, then the discount could mean very little. Free shipping, by
the way, has been cited repeatedly as the most sought-after incentive by
customers. It only works for the retailer, though, if shipping costs can
be worked into the overall pricing scheme. It may only cost $4 to ship an
item, or $20.
An important distinction there is the perceived value of shipping the
item. In all likelihood, the consumer is unaware of the actual cost of
shipping without knowing the weight, distance, courier, or bulk shipping
arrangements. But it is possible (even likely) the customer perceives the
cost of shipping is higher than a cash discount offered elsewhere.
Let's be honest about the ease of comparison-shopping online, while we're
at it. The retailer's goal is to bring the total cost of the item down
below what competitors offer. Perhaps your biggest competitor offers the
same product you do at $40, plus $10 shipping. Perhaps that same
competitor inflates shipping costs to make up for a steeper, heavily
promoted discount. If you could bring that total cost somehow to $45, even
if it means $45 price and free shipping, you win.
Another incentive that carries perceived value is a free gift. The
MarketingExperiments.com study looked at offering a half-pound of gourmet
coffee with purchase versus a free steel thermos. There is very little
difference in the cost of the two items ($2 vs. $3), but because the
perceived value of the thermos ($15) is twice that of the coffee ($8), the
PVD of the thermos ($12) brings back a higher return on incentive (ROIc).
We play this game in other economies as well. This very recently-passed
holiday season, recipients of a $25 restaurant gift certificate needn't
know the giver paid only $2 for it during a last-minute online promotion.
The recipient gets perceived (and real) value and gives the giver much
(perhaps disproportionate) thanks.
- - - - - - - - -
If you could give away gas and groceries would that increase the number of
subscribers, customers or sales you'd get?
Contact me directly for additional information at (401) 433 1455 or visit http://www.gasandgrocerydepot.com
USE: Promo Code: F7B8N to watch our 2 minute video first or to send me an email.
Contact me from the site and I will show you how!
Of course, it's impossible to put everything about promotions into just one article. But you can't deny that you've just added to your understanding about promotions, and that's time well spent.
Wednesday, January 7, 2009
Sunday, December 21, 2008
MySpace
I'm Dennis Borsina, and I represent Free Fuel Nationwide, a customer incentive company located in Gilbert, AZ.
I'm sure you'd agree that most businesses in today's economy are offering incentives of some type to retain or attract new customers.
We offer a very unique customer incentive… gas and grocery certificates that really work! Our Gas and Grocery Certificate Redemption Program is an incentive that will help your business bring in more customers and make more sales by allowing you to offer your customers up to $500 in gas or groceries for a fraction of that cost.
Why pay $25, $50, $100 or more for each and every gas card or grocery store gift card you buy to give to your customers when you can pay pennies on the dollar for a $25 gift card that your customers can earn back on everyday purchases each month… up to 20 months.
The program can be used as an employee reward too. And the holiday season is a perfect time to say thank you to your employees by giving them one of our gas or grocery certificates. Why buy them a turkey or give them a gift certificate for $50 when you can give them $500 back on their normal purchases over the next two years. It's a gift that keeps on giving.
These certificates are EXCLUSIVE INVITATIONS from you to your customers, inviting them to participate in a gas or grocery rebate program. These certificates are EXCLUSIVE because your customers can ONLY get them from businesses such as yours. Customers CANNOT participate in the Rebate Program without one of these certificates!
The Gas Program has been used, with great success, by many companies for about two years. And the Grocery Program is working extremely well already and we just officially launched it ten weeks ago.
Your customers will be able to shop at the gas station or grocery store of their choice, spend at least $100 per month on gas or grocery items, send in their receipts and receive a $25.00 gift card from that gas station brand or grocery store.
If the gas station brand or grocery store does not offer gift cards we will send your customer a $25.00 AMEX Gift Card instead. Every one of your customers will be able to participate in the program.
One very big bonus to the grocery program is that the consumer receiving the gift card every month will also receive money saving coupons that they can use in the grocery store.
This program is so cost effective that many of the independently owned stores of the largest manufacturer and retailer of furniture in North America, Ashley Furniture Homestore, used our certificates for their Labor Day Celebration AND their "Big Event" during September 2008.
Please see Appendix A, which is a reproduction of the Arizona Republic's weekly circular, page 4 that they used for Labor Day in Phoenix. Every weekend in August, Ashley ran these circulars in major newspapers in markets across the United States including the 5 major markets of Phoenix, San Diego, Las Vegas, Reno and Salt Lake City. If you have time, take a quick look at just one of their TV ads they ran for Labor Day:
http://www.marketingpromotionsandincentives.com/1.php
In September, they also ran a major advertising campaign for the "Big Event" in print, TV and radio every weekend. I've included that circular (Appendix B) for your review too.
Here is what one customer has to say about the success of their promotion using our gas certificates.
"Running the Free Gas promo was a great success! For a year when many of our competitors and others within our industry across the county are closing their doors, we've managed to continue to run strong promotions with the Free Gas promotion topping the list for the entire year. The people have also been great to work with - offering great customer service and satisfaction." - Sarah B., Advertising Manager from a Major Furniture Outlet
NOTE: The customer above went through over 3,000 certificates in a 3 month period. To qualify for one of their $500 Gas Certificates, a customer had to purchase over $999.00 in furniture. You do the math! These stores made over $3 Million dollars during the promotion. And the same customer just ordered 1,000 Grocery Certificates for their holiday sales.
Another customer sent us this testimonial, "I sold $18,758 worth of furniture on 11 gas certificates! This program works!" - Russell Rye, Rye Furniture
And another had this to say, "The best closing device I have ever seen", - Bruce D. Major Furniture Retailer in Chicago.
Townsend Honda in West Alabama used this radio ad for their promotion.
http://www.audioacrobat.com/play/WNKKq4Xk
Also, included is a collage of happy consumers that have received their gift cards and some testimonials from them. (Appendix C)
Appendixes D through H are examples of advertising and promotions that other companies have used to promote products and services using the gas and/or grocery program.
Our certificates come in $100, $150, $300 and $500 denominations. (Other denominations up to $500 can be created. Some restrictions apply.)
These are perfect for holiday promotions or sales!
Contact me directly for additional information at (401) 433 1455 or visit http://www.gasandgroceydepot.com USE: Promo Code: F7B8N to watch our 2 minute video first or to send me an email.
Sincerely,
Dennis Borsina
Account Executive
Free Fuel Nationwide
P.S. We have businesses running ads that say "Get $1,000 in Gas and Groceries when your purchase totals $XXX.XX" Since consumers can use both a gas and grocery certificates simultaneously that type of ad sounds extremely appealing to potential customers. If that is of interest to you... you'd just order an equal number of gas and grocery certificates and give one of each to your customers.
I'm sure you'd agree that most businesses in today's economy are offering incentives of some type to retain or attract new customers.
We offer a very unique customer incentive… gas and grocery certificates that really work! Our Gas and Grocery Certificate Redemption Program is an incentive that will help your business bring in more customers and make more sales by allowing you to offer your customers up to $500 in gas or groceries for a fraction of that cost.
Why pay $25, $50, $100 or more for each and every gas card or grocery store gift card you buy to give to your customers when you can pay pennies on the dollar for a $25 gift card that your customers can earn back on everyday purchases each month… up to 20 months.
The program can be used as an employee reward too. And the holiday season is a perfect time to say thank you to your employees by giving them one of our gas or grocery certificates. Why buy them a turkey or give them a gift certificate for $50 when you can give them $500 back on their normal purchases over the next two years. It's a gift that keeps on giving.
These certificates are EXCLUSIVE INVITATIONS from you to your customers, inviting them to participate in a gas or grocery rebate program. These certificates are EXCLUSIVE because your customers can ONLY get them from businesses such as yours. Customers CANNOT participate in the Rebate Program without one of these certificates!
The Gas Program has been used, with great success, by many companies for about two years. And the Grocery Program is working extremely well already and we just officially launched it ten weeks ago.
Your customers will be able to shop at the gas station or grocery store of their choice, spend at least $100 per month on gas or grocery items, send in their receipts and receive a $25.00 gift card from that gas station brand or grocery store.
If the gas station brand or grocery store does not offer gift cards we will send your customer a $25.00 AMEX Gift Card instead. Every one of your customers will be able to participate in the program.
One very big bonus to the grocery program is that the consumer receiving the gift card every month will also receive money saving coupons that they can use in the grocery store.
This program is so cost effective that many of the independently owned stores of the largest manufacturer and retailer of furniture in North America, Ashley Furniture Homestore, used our certificates for their Labor Day Celebration AND their "Big Event" during September 2008.
Please see Appendix A, which is a reproduction of the Arizona Republic's weekly circular, page 4 that they used for Labor Day in Phoenix. Every weekend in August, Ashley ran these circulars in major newspapers in markets across the United States including the 5 major markets of Phoenix, San Diego, Las Vegas, Reno and Salt Lake City. If you have time, take a quick look at just one of their TV ads they ran for Labor Day:
http://www.marketingpromotionsandincentives.com/1.php
In September, they also ran a major advertising campaign for the "Big Event" in print, TV and radio every weekend. I've included that circular (Appendix B) for your review too.
Here is what one customer has to say about the success of their promotion using our gas certificates.
"Running the Free Gas promo was a great success! For a year when many of our competitors and others within our industry across the county are closing their doors, we've managed to continue to run strong promotions with the Free Gas promotion topping the list for the entire year. The people have also been great to work with - offering great customer service and satisfaction." - Sarah B., Advertising Manager from a Major Furniture Outlet
NOTE: The customer above went through over 3,000 certificates in a 3 month period. To qualify for one of their $500 Gas Certificates, a customer had to purchase over $999.00 in furniture. You do the math! These stores made over $3 Million dollars during the promotion. And the same customer just ordered 1,000 Grocery Certificates for their holiday sales.
Another customer sent us this testimonial, "I sold $18,758 worth of furniture on 11 gas certificates! This program works!" - Russell Rye, Rye Furniture
And another had this to say, "The best closing device I have ever seen", - Bruce D. Major Furniture Retailer in Chicago.
Townsend Honda in West Alabama used this radio ad for their promotion.
http://www.audioacrobat.com/play/WNKKq4Xk
Also, included is a collage of happy consumers that have received their gift cards and some testimonials from them. (Appendix C)
Appendixes D through H are examples of advertising and promotions that other companies have used to promote products and services using the gas and/or grocery program.
Our certificates come in $100, $150, $300 and $500 denominations. (Other denominations up to $500 can be created. Some restrictions apply.)
These are perfect for holiday promotions or sales!
Contact me directly for additional information at (401) 433 1455 or visit http://www.gasandgroceydepot.com USE: Promo Code: F7B8N to watch our 2 minute video first or to send me an email.
Sincerely,
Dennis Borsina
Account Executive
Free Fuel Nationwide
P.S. We have businesses running ads that say "Get $1,000 in Gas and Groceries when your purchase totals $XXX.XX" Since consumers can use both a gas and grocery certificates simultaneously that type of ad sounds extremely appealing to potential customers. If that is of interest to you... you'd just order an equal number of gas and grocery certificates and give one of each to your customers.
Tuesday, December 16, 2008
Monday, December 8, 2008
Friday, July 25, 2008
How to intice more people in your online biz
Millions of Americans are feeling the effects of the highest gas
prices we've ever seen. And they will only go up from here. By
offering your customers FREE Gas, you and your business will become
their hero!
Look! Virtually every business in our community is offering some type
of incentive -- you see it every day! They're used to promote business
and lead generation. Why not be the company that offers something that
your customer or potential customer can really use? FREE Gas!
With gas prices continuing to soar, what better way to drive huge
traffic than an offer of "FREE Gas". You'll have customers lining up
at your door... when you offer them $500.00 in FREE Gas!
Our FREE Gas Certificate Program delivers measurable results for your business:
* Make your customers VERY loyal
* Increase your profit margins with no additional advertising
* Double or triple your sales
* Promote higher margin sales
* Increase the length of service agreements
* Increase new customer traffic
* Offer promotionals that tower above your competition
* Gain valuable information on potential customers
* Increase your customer database
* Retain current customers
* Re-energize old customers
* Express appreciation
* Generate local media "buzz"
* Provide high-value low-cost gifts
If you include a "FREE Gas" offer in your advertising, you will see
your bottomline skyrocket, just like the price of gas.
And, for a fraction of the gas voucher value, we take all the risk.
Advertise your big offer knowing that if you don't increase your sales
or get new customers we'll buy back your unused vouchers.
Summer is drive time! Be the first in your area to offer this unique,
low-cost promotion.
These vouchers come in $100 , 250 , 300 , and 500 dollar amounts.
They can used fore Gas,Diesel,Home heating oil, Propane
Pick the kind of fuel you want to use Shell,
Citgo,Sunoco,Chevron,Texaco,bp,Mobil
When you order your vouchers, you can order different amounts ( mix
$100 dollars with $500 )
depending what you want your customer's to do,
get different dollar amounts for what ever you decide works
best for you.
We like to sell these in lots of 100 ,but on the first order we can
make an exception.
If you want to know more about this great peogram, Just ask
ri.fuelpromotions@gmail.com
prices we've ever seen. And they will only go up from here. By
offering your customers FREE Gas, you and your business will become
their hero!
Look! Virtually every business in our community is offering some type
of incentive -- you see it every day! They're used to promote business
and lead generation. Why not be the company that offers something that
your customer or potential customer can really use? FREE Gas!
With gas prices continuing to soar, what better way to drive huge
traffic than an offer of "FREE Gas". You'll have customers lining up
at your door... when you offer them $500.00 in FREE Gas!
Our FREE Gas Certificate Program delivers measurable results for your business:
* Make your customers VERY loyal
* Increase your profit margins with no additional advertising
* Double or triple your sales
* Promote higher margin sales
* Increase the length of service agreements
* Increase new customer traffic
* Offer promotionals that tower above your competition
* Gain valuable information on potential customers
* Increase your customer database
* Retain current customers
* Re-energize old customers
* Express appreciation
* Generate local media "buzz"
* Provide high-value low-cost gifts
If you include a "FREE Gas" offer in your advertising, you will see
your bottomline skyrocket, just like the price of gas.
And, for a fraction of the gas voucher value, we take all the risk.
Advertise your big offer knowing that if you don't increase your sales
or get new customers we'll buy back your unused vouchers.
Summer is drive time! Be the first in your area to offer this unique,
low-cost promotion.
These vouchers come in $100 , 250 , 300 , and 500 dollar amounts.
They can used fore Gas,Diesel,Home heating oil, Propane
Pick the kind of fuel you want to use Shell,
Citgo,Sunoco,Chevron,Texaco,bp,Mobil
When you order your vouchers, you can order different amounts ( mix
$100 dollars with $500 )
depending what you want your customer's to do,
get different dollar amounts for what ever you decide works
best for you.
We like to sell these in lots of 100 ,but on the first order we can
make an exception.
If you want to know more about this great peogram, Just ask
ri.fuelpromotions@gmail.com
Monday, June 30, 2008
Friday, June 20, 2008
Every little bit of advertising helps
Hi,
I just wanted to give you head's up on this cool place to advertise.
You can post your ad as a blog post and have it seen by thousands all for free!
Not only will it be seen by other advertisers, the best thing is since the site is being
updated every day, the search engines will begin to pick up on your ads!
They also just added the ability to email your referrals once a week as a free member and
once every 3 days as a Pro member! Also new is a downline builder with over
40 of the hottest traffic building, list building, and income generating programs on the net!
You can advertise for free and even get paid up to 90% commissions for referring other members!
Click on the title to this post to sign up for free!
See you on the site...
Dennis Borsina
I just wanted to give you head's up on this cool place to advertise.
You can post your ad as a blog post and have it seen by thousands all for free!
Not only will it be seen by other advertisers, the best thing is since the site is being
updated every day, the search engines will begin to pick up on your ads!
They also just added the ability to email your referrals once a week as a free member and
once every 3 days as a Pro member! Also new is a downline builder with over
40 of the hottest traffic building, list building, and income generating programs on the net!
You can advertise for free and even get paid up to 90% commissions for referring other members!
Click on the title to this post to sign up for free!
See you on the site...
Dennis Borsina
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