Boost Your Small Business Saturday Sales with This Approach
Small Business Saturday and Black Friday are just around the corner, and it's time to make the most of this shopping frenzy. But before we dive into the details, let's get one thing straight: Black Friday belongs to the big corporations, so let's leave that to them. Small Business Saturday? That's our holiday – let's own it!
Now, I want to talk about something that might make some of you break out in a cold sweat: math. I promise to keep it simple and painless. In the world of retail, we often use something called Keystone pricing. Keystone simply means doubling the cost. For example, if you purchase a product for $50, you sell it for $100 – that's Keystone pricing in action.
But here's the twist – instead of bombarding your customers with percentage-off sales for Small Business Saturday, why not try something different? I've found that such sales can lead customers to hold off on purchases until these special occasions, and we want them to have what they love right when they want it.
At Becca Rose and Desert Rose, we've adopted a reward points program. It's a win-win for both our customers and us. Whenever a customer spends a certain amount of money, they earn reward points that later convert into store credit. It's like a little gift waiting for them to use.
Now, here's the Small Business Saturday magic – we double the reward points during this special weekend. It's not a discount off their current purchase; instead, it's an opportunity to accumulate those points faster. Many of our customers love saving up these points to treat themselves later.
If you want to offer a sale, I've got an idea that combines the best of both worlds. Imagine this: You have a $100 item, and you tell your customers that if they spend $100, they'll get a 20% discount, bringing their cost down to $80. Remember, we're sticking to Keystone pricing, so your cost on that item is $50, you charged $80, so you made $30.
Original Price: $100
Minus 20%: -$20
Total Cost to customer: $80
Your Cost: $50
$80-$50 = $30 (your profit)
Now, consider this alternative – what if you told them that if they spend $100, they'll get an item valued at $20 for free? Since you're following Keystone pricing, you've only paid $10 for that item. In the long run, you're generating $40, and they're getting a fantastic free gift with their purchase. Who can resist a free gift? Your long-term customers are thrilled, you're making more money, and they're getting a higher perceived value than a simple discount. It's a win-win scenario.
Here's the math on this one:
Original Price: $100
Free Gift: $20
Total Value: $120
Total Cost to customer: $100
Your Cost: $60
$100-$60 = $40 profit ($10 more than if you did a 20% blanket discount)
So, as Small Business Saturday approaches, consider shaking things up with these strategies. Whether you choose the reward points route or the free gift approach, remember to keep it fun, authentic, and engaging – just like the ethos of our stores.
Go out there and make Small Business Saturday your day to shine! Your customers will thank you, and your business will reap the rewards. Happy selling!