Question

Topic: Advertising/PR

Limited Guidelines

Posted by rum68br on 9/3/2008 at 8:09 AM ET 240 Points
Hello everyone,

I work in the pharmacological industry. I am looking for some sales promotions to help get rid of stock. The company has previously done BOGOF which has been running for a number of years instead of a limited period of time.

The problem is that prices are at rock bottom, meaning the company is losing money. If i was to do an incentive scheme the guideline states that incentives must be under the value of £5 and must be used in buyer premises of work.

Any help will be great fully received.
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RESPONSES

  • Posted by Jay Hamilton-Roth on 9/3/2008 at 8:58 AM Accepted
    Offer a big prize (iPod, cash, automobile, airplane tickets, etc.). Entrants must submit an original label (or UPC) from the product.
  • Posted by christine-speedy on 9/3/2008 at 9:35 AM Accepted
    Can you please clarify? Are you seeking incentive ideas for distributors (Dr's, retail buyers) or consumers?

    If you are selling product at a loss, I don't know how you can justify adding more losses on top of that as a sales strategy. I would create a letter or flyer. Is there a fear factor that you can address in the sales piece?

    INVENTORY BLOWOUT SALE- LAST CHANCE AT THESE PRICES

    XYZ product is the preferred choice by --- because it does a, b, c.
    or XYZ product is just as good as NAME THAT BRAND
    for a, b, c, but we've been offering it at HALF OFF for years.

    We've tried to keep our prices down, but with rising costs, we're actually LOSING MONEY on each sale. Because you're a preferred customer, we're extending our BUY ONE GET ONE FREE XYZ Product offer at these prices UNTIL

    You get the idea. If you want to send direct mail, the letter goes like this:- (partial excerpt from The Copywriter's Handbook)
    Dear _
    An email recently arrived in my box that said we would have to increase prices to offset spiraling operating costs.

    But I said, "NO! NOT YET!"

    I know that our loyal customers like you, Dr. Smith, expect the BEST VALUE for their money when they buy ABC PRODUCTS. And that's why I'm going to hold the line on higher prices just as long as I possibly can!

    We're losing money on each sale, so I can't hold out much longer. Take advantage of our BUY ONE GET ONE FREE offer now before price increases take effect. Call 555-555-5555 right now to place your order.
  • Posted by joshuacrumbaugh on 9/3/2008 at 10:45 AM Member
    First you need to find the source of the problem.

    ""Why is this product so hard to move?""

    Do customers not accept it?
    Are you having difficulty obtaining leads?
    Is your sales staff not closing properly?
    Does your call center have the proper training/scripting to convert each sale?
    Is the price too high?
    Is the price too low? (Recently started a project where the company thought their cost was too high and continued to lower their prices to no avail...I reccomended that we raise the price 300% - They are now moving more inventory than ever before. RARELY is this the case, but it always needs looked at.


    Find the problem and the answers will be clear. You'll get further in marketing by stepping back and analyzing the source of the problem than you will any other way.

    I'd like to hear your thoughts.

    Thank you,
    Joshua D. Crumbaugh
  • Posted by CarolBlaha on 9/3/2008 at 11:02 AM Accepted
    I think you should focus on your overall selling tactics.

    You are losing money and so to move inventory you want to reduce price more (via incentives)?

    Could it be your salespeople are order takers vs salespeople? Selling by price and price alone is a losers game. Someone will always beat your price.

    My fiancée sells pharmaceuticals. Typically the docs shop one or two products-- and never look into the rest. If you have a profitable item, how about bundling it with the low margin item? The blended price might balance the margin.

    Sell Well and Prosper tm
  • Posted by Levon on 9/3/2008 at 11:47 AM Member
    Maybe you could create a highly discounted website internet only order(s) to liquidate stock. It's in how you promote it.
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