Question

Topic: Strategy

How Do I Coordinate Free Gifts With My Dealers?

Posted by ziczacxann21 on 9/23/2010 at 12:24 AM ET 250 Points
I intend to give away some free gifts (for example, a bag) to all end users who buy my product from me or my dealers for the month of November and December.

I wonder how do I coordinate this with my dealers (those retail shops that buy from me). The promotion goes like this: "Buy any of my product and get 1 free bag".

So if the retail shops buy 10pcs from me in November, he'll get 10pcs of bags free. But what about those stocks which he already has in his shop? Should I ask him to do a stock take to find out how many pcs he has in his shop and I have to give the same number of bags for those too?

I did a give away promotion like this before but they often end up asking me for more free gifts, citing that they still have lots of stock in their shop and they need free gifts for those too. But very often they don't sell that many within the month, and they end up giving away the free gifts in January, Feb and even March coz they have so many free gifts in stock.

I'm wondering how do other companies manage these kind of promotion? Do you give your retailers the free gifts based on the quantity he purchase NOW or do you give them the gifts for those items which he already has in stock?
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RESPONSES

  • Posted by CarolBlaha on 9/23/2010 at 6:08 AM Accepted
    When other companies do this they don't do it retroactive on past purchases. They run a BOGO, Buy One Get One.

    They may ask, but just say no. A promo is for a given time frame and I have never worked for one that gave it on past purchases. Your goal is to create more sales-- and a promo gives an urgent call to action. Now or it's gone.

    They probably don't "give away" the free gifts. They sell them. And make additional margin for it.

  • Posted by cookmarketing@gmail. on 9/24/2010 at 7:43 AM Accepted
    Is the drive for consumer Brand recognition? - retailers want to build there brand, not yours.
    Is it to increase your Brand awareness to retailers? - then you need positive reinforcement for retailers to respond and order/reorder from you. Your product selling off their shelves will accomplish that.
    What is the object of the promotion, then proceed
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