Happy Monday Entrepreneurs at heart! Let’s get ready for Cyber Monday (if you have not done it already)…quite frankly it might be a little too late for Cyber Monday but a great time to plan for your Holiday Season.
Are you still scratching your head and are you undecided on how to lift sales for the Holiday Season? In today’s episode we cover an Online Marketing idea that you can easily implement on your WordPress site.
Have you considered selling Gift Cards for your E-commerce store?
Let’s do the numbers first; and make sure that any Marketing Effort makes sense and it gives you a good return in your investment (capital, time and effort).
Would this works for any business model, product or service? It all depends, in your actual business and in your margins.
So, let’s say you have a product/service that gives your a gross margin of 75%-100% profit or more; perhaps you manufacture the goods or you acquire them wholesale.
How about having a Cyber Monday Sale, selling only for during one day, Gift Cards for a reduced price? For instance, a face value Gift Card of $125 selling for $100 dollars? of a face value Gift Card of $100 gift card selling for $80 dollars? In this case, you will be giving away a 25% or 20% gross profit percentages from your bottom line or revenue.
The idea might sound real simple, but you will have to look at this idea from different perspectives (and see if it will benefit your business model and add value to your business and turn into a profit):
Will this discount allow you to capture more sales?
Will you be able to attract new customers?
Will your customers use all the money in the Gift Cards? or will they leave some money unclaimed/unused?
Will you increase loyalty among your customers?
Will they bring you more business? will they share/tell to their networks/peers?
Will they trade up some products for others more expensive, where you have better margins?
Will it give you extra cash flow to stock up for the Holiday Season?
How is it going to affect your inventory management?
At the end of the day, these answers will vary from business to business; and in some cases, you will not know unless you try it.
You will need to resource on some Google ad words campaigns or social media campaigns, like in Facebook ads.