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[A 3:13-minute read according to The Hemingway App. Crafted with love in San Diego, CA. Originally Published on November 6, 2019. Updated on January 15, 2020]
Thanksgiving’s coming up…
The day we enjoy family, football, and food comas.
But with Black Friday coming the day after, it means entrepreneurs have to stay on the move.
According to Adobe, online sales for Black Friday jumped 23% percent from 2017 to 2018 and you can expect that trend to continue for 2019. $6.22 billion in revenue was generated in online sales alone, and Cyber Monday sales are even higher at about $7 billion.
So what’s that got to do with you?
It means you’ll make a bunch of sales with a Black Friday promo of your own.
Before sharing the best ways to do it, there’s one thing you should never do.
Don’t discount your offers.
“What the? Didn’t you just say to join the Black Friday bonanza?”
I did. But hear me out.
Promos don’t automatically mean discounts.
When we discount our stuff, we lower our value and we become commodity sellers.
Commodities have no differentiating factors in the market.
It means that your product is the same as everyone else’s where the only thing affecting the buying decision is the price.
It’s like when you go to the swap meet and all the shoe vendors sell the same shoes. All the shirt vendors sell the same shirts. All the food vendors sell the same food.
It doesn’t matter who you buy from because the sellers are all the same.
You don’t want to sell commodities.
When you’re in a commodity market, you’re in a battle to lower prices, your margins get slimmer and slimmer, and it becomes a race to the fall of your business.
So if you shouldn’t deal in discounts, how do run a promotion?
There are 3 ways to do it.
There’s an industry built on pre-sales.
Companies like KickStarter and Indiegogo highlight new products/services and give businesses a low-risk platform to test their offers.
That’s what makes pre-selling so powerful.
They validate demand for a product before any time or money gets invested.
Most entrepreneurs don’t do this.
They build offers they think people want and end up with a garage full of unwanted stuff.
2. Bulk Orders
Costco comes to mind as one of the top players in bulk sales.
But it doesn’t just work for people who sell physical things.
For example, we usually save money on services by paying annually versus month-to-month. Or when we get 8 coaching sessions instead of one-at-a-time.
You’ll make less revenue per unit but you get cash flow in return. And that’s what small businesses need the most.
It’s smart to add a bonus to an offer.
It could be the tipping point that makes the sale.
Keep in mind that bonuses don’t have to be polished products because they’re free anyway.
For example, you can add on some of your last season’s inventory, offers that you’ve had a hard time selling, or samples of new products for research.
If you’re stuck, offer advanced cash: “As a bonus to getting this offer today, you’ll get a $50-gift card to spend tomorrow”.
“By Your Powers Combined…”
Pro-Tip: Combine these for the ultimate promotion.
For example, let’s say I wanted to build a monthly group-coaching program. In this program, I’d coach entrepreneurs on all facets of their business. From structuring offers, writing sales copy, building websites, everything…
And let’s say I wanna charge $97 a month for it.
If I ran a pre-sale, clients could lock in a price of $37 a month ($60 monthly savings).
Then, if they go for annual instead of month-to-month (bulk), they’ll save an extra 33%.
Finally, as a bonus to paying annually, they’d get 2 one-on-one sessions where we uncover more opportunities for making more sales.
Get the idea?
I hope this helps someone out there…
Til next time.