You probably have heard of Flash Mobs but have you heard of Flash Sales? This relatively new mobile marketing technique is gaining popularity with high end goods retailers.
The principle behind this is simple. Offer an awesome item at a price you can’t refuse for a very specific and short period of time with easy payment terms.
The results have been impressive. The chance to get a coveted pricey item at a super bargain proves too irresistible for many. This technique is one to remember. In an uncertain economic climate, deep savings will create sales. And if the retailer can offer great products at reasonable prices, the end results will be worth the effort and lost revenue on the product sold.
A word of caution — do not do this on a regular basis or consumers will begin to hold back buying your products as they will wait for it to go on sale. This mistake has been made by many retailers over the last decade and the results have been disastrous. When sales become the norm, unless you are seeking volume over profit margin, then avoid having sales on a regular basis. Keeping them special will increase interest and affect your bottom line more positively.
This is basically a new spin on an old marketing technique – the loss leader – where advertisers offered one product at basically a loss – usually at invoice or slightly below – to create traffic in their stores and showrooms.
Flash Sales can work well for a variety of items. Pick a popular item where your profit margin is high. Offer it for a specific time – like for a day or 5 hours at only a 10% profit e.g., and see what happens. Just make sure if you are successful that you have it in stock or have easy access to the item as you do NOT want to get into the situation of being out of stock or backordered. The negative impact could be great and the negative buzz hard to squash.
Also key to a successful Flash Sale is exclusivity. You want to be pre-emptive and offer a product your competitors cannot outdo you on. You need to have a viable list of prospects who have not purchased that product but that might be interested in it.
Flash Sales are one example of the new creative marketing that is required in today’s market, where mobile devices like iPhones and iPads and tablets are becoming the preferred communication devices and the most effective way to advertise.
– Geri Konstantin