Sale

Contents

• What is a sale?
• What tasks does a sale solve?
• Pros and cons of sales
• Types of sales
• Popular sale mechanics
• Steps for conducting a sale

What is a sale?

A sale is an event aimed at reducing prices on goods with the intention of selling them in large volumes within a limited timeframe. Interestingly, the term "sale" does not have a clear legal regulation, allowing it to be used to denote any promotions related to price reductions. For example, a sale can refer to the placement of a discount rack in a store or the sale of goods whose expiration date is approaching. However, for a sale to be truly effective, it must possess three key characteristics:

• Time limitation.
• A wide range of products.
• Facilitate quick sales of products.

It is important to note that sales are primarily relevant to product-based businesses, such as clothing or cosmetics sales, and are not applicable to the service sector, where products are made to specific customer orders.

What tasks does a sale solve?

A sale is a powerful tool in a business's marketing arsenal, allowing it to tackle several key tasks:

• Freeing up retail space: a sale helps to eliminate outdated and unsaleable goods.
• Minimizing financial losses: recovering part of the invested funds, as well as saving on warehouse rent.
• Attracting new customers: sales can interest those buyers who were previously hesitant to make a purchase.
• Reactivating old customers: an opportunity to remind those who haven't made a purchase in a while about the brand.
• Activating deferred demand: discounts motivate customers to make purchases they had planned for later.
• Increasing brand awareness: through advertising campaigns and word-of-mouth.

The publishing house "MIF" actively uses sales to increase its recognition and reader loyalty, especially in cities where its products are not available in bookstores.

Pros and cons of sales

Despite their advantages, sales can also have drawbacks, such as:

• Loss of profit: price reductions may lead to missed profit.
• Loss of customer loyalty: frequent sales may reduce the perceived value of the product in consumers' eyes.
• Limited assortment: not all sizes and options may be available, leading to customer disappointment.
• Hyper-stimulation of consumers: customers may start to ignore sales if they become too frequent.
• Damage to image: constant promotions can reduce trust in the brand.

Types of sales

There are several types of sales, each with its unique features:

• Seasonal sale: frees up space for new products, for example, at the end of the winter season.
• Holiday sale: timed to specific events, such as New Year or International Women's Day.
• Compensatory sale: helps reduce financial losses from unsaleable or defective goods.

Popular sale mechanics

Among various sale mechanisms, the following stand out:

• Discount: the most common method.
• Progressive discount: increases depending on the number of items in the cart.
• Gift item: a "1+1=3" scheme can be more attractive than a fixed discount.
• Flash sale: short-term promotions with significant discounts that create excitement among buyers.

Steps for conducting a sale

An effective sale requires a systematic approach:

1. Define the goal: clearly specify what you want to achieve.
2. Determine the timing: set deadlines, considering competition and relevance.
3. Determine the assortment: select which products will be included in the sale.
4. Calculate the discount size: analyze what level of discounts will be most attractive.
5. Launch advertising: create appealing promotional materials and choose channels for their distribution.
6. Prepare retail locations: organize the space and train the staff.
7. Analyze results: evaluate the success of the sale and the feedback received.

By following these steps, companies can effectively organize sales to attract new customers and increase their profits.