BOGO OFFERS

BOGO offers are a popular marketing tool that can be used to increase short term sales volume. But you need to think carefully about whether or not they are right for your business in Naples, FL.

INCREASED PRICE SENSITIVITY

Consumers may wait for the BOGO deals to be announced and then purchase the product. This is true even for brands where brand loyalty exists. The normal sales at the market price are lost and the profit margin is reduced because of the BOGO offers.

IMAGE OF QUALITY DECREASED

These promotions could have a negative effect on a product’s image of quality. Customers may start suspecting that perhaps the product has not been selling well, or that its quality is lower than of competitors.

SHORT TERM SALES INCREASE

BOGO promotions are generally used for a short duration. This gives a boost to sales for a short period. BOGO offers mostly build short-term sales volume, which is difficult to maintain.

COULD HAVE SOLD AT MARKET PRICE

BOGO offers ignore the fact that customers may have no problem paying market price for your product or service.

DEAL DOESN'T MATTER

The deal doesn’t matter to a large portion of the buying public. Even deal seekers said price was the 4th most important factor when choosing where to shop and what to buy.

BRAND AND ENVIRONMENT

The brand and environment is most important to customers with deals being in 4th place. Making it wiser to invest in your brand and customer service than offering deep discounts.

Cost

90%

Profitability

10%

Customer Loyalty

20%

Level of control

30%

Exposure level

70%

Small business friendly

25%

Value of your brand

20%

Targeted Audience

80%

Effectiveness

35%

Lead time

10%

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