In the U.K. the pound shops are reporting a huge increase in profits. The pound stores have become popular and other stores have gone bust. New pound stores are being opened and are reporting good results showing the increasing demand of the public for cheaper products.
The pound line wholesale shops deal with manufacturers directly and this is a significant benefit over small businesses. Direct dealing with the manufacturers means the pound chains shall pay less by eliminating middlemen and their share of profits. These chains can deal with the leading brands of products.
They purchase warehouse clearance. Much of the products they purchase come from abroad, where the products are manufactured at cheaper rates. These stores purchase the end of life goods and resell them through their outlets. The clearance lines pound stores make money by buying large quantities cheaply and thereafter selling them at low rates.
There are a few tips that can help to increase the sale of pound stores. These are mentioned below:
1. Loyalty programs for Pound Store
These programs are a great tool for consumers because they offer insights into the preferences of customers. As per studies, loyalty programs can make customers feel happy. Customers with reward cards smile more than customers who are not a part of this program. The feeling of being a part of this group can increase the sale of pound stores.
2. Elicit emotions
Messages that contain strong emotions are remembered easily and effectively compared to messages that concentrate on rationality. If a pound store can make shoppers feel nostalgic, they do not worry much about money and thus they are willing to pay much more. Use music and pictures for creating an atmosphere that evokes emotions, and memories. Pictures of holidays, families and retro music if used frequently can do the trick.
3. Use the popularity of used items to make them more popular
People generally copy the behavior of other people when it comes to making buying decisions. The brain uses a shortcut to make choices using minimum effort. Online reviews are highly crucial for sales. Reviews of products are more important than users’ ratings. People prefer things that have been tried earlier. The pound stores should underline the popularity of the products.
4. Personalize
Buyers pay more attention to products if they think they are relevant to them. In a retail business, you can use data for personalizing products and offers. You should make customers feel special by using their names.
5. Free samples
Free samples can make people feel special and they will be ready to return the favor. Offer shoppers a freebie- this can be an inexpensive item so that they feel better and enhance the possibilities of buying.
6. Allow customers to touch the products
Consumers might pay more for products when they can touch and feel them. Sensory experience is highly important because if the customers spend a long time looking and holding products, they are willing to pay more for the products. People pay attention to products if they feel products are relevant to them.
7. Exclusivity
People value products differently and these depend on the way how they perceive them. If a product is rare, it becomes more valuable to them. To trigger this feeling of scarcity, pound stores should point out whether the products are available for only a limited time and whether any specific product shall go off the shelves.
8. Place popular but cheap products at the entrance
After buyers have made purchases, regardless of small they are, they are likely to purchase more items. To entice buyers to purchase more products, pound stores should place popular and low-priced products such as newspapers or candies at the entrance. These kinds of products that customers purchase without much thinking are suitable for last-minute and small impulse buys.
9. Surprise rewards
Surprise rewards can work like a magic for pound stores. Buyers feel happier and feel positive. Expected rewards are not effective and they might result in reduced happiness. If pound stores want to make customers feel happy, give them surprise deals or coupons. Try to avoid repeated promotions.
10. Play the right background music
The background music at a pound line wholesale store can influence the amount people shall spend on purchases. If you play classical or jazz music, customers shall spend more compared to if you play rock or pop music. Besides hearing another sense that impacts the spending habits is the smell. Knowing how the brain of buyers work and what can make it work can help to devise the sales strategy of a pound store.
Ensure that you use the appropriate approach for your store and the target buyers. Combine all these strategies with good customer service. By incorporating consumer psychology into the sales strategies, clearance lines pound shops can design effective campaigns thus enhancing sales.
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