Hi All,
I’m constantly astounded at great craft butchers I see offering premium product at a little above cost. Let’s have a look at the consequences of this;
Positives Negatives
1. Gets punters in No money made
2. Gets sales up Reduces your overall gross margin
3. Builds footfall Increases labour costs
4. Competes with the supermarkets Removes focus away from what your specialist at
5. I have to do something! Only offer discounted product to people who are spending with you.
The difference between having a general offer to everyone and having an offer to your own loyalty customers is that it costs you less on your margin because;
1. Its only your punters getting the offer
2. You’re not giving the offer to “Offer Hawkes” these are margin eaters
3. Why should you have an offer open to a passerby who won’t ever buy from you again?
Finally, Isn’t it better to save all of your discounting ability for the people who are with you regularly. If you decrease the available audience for an amazing offer from everyone to just your customers then you can increase the value of that offer to your customers
Any questions call me anytime on 0872368956. Any comments just let me know…
Sincere Regards
P.S. please forward this on to anyone who you think might benefit.
Finbarr Malone M.Sc. Hospitality
Director
T (353) 1 485 3203
F (353) 1 5261012
M (353) 87 2368956
E finbarr@customerconnectireland.com
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