Frequently purchases of one product encourage purchases of an additional. A gift or loan of one product creates demand for something else that shows a profit. Individuals sometimes need just a little nudge to buy from you instead of from somebody else - and you can often arrange to give them that nudge at very little cost, if you just think about people's needs. In some cases, providing a totally free service is enough to tip the balance!
Waitrose, the upmarket supermarket chain in Britain, are well aware that people like to throw the occasional party. They sell everything anyone would need, from invitations through to cleaning products, but needless to say so does every other supermarket chain.
Waitrose's idea for nudging people was to provide a free glass hire service. If you're throwing a party, Waitrose will lend you the glasses, no strings attached, for free provided you bring them back clean. Breakages are charged at £1 a glass.
Obviously if someone is collecting the glasses from Waitrose the next step is to buy in the booze, the food, the napkins, the paper plates, and so forth. Couple of individuals would borrow glasses from the store and then buy everything else in Sainsbury's: the loan of the glasses shows trust of the consumer, which in turn will reflect back on the store.
The advantage for Waitrose doesn't quit using the sales, either - lending individuals things is really a way of demonstrating friendship, which creates a longer-term obligation on the component of the customer.
Waitrose have even extended the scheme to cover loans of fish kettles, since most households would only occasionally need to cook a whole salmon, for example.
Waitrose have a lengthy history of considering consumer need first, then working out how to make a profit from satisfying the need. Encouraging people to have more and bigger parties is part of that ethos - and very efficient it has proved as well.
Ensure that what you are offering will not price you too much to give. The glasses loan is actually very cheap, if the administrative element is disregarded.
Don't attach any strings. If you do, the element of trust is lost. Accept that some people will abuse your trust. Make certain that the free gift or loan really does link to something that will show a profit - in the situation of Waitrose, the high-margin snack foods are probably probably the most profitable product link. Be confident you can recover the loaned goods - or at least if not, that you can afford to lose them!
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Note: This article was sent to us by: Craig Morris at 01202011
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