Buy One Get One Free Is a Sales Promotion
Buy one get one free is a sales promotion tactic for many retailers. Have you ever taken advantage of a BOGOF special? If so, then you know how great of a deal it can be!
But did you know that there’s a perfect time to roll out these sales? We’ve done the research and found out when the best time is to do this.
What are sales promotions?
Buy one get one free is a sales promotion to drive sales and increase customer satisfaction. By offering shoppers deals on products, retailers can encourage customers to purchase items they may not have otherwise considered. Additionally, sales promotions can help build brand loyalty by providing value to customers.
Sales promotions are a great way to increase your top-line revenue, but running them successfully takes more than just putting up a SALE sign in your shop.
Below we will discuss the different types of retail promotions.
Sales promotions are a great way to increase customer loyalty and drive sales. To get the most out of them, you need to consider the type of promotion to offer as well as how to execute it. Your POS system can be a great help in executing your sales promotion.
Buy one get one free is a sales promotion and marketing technique used by retailers to increase sales and clear out inventory. They can be very successful in achieving these goals.
There are many different types of sales promotions, but some of the most common include discounts, coupons, and freebies. When used correctly, sales promotions can be a powerful tool to help you boost your business.
Buy One Get One Free is a Sales Promotion
People love free stuff. They value it more than they appreciate quality goods at a discount.
That’s where the BOGOF sale was born. The BOGOF is a tried and true selling technique.
It makes customers feel like they need to buy something quickly.
On the other hand, a flash offer prevents customers from getting used to buying on the discount terms. The BOGOF strategy is a great discount technique to use to appeal to consumers.
How Can Retailers Benefit from BOGOF?
BOGO promotions convert better than other discounts, so your engagement rate will already get a boost. Here are three benefits of BOGO.
1. Clear Out Inventory While Making Money
BOGO promotions are a great way to increase revenue without costing anything. In fact, they’re designed to boost revenue.
BOGO promotions are a great way to clear out inventory while still making a profit. By offering one item for free with the purchase of another, you can get rid of less desirable items quickly and increase your overall revenue.
Rather than lowering the price for that product, just offer it free with the purchase of another one.
The surprising thing about the two sales techniques is that even though one offers a large discount on a product, the other technique, which offers free products, still brings in more profit. This can be explained by how humans tend to value things more when they are free.
Consider an example:
Let’s say Product A sells for $10 and has a $2.50 cost. If you sell that for a 50% discount, you’ll end with $2.50 in profit ($10 x 50% = $5 minus $2.50).
Now instead of a 50% discount, you offer a BOGOF promo. The sale value is $10 now and the total cost of sales is $5, leaving $5 in profit, doubling the profit compared to the 50% discount promotion.
This is an example of how you can clear out inventory while still making a profit. By offering a buy one get one free promotion, you can sell your product for the original price while only having to pay half of the cost. This leaves you with double the profit that you would have made if you had offered a 50% discount.
Sometimes, you can make more money by running a promotional offer than you can by advertising. By offering a discount, you can potentially sell some of the old inventory that you aren’t selling as fast.
If you have products that are consuming a lot of inventory costs, such as garments, then a buy one get one promotion can help you get rid of old inventory and bring in fresh new stock. This is a great way to keep your business moving forward while still profiting from your older products.
On the other hand, you can get cash for slow-moving stock and reinvest it elsewhere. This can be helpful to clear out inventory and make a profit.
2. Better Response from Customers
BOGO is a great way for businesses to increase sales and for consumers to get more for their money. It’s a win-win situation for everyone involved.
According to a recent survey, 67% of customers admit that they like BOGO the most out of all discount schemes. In fact, 95% of survey participants said they have redeemed a BOGO offer at least once. This suggests that companies should incorporate BOGO into their marketing strategies to boost sales and increase customer loyalty.
While customers may think that they’ve gotten a great deal from a business, the seller gets both a profit and the customer’s happiness, which benefits the business in the long run.
3. Share Profits with Customers
The BOGOF marketing strategy is a great way to improve your company’s image by rewarding your customers with discounts. Many products don’t directly have a profit margin, so this strategy allows you to share that profit with the customer.
A company’s profit typically includes revenue and costs. This can help the company achieve other objectives, such as market reach, liability, and brand building.
Furthermore, it is a good way to encourage trial of a product and inspire the shoppers to switch from their regular brand.
Tips on How to Run an Effective BOGOF Promotion
There are differences between a good BOGO deal and a poor one from the perspective of both the consumers and the shoppers. Let’s explore what you can do to set your next BOGO promotion apart from your competitors.
1. Perfect Timing
BOGO promos are a great way to move inventory when you have a lot of stock that you need to get rid of. This type of promotion is also perfect for selling edible products with a sell-by date, as well as unit-based and bulk products.
However, not all product types are good for BOGOF. The best products to promote with this strategy are:
- Expendable: If customers like your product, they’ll come back for more when they run out of it.
- Pairable: You don’t want to offer two pieces of the same jacket. Two pairs of socks for the price of one are much better.
- With at least a 50% margin: If your product’s margin is 50%, then your sale is break-even. Try to include at least one product with a higher margin.
Your total deal price should fit the amount that your customers are willing to pay. To be on the safe side, you can take a look at your average order value and aim a little bit higher.
2. Find Your Target Audience
Once you’ve decided what to sell, it’s important to know who you’re going to sell it to. A BOGO sale can help you reach one of your biggest sales goals and create customer loyalty.
So, to make the most of the opportunity, it’s best to identify and create your target audience. Developing a target audience can help save you both time and money, as you’ll know who you’re focusing on, rather than trying to appeal to everyone.
When you have a target audience for your BOGO promotion, you can more efficiently decide what items to exhibit. Creating a target audience can help increase the likelihood of shoppers taking advantage of your promotion and make it more efficient overall. In doing so, you can expect to see better conversion rates, increased sales, and improved cash flow.
3. Create a Sense of Urgency
By setting a deadline for your Buy One Get One Free sale, you can encourage customers to buy now rather than later. This sense of urgency will help your promotions be more successful.
Retailers can encourage customers to purchase items by showing them a “countdown clock” that shows them how many minutes are left in the sale.
4. Multi-Channel Advertisement
There are many different ways you can advertise your BOGOF promotion. You can use different advertising platforms, or methods, to reach your target audience.
Traditional offline methods such as flyers, banners, and leaflets can be very effective. You can also use visual merchandising to grab shoppers’ attention and promote your program.
Online advertising is also a great way to reach out to your target audience. By investing in on-site advertising, you can reach out to your target audience with the websites they visit most.
Mobile is a huge part of the online retail industry, so it’s important to reach out to shoppers on mobile channels. Social media and email marketing are great ways to reach out to mobile users.
Make sure to use all possible channels to generate buzz for your product.
5. Take Advantage of Social Media
Social media is incredibly popular, with 80% of Americans engaged in 2019. Retailers can’t afford to ignore this trend, as its popularity is only growing.
While it’s important to use social media, it’s also important to use it in a way that matches your market. Also, you can use it not only to promote your deals but to receive feedback and address customer concerns.
Social media can be a great way to respond to customers and share information about your business. Providing good customer service via social media is likely to lead to positive word-of-mouth advertising.
Sales Promotion Ideas and Examples
Here are six examples of successful promotions, along with how they can help your business achieve its goals, such as increasing brand awareness, generating more revenue, or improving customer loyalty.
1. Google My Business
These posts are a fantastic way to engage with customers, promote your business and increase your visibility on Google. You can create four different post types: offers, updates, events, and products.
Using posts on Google My business is a great way to let customers know of any special deals or discounts you’re offering. These posts are featured prominently on your GMB profile, so they’re easy for customers to come across.
Google My Business promotions allow you to reach customers who find your business on Google Maps and Search—which is often when they have the highest intent.
Google My Business promotions are a great way to reach potential customers who are searching for your business on Google Maps or Search. These promotions can be especially effective when customers are searching with high intent, as they are more likely to be interested in what you have to offer.
2. Free Samples
Giving away free product samples to potential customers is one of the most effective promotional strategies out there, even though it’s currently on hold due to coronavirus. This marketing strategy often helps introduce customers to new products they may not have otherwise considered, and it often prompts them to make purchases.
Offering free product samples to every customer, whether they make a purchase or not, is a strategy used by stores such as Costco and Whole Foods Market.
If you have a product or a service you’re looking to sell, giving free samples is a great way to get people interested in what you have to offer!
This marketing strategy can be used to sell both food and non-food items, such as perfume, lotion, or essential oils. People enjoy being able to sample a product before they buy it.
3. BOGOF Promotions
Offering a buy one, get one free (BOGOF) promotion is a great way to move products, get new buyers, and increase sales. By offering a two-for-one special, you create a sense of urgency that can motivate customers to make a purchase now.
BOGO promos are a great way to clear stock and generate revenue for your business.
These free offers are a great marketing tactic, as they often increase profits.
Let’s say, for example, that you buy a product for $3 and sell it for $10. If you offer 50% off, you’d make $2 from just one person. However, if you ran a BOGOF promo, you could sell one at $10 and your cost for two would be $6. So, your profit would be $4. If lots of people bought that item, your profit margin would increase.
The great thing is that these promotions rarely cost anything. In fact, they’re designed to increase revenue.
One of the best things about these promotions is that they often don’t cost anything. In fact, they’re often designed to increase revenue.
A buy-one-get-one deal isn’t just for retailers. It can also work for service businesses such as fitness classes, spas, salons, consultants, or personal trainers.
If you’re a service-based business, then you know that time is money. So why not offer a promotion where your customers can buy one service and get another one free? This is a great way to attract new business, and it’s also a great way to show your existing customers how much you appreciate their business.
4. Cashback Promotions
Consumers often agree that it feels better to spend money on something that gives you something back. It’s like getting a discount on a product and then having more money to spend on other things.
When you give cashback to your customers, it often results in more loyalty from them. This is because it’s a win-win for both you and your customer — you get more sales, and your customer gets money off what they spend.
5. Lifestyle Discounts
A lifestyle discount applies to a specific group of people. These discounts are available for certain professions, age groups, or demographics such as teachers, students, veterans, and seniors.
There are holidays throughout the year that are dedicated to certain groups, so keep that in mind when sending out your promotional emails.
September is back-to-school month, and August is National Senior Citizen’s Appreciation Day.
Make sure to mark these dates on your calendar so that you can prepare in advance for promotions that correspond with these months.
6. Flash Sales
A flash sale is a perfect way to get your customers excited about your products and encourage them to buy now. If you have an online business, flash sales are one of the most effective sales promotion strategies you can use.
One way to do a sale like this is to do one flash sale per year.
Hold flash sales on a scheduled basis so that people know when to expect them.
Offer discounts or promotions on certain products.
Use social media, email marketing, and hashtags to promote your upcoming deals. This will get your customers excited and prepared for your sales.
Buy one get one free is a sales promotion tactic that has many benefits for both retailers and customers. Review these tips to know when is the perfect time to roll out a big BOGOF promo to increase sales.