Many workers in the sphere of direct sales know what such stocks are, not only in their profession, but also constantly face different sales and discounts in the territories entrusted to them, or simply when they go to the store in their spare time. At the same time, few people can be surprised by the fact that various discounts are always offered for various product segments, since such tools are used today in almost all types of trade.
Why are they held?
It is quite natural that even those who perfectly understand what stocks are, may not be aware of why such sales tools are used by sales outlets, and what is the latter from this make a profit.
The reason for the appearance of the action may be very different:
- The number of consumers decreased. Over time, many outlets due to a constant increase in the number of competitors or a decrease in demand from consumers can lose customers, and therefore try to return them in many different ways. One of the most effective methods is the introduction of promotional prices for those goods that will really be in demand, because the target audience is needed.
- Decreased the number of sales of a certain product. It is only natural that there are certain segments of products that, over time, lose their relevance. Clothing, appliances, household appliances - all this with the passage of time becomes obsolete, as ever more and more new technologies are being developed. At the same time, the older this or that commodity becomes, the less demand for it, and so it lasts until it disappears almost completely. What to do with a washing machine that has been in stock for several years? That's right, sell at a low price.
- The demand does not exceed the offer. Many products have a certain lifespan or shelf life, but at the same time, having larger plans or for some other reasons, the company has bought too many such products, so there is a risk that it will remain in stock, and it will have to write off. It is only natural that the written-off goods do not bring profit in principle, so it is better to sell it and return at least some of the invested funds. What is the stock in this case? The tool of getting at least some profit.
Why do I need discounts?
Thus, considering what stocks are for sellers, it should be said that this is an excellent tool for increasing sales, and only then - attracting consumers to a certain category of marketable products. The only thing that many people do not understand is for what reason does the company have the opportunity to make a significant discount to the original value? In other words, why sell a thing cheaper, if sometimes, on the assurances of the sellers themselves, even the price of receipt is higher than the cost of selling?
Shares in terms of the seller
First of all, let's discuss what stocks are from the point of view of the implementor. This is a carefully planned event, which, with a competent attitude towards marketing, is planned for about a quarter, while in federal network stores such actions can be planned for a period of more than one year.
It should be noted that the budget allocated for shares and discounts in the majority of cases is initially laid in the contracts with suppliers, which, in turn, will form the preliminary budgets in accordance with their profits. Accordingly, the planning of pricing for various types of products is also carried out, and quite often the discounts for some popular brands are initially included in the cost of the goods.
In other words, any shares and discounts that you see on the shelves of various stores represent a carefully planned redistribution of funds, as well as various purchased goods that are taken from some buyers and then transferred to others.
What does it look like on an example?
Stocks in stores are held approximately as follows: person A acquires one unit of a certain "premium" -cash, the mark-up of which is 100 rubles, so that the network / supplier pair will then be able to provide a discount for three units of cheaper commodity products of 30 rubles each. At the same time, it should be noted that in this case the simplest mechanism of such operations is considered, while there are much more interesting and subtle ways of organizing such events.
More serious schemes
Let us consider an example. A large store makes a serious discount on some products of a well-known brand and at the same time takes care of the competent placement of other goods from related groups, so that it gets an opportunity to purchase additional profits. This is due to the fact that consumers, who set the main task of purchasing goods at a discount, are beginning to buy up a nearby range, so that the stock price is completely covered by additional profit from the purchase of other products.
In principle, any marketing mechanism based on reducing the price of various goods is aimed precisely at stimulating impulse demand, while the discount itself is simply the point at which this "impulse" appears. Thus, a person wants to save money, but he buys and spends an order of magnitude more in order to buy, compared to the price before the discount, and the stock price for the store pays off completely.
Stores of "long-term" products
In stores that deal not with the FMCG trade but with the sale of durable goods, much more transparent mechanisms are used. In this case, the marketing model is entirely tied to the "artificial aging of the goods," that is, the change of model series or seasons. At the same time, the supplier must ensure an uninterrupted production procedure, as a result of which more and more new products must be withdrawn to the market.
Thus, if you see some furniture at a discount or a car "before restyling," then in this case you can be quite sure that such an offer will ultimately benefit not only the store, but you.
What is the benefit?
In this case, actions in stores are conducted with the technology of mutually beneficial cooperation. If the store tries to somehow deceive consumers and as a result simply does not provide them with favorable conditions, as a result of which they will not buy this product, the products can really become morally obsolete and become "hanging" on the balance sheet of the enterprise, because in our age no one will want buy "outdated" models, even if they have all the characteristics the consumer needs, and they themselves are in perfect condition.
It is worth noting the fact that it is on the "artificial aging of the goods", as well as the purposeful updating of certain of its characteristics, completely builds the marketing of Apple. Many of this can be noticed by the fact that the owners of the latest iPhone model at the moment, which is almost the same as any other phone in terms of functionality, still buy new devices from Apple, forming huge queues in the first days of sales.
Can I earn money?
Of course, you can make money on durable goods like cars, furniture or large household appliances. Many noticed the shares of St. Petersburg and other cities, when together with the goods carried out consumer lending, the sale of certain accessories, insurance or the provision of additional services that ultimately bring the company additional profits. In addition, in this case, the outlet receives an initially targeted audience for purchase, as people are inspired by discounts, and they will not be difficult to push to make various impulse purchases. It is worth noting, this is the way in most major cities are held shares (Moscow is no exception). In this regard, if you are a buyer, weigh in advance all the pros and cons, and even better to know in advance the price of the goods before the stock.
Shares in banks
Also, many noticed what actions are carried out by various banks, announcing small interest on the loan, but at the same time obliging the client to make out life insurance for its receipt. And on insurance, credit institutions earn about three or even five times more than a professional insurance company, in which a person could purchase this policy separately.
Why still need discounts?
Looking at what actions are being carried out to date in Russia and other countries, we can conclude that a discount as a tool to stimulate consumer activity ultimately provokes many other consequences, which also lead to profit. In particular, it is worth noting only a few of them:
- Formation of the "core" of regular customers. Supermarket stocks, attracting consumers living nearby, eventually lead to the fact that a person starts to monitor on an ongoing basis available discounts and actively use them.
- Acquaintance with new products. In this case, the original clientele is attracted, interested in certain products, which significantly expands the target audience, as well as the average check significantly increases.
In this way, sales are increased, and constantly held shares (St. Petersburg, and other cities resort to using such a tool quite often) provide organizers with much higher profits than the cost of similar events.