Feb. 23, 2008 - Why do Customers Buy More at a Lower Price?

Have you ever noticed that customers will buy more when you give them a deal?  Why do customers buy more at a lower price?

I have noticed that grocery stores offer "deals" all the time.  For instance they don't say everything is a dollar.  Rather they will say 10 for $10.   Even though they usually give you each item for $1 whether you buy 10 or not, the suggestion of 10 for $10 usually gets people to buy 10 and not just one or two.  Why do you think this is?

I will give you my reason for this.   In today's economic condition, I will always buy more at a lower price if it is something consumable, so that I don't have to buy it again next week at a higher price.  (For more information on our economic condition you can visit my husband's financial website at Economy Carberator).   But if I get to thinking I need to buy ten to get that price, then I will buy ten to get that price.

So I ask you, how are you doing in your sales this week?  Do you need to get things going?  It's a perfect time to get rid of some extra soap that may be laying around and offer a deal.  What kind of "deal" can you offer?  Some suggestions would be

• buy 5 bars of soap and get an extra bar for FREE
• put a soap package together where YOU get to choose the soaps (include one or two that didn't sell super well) and sell the soap package for  special price.  This is especially a nice idea for Mother's Day ( we are already past Valentine's Day)
• Offer ALL customers a punch card where if they buy X number bars of soap they get one or two free.  This can help build new repeat customers.  If you are at a craft show and someone buys a few bars of soap from you and you give them a punch card and punch the card for them, they will very likely call you again (be sure your co. info is on that card!)  Give your customers EXTRA punches when they buy five bars or more or a soap package from you at one time.
• Give your customers an incentive if they sell a soap package for you.  You know how those direct selling companies have "outside orders only types of classes"?  You can offer a "hostess" a free bar of soap for every soap package she sells for you.  You give the hostess a form that each buyer fills out so you can follow up with them and add them to your customer base.  Make sure your form asks for name, address, phone number, and email.  Also, helpful, if they are purchasing for a gift or for themselves.

I am sure you can think of even more incentives to get customers to buy more from you than just one bar of soap.  I would love it if you would post your ideas in a comment.  We can all help each other grow our soap making businesses.

Check out my website at  How to Make Soap.