joint venture marketing
If your joint venture sells a range of products or services, then most likely you have a pricing list. This is a simple marketing printout that displays or lists your products for sale from the cheapest to the most expensive. The question is, are you cutting prices or giving bonuses to customers at the most expensive level? If you find that the sales of your higher end product offerings are lean, then read on to find out how you can give customers a boost when buying bulk.
Are Discounts Enough?
Many businesses cut prices. For instance you might sell an apple for $2, and you may promote a bulk discount by offering 3 for $5. That saves the customer money by purchasing in bulk and cuts the price of each apple by about $0.33. It also gives your JV cash register a bigger single sale.
This type of bulk pricing is seen all over the spectrum of business, and not just at the retail level. Wholesalers offer big discounts for buying in large quantities. Costco members can get a case of candy bars for cents on the dollar found at retail checkout lines.
However, price slashing for bulk, or for the bigger and more expensive items your JV offers, may not be tapping into the full potential of sales. Why not give something extra for customers who pay more?
Give the Extra Bonus
The fact is many customers will not buy bulk because they simply don’t need it at the time. If I needed only one apple, I would just buy one apple from you, even though I know I could save a few cents if I bought a few more. But what if your JV business offered me a free caramel dip for buying 3 apples at full price? That’s even more value to me! I then realize that I’m getting something for free and not just saving money. That’s a big psychological difference in the consumers’ mind.
Case Study: How Bonuses in Joint Ventures Work
It’s that something extra that gives customers incentive to put out more money. Here’s an example. John and Bill formed a JV wedding video business. John was a freelance video editor and Bill was a video producer the camera equipment. Together they offered various wedding video packages ranging from $500 to $5,000. They made more $5,000 sales than their cheapest package and saw their bottom line explode with profit. Why?
At the highest end of their package deals, they offered the bride and groom a free romantic stay at a local posh hotel, a free new DVD player, and a free short documentary featuring a love story about the couple. These few extras made the highest end package the best deal for customers, and John and Bill profited from their clever marketing.
Don’t just cut prices for your highest end products. Give something extra. The extra value that the customer gets from buying bulk will help them open their checkbooks and help drive your JV profits.
christian fea is CEO of Synertegic, Inc. A joint venture marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.
To discover more joint venture marketing Strategies join his free joint venture marketing Wealth Report.