Your EnterQuest Bulletin - Issue 184
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| Thought for the week: "Nothing succeeds like the appearance of success." Christopher Lasch |
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In this week's issue:
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How to use 'packaging' to increase your sales
Packaging your products and services can be a powerful marketing technique that can dramatically increase sales for many small businesses. By packaging we don't mean how to wrap up your product in a package. We're referring to the 'package offer' you present to your customers (often called a 'bundled offer').
A great example of this strategy is presented to you when you go to any fast food restaurant. When you buy a 'combo meal' or 'kids' special', you are buying a package deal. Instead of buying a soft drink, chips and a burger separately, it's all offered together in a meal package at a special price deal.
In fact, packaging is so common in the fast food industry that the majority of all sales are package sales.
But what exactly are the benefits of packaging or bundling for the small business that uses this technique in any business sector?
Assembling or bundling together multiple products or services to sell in a single package not only increases your overall sales but also:
- Gives you the ability to sell slow-moving product lines.
- Automatically sells your customer more without you having to sell it.
- Lowers your marketing costs because it allows you to move multiple types of products or services through a single ad or campaign.
- In a joint venture where you bundle with the product or service of another business, it exposes your product or service to a new list of prospects.
- Promotes a higher perceived value to your customer.
So why is combining products and services together so effective and attractive to the customer?
Basically, the idea behind creating packaged deals is to combine products and services together and offer them at a lower price than your customer would pay if they bought them individually. Bundling goods at a discount price plays a few psychological tricks on your customer's mind that trigger them to buy. When they see a bundled offer of interest to them, their mind says things like:
- I want that product or service.
- I'm going to need an extra unit of that product or service anyway (or I'm also interested in the additional product or service that's being offered).
- They're offering me a pretty good price if I agree to buy more than one unit, so I will end up saving money anyway.
- I might as well save some money and take the bundled offer right now.
Remember, marketing can simply be viewed as a psychological battle that goes on in the mind of a consumer, where it's a fight for balance between price and benefits. The winner will be the option that provides the best balance between price and benefits to your prospect. In other words, the better value in the mind of the consumer always wins.
To summarise, packaging creates a higher perceived value in your prospect's mind by doing two things - increasing the benefits and lowering the unit price.
Examples of packaging and bundles are everywhere. If you don't have enough products or services of your own to create a package offer, consider joint venturing with another business that does. And don't forget to provide a strong 'up-sell' option in your package by offering multiple options, each progressively more valuable and expensive.
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You can read more about how to use packaging to increase your sales in Chapter 18 of the UK Small Business Marketing Bible, which also includes hundreds more practical tips and techniques about finding new customers, increasing sales and growing your business. |
Protecting your business from digital identity theft
As more start ups and small businesses use the Internet for banking, ordering supplies and taking payment from customers, they are increasingly at risk from identity thieves who are going online to access sensitive business information. The thieves can hack into everything from your business' accounts to its registration details, and can even change your registered address.
Companies House has introduced measures to combat this - such as the PROOF (PRotected Online Filing) scheme to help small businesses protect themselves from these threats.
This BBC article also outlines some of the developing technologies designed to give better protection to small businesses and individuals against ID fraud. It includes Garlik, a new data monitoring service that can find and keep track of your 'digital footprint'.
And you can get further tips on protecting your business from online identity thieves in BT's Security Report: Online Identity Theft, or see our guide to PC and Internet security for more practical tips.
Mail order foods
Buying luxury food by mail order has seen a big increase in popularity recently, ranging from the original organic veggie boxes to premium chocolates and wine. The following items are among the most popular options for customers ordering food by mail order:
1) Snacks and puddings, such a premium desserts and cakes
2) Meat
3) Fish
4) Chocolates and sweets
5) Ready meals
6) Charcuterie
7) Cheese
8) Condiments
9) Vegetables and fruit
10) Drinks, including wine
Source: Observer Food Magazine
Check out our guide to selling by mail order for more information, and why not also look at our market report on mail order and home shopping trends?
Each
week we provide you with summaries of some popular or emerging business
ideas in the UK.
Here
is this week's idea:
Regularly improving your vocabulary is not just about learning a new word and its meaning. It will improve your general knowledge and make you feel and act smarter in all sorts of personal and business situations.
Do you know what the word 'purloin' means?
a) to sell an item by auction
b) to steal
c) to extend a contract
d) to dispute or disagree
Answer at the end of the Bulletin.
There's a matchmaking site for construction businesses
To help small businesses compete for construction contracts, including work for the 2012 Olympics, a new site has been launched which matches your business with projects requiring particular skills. You can register on the Construction Bible site free of charge, from where you can be put in touch with major projects that need your skills or services. Opportunities will be advertised from some of the country's largest contractors.
Tax penalty to rise for late returns
If you're late with your tax return, you could soon face a stiffer penalty. The taxman is reportedly preparing to announce a crackdown on late self-assessors, those who pay too little and those who don't take "reasonable care" with their returns. Fines could go up to £250 a pop from the current £100, following discussions between tax advisers and HM Revenue & Customs (HMRC), the Sunday Times reported. It reckons the money will be used to plug the £3.6 billion hole in the public accounts.
All your catering needs catered for
Cookware UK Ltd is a useful one-stop shop for any business that needs catering equipment - from the specialist kit needed by restaurateurs, café owners and food businesses, to general kitchenware and utensils that any business might need. You can search by category and buy online, and there are loads of buy-one-get-one-free special offers to benefit from.
Business blog comparison tool
This practical article explains business blogging in laymen's terms, demystifying key bits of blogging jargon and analysing the best free and low-cost blogging tools and software available. It also links to a comparison tool where you can compare different blog publishing software options in more detail, and provides links to more information about everything it mentions. Aspiring business bloggers can also benefit from the tips and expertise shared in the reader comments listed at the end.
Part of the highly readable and jargon-free For Dummies series, this book is available from the 3rd of November and provides practical tips on overcoming some of the most common pitfalls faced by people who aren't confident public speakers. It covers getting your initial research right when making a speech or pitch, dealing with nerves on the day, handling questions and using humour successfully. It's also part of a current Amazon offer to get 40% off the entire For Dummies series. Check out:
Just one word answer
The answer is b).
Purloin means to steal.
Following today's tip on protecting yourself from digital identity fraud may help you prevent someone trying to purloin your business identity. |
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Good luck
The EnterQuest Team
This information is meant as a starting point only. Whilst all reasonable efforts have been made, the publisher makes no warranties that the information is accurate and up-to-date and will not be responsible for any errors or omissions in the information nor any consequences of any errors or omissions. Professional advice should be sought where appropriate. |
