If you manufacture items for retail sale, you’re probably always on the lookout for new marketing tips and tricks to increase your sales presence. In today’s fast-paced and tech-heavy society, it can be tempting to move away from physical coupons, brochures, and other marketing materials in favor of online-only advertisements; however, doing so can leave a fairly large portion of your potential market untapped.
Often, marketing materials like packaging inserts and on-package coupons can give your items an edge over other products, even those that are usually available at a lower price point.
Read on to learn more about what makes these marketing methods so successful, as well as some of the factors you’ll want to consider when pursing on-package coupons and packaging inserts for your own retail products.
Why On-Package Coupons Can Boost Your Sales
Sending out physical coupons to customers can be an expensive and time-consuming prospect and may not increase your sales enough to be worthwhile when factoring in the cost of postage and man hours needed to distribute coupons to their intended recipients.
However, adding these coupons to the face of your products instead can be a great way to encourage sales that might otherwise have gone to a similar but lower-priced product.
For example, if your product costs $4.99 and its closest competitor is available for $4.75, adding an eyecatching $0.50 off coupon to the front of your item will appeal to most price-conscious customers.
In other cases, this coupon may be enough incentive for a new consumer to try your product for the first time; if he or she is satisfied, you may have created a loyal customer with something as simple as a one-time discount.
Another effective way to increase your sales is to multiply the number of purchased items necessary to receive a discount. Instead of offering $0.50 off a single product, offering $0.75 or $1.00 off two products will make it much more likely that the customer will purchase more than one of your items, even if he or she had originally intended to purchase one (or none at all).
The Impact of Packaging Inserts
Another related form of marketing is the packaging insert. These inserts can take the form of direct print on the inside of your item’s package or a separate printed insert. Many packaging inserts contain coupons, although some may instead contain your website address or information on related products or services your company provides.
If you opt to print directly on the inside of your item’s packaging, you’ll want to include some form of notification on the outside of the package to ensure customers are made aware of it; many may otherwise throw this box or packaging away without a second thought.
Phrasing this notification in a way that doesn’t completely give away the insert’s contents is also more likely to lead to on the spot sales. For example, “More Savings Inside!” is more likely to entice a purchase than “$0.50 Coupon Inside!”, even if both are technically correct.
Factors to Consider
If you’ve decided to pursue this highly effective means of advertising, there are a few things you’ll want to keep in mind.
First, you’ll want to begin by identifying which of your available items have the highest profit margin (and are therefore best able to absorb coupon discounts). Offering on-package coupons for low-margin items can cost you money, and without a solid plan to replace this revenue through the sale of other items, you may find yourself selling more while earning less.
Next, you’ll want to evaluate your target customer base. Certain demographics are more likely to notice and take advantage of coupons than others, so focusing your efforts on those who have the greatest chance of redeeming coupons or visiting your website will help you get the most bang for your marketing buck.
By paying attention to your profit margins and demographics, you’ll be well on your way to a comprehensive marketing strategy that takes advantage of both high- and low-tech ways to reach out to new and current customers.
If you would like more information, Flottman Company is here to help strategize, format, and produce your insert or coupon.