"Jewelers love this kind of promotion because it brings in both return and new customers." Doug Burkert
Richardson, TX (PRWEB) November 12, 2010
As the economy continues to show signs of improvement, retailers across the country are hoping for increased traffic this holiday season. A challenge for many will be finding ways to capture shopper attention and drive increased sales by turning these shoppers into buyers.
According to Doug Burkert, president of Richardson, Texas-based Grand Prize Promotions, conditional rebate promotions are a great way for retailers to garner attention, call shoppers to action, boosting sales —and profits!
“Weather conditional rebate promotions are particularly successful during the holiday season,” Burkert notes. In such a promotion, retailers agree to refund all or part of the cost of items sold during a specific time period, often between Thanksgiving and Christmas, if a certain weather event—six inches of snow or particularly cold weather on New Years Day, for example—takes place.
“These promotions are successful for a number of reasons,” Burkert notes. “First of all, ‘free purchase’ often captures media attention, generating free publicity that goes well beyond any paid advertising or promotion, and enables you stand out during a time when shoppers are bombarded with advertising and commercials from every side.
“Second,” he says, “it drives foot traffic to see what the promotion is all about. And, finally, a rebate promotion is by necessity a limited time offer which makes customers take action. What shopper wouldn’t buy from a store where they might win their purchase price back, rather than one where they know they won’t—even if the customer has always used another store?”
Fortunately, businesses that opt for such a promotion won’t be on the hook for the refund of the money themselves. Insurance is available to fund such promotions. “We charge a very small percentage of the purchase value to insure the promotion,” says Burkert, whose firm has been underwriting promotions for more than 30 years.
Last year, Grand Prize Promotions paid out nearly $100,000 to shoppers who purchased items from one Oklahoma jewelry store during a conditional rebate program. “The store actually held a party to celebrate the rebate distribution,” Burkert says. “The best part was when the store handed back cash to clients, the winners turned around and bought more jewelry!”
Jewelers could find particular value in such promotions this year. According to a National Retail Federation (NRF) survey released last month, discretionary gifts may become more popular this year. To support the claim, NRF points to survey data that shows a 10 percent jump in the percentage of people who will ask to receive jewelry as a gift this year.
“Jewelers love this kind of promotion because it brings in both return and new customers,” Burkert notes. “And it doesn’t have to be Christmas. Conditional rebates are popular at Valentine’s Day, Mothers Day and even the fourth of July, where jewelers run ‘Some Like it Hot’ promotions.”
Jewelry retailers are not the only ones that could benefit, though. “While it may not be as romantic,” Burkert adds, “what hardware store wouldn’t love to drive increased sales by offering to rebate the purchase price of a snow blower?”
Furniture stores, heating and air conditioning dealers and other retailers—even car dealerships—find similar value in conditional rebate promotions, he adds. “And the rebates don’t need to be tied to weather,” Burkert says. “Sporting events—for instance, an underdog shutting out an opponent or a certain rare play occurring during a major championship game—are also popular ‘conditions’ for prize promotions.”
For more information on how to drive increased traffic, increase buzz, generate incentives to buy and even build a database of local shoppers, contact 888-446-1914.
Do you want to increase your next sales event by making it more exciting? National Hole-In-One Association/Grand Prize Promotions is the World’s largest prize provider with successfully covering over 300,000 events and have paid in excess of $50,000,000 to our winners. We service small to extra large events, with prizes ranging from $1,000 to $1,000,000+. We have over 100 other Prize Promotions for nearly any type of event. With offices in Dallas, London and Melbourne, we have the experience that pays!
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