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Framing Goddess

Framing Goddess

SGF, Supreme Grumble Framer
Joined
Jul 18, 2000
Posts
4,319
Loc
Cleveland, Ohio
Just a query here...
(replies from Bob C. and Rob M. are specifically encouraged!!)
Like a lot of you, our business has stayed fairly steady since Sept 11. However, it COULD be better and here's my scam-er-plan on how to do it.
Every year (usually October) we put our open-back ready made frames on sale. Sometimes two-fer-one or 25% off or sumthin like that. We do a mailing of about 500-600 postcards and it is always a great success. We clear out tons o'frames (that we make out of scraps-I mean-inventory in the slow dog days of summer) and we get to see lots of our regulars who wait for this sale. (Bless them!) Most (90%ish)frames sold during this promo end up as the whole deal- mats, glass etc. AND it is interesting to see that most customers bring in multiple pieces and some inevitably end up as "custom" orders.
Now here's the question:
Does it make sense to anyone to have this promo during December? I can get the postcards out by the weekend (I'm GOOD) and I will have lots of extra labor/help as of Dec. 14.
Rob, you mentioned that you did a mailing very recently and that it was successful. And that you did not offer any sort of discount. Without giving away any trade secrets, what was it that brought in the throngs?

Anyone think that I am asking for trouble here?

What are the prevailing theories on promoting and/or discounting in December?

An aside- at the chi-chi Clevo mall last night, I noticed that EVERYONE had some sort of % off deals going. hmmmmmmmmmmmmmmm from,

The FG
 
Typically I'd say don't give it away in a month that you probably don't have to, but given your past conversion success, I'd say go for it and let that cash register rip!
 
It's a good idea - do it!

Will it work? - You won't know unless you try it - do it!

Please let us know the results.
 
Edie-I swore I wouldn't get involved anymore, but i feel like the mobster on Sopranos who does the great imitation"Just when I think I'm out, they drag me back in".

Should you promote in December? O f course, you should. You should promote every chance you get to sell more.

The problem isn't promoting; it's promoting poorly. Here's when you shouldn't ever promote:When you give up margin for no additional business, and that, too, is everyday of the year. Rob calls a discount a self-inflicted wound. He's right, unless you have positioned yourself to maximize and cover your margins. How do you do that? Buy well, manage well, promote well.

Some examples? Let's say you carry readymade frames. Like most folks, sell some here, some there. But let's say you are one shrewd operator and you buy a boatload from your vendor and you get an extra 20% off and free freight. You can bank the extra margin, or run photo frames for a week long promo at 20% off(every consumer known to man loves a sale-remember you just bought a a bunch that they sold to you at a reduced price). Then sell the rest at regular retail and pocket the extra. That's called promoting.

But the worst you can do is to take something you have no advantage on, and reduce your price (and your margin) just to make a sale.

So, when I hear people talk about price integrity being compromised, I just smile. Because I know they haven't figured out how the big boys promote. Do you remember all the emergency rooms being clogged on Thanksgiving day with all the newspaper carriers being treated for back strains. can you imagine promoting on the busiest shopping day of the year? Where did all those ads come from?

So it's not so much when, but how you promote. If you truly have a buying advantage that you can turn into a selling advantage-promote it. If you have old, stale mdse that you can't turn at regular price, promote it. And when consumers are expecting things to be promoted is a good time to do it. Just have the good sense not to damage your margins to do it.

But, hey, what do I know. I'm just a old simple retailer that hasn't quite figured out the mechanics of retailing in the framing industry.

[This message has been edited by Bob Carter (edited November 29, 2001).]
 
<BLOCKQUOTE>quote:</font><HR>Originally posted by Framing Goddess:
Every year (usually October) we put our open-back ready made frames on sale...We do a mailing of about 500-600 postcards and it is always a great success. We clear out tons o'frames (that we make out of scraps-I mean-inventory in the slow dog days of summer) and we get to see lots of our regulars who wait for this sale. <HR></BLOCKQUOTE>

So here are my questions for FG...

1) Did you do this promotion last month?
2) If not, why not?
3) If so, was it a "great success?"
4) If it was a great success, do you have enough of these frames made during the summer remaining to support another event?
5) Even if it was a great success, maybe a different idea would be more appropriate given the short time span between October and now?

Beyond those questions, I would offer that I agree with Bob that promotions are not inherently evil. People do like deals and the mere presence of an incentive for people to act does not cast your company into the ditch. This is especially true if the promotion is targeted to your customers and not to the public at large.
It is all a matter of the relevance, nature and execution of the promotion.



------------------
Marc Bluestone
FrameGroup Incorporated
15 Millpark Court
Maryland Heights,MO 63043

marc@framegroup.net
 
Well, I don't have all that education, just what I've read over the years, but why not promote it as "Our gift to you". Have a "Post Card Gift Certificate" of (whatever)percent off readymade frames during the week of....
And that way it's not a sale, but a "gift" for special customers.

Betty
 
<BLOCKQUOTE>quote:</font><HR>Originally posted by Marc Bluestone:
So here are my questions for FG...

1) Did you do this promotion last month?
2) If not, why not?
3) If so, was it a "great success?"
4) If it was a great success, do you have enough of these frames made during the summer remaining to support another event?
5) Even if it was a great success, maybe a different idea would be more appropriate given the short time span between October and now?
<HR></BLOCKQUOTE>
Marc,
1) yes, we had this promotion in October.
3) I followed some bad advice and advertised it in local papers only- no postcards, no mailing. It was a bust. Zip. Zilch. Nada.
We have lots of these frames that need to find homes-- hence the idea of a December promotion. Skip the papers and go right to our customers.

Bob, I'll be thinking of you as I get this mailing together this weekend! Thank you for putting into words what seemed to make sense as a foggy notion in my brain. I think you have this framing/retailing thing nailed down. The Goddess does not know everything, but she knows who does know.

And Betty, I like the idea of a "gift." I think I can work with that.

John R. and John G., I will indeed keep you posted on the progress of the promo- after I am done counting all those mountains of cash, that is.

Janet, let me know how your 3-day extravaganza fares!

Thanks all,
Edie the FG
 
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