As anybody knows, customers like to buy things for less; that's a no-brainer we can all agree on. But this simple truth also puts sellers in a position of wondering just how low they can go, or how they can stay more-than-affordable, while maintaining profitability.
Right now, with the online market getting hosed with shipping cost inflations, and increasing difficulty to get product out to certain areas, most brick-and-mortar retailers should see an increase in walk-in customers during the coming times. It's simply cause-and-effect when people can't get what they want mailed out to them. Now's the time to try and stay competitive, and we're here to provide a little advice for you.
First off, let's talk prices. I'm sure you've all seen this little guy on our site; The Pod 2500 Disposable Vape:
This doodad does pretty well for itself, truth be told.
Most online retailers sell product at roughly 1.5 times what they're buying them for from sites like us here at EightCig. That means that this disposable vape is going on most websites for $15.99 and up. (Check it out online for yourselves. Look at the cost of our disposables, and compare how much you're selling them for to the online shops like Element Vape, VaporDNA, or Direct Vapor.) If you've only paid $11.25 for these disposables, how much can you shave off of your asking price? How far can you keep it below the current, common price of $15.99, while staying profitable?
Most of you might say, "Not much," but don't forget that there's something else at work here: inflated shipping costs. Depending on the carrier, (and the customer's chosen shipping method,) online retailers are struggling against $15+ shipping costs. That's the cost of the device at most of the online shops, remember?
If someone goes online to spend $15 on a disposable, and they find out it will cost $30 in total to get their product, they typically aren't going to decide to spend $30 to $45 just to get their money's worth on a shipping charge. That's triple what they were intending to spend on that $15 device. Nobody in their right mind is going to pay nearly triple for for the convenience of mail-order delivery.
This means an increase in store visits for those of you running a physical shop. This also means you have the opportunity to sell more units than you could previously, and actually have the luxury to cut your prices lower than the online shops (even if only by a dollar or two,) while still raking in more profit than you were when you were selling less units at a higher price.
Even with the increased foot traffic allowing you to drive down prices, there are other ways to reduce prices and stay profitable, too—and here are a few suggestions as to how:
Every Holiday Is An Excuse To Have A Sale: This is some straightforward marketing basics, and you'd be surprised how many retailers actively avoid doing it. Don't miss your chance to cut prices. Have a one-day (or weekend sale) dedicated to whatever holiday is coming up. (It doesn't always have to be Christmas and President's Day, folks.) Have you got any idea how many holidays there are which Americans alone celebrate in a single year? Here's a list of just a few for you:
|New Year's Day||Nurses Day||Labor Day|
|Inauguration Day||National Day of Prayer||Grandparent's Day|
|Martin Luther King Jr. Day||Mother's Day||Citizenship Day|
|Groundhog Day||Armed Forces Day||National Children's Day|
|Super Bowl Sunday||Juneteenth||Columbus Day|
|Valentine's Day||Father's Day||Boss's Day|
|President's Day||Memorial Day||Sweetest Day|
|St. Patrick's Day||Independence Day||Mother-in-Law's Day|
|April Fool's Day||Parent's Day||Navy Day|
|Earth Day||—||Veterans Day|
|Administrative Professionals' Day||—||Thanksgiving|
That's thirty-seven chances to have a sale, and this isn't even a complete list of U.S. holidays. Take advantage of it. Market the hell out of it. Moms vape; have a Mother's Day sale. So do dads; that's two whole holidays right there.
Speaking Of Holidays, Don't Be Afraid To Theme It Up: Groundhogs probably don't vape, but you can still have a sale for it. Maybe have an identical sale a few days in a row, to make it feel like a time loop. Are you having a St. Patrick's Day Sale? Great! Maybe cut prices on all green mods and juices. Candy-flavored juices? That sounds like a Halloween Sale to me. Veteran's Day? Give a discount to everyone, and maybe a slightly bigger discount to members of the service. You can really get creative with these things, and sell a lot more product than you were before. With your newfound pricing flexibility, you can really turn a profit on this new wave of customers headed your way.
Offer An Irresistible Bundle: Some of you may be saying, "Trimming a few bucks off what I already sell for doesn't guarantee that I'll sell more of them, you know." That's true—you can't guarantee that a single customer will buy more inventory simply because they can't get their stuff online, even if your products are going for a couple dollars less than the online stores. But, that's where bundling comes in handy. Take those disposables, and sell them in bundles! Put them in a big enough bundle that buying a set seems beneficial to the customer, and will drive up your own sales numbers to boot. Bundle complimentary flavors, or different flavors from the same brand; mix-and-match. This can even work for your holiday sales—bundle red and pink vapes together as an assortment; or red and green at Christmas.
Get creative, and get flexible! The smallest dip in your prices could drive up your sales exponentially! A customer who comes in for a $15 vape just might spend $45 on a four-pack instead! (Especially when they'd be spending upwards of $30 to get a single disposable shipped out by mail order.)
The wave of customers could be headed your way very soon. This is your ideal chance to trim those prices, boost those sales, and see your profit margins go up, when your prices are actually going down. Take advantage, and line those pockets!