“Yen, we have a problem. Can you help?”
When I saw that message from my client, I pushed my glasses, sat up straight, and grinned. Because when there’s a problem, there’s an opportunity.
My client had accidentally ordered too much inventory for a limited-edition product. The worst part was…
The product becomes redundant after a week.
(I’m saving some details here to respect my client’s privacy, but think of like a food product that expires after a week)
My client’s solution:
Drop the price tag by 10%
(54.99 >> 49.99)
*sigh*
The typical e-commerce mindset.
“If I drop the price, people will line up around the corner to empty my warehouse.”
But in reality, a 10% discount rarely kicks the fence.
Yes, it’s an “offer.”
(sort of, just not a great one)
Yes, you will get a few more sales.
(from discount shoppers—the worst type of prospects you can get)
But no, you won’t clean your overstock because of a 10% saving.
My proposal?
Simple.
Let’s send more emails.
Because every time we send an email to the client’s list, we make 2-9k in return. EVERY SINGLE EMAIL
This means we can move an additional 36+ units for every email… without the margin-killing discount.
Lesson?
When you have excess inventory, your instinct should NOT be “10% oFF, TOdaY oNLy.” It should be, “Let’s send more emails.”
>> Continue to the next lesson
– WYH