Monday, April 19, 2010

Add Pizzazz to Dull Promotions

This last weekend’s Charlotte Observer reports that North Carolina retailers have been gearing up for next weekend’s “Cash for Appliances” promotion. Purchases of qualifying energy-efficient refrigerators, freezers, clothes washers, or dishwashers get a 15% instant rebate.
     Trouble is that asking a consumer to replace an appliance which is working fine can be a tough sell right now. Most appliance purchases are made because the current machine has broken down. When it comes to excitement, buying a refrigerator, freezer, clothes washer, or dishwasher is not too far above replacing a water heater. And that’s downright dull.
     The solution is to add pizzazz to the promotion, and this solution can be adapted to boost sales of any dull major purchase:
  • Limit the time of the promotion. It’s being announced as running for no more than four days and only until funds from the federal allotment are gone. This creates an urgency to purchase. Still, leave yourself an out. For the North Carolina program, if sales don’t exhaust the funds, retailers will have another go at it in June.
  • Begin selling at unusual hours. This is the trigger used for video game releases and movie premieres. One retailer—Queen City—says they’ll open their stores at 11 PM—one hour before the official starting date—and sell through the night and next day.
  • Develop a distinctive theme and promotion name. The retailers chose next weekend for the energy-efficient promotion because it coincides with this year’s Earth Day. Expect to see retailers come up with names more exciting than “Cash for Appliances.” Late last year, The Home Depot called their promotion “Power Drill Trade In, Trade Up.”

     The North Carolina retailers had better stay skilled at adding pizzazz. On the horizon is an offer of $200 rebates on, yes, water heaters.

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