Wednesday, August 7, 2013

Sow Trade-Ins with Social Responsibility

Encouraging trade-ins is a fine way to build your sales. Adding a socially responsible angle enhances temptation in the shopper.
     The Boeing Company is going at it big scale if you consider the very large economy size of the item. Bloomberg Businessweek says Boeing is buying up old 747 models from major airlines in order to create demand for the new 747-8. The social responsibility benefit: Superior fuel economy.
     A few years ago, The Home Depot ran a campaign inviting customers to bring in old power drills, broken or not, to get 15% off on a cordless lithium-ion power drill, advertised as better for the environment. Later, they invited people to bring in their old Christmas lights for a discount on an energy-efficient LED set. Around the same time, Toys”R”Us urged consumers to trade in old cribs, car seats, and other baby items for a 20% credit toward items which had been stocked since past product recalls.
     If you use this type of tactic:
  • Decide how you will dispose of the trade-ins. During the 2009 U.S. “Cash for Clunkers” promotion, auto dealers were compensated by the federal government for scrapping the vehicles. Boeing plans to sell the old 747’s to smaller airlines. But what would you do with a bunch of old broken drills? 
  • Tell shoppers how even a single trade-in makes a difference. Researchers at Georgia State University and Oklahoma State University found that’s necessary for maximum influence of an appeal to social responsibility. So in advertising, store signage, and personal selling, say things like how many extra hours of HDTV watching customers get with the energy they’ll save using the new Christmas lights. 
  • If you’re featuring the trade-in program as a promotion instead of an ongoing business practice, set a time limit and give it a distinctive name. The “Power Drill Trade In, Trade Up,” “Eco Options Christmas Light Trade In,” and “Toys“R”Us Great Trade-In” were each given a two-week to four-week span. The time limit and the distinctive name protect against long-term consumer devaluation of product types purchased with the discount. Time limits also stimulate participation. 
  • The general consumer psychology rule for trade-ins of items where depreciation is slow is to pay amply for the trade-in contingent on the shopper paying a relatively high price for the replacement item. However, when selling based on social responsibility, you need not pay as dearly for the trade-in. 
Click below for more: 
Feature Socially Responsible Trade-Ins 
Trade On the Right Trade-In Payments

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