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A SURE WAY TO EARN/REVIVE LOW SALES TURNOVER
Very often, despite the fact that some businesses produce, sell or provide a unique product or service,most of them are sometimes unfortunate to have a down turn or low sales turnover or patronage for their unique product or service.
Also, despite the fact that the idea behind a product/service launched into the market is too good to be turned down by the “market (prospective customers)” because it is “A UNIQUE PRODUCT”, yet, a lot of these unique products have turned out not to be patronized.
Naturally, a “unique product” should sell itself with little publicity effort but at times, the market feels reluctant to try this unique product hence, this article aim to proffer solution to business that is experiencing low sales turnover for their unique product or services.
A UNIQUE PRODUCT OR SERVICES
Be it an entirely new product, concept, idea or an existing product in the market, a unique product must have all or some (but not limited to the list below) of the following qualities to be called a unique product.
1. Properties/functions: – If a Product has a special function that makes it different from other similar competing products in the market, it is unique in that sense of function specialty. For example, the blackberry messenger on blackberry phones is an example of uniqueness in the telecommunication industry making blackberry phones a unique product.
2. An improved quality: – Quality of a product may be defined in its durability, performance or standard (to mention in few). A product that has a quality, better than that of competing product in the market is deem to be a unique product especially if this quality is above the industry standard. Hence consumers that have taste for quality would rate this type of product as unique.
3. Price and quality advantage for consumers: – A unique feature of a product may be seen in its quality and price advantage to the customers. If the market price of such product is lesser than other competing products and still maintains a good quality (because the higher the quality, the higher the market price), such product is unique in that sense.
The above qualities, if found in your product, may be classified as a unique product.
At this point, if your product is not unique in any form, the proffered solution in this article is not the best option for your product.
Briefly note the 2 major reasons why sales of unique product may not follow its natural sales pattern
1. If the uniqueness of the product is not required by the rational consumer (For example, the uniqueness of a “temporary shaving stick” lies in its durability. Who needs it to be durable when it’s meant to be used once and disposed thereafter)
2. If the extra features added to this product has differentiated it from similar competing products but also made the product to be more expensive than the prices of similar products in the market
Take a pause here, if your product doesn’t have a unique quality as discussed above, you may read no further.
The Proffered Solution to Revive a Low Sales Turnover
When all other marketing strategies have failed, and the impossibility of marketing a unique idea beacons, one sure solution is the aggressive form of advertisement (although it is rarely used because of its cost implication which shall also be addressed in this article.)
Mostly, businesses utilize a Soft method of advertisement so as to maintain a low cost to enhance profit but when a unique product, where all it needs at inception ( when it is newly introduced into the market) is for the customer to give it a trial and their consistent patronage is guaranteed, that has no choice than to sell isn’t selling,
Aggressive Advertisement is a very good option of persuading buyers to have “A TASTE” of the product and when the uniqueness of the product has been enjoyed from the customers judgment, a market have just been established for such product.
A soft/conservative method of advert only covey its message to prospective customer “IN BRIEF”, leaving the prospective customers to know the name of the product and the usual thing they know about such product. For example, an advert for a unique type of sugar that only conveys the message that “the sugar is sweet”. No new feature or benefit over other sugar in the market, so whenever prospective customers need this product, they rarely think or remember the newly and softly advertised unique product and they rather go for the usual product.
That is exactly the type of message usually conveyed by conservative advert.), but an aggressive advertisement as oppose the conservative method is the type of advertisement that is aimed at choking, frustrating and strangulating (and other bad words you can think of) the market to patronize the product. (if you agree with me, It is the type of advert usually used by a young man trying to woo a lady). It is the consistent persuasive form of advert.
Talk of Aggressive Advertisement, it bothers the mind of prospective customers.
Everywhere they go, south, east or west, you find the advert there and resorting to go north, you still find the advert there, boldly engraving its message with the features and its uniqueness over other usual products (definitely without mentioning names of other similar products).
With this, the market (prospective customers) is left with questions in their mind and not to bother much, how to take up those advantages offered by the unique product that has been aggressively advertised is the ultimate answer that the customers’ questioned mind will provide.
Within a short while, the gentle customers will give it “a no going back” trial but the stubborn ones are not easily convinced, but with time, they will surrender with the fear of being left out in the new mbrket fashion. TECNO market for example used aggressive advert to penetrate the market for their unique product in Nigeria. KONGA is using this type presently.
The major motive of aggressive advertisement is to persuade the prospective customers to give your unique product a first trial. Therefore, ensure that your product is so unique that once tried, customers will never back down on it, to ensure consistent patronage after the first trial.
Notwithstanding, Aggressive advert comes with a huge financial cost.
How to Account for the Cost of Aggressive Advertisement.
Accounting for the huge amount of aggressive advertisement in Large Organization poses no much difficulty than to charge it as an expense, just as advertisement would rank normally like salary. It will be set out against the profit made for that year.
Although the cost is huge but it is not usually a material cost(so huge that it could overwhelm the profitability of the company. For example, N500,000 cost of aggressive advert in a company worth N100,000,000 is huge but not material)
Accounting for the huge amount of aggressive advertisement in small organization posses a little difficulty because the cost of aggressive advertisement can overwhelm, not only the profit of small businesses, but also the existence of such small business (For example N500,000 cost of aggressive advert in a business worth N2,000,000 is very material because it can overwhelm the periodic profit and existence of the business ). Hence it is advisable to capitalize the huge cost of aggressive advertisement (this can be done by treating this expenses the same way you treat the cost of your operational machine-Long Term Assets. But this cost, if capitalised, should be seen as intangible asset, just like Research cost or goodwill) and for the benefit of taxation, you may present such cost for capital allowance or you write it off from time to time against the yearly profit of the business (either of the two method will be allowed by your revenue service. Although, they are not general accounting practices and cannot be used by large companies to prepare their financial statement but it is no crime for small businesses to use the method).
NB- if your product is not unique, aggressive advert is never cost effective for your business because such product will still be in perfect competition with similar products and a large market share of such product is not guaranteed for such regular product.
With this, I hope your product enjoys a smooth ride all through the market.
For more tips, read other series from STP Consult – we manage business and supervise projects
Other series from STP Consult
Hiring a Manager-what you need to know Small and medium Business to start with little or no Capital Obtaining a loan for your business, the right term, right lender, right time Reasons for business failure
For more information concerning Business/management solution and for partnership, contact us at STP Consult.
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