What types of POS deals or offers should I make when running a fireworks business?
This is the strategy of generating more sales and customer traffic through enticing deals like “buy one, get one free.” In this post, we’ll discuss a few ways to handle bargains and POS deals without hurting your business’s bottom line.
Which POS Deals or Offers Should I Make?
It depends on your business model, and there are a couple of ways to approach bargains, deals, and discounts.
One popular method is the “overall lowest prices” model. This is our favorite because it’s straightforward, allowing a business to focus on having the overall lowest prices without pursuing too many fancy schemes.
There’s also the graduated scale system where customers receive rewards based on how much they purchase. An example of this involves hitting a purchasing threshold (like $200 or $500) before qualifying for free items. Another way is to offer free fireworks in exchange for following or subscribing to a shop’s social media page.
Then you can implement buy one, get-one free deals. Be careful, though, because if you take this to excess, you could lose credibility. If it turns into “buy-one, get ten free,” it becomes absurd, and you’ll have a hard time covering costs. This will make your pricing for one item way out of the normal market range, too.
When In Doubt, Stick to Simplicity with Your Deals
Given all of that, buy one, get one free is the most common promotion in fireworks. This has been promoted in our industry for decades. It’s basically been baked into the business cake for several years, all across the county.
We believe the most effective approach to POS deals is to use marketing verbiage like “we have consistently low pricing” or “consistently competitive pricing.” These slogans or business models are the easiest to manage without appearing disingenuous (or giving the house away for free).
What Other Creative POS Deals or Offers Should I Make?
What about offering 10% or 20% discounts?
While you can do this sometimes, we’ve found that it can become expensive just like the excessive-freebie approach. You’re better off exchanging fireworks when customers reach a certain spending plateau, which you would set at your discretion.
Then there are other unique promotions like bundle deals with the more premium items. For example, if a customer buys two cakes, they get one free.
Sometimes, fireworks sellers will give away free sparklers or other small items with any purchase. This won’t hurt as much because they’re low-cost items. Finally, you can also experiment with giving away assortment packs or other prizes in drawings.
New Businesses: Make Sure You Know the Costs of Various Fireworks
In one of our older posts, we went over the basics on the costs of fireworks, mostly geared toward consumer education. This is, however, a pertinent topic to fireworks sellers as well (in fact, even more so). That’s because you cannot run any business without knowing the basics of product inventory and pricing.
Therefore, we always encourage rookie sellers specially to become familiar with market trends for everything you’ll sell at your tent, stand, or store. This will require you to communicate well with your distributor or wholesaler, and to do a little reconnaissance of your competition. Yes, it’s mission critical to physically visit other fireworks retailers to see what they’re doing and make price adjustments accordingly.
Maximize Your Business Potential by Partnering with Black Cat Fireworks
We hope that you’ll consider partnering with Black Cat Fireworks if you’re thinking of entering this lucrative business. There’s plenty of earning potential in this industry, provided you’re willing to work hard and develop smart strategies for product pricing and marketing. One of the best advantages to working with us is getting access to so much help with marketing, pricing, setting up your store layout, and avoiding common business pitfalls.
Contact us anytime for more information about which “POS deals or offers should I make” to run a successful fireworks business.