By Simit Patel
Simit Patel is a trader, writer, and technology entrepreneur. Simit blogs via Contently.com.
A “door buster” is a loss leader. The idea is to sell a product at or below cost, as a way of getting customers into your store. The expectation is that customers will then purchase additional goods and services that are selling at a higher profit margin. From this perspective, door busters can be a winning marketing tool to help businesses grow their customer base and increase their profits.
Sadly for merchants, though, door busters don’t always work. Some people only purchase the loss leader, and don’t return, so there are no purchases of additional goods or services to generate profits for the business. Door busters, in these cases, can actually be dangerous, as companies take losses that they may have failed to foresee.
There are ways to get the most out of door buster strategies, through. Here are three easy and effective tactics store owners can use to both bring in and build business.
Make your door buster deals social
The concept of happy hour in bars is perhaps the quintessential example
of a social door buster, and one that has worked well enough to have
succeeded for decades across generations and cultures.
To make your door busters social, make your promotion an event so
people will be happy to come, and bring friends or colleagues as well.
Make upselling easy
Restaurateur Cary Friedman found that a door buster he ran was his most successful advertising venture in his more than 29 years of owning a food service business. The key to the success was that his menu made it easier to upsell dessert on the discounted main courses.
Amazon is now using its new tablet computer, the Kindle Fire, as a door buster to draw customers into the Amazon system. Once purchased, it’s making it as easy as possible for buyers to use the tablet to buy additional products.
Find recurring customers
Door busters can also be a successful way to secure recurring customers. When planning a door buster deal, it makes sense to know who your ideal customer is, and then, what makes that customer come back when there is no deal available. Applying that information to a special sale will ensure its success.
Merchants who do the necessary market research, and structure their offers to provide additional sales in conjunction with the door buster deal, as well as return sales from purchasers of loss leader items, will find this an effective way to do business. They’ll penetrate new markets and increase their share of the customer’s spend.