WebDirectoryTraffic.com - Web directory for you to promote websites with links exchange program, SEO, ISP, traffic exchanges, design and development, web hosting, search engines and directories, traffic exchanges and more.     Article   Home > Article Traffic Web Directory and Resources   It's better to give: rack up sales with a wildly generous promotion Last December, Shannon Murphey wanted to beef up sales at his Tyler, Texas, jewelery store, Murphey the Jeweler (www.murpheythejeweler.com). After analyzing his sales figures, he decided to give away $50 gift certificates for local businesses to give to their employees. Everyone said he was crazy to mail out more than 4,000 certificates, but Murphey was confident. "Many people used the gift certificates as credit toward more expensive items," explains Murphey, 49. "The average customer spends $2,500 over the course of doing business with us, so this was a very calculated risk." Murphey expects the promotion to generate $1.5 million in new-client business. Bob Nelson, president of Power Retailing, a retail consulting firm in Phoenix, says careful cost-benefit analysis is key. He offers these tips for using gift certificates as promotions: * REACH THE RIGHT PEOPLE. Says Nelson, "This promotion was targeted toward people who have jobs and can afford to spend money in the store." * MAKE SURE YOUR MARGIN CAN HANDLE IT. Nelson estimates a jewelry store's margin can easily handle a $50 credit on many items, so it's likely the jeweler is still making money on items sold, even with the credit. * REMEMBER THE EXPOSURE. This bold promotion got people talking about Murphey, and that has value, too. GWEN MORAN is co-author of The Complete Idiot's Guide to Business Plans. Reach her at gwen@gwenmoran.com. Go back to Articles page   Home • Submit Site • About Us • Link to Us • Contact Us • Disclaimer • Privacy Policy • Blog Information contained herein is deemed accurate and correct, but no warranty is implied or given. © Copyright Webdirectorytraffic.com Inc., 2007. All rights reserved. WebDirectoryTraffic.com is a complete web directory with link exchange, trade link, advertising, reciprocal, traffic measurement, press release services, free submissions, classified advertising and more.