By Chris Nicholls
SYDNEY: A Betta Electrical store in Bankstown, New South Wales is using a ‘Win a car’ promotion to help reduce the industry-wide issue of price cutting.
Allan’s Electrics began the competition, which gives customers who purchase any product from LG, NEC, Mitsubishi Electrolux and Daewoo a chance to win a Proton Savvy, five weeks ago and is seeing positive results, according to Shane Drane, son of store owner Allan Drane.
“It’s assisting us in sales growth with those brands and at the same time, we’re achieving a higher margin with the products we’re selling as well.”
“In this day and age, everyone is price competitive and people come in and say ‘Well, I can get this for XYZ’ and we say ‘Look, if you buy it here, you’ve got the chance to win that car’. And it works.”
The promotion also meant sales staff upsold customers to other, more expensive brands as people were drawn to the idea of winning a car, he said.
The car is left outside the store during opening hours to help promote the competition, and the store pays for a weekly double page spread in the local newspaper about the competition.
Drane said while the store also advertised discounts on the brands involved, they were balanced out by the larger margins achieved by not discounting most products they sold as part of the competition. He also said store exclusive brands such as Daewoo and Mitsubishi Electric were not going to receive prices cut.
The store decided to run the competition with their key business partners to help raise local awareness, Drane said.