Thursday, December 17, 2009

Are holiday incentives good?

I can appreciate a good incentive as good as the next salesperson, but what is the bottom line? Customer loyalty, Long term company stability, or Short term profits? While individual salespeople like incentives because it helps their bottom line, I wonder if it does hurt the long term profits for the company? A promotion sale could help line MY pockets now, but what if I got more money in the long run if they set up later?

A key factor I think of is that promotions open up floodgates to people who "wait for the best promo". You may talk to this kind of person numerous times in the future, and might have sabotaged future sale potential by shoving promotion prices or specials down their throat in the past. "Why can't I get that deal you offered me before?" Because Sir/'Mam, I work for a company that likes to play with your heartstrings.

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