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Be wary of many end of year sale offers

By PETER KAMURI, The Standard, Kenya

The end-of-year shopping frenzy is slowly catching up. This is the time of the year when everyone wants to shop and equally get the best bargains to save money by stretching the shilling to the maximum.

However, only smart shoppers can get the best value for their money as they know when and where to shop. These shoppers know how to price compare and how to use a third-party website like Raise to get deals otherwise missed by the general public.

Perhaps the best way to ensure that your shilling gives you the maximum is to take advantage of the end-of-year sales and promotions that are common a time like now.

As the year 2011 draws close to an end, many outlets and sellers of products and services are already out there to entice customers with irresistible offers which you can take advantage of.

Smart shoppers know the best time to get the best deals is through the end-of-year promotional sales. This is when outlets and companies announce sales of their products and services at reduced offers. This makes most of these stores to be swarmed with people who want to take advantage of these sales.

Haven’t you been seeing full-page ads in the newspapers and heard television advertisements where sellers are announcing huge end of year blow-out sales lately?

Most of these deals can truly give you value for your money, with some products earning you discounts of almost 50 percent.

Christine Ndege, a teacher says, “I usually wait for this season as they know I will get the best offers of the year. I know this is the time most sellers want to clear old stock and they want to do it at an almost throw away prices and I can get value for my money.”

She adds: “I have also come to learn that most outlets have huge stocks of varied merchandise and they have to do everything possible to dispose it off before the low season sets in. So during this peak season, most of them will be placed on offer so that they can move.”

SALES PROMOTION

Henrik Ashikoye, a manager of private outdoor marketing firm in Nairobi says that promotions come in different shades and consumers must look for those that will give them the best.

“A number of outlets just reduce the price of an item by a certain percentage. These types of promotions are popular because the consumer can tell precisely the amount of money they are going to save,” says Ashikoye.

He adds: “Others give customers coupons that will guarantee them getting a product at reduced amount of money. Most of these coupons can be redeemed for example from newspapers or magazines and what one is expected to do is to cut it off and present it at the point of sales to get the specified discounts.”

“Perhaps the most ubiquitous form of promotion in the country is the competitions run in form of lotteries. A lottery is a promotion that involves the awarding of a prize on the basis of chance with a consideration required for entry.

For example, buying a certain item or service allows you to take part in a competition and perhaps win a prize. This type of sales promotion is more alluring as the amount of prize money can be significant sometimes running into millions of shillings,” notes Ashikoye.

Ashikoye says giving customers ‘loyalty points’ is another common way of promoting sales. Customers earn points on every purchase they make and later, the points earned are converted to money or other goods. Most supermarkets and service providers like Safaricom are using this method as a form of sales promotion.

He mentions that the use of a refund or rebate promotion is also a common form of sales promotion. This is where an offer is made by the seller to return a certain amount of money when the product is purchased.

The refunds aim to increase the quantity or frequency of purchase and to encourage customers to buy more.

Giving customers gifts, depending on the purchase made is also common. Discount vouchers are often given to customers where they can claim it at will. Organising special events that attract consumers at one point, for example sporting activities are equally popular, not forgetting road shows.

Although the end-of-year sales promotion can give you value for your money when they are well designed, they have the flipside.

Ashikoye says, “Most of the outlets selling promotional products are usually jammed with people and may lead to frustrations and exhaustion when shopping. You can take inordinately long time on queues before you can get and pay for an item of your choice, making the whole process expensive in the end.”

He warns, “Sales promotion can at times be used to advertise a product or a service which is inferior in quality.

This means you will be enticed to buy something that will not give you value for your money. Most outlets have used this method to clear their dead stock or items that have not been selling well.”

He further cautions, “In addition, end-of-year sales promotions run for a short time.


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