Get In The Game is a weekly column by Dan Yarrington, managing partner of Myriad Games in Manchester & Salem, New Hampshire, Treasurer of the Professional Game Store Association, and Editor-in-Chief of GameSalute.com.  This week, Yarrington talks about the effects and effectiveness of sales.

Welcome back to Get In The Game, a column that explores proactive ways we can improve the games industry.  This week, we talk about the effects and effectiveness of sales.

What's In A Sale?
What defines a sale?  Well, that's something simple, right?  You just put a 25% off sticker on a product and the product sells itself!  In reality, a sale should be a coordinated promotional effort that emphasizes the value of the offered goods and services while leading to additional sales.

The Ol' Standby -- It's On Sale!
The standard sale is a simple percentage off or dollar amount off (e.g. Up to 40% off select products -- or -- Save $5 on any purchase of $25 or more including new bath soap and designer deck protectors).  This is simple, time-tested, and it works when the value is right.  It's also the easiest and therefore most often used form of the sale.

Better By The Bundle
Some enterprising merchants put together bundles including Buy 1 Get 1 Free deals or bonuses.  You might say, "Purchase Small World or Small World: Underground and receive Small World: Be Not Afraid FREE!"  Bundles are more complicated and offer lots of options for enhanced perceived value rather than simply reducing the price on goods.

Why Should You Offer Sales?
When they're implemented well, specials, sales, and promotional offers can generate excitement, improve traffic, and boost your sales numbers.  They're also expected by consumers and especially around the holidays.  They generate cash flow (not to be confused with profits) and help clear out old inventory.

Why Shouldn’t You Offer Sales?
Sales devalue the goods and services you offer.  Why would I buy Wits & Wagers today for $30 when I saw it once for $15?  It may be that cheap again and if I buy it now I can't get that deal.  The psychological impact of seeing a price greatly reduced is that the resistance increases to purchasing it any price higher than the lowest perceived price.  And I say perceived because frequently that "lowest price" does not count additional costs, present availability, and other factors.  The $100 game that you saw once on sale on an online store for $45 (before shipping), means that you're going to think thrice about shelling out a C-note for it.  Now even $60 (a 40% discount) seems pricey.

What Are The Most Effective Sales?
The most effective sales are the ones that provide the best value to both the customer and the merchant.  The adversarial nature of "getting a deal" is too prevalent in today's mercantile culture, and the final negotiated price of any given commodity is subject to a wide variety of variables.  In the end, you want to show the customer that you're offering them a special deal as a token of your appreciation for their custom.  You don't want to cultivate one-time sales where the customer purchases only the loss-leader or at-cost item and no other items.  And you especially don't want sales that are so good that people will buy the items and re-sell them.

The Best Sales Are Sales To Be Continued...
Remember to use sales, specials, and promotions toward two major purposes:
1)  To reward existing customers, thank them for their business, and encourage their continued patronage.
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2)  To begin a relationship with new customers, introduce them to the value and benefits of your business, and earn their regular patronage.

Talk Back!
What sales and promotions have you had the most success with?  What are you doing this holiday season?  Talk Back today!

What are you waiting for?  Get In The Game!

The opinions expressed in this column are solely those of the writer, and do not necessarily reflect the views of the editorial staff of ICv2.com.