In actual fact the January Sales appeared to start pre-Christmas last year and much like everything in life it seems we are being rushed through the seasons (I happened to spot Easter chocolates in the shops on Boxing Day) and subjected to an almost constant promotional sales discount in our personal lives.
This article takes a look at the sales culture and more specifically how this can affect your business accounting software and what is required to measure the results.
Sales promotions are a great tool to boost income but I can’t help but feel they are a short term tactic, as longevity cheapens a brand and diminishes its value and almost belittles the hard work gone in to accomplish purchasing said item. However used in the right way they are a powerful tool to increase revenue.
The interesting debate as always is do they really boost revenue or do they actually just bring forward a sale?
It is hard to be able to tell this without suitable accounting software in place. For example with Sage 200 Business Intelligence you are able to run a sales by customer by month and identify why a particular month such as January could have a different revenue to the rest. Or perhaps a knock on effect of the January Sales ending is a reduction in revenue through February?
There is often an argument against the use of sales and with the right data behind you, perhaps you may reach that conclusion. It does require work in terms of setting up discount pricing through your accounting software and providing the all-important analytics for measuring the results. Business accounting software such as Sage 200 and Sage 300 for instance does provide the ability for discounts and with Business Intelligence you can utilise reports.
At Oakley (Sage Business Partner) in a Business to Business environment while we are not subjected to the challenges of modern retailers, we still see the same challenges and objections as after all businesses are run by people.
We work in a competitive market place in the B2B world where we want to deliver the best service possible for accounting software solutions. Yet we are often faced with the objection of a cheaper alternative. If asked for a discount what do we do? we stay true to our values.
We have set a price point that we believe is a fair reflection of the service we provide, which is often praised for our thorough approach to implementation and execution.
While this model may not suit everyone, we feel justified by the calibre of clients we are fortunate enough to work with. The ones that place value above price. We do unfortunately hear that in the software industry there are companies more interested in selling the software regardless of the outcome (Implementation and training). We focus on building relationships and finding a longer term solution for our clients.
There are a number of cases where a discount is appropriate such as loyal service, low shelf life, but I fear the sale mind-set is being over used and lessening the impact. Ultimately this is causing people to go cheap and miss the long term vision and ultimate goal of…value and more importantly long term happiness.
If you would like to talk to Oakley about our approach to accounting software please contact us on 01268 724005 or email email@example.com