For manufacturers or merchants who use the old-for-new promotion method, the recycled secondhand goods usually have no economic value; The purpose of exchanging old goods for new ones is mainly to eliminate the sales obstacles formed by second-hand goods, and to prevent consumers from buying new goods because they are reluctant to discard used second-hand goods.
At present, the trade-in promotion is very popular, involving bicycles, watches, household appliances, furniture, housing, gold jewelry, pressure cookers, water heaters, gas stoves and so on. Even suits, sweaters, sneakers, woks, etc. , can be replaced with new ones.
First, the main types of trade-in
1. When consumers buy new goods, they can only discount the second-hand goods produced by the same brand or manufacturer.
For example, Shanghai Watch Factory stipulated in 1994 that you can get a discount of 15 yuan for buying new watches with old semi-steel watches produced by Shanghai Watch Factory; When buying a new watch with the old all-steel watch produced by Shanghai Watch Factory; You can get a discount of 16 yuan; You can get a discount of 17 yuan if you buy a new watch with an old calendar made by Shanghai Watch Factory.
For another example, Hangzhou Boss Electric Appliance Industrial Company stipulates that all the "Red Star" brand range hoods purchased by consumers in the past, no matter how old, can be replaced with "Boss" brand range hoods for free. Because "Red Star" is the predecessor of "Boss" and belongs to the products of the same manufacturer.
This practice is mainly to give back and stabilize old customers and attract new customers.
When consumers buy new goods, they can discount old goods of any brand.
For example, Wuhan Zhongnan Commercial Building stipulates that consumers can give preferential treatment to any brand of old pressure cookers when they buy Supor pressure cookers. This promotion has attracted many Wuhan people to buy new Supor pressure cookers from the old ones that can still be used.
In recent years, some real estate developers in large and medium-sized cities have even launched a promotion campaign to exchange old houses for new ones, so that consumers can offset part of the price with the original old houses when buying new commercial houses.
At present, the most common practice is that any brand of the same second-hand goods can be discounted for new ones. It can attract all customers who own secondhand goods to buy new goods, and the promotion effect is the best.
When consumers buy new goods, they can only use the secondhand goods of competitive brands to discount or exchange them for new goods.
For example, Shiseido Cosmetics Company of Japan stipulates; Consumers can exchange Shiseido cosmetics for a batch of packaging bags. The purpose of this practice is to win over consumers of competing brands to buy this product. However, this practice is easy to offend the original customers of this brand, and it is suspected of liking the new and hating the old. Unless there is a special marketing motivation, businesses rarely adopt this approach.
In a certain period of time, consumers can buy new goods at a discount with similar secondhand goods of any brand. Once this time limit is exceeded, you can only buy new goods at a discount with the second-hand goods of the same brand.
For example, Jinshi suit advertised in Changjiang Daily, announcing that before New Year's Day 1999, consumers can exchange their old suits for new ones of any brand and buy new ones of Jinshi brand. However, after 1999 New Year's Day, the old Jinshi suit can only be discounted.
This practice can stimulate consumers to buy as soon as possible during this period, and at the same time give preferential treatment to old customers to some extent.
Second, the advantages and disadvantages of trade-in promotion analysis
The advantages of discount promotion are:
1. It can remove the obstacles to the sale of new goods, thus preventing consumers from buying new goods because they are unwilling to abandon old goods that can still be used. According to the survey, at present, the middle and high-grade durable consumer goods in urban households, especially household appliances, are mostly purchased in the late 1980s and early 1990s, and it is generally time to upgrade. Many families did not buy new goods; Mainly used goods can still be used, but it's a pity to lose them! Trade-in of old goods provides a discount opportunity, which will enable many consumers to update their old goods in advance and clear obstacles for the sale of new goods.
2. For some popular goods, such as furniture, clothing, travel shoes, etc. People often buy them, and soon they are out of date. Trade-in also finds a discount opportunity for these outdated goods, so it can prompt consumers to eliminate and replace outdated goods in time and buy fashionable and fashionable goods.
Trade-in can improve the competitiveness of non-brand goods in the market.
Take the author as an example. 1at the beginning of 998, I planned to buy a 9-liter water heater to replace the old 5-liter water heater used in the past. At that time, there were more than a dozen brands of water heaters on the market, including Wan Jiale, Shenzhou, Yuhuan and other famous brands, but the author finally bought an unknown Yongle brand water heater. The main reason is that only one brand of water heaters in Yongle is engaged in trade-in, and other brands of water heaters cannot be traded in. It can be seen that trade-in can improve the market competitiveness of non-brand products, and even make the sales of a non-brand product exceed that of famous products.
Trade-in is essentially a disguised price reduction, but it can avoid all kinds of side effects caused by direct price reduction.
In fact, many manufacturers or businesses are worried that price reduction will reduce the image of goods, arouse consumers' doubts about the quality of goods, or worry that price reduction will trigger a price war among peers, and often use the old-for-new method to reduce prices in disguise. Doing so can not only receive the promotion effect of price reduction, but also avoid the negative impact brought by price reduction.
The disadvantages of trade-in promotion mainly include:
The cost of length promotion is high.
Most of the secondhand goods recovered in the trade-in process have little or no economic value, which is far behind the discount. For example, Wuhan Yongle Apollo Gas Appliance Co., Ltd. sells the recycled old water heaters as scrap iron to waste companies, and one can only be sold for 2 ~ 3 yuan; The old water heaters can be discounted to 50 yuan, which means that the manufacturers will lose more than 40 yuan in sales profits. In addition, the recycling, stacking, transportation and disposal of old water heaters will also generate costs; Advertising for trade-in activities also costs money. All kinds of expenses add up, and the promotion cost is higher.
2. The promotion scope is relatively narrow.
Trade-in is mainly suitable for promoting high and medium-grade durable consumer goods. For daily consumer goods with low prices and short service life, consumers will throw away old goods and have no interest in participating in trade-in; In addition, trade-in is not suitable for promoting means of production goods, so the scope of promoting goods is relatively narrow.
3. In practice, many merchants are unwilling to cooperate with manufacturers to carry out trade-in promotion activities. Because this kind of promotion is troublesome to operate, the recycled secondhand goods are dirty, and it is difficult for shopping malls to find the location of stacking, so many businesses are reluctant to handle this kind of business.
Third, the operation skills and precautions of trade-in
1. How to discount secondhand goods is the key to the success of trade-in.
If the discount on secondhand goods is large, the profit loss of the organizer will be large; If the discount on secondhand goods is small, it will be less attractive to consumers, and fewer people will participate in promotional activities. How to determine the discount rate of secondhand goods? In general, the following factors should be considered:
A. The new goods are priced high, the sales profit is high, and the discount rate of second-hand goods can be higher.
For example, on 1996, Shenyang Nidian Group carried out the trade-in activities of Nidian brand fluorine-free refrigerators in Beijing Urban and Rural Trade Center and Landao Building. The price of the new refrigerator is 3,700 yuan, and consumers can get a discount of 1000 yuan when submitting the old refrigerator when purchasing, and actually pay 2,700 yuan. This activity has received a good promotion effect, because the discount rate of secondhand goods has reached 1000 yuan, which is the first time that Beijing residents have heard of it, and it is certainly attractive. More than 30 new fluorine-free refrigerators in the Urban and Rural Trade Center were sold out in just two days. The manufacturer of refrigerators, Nippon Electric Group, not only has no loss, but has a slight profit surplus, mainly due to the higher pricing of new fluorine-free refrigerators.
B. If similar competitive goods are also engaged in promotional activities, the second-hand goods in the trade-in activities must be discounted at a higher price to effectively attract consumers. On the other hand, if similar competitive goods do not engage in any promotion activities, the discount of second-hand goods exchange promotion can be lower.
For example, when the Yongle brand water heater in Wuhan was replaced with the old one, other brands of water heaters did not engage in promotional activities. Therefore, although the old water heater in this trade-in promotion can only be discounted to 50 yuan, which is only 1/2 1 of the price of the new water heater, it still attracts many consumers to buy it. Because consumers think that 50% discount is better than no discount, although the discount rate of secondhand goods is low, it is still attractive to consumers.
C. the discount rate of brand-name goods can be lower, and the discount rate of non-brand goods can be higher.
2. At present, when many manufacturers or merchants carry out trade-in promotion, the discount rate is uniform for convenience and convenience, regardless of the specific situation of secondhand goods. This will not only cost higher promotion costs, but also make some customers with newer second-hand goods and higher second-hand value feel that they have suffered losses and are unwilling to participate in promotion activities. Therefore, as long as conditions permit, try to determine different discount standards for second-hand goods.
When Wuhan Zhongnan Commercial Building launched the trade-in promotion of color TV in 1997, it formulated different discount standards for second-hand goods according to the differences between color TV and black-and-white TV, 20-inch and 20-inch, right-angle plane and horizontal plane, remote control and non-remote control, imported brand and domestic brand, and available TV and unavailable TV. The discount standard for each of the above six price differences is different from that in 50 yuan. After all this, the average discount on old TV sets can only be around 200 yuan. It not only reduces the promotion cost, but also convinces customers who submit all kinds of second-hand TV sets and is willing to participate.
3. When carrying out trade-in promotion activities, there are usually many consumers, manufacturers or merchants who take the recycled second-hand goods for repair and renovation and sell them to everyone as new goods. In order to eliminate this misunderstanding and overcome this sales obstacle, when necessary, the whereabouts of recycled second-hand goods should be announced to consumers.
4. The old goods recovered from the trade-in promotion activities should be used as much as possible to reduce the promotion cost.
Supor pressure cooker manufacturer smelted the recovered old pressure cooker and cast a new pressure cooker with its metal material, which greatly reduced the cost. Zhongnan Commercial Building sells recycled old TV sets and bicycles to individual bosses; After the maintenance, the individual boss resold it to the countryside at a low price. This is much more profitable than selling second-hand goods as waste. Other manufacturers or merchants donate relatively new and still valuable secondhand goods to poor and backward areas, which is helpful to improve the reputation and image of enterprises.
5. Choose a good opportunity to carry out trade-in promotion activities. Gas cookers, pressure cookers, clothing, furniture, gold jewelry and other commodities. During New Year's Day and Spring Festival, the promotion effect is usually several times or even ten times that of usual.
6. At present, many manufacturers or merchants are pulling new products to various communities for trade-in. This is not only convenient for consumers, but also allows consumers to try new products at home before deciding whether to buy them. Of course, the effect is much better than that in the store. In addition, this practice can save the advertising cost of trade-in activities.