TylerC said:
[member=560]James Biddle[/member] - We normally don't get into these sort of public discussions about our sales and marketing tactics, but I'm curious about how you envision that it would work to sell one item at a time? Maybe I'm misunderstanding your idea, but how would that work from a customer perspective?
"Yes, you can argue that all of the same model tools are sold in a group to make it more efficient, but how do you reconcile that with the fact that you've had multiple listings of the same tools within weeks?"
I really don't see the issue here. We have a limit on the number of units that will become available each day. We don't sell more than that, because we want to make sure that we can properly fulfill those days orders without detracting from our primary business. If the number of recon tools available for a specific product is greater than the daily limit, we won't fully sell out of that tool. We've initially set the daily limit fairly low to make sure that things get launched and fulfilled properly. It will increase over time.
Tyler, great question!
Let's set up a page of all of the particular tools you have of a particular model you want to sell that day/week (doesn't matter) along with the previous tools that haven't sold. The only difference is you give each tool a particular number, so one tool can be differentiated with another. Easier to explain by example.
You set up the site to email to the subscribers every time a new tool is introduced, like today. The thing is, they not only see the new tools, individually, but they also see any remaining tools, at an additional discount.
You have 4 RO90's for sale. The repair/refurbishment team, does their work and a pic or two of each is taken after the work is done. The sanders get put on a shelf with an individual number and pics the repair team takes. You post all of the available RO90's, by individual number, with their price and their pics.
Now, the transaction is transparent. People buy the best 2 of the 4 RO90's immediately after seeing the pics. These are the people looking for the pristine tools. Then the 2 other RO90's can be carried forward to the next tool model sales or additional discounts can be offered at whatever time period the company decides. It doesn't matter if they sell right away, because you can periodically discount them until they do. It creates the separation between those that want a newer tool at a slight discount, and those that love to skim the best deals off the bottom. As you gradually lower the price, different consumers will become interested, knowing that their are fewer and fewer tools heading to the bottom of your desired price, further enticing the low cost buyers to move.
The model is Festool's and is internal. Also, warranties can now be adjusted per tool rather then by rote. It gives Festool a lot of flexibility to adjust the price and warranty dynamically according to your internal decisions.
Everyone that buys has a success story, "I bought this prefect tool for X% under new","I bought this tools way below new price just before someone else got it", "I bought this tool at rock bottom and everyone else paid too much".
You will still have complaints form individuals, but will have so much more support.
Anyway that's my idea,
James
