Increasing Sales: Shopping Clubs

Shopper

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These days, many people are involved with shopping or buying groups.  Have you ever considered starting one?  I know of many people that do as these are a great way to have guaranteed sales each month.

Determine Requirements

You can do this in two different ways – start with a party total and work backwards, or you can work with an individual sales total and move forwards.

For instance, maybe $250 is an awesome hostess level – free product and a half off item.  Now, if you split 250 by $25, which is reasonable, you would need 10 people.  If you think you could get people to commit to $50, then you could decrease that to 5 people.

Set Rules

Let us stick to the $25 person group and 10 “parties per year”.  When people join, they have to know that they are committing to this for 10 months of the year.  A lot of people take December off and one of the summer months as it can be hard to organize.

Depending on the product, you as the consultant might have a pre-set order, for instance each month they are going to get this one specific product which is worth that $25.  Or you may set it up that they have to have your orders to you by the 10th of the month, but they can pick their product.  If you don’t hear from them, they get the default.

Where do the hostess benefits come in?

Here is the beauty of it!  Each month, you select a different hostess to get the rewards.  I have heard some people suggest you don’t pick the person until you have all the orders in as then if someone wants to order extra this month, you still get that order.  Others recommend telling them at the beginning of the month that they are the hostess for so that they have time to have a party or collect other orders to increase their rewards.  I definitely do not recommend telling your hostesses at the beginning of the year which month they are hosting in, as it will cause problems.

This may take a bit of organization to get going but once you have it setup, you have a great method of getting orders each month without a lot of work.

Note:  I highly recommend you write up the terms and conditions of your shopping club, including that if someone is to terminate their membership, they have to find a replacement.  You may want to have a credit card on file for each person as well as if you have to go to the default order; you still want to be paid.

Have you tried something like this?  How did it work out for you?  Would you recommend it to others?

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