6 Tips To Boost The Bottom Line (Visit this link)
In an industry where everything costs a lot of money, creating opportunities to maximize on customer expenditure is essential. Many of the DZ's I visit focus solely on tandem and video sales and are merely satisfied with any other purchases made in the gear store. Let's be more strategic by increasing peripheral sales to help boost your bottom line. The margins on tee shirts are too substantial to ignore. Also, guests who purchase a second tandem become part of your marketing team by recruiting others to join them on their skydiving adventure. Are you doing everything you can to boost these sales?
Understanding What We Have
The skydiving industry has something that retail companies, salespeople, and corporations crave….no, WISH they had with their customers. That word is connection. Ever been to the Gap during its heyday in the 90s or even the Apple Store of today? Millions of dollars have been spent by these companies to mix the right elements to make the retail environment inviting enough to make a connection. Selling has been turned into a science focused on stimulating the consumers senses.
Walk in to an Apple Store and pay attention to what you're seeing. Visually, the store is appealing with clean lines, lighting that isn't harsh but illuminates and is soft. The colors in the store window are vibrant. Audibly, the music is up with an energy-induced, toe-tapping beat. The music isn't an ipod on shuffle but is part of a science known as multi-sensory branding. Everything is by design to connect with customers and create an environment that is inviting, warm and allows no obstacle for consumers to react on an impulsive purchase. The energy felt within the Apple Store is palpable as the throng of people within the store creates a vibe that makes the price of the products not seem so incredibly expensive. Touch - having all the products out and available to touch and play with is part of the Apple Store's brilliance and pushes the connection between user and product. Playing with an ipod is much more powerful than simply looking at one. Smell - Think there isn't a smell at the Apple Store? You won't notice what you're smelling, but instead notice what you're not smelling. There is no musty smell from hundreds of people crammed into its tight quarters, but rather a smell of newness that matches the vivid environment. Undoubtedly, the store is cleaned very well at the end of each day. Everything involving the senses is calculated and by design. Whether you're an Apple lover or hater, Apple has created a retail model that spares no expense to create a connection with the consumer. When a connection is made, sales are made. The skydiving industry has conquered the hardest part of selling: we have the connection. Now, let's make some sales!
Closing the Sale
The moment a tandem student lands from their skydive is SALES GOLD. The reserved person who arrived at the DZ who hemmed and hawed about upgrading from video to video and stills is now primed to spend a little more money…at least $18 for a tee shirt. The connection the student has with the tandem instructor and the organization is now sealed as serotonin surges through the veins of an individual who has just completed "The best experience of their lives." The consumer WANTS to share their experience showing off a tee shirt or product that says, "yeah, I jumped out of an airplane and loved it." Be sure we're creating the right environment to make the sale.
NOTE: You don't need to have an amazing facility or retail space to accomplish this.The minimum requirement is that your sales area is clean and feels organized.
6 Power Tips To Boost The Bottom Line
1. The Tandem Instructor
The tandem instructor is the gateway to an easy sale. The student has entrusted his / her life to the instructor while facing their biggest challenge and they lived! Big time connection here. If your DZ is meeting instructors in the landing area with a rig, then you're negatively affecting your sales. Great that you're busy, but if there is not enough time to complete the experience, then you're clearly understaffed. A great book has a strong beginning, middle and end. Too often, we end the tandem experience improperly without an instructor:
a). debriefing the tandem student with encouragement about how well they did during the jump
b). the presentation of a certificate of achievement signed by the instructor with a shake of the hand or hug and the signing of log books (instructors and student's)
c). presentation of sales opportunities that the customer has become eligible for having completed their first jump as well as the next steps to becoming a solo skydiver.
A Word on Instructors: Passionate instructors will buy-in to this. A DZ's success is everyone's success and job security for all!
Where the closing takes place is key to driving sales. Ideally, have the presentation of the certificate of achievement take place in the store. Once the instructor shakes hands and departs, the student is left with feelings of exhilaration and happiness in the retail space.
3. The Store
The gear store, regardless of size should feel clean and organized. If the store is poorly lit, has worn out carpeting, and is bulging at the seams with product then make the correct changes. Offer less product if needed to make the sales environment more friendly. All products should be neatly hung or folded.
Be sure your customers can touch tee shirts. If tee shirt designs are simply on display behind the counter with sizing in drawers, then you are not maximizing sales. As with all retail stores in the mall, people want to see how tee shirts will look on them. The interaction of touching the product is very important.
5. Offer a Deal
Even if it's perceived. There is a euphoria in shopping when people feel like they've received a deal. Observe the madness of Black Friday in the US as shoppers quite literally feel a 'high' when getting amazing deals even at the cost of getting out of bed at 4:00am, fighting traffic and huge crowds for the opportunity to spend money in a crazy environment! When presenting the certificate of achievement, offer an exclusive discount in the form of a coupon (preferably on card stock, so it feels substantial) for those that have completed their jumps to receive a discount on purchasing their next tandem, a discount for beginning AFF and a discount on a tee shirt). Even a $2 discount off of a US$20 shirt feels good to a shopper. You don't have to give the house away to see a jump in sales.
6. Create an Urgency
Don't give customers options to get a deal after they leave the DZ. There is no better sales environment than the moment after a jump. During my time at Skydive Carolina, I offered my guests who had paid full retail the opportunity to purchase a gift certificate for a tandem at half the price. The discount would be valid for that day only, pushing the student to make an on-the-spot decision. (The strategy is not to force the student to jump the same day, but to leave with the discount in hand in order to recruit others). Once the customer leaves the DZ with an option to buy later, the percentage of sales decreases dramatically. If someone called within a few days begging to cash in the offer…I would always honor it.
The psyche of most people doing a tandem skydive is to share in the experience with others. My basis for good marketing is to convert happy customers into 'talkers' for your DZ. Anyone leaving with a half off tandem promotion becomes a marketing mouthpiece. They will try to recruit others to join them for their next tandem experience and of course you will capture them at full retail. Some people return alone, but that is the minority. This is part of equipping your guests to become the marketing machine for your DZ and the best part is they're paying you to do it.
Owning and running a DZ is harder than most people can imagine. The lists of to-dos and responsibilities are endless and being ahead on anything is typically short-lived. My thoughts are geared towards working smarter, not harder and to convert your happy customers into marketers.
This is great info really. I think most of us forget it is a business but thinking back to MY tandem; I jumped, I landed, I was ushered into the gift shop and was handed a bunch of stuff (it was a nice certificate, some plain-paper info with coupon, and my video). They quickly described the discounts and then were gone.
I was so euphoric I would have signed up for FJC right then and probably bough a shirt, mug, and who knows what else. Instead I left and... didn't get back for months.
Tandems themselves are big money, but a student jumping at the DZ can be a lifetime of income for that owner and operation. We need to reach them a bit better for certain.
Very interesting. But a lot of DZ managers don't have 10% of that sense of marketing shown here. The described psychological state of somebody who just finished a tandem jump is exact. Time to brief the tandem master into marketing.
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- 6 Tips To Boost The Bottom Line - by James La Barrie (Posted: 2014-02-13)