$2.5 Million in Extra Sales: Bartercard boosts Luxe Brand
Are you a supplier to resorts or restaurants?
We show how Bartercard helped one luxe furniture brand in Sydney make $2.5 million in extra sales.
There’s plenty of pressure in retail to sell stock quickly. Customers are always shopping for the latest look, especially when a new season rolls in. Putting on a Bartercard Sale Day is one way to expedite sales while creating a greater customer experience in-store, like Sydney brand Osmen does.
Their Managing Director Michelle Lam-Li has used Bartercard since 2008, but stated doing Sale Days in 2013 where she’s sold over $2.5 million worth of excess and superseded stock at full retail and discounted prices.
The brand
Osmen sells beautiful outdoor furniture to restaurants, cafes and resorts globally, and through a chain of retail stores in Sydney, covering the full spectrum of manufacture, import and export. Their resort-style designs uplift every space, but like every retail business, seasonality is a hurdle to constantly keep in-check.
Bartercard Sale Days
When there’s surplus stock at the end of the season, Osmen puts on a Bartercard Sale Day where Bartercard members are invited to purchase their beautiful pieces with their Trade Dollars, Bartercard’s cash-alternative currency. These members often bring cash-paying friends and family to boot.
The upside of seasonality
Turning seasonality around, Michelle said Bartercard Sale Days can clear up to $400,000 worth of stock in a single night and have shifted over $2.5 million worth of excess and superseded stock at full retail prices.
“Bartercard not only moves stock that’s superseded by newer product, but saves valuable storage space,” she said. “At the end of the day no business wants its floor space or warehouses full of items and Sale Days shift stock quickly. We also sell discontinued items - if it’s not cost-effective keeping the line, we put it in the sale.”
The Osmen warehouse isn’t normally open to the public and Sale Days let the brand attract a new market of business customers quickly without the foot traffic or enhanced POS requirements. “The items that we sell on Bartercard are still great products - it’s the stock we have just as a new season look comes in. Sometimes customers are looking for a square style when we still have the curved look in store. You will always have certain styles left over for different reasons and Sale Days reduce that stock.”
How it’s done
Bartercard arranges everything from start to finish including marketing, running the event and processing transactions. The stock list is determined ahead of time then teasers are sent around the country. Members are invited to shop the selection of sale items clearly marked – they just stick a post-it with their initials on the products they want.
Spending Trade Dollars to offset cash costs
Bartercard Sale Days earn Trade Dollars that Michelle spends on business and lifestyle expenses to offset cash costs. Since 2008, she’s saved over $1.6 million by spending Trade Dollars instead of cash on bus and magazine advertising, accommodation at resorts and staff gifts and incentives, and is looking to purchase real estate through Bartercard next.
For more information visit bartercard.com.au or download our FREE 2018 Digital Business Essentials ebook.
18th October 2018
