Everyone shops for grocery at supermarkets on a frequent basis, but have you thought about why sweets, batteries and condoms are always placed just next to the cashiers? Do you know why you always end up with a whole lot of things not on your grocery shopping list after a supermarket visit? There are many marketing secrets to get consumers to buy more and let us reveal them to you now!
Original article is published here. Check it out if you want to read it in Chinese.
1. Products placed at your eye level have higher profit margins
The products within your easy reach are what the retailer wants to sell most. The products with higher profit margins or with a nearing expiry date are usually placed around the 1.5m to 1.7m height level. So if you want to get cheaper products, you just need to tiptoe or bend down to the harder-to-reach shelves!
2. Products with higher profit margins are also placed at eye-catching areas or near the entrance
Stay calm when you see products on sale! Because the products placed at eye-catching areas within your reach or within your path are the products the retailers want to sell asap or are of higher profit margins!
3. The freshest products are placed at the back of shelves
Supermarkets always place the dairy and frozen items with the furthest expiry dates at the back of the shelves, so if you want the freshest items, just dig them out from the back!
4. Vegetables and fruits have high profit margins!
Why are vegetables and fruits placed at the centre of most supermarkets?
Firstly, the area is contracted to many wholesalers, so even though the price of the produce is higher than wet markets, they are not worried about the produce not being sold.
Secondly, the vivid colours of vegetables and fruits are visually stimulating to humans thus triggering the urge to buy.
5. "Rob Peter to Pay Paul" Pricing Strategy
Supermarkets make full use of how people tend to form an overall impression based on a single characteristic of a person or in this case, brand. They will sell an essential item at a lower price to make you think that the brand is cheap and mark up the other items under the same brand so that they will earn back the profit.
6. Activating your smell and taste buds with live sample stations
The smells of the food will activate your salivary glands and make you more likely to buy more of those products! Stay calm, everyone and buy just what you need!
7. Kids are the best customers
Families are out in full force during weekends, and kids are the easiest targets for impulse buying, especially with their ability to affect parents' buying! So the sweets are always placed at kids' eye level and baby or children items are always placed near the women's section!
8. Be careful of Buy 1 Get 1 Free promotions
There are always Buy 1 Get 1 Free promotions, however, check the price before buying, as sometimes the retailers will quietly mark up the price before selling them at buy 1 get 1 free. Check the expiry dates too, as this is one of the strategies to clear expiring stock.
9. Be careful when buying cut fruit
There are always a large quantity of fruit that cannot be sold due to damaged exterior or are partly rotting, so the supermarkets will usually cut them into pieces for sale.
10. Coloured lighting attracts buyers
The coloured lighting makes the food more visually appealing so you can't help but buy!
11. Checkout line is the most profitable area
The percentage of consumers buying the products placed near the cashiers while waiting in line is 25%!
Condoms are placed near the cashiers so that customers can just pick them up and pay with minimum embarrassment!
Sweets are not essentials but always something customers succumb to buying while waiting in line to pay.
Batteries are such a forgettable yet essential item so placing them near the cashiers will remind customers to buy!
And lastly, the items near the cashier are always what customers will reach for if they need another item to make up the minimum amount for a promotion!
Now that you know the secrets of supermarkets, you can become a smart shopper and don't fall into their tricks to get you to spend more! Also check out our article on the best grocery stores in Singapore here and the best credit cards to save on your grocery shopping here!
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