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A Powerful Partnership, Part 2

By: Sarah Burns
Posted: June 13, 2008, from the September 2006 issue of Skin Inc. magazine.

page 2 of 5

Gift with purchase (GWP). One of the first things that goes through a woman’s mind when she hears about GWPs is department store brands giving away free lipsticks or cosmetic bags laced with brand marketing. This is a brilliant idea—everybody loves to get a present. That marketing technique still works, and is a great incentive for both the business and the client. The client will extend their budget to hit the target amount needed in order to obtain the GWP, and the GWP provides a product to sample and then fall in love with.

Some vendors offer programs to assist you with contributing the GWP. It should be associated with a special event or be available only for a specific duration. It never should extend during a long period of time, or the excitement will be lost. A “while supplies last” type of promotion usually works very well.

The GWP can be set up in numerous ways, but the gift must have some value and relate to the items purchased. It can be used to offer your clients a little perk and to weed through excess inventory. In both instances, the client will enjoy the gift, and sales will increase.

Cooperative advertising. This offers marketing support for a specific product line and is processed in different ways, depending on the supplier. The majority of them designate an allotted dollar amount to go toward co-op advertising. The vendor often will provide a support Web site or a CD that can be used for all marketing needs. The spa owner creates an advertisement and sends it to the supplier for approval because it needs to represent the brand properly. Once the ad is approved, it may be placed. The product company will credit the spa’s account for the percentage they are reimbursing, which can be used for future purchases.

Sampling. Each vendor has a different policy on sample allotment. The majority base it on sales volume. A percentage of this amount goes toward marketing, which includes samples. Many will allow sampling on their top-selling items, while others will sample all retail products.