Grand Incentives - Why Use Them?

One of the better methods of closing a sale is using incentives. Wikipedia defines it as, "any factor that enables or motivates a particular course of action". For example, a car salesman who is close to a sale may offer to throw in a $500 gas card to the prospective buyer. Now, the salesman could just reduce the price of the car by $500. However, it is sometimes more effective to "meet the needs" or appeal to a particular desire of the buyer in order to close the deal.

In industries that are highly competitive (car sales, mortgages) incentives are used regularly. It becomes a way for businesses to stand out from their competitors.

Here is a list of ways incentives can be used.

• Reward employees
• Close a sale
• As prizes to help generate leads
• As a thank you for charitable donations
• A way to reward your loyal customers
• Given to a disgruntled customer to help smooth things over
• To get people into your business (...first 50 customers get a vacation certificate)
• Given at a Grand Opening or new product launch. Everyone remember a business that give them something for free.
• Attain new customers (switch your cell phone service to us and receive a $200 dining certificate)
• Improve brand awareness (many incentive companies to have your logo branded on the incentive)