Question

Topic: Customer Behavior

Which Sells Better - Larger Or Smaller Quantities

Posted by stacey on 8/18/2016 at 7:31 PM ET 250 Points
Wasn't sure if I should put this under Strategy or Customer Behavior.

I sell Downspout Safety Caps (DSCs) on Amazon as well as my own website; currently in packs of 4. (DSCs slip on to the edge of your downspout to protect against the sharp edges as well as finishing the exterior trim).

I'm wondering your thoughts on the optimal quantity to package them in; should I sell them in packs of 2 instead of 4? Most homes will have 2-4 downspouts on them, some more. I'm sure there are those that have only one as well.

Thank you in advance for your thoughts.

Best,

Stacey
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RESPONSES

  • Posted by Jay Hamilton-Roth on 8/18/2016 at 7:53 PM Member
    Based on your current sales data, what's more common?
    Would a pack of 2 produce higher revenue for you (for example, 2 packs of two costs more than a pack of four)?
  • Posted by Gary Bloomer on 8/18/2016 at 9:15 PM Member
    Packs of two at one price point. Packs of four at a higher price point. Or vice versa, depending on how things sell at the moment and depending on your production and shipping costs, and depending on your inventory turn.
  • Posted by stacey on 8/18/2016 at 10:30 PM Author
    75% order one pack of 4, with the other 25% ordering multiple packs. Guess I was wondering if anyone was familiar with any data on the subject as far as customer behavior goes. Just as people will perceive value with a higher price point, is there some common perception with buying in quantity. I realize 2 vs 4 isn't super significant, but I thought if there's a way to get an edge, I should do that.
  • Posted by Mike Steffes on 8/19/2016 at 8:07 AM Member
    Customers will do what makes sense to them. Unless there is no other alternative, then they'll do it your way until something better comes along.
    You could do something like a plain pack of 4, and then a pack of 6 with an installation tool. That would give a little more number flexibility to your customers, plus you'd cover some more profit by the inclusion of an inexpensive gadget in the 6-pk.
    6 could be the Starter pack and 4 the Expansion pack.
  • Posted by mgoodman on 8/19/2016 at 11:04 AM Accepted
    My experience has been that customers are incredibly smart when it comes to buying what they need. If they understand the benefit you offer, and they are sold on the idea, they'll buy what they need. Trying to get them to buy more isn't likely to do much for you, and it could turn them off ... especially if the unit price is about the same.

    This isn't like buying a bag of potato chips, where people will eat more when they have more. Just sell the benefit you offer and let folks order what they want. Packs of 4 (as the minimum quantity) seems like a reasonable way to go.
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