What Is A Fire Sale?

Business owners, both online and offline, have long understood the value of holding a fire sale. It’s a highly effective way to accomplish several business goals, including raising money quickly.

You’ve likely seen these fire sales: car dealers advertising “Everything must go,” or online retailers clearing out their product catalog and practically giving everything away.

A fire sale is defined as “an emergency clearance sale at greatly reduced prices.” Originally, it referred to the sale of products that had been damaged by fire or that could no longer be stored because the storage facility had been destroyed by fire, necessitating an immediate sale to prevent loss of value.

However, most fire sales today have nothing to do with fire. It’s an old phrase that has been re-applied to a business strategy. Now, it more clearly defines a sale of assets at extremely low prices.

One common and effective model for a fire sale works like this:

You start by selling a product at a very low price. Then, every few days, the price goes up. This usually lasts for 7 days, after which the offer is pulled off the table forever.

Another fire sale model involves selling a valuable package of items at such a tremendous bargain that people rush to your site to buy. If the package is truly a bargain, it becomes irresistible, and your conversion rate and profits skyrocket. In this model, you may notice the term “Package of items.”

If you’re hesitant because you don’t have many items in your product catalog or don’t have many you want to discount significantly, know that many fire sales include other people’s products. We’re talking about joint venture partnerships, resell products, and PLR.

One might think a fire sale is solely about raising money fast. That’s not entirely true. While a fire sale is effective at generating quick cash for reasons like:

• Family emergency
• Bankruptcy
• New business opportunity requiring lots of cash

A fire sale can also help build and grow your business.

Why Fire Sales Work – Buying Triggers

Before diving into why you might want to host a fire sale and the elements required for success, it’s important to understand why fire sales work.

Price

Fire sales tap into numerous buying triggers, with price being the most obvious. We’re all looking for a bargain, and when one is presented to us, it’s often difficult to pass up the opportunity.

When products are cut down to ‘bargain basement’ prices or are ‘practically given away,’ a normal, human reaction is to take advantage of the low prices, even if the product isn’t something we need.

People buy based on emotional reasons first and foremost. This is why compelling sales copy always appeals to emotions and benefits by addressing the problems you are solving for your prospect.