Toy Sales Essay Example | Topics and Well Written Essays - 750 words

Toy Sales - Essay Example It does not take long for parents to realize that the toy bought a few weeks ago has become an unwanted and useless thing. Most of these toys are in perfect shape and can be taken for toys that arrive fresh from the factory. Toys R US can open such schemes where parents can return used toys and be compensated at one-third of the original price while Toys R US can still do good and ethical business with even them by selling them at half or three-quarters of the original price. The biggest value customers find in a retailer is cost-saving. Toys R US has already built a reputation of a low-cost toy seller, but being in competition with Costco and Wal-Mart with such strategy means that costs are not sufficiently low enough. Toys R US should find out ways to reduce the cost of toys even more which may be through outsourcing toy-manufacturing services or reducing the profit margin. One way Toys R US can maintain the profitability without losing to Costco and Wal-Mart is by opening lottery schemes for the kids. Offering good quality, durable, and well-proportioned toys in lottery prizes through lucky draws every few weeks is not a huge cost to pay for sustaining the business amidst such powerful competitors as Costco and Wal-Mart. Clientelling is a very fruitful strategy that Toys R US can employ making optimal use of the technology at hand. High-end businesses employ clientelling as a strategy to pair their customer with representatives that log every action or purchase made by the customers into a database so that future services can be customized accordingly. Clientelling helps retailers build long-term relationships with their customers and build their loyalty. Toys R US can inform the customers of the arrival of toys preferred by them whenever the fresh stock of toys is received at the stores. Staff members and representatives of a retailer play a very important role in fostering its relationship with the