Purchase with Purchase (PWP)

PWP stands for Purchase with Purchase. This is a sales promotion technique in which a customer is offered a discount on a second product on the condition that the customer buys the first product.

The second product is not offered free but at a discounted value. This can be an effective way to increase sales and encourage repeat business.

To elaborate further, the PWP (Purchase with Purchase) technique is often used in conjunction with a company's existing product line. For example, a cosmetics company might offer a discount on a new line of lipsticks if a customer purchases a certain amount of their existing products. This not only encourages the customer to try new products but also incentivizes them to purchase more of the company's core products.

Another way to implement a PWP (purchase with purchase) technique is by offering a free gift with purchase. For example, a customer may receive a free makeup bag when they purchase a certain amount of cosmetics.

Benefits of Running a PWP Offer

Purchase-with-purchase (PWP) promotions can provide several benefits for sellers. Here are some of the key advantages:

1. High Conversion Rate: PWP promotions encourage customers to spend more by offering additional products at a discounted price. This can result in higher sales volume and revenue for sellers.
2. No dead stock: PWP promotions can be an effective strategy to clear out excess or slow-moving inventory. By bundling these items with popular or high-demand products, sellers can incentivize customers to make additional purchases and help move their inventory faster.
3. Pricing power: Sellers can strategically select products with higher profit margins for their PWP (purchase with purchase) promotions. By offering these products as part of a bundle, they can offset the discounts given on the main item, thereby protecting their overall profitability.
4. Low Customer Acquisition Cost: PWP promotions can attract new customers by offering added value and incentives to try out new products or brands. Existing customers may be more likely to make repeat purchases or remain loyal to a seller who consistently provides attractive PWP deals.
5. High Average Order Value: PWP promotions can be used to sell complementary products. For instance, if a customer buys a laptop, the seller can offer a discounted printer or software as part of the PWP deal. This helps increase the average order value and drives additional sales.
6. High Customer Lifetime Value: PWP promotions can help sellers differentiate themselves from competitors and create a unique value proposition. By offering exclusive or limited-time PWP deals, sellers can attract customers seeking additional value and a better shopping experience.
7. Low Costs: PWP promotions provide a cost-effective marketing strategy for low-cost products. Rather than spending a significant amount on standalone advertising or marketing campaigns, sellers can leverage the appeal of a bundled deal to attract customers and create a sense of value.

PWP (purchase with purchase) Implementation Tips

Below are some PWP technique implementation tips by retail guru Kar Tiong.

• The PWP technique is usually used to increase sales of the second product.
• The PWP technique is used for introducing new products, or for brand collaborations.
• This technique works very well for almost every category from FMCG to Fashion and even jewellery.
• The PWP technique works well if customers are continuously reminded about the PWP deal during their purchase journey, like highlighting the PWP in the product listing or creating pre-created SKUs that offer this bundle.
• Brands can use the PWP technique to dovetail with a known brand and get more awareness and brand recall.