Repeat Sales

DEFINITION of 'Repeat Sales'

A purchase made by a consumer that replaces a previous purchase that has been consumed. Repeat sales often play a role in brand loyalty. If a consumer purchases and is happy with a particular brand of automobile, for example, he or she may purchase another car of the same brand when the time comes to replace the vehicle. The car dealership may send regular email messages and offers through the mail to keep the customer's interest in the brand.


Also called a "replacement sale."

BREAKING DOWN 'Repeat Sales'

A key tenet in garnering repeat sales is to take better care of customers than the competition. Many books have been written and websites have been developed to teach salespersons how to secure repeat sales. Either as an individual salesperson relying on commissions and incentives, or as a corporation looking to increase profits, making repeat sales is an important task. Studies show that it costs companies more money to attract new customers than to bring back existing customers because of the costs of advertising and marketing.

RELATED TERMS
  1. Brand Loyalty

    When consumers become committed to your brand and make repeat ...
  2. Brand Identity

    Brand identity is the way a business wants consumers to perceive ...
  3. Brand Management

    A function of marketing that uses techniques to increase the ...
  4. Brand

    A distinguishing symbol, mark, logo, name, word, sentence or ...
  5. Brand Equity

    The value premium that a company realizes from a product with ...
  6. Brand Personality

    A set of human characteristics that are attributed to a brand ...
Related Articles
  1. Economics

    Explaining Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent.
  2. Entrepreneurship

    The Power Of Branding

    It's the ultimate economic moat, and we look at the approaches and effects of good and bad branding.
  3. Investing Basics

    Why These Are the Most Valuable Brands of 2015

    A company's brand can be worth billions of dollars. Here are the most valuable global brands in 2015.
  4. Investing Basics

    The Industry Handbook: Automobiles

    Similar to the invention of the airplane, the emergence of automobiles has had a profound effect on our everyday lives. The auto manufacturing industry is considered to be highly capital and ...
  5. Economics

    Explaining Replacement Cost

    The replacement cost is the cost you’d have to pay to replace an asset with a similar asset at the present time and value.
  6. Economics

    Understanding Brand Identity

    A brand identity comes from visible elements, such as the company name, the design of its logo, its packaging design, and colors, tagline and typeface.
  7. Budgeting

    Paying for the Name

    Spot and avoid the money wasters that are slowly eating away at your wallet and bank account.
  8. Personal Finance

    The Complete Guide To Buying A Used Car: How To Negotiate Prices

    So you've done your research, selected several makes and models of vehicles in your price range to test drive, test driven them and now you've narrowed your search for a used car down to just ...
  9. Options & Futures

    Your Car: Fixer-Upper Or Scrap Metal?

    Sometimes buying a new car can be cheaper than shelling out for repairs.
  10. Insurance

    How Car Insurance Companies Value Cars

    Learn the methodology used by car insurance companies to value cars, and understand why the amount they give you may not cover the cost of a similar vehicle.
RELATED FAQS
  1. What are some of the benefits of positive brand equity?

    Learn how having positive brand equity enables companies to make a higher margin on sales and spend less money on marketing ... Read Answer >>
  2. Why is brand equity considered an intangible asset?

    Brand equity is an intangible asset because the value of the brand is not a physical asset and is instead determined by consumer ... Read Answer >>
  3. What impact does brand equity have on profit margins?

    Learn how both positive and negative brand equity affects profit margins by influencing profit per customer, sales volume ... Read Answer >>
  4. What are some of the ways that a company can improve its brand equity?

    Learn why brand equity is so valuable in business. These strategies for gaining high exposure and a great reputation will ... Read Answer >>
  5. How does brand image and marketing affect market share?

    Building a positive brand image is a must for companies that want an edge over the competition. Learn how marketing and branding ... Read Answer >>
  6. Why is the strategy of 'always be closing' (ABC) popular in retail sales?

    Understand how the term ''always be closing'' is related to retail sales. Learn about the benefits and drawbacks of selling ... Read Answer >>
Hot Definitions
  1. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  2. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  3. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  4. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center