creativity, culture, community
With all the deals of the day, slashed prices and hottest buys of the season, have you succumbed to discount fever and are practically giving your goods or services away? I’m all about getting a great price, but as a marketer, I also feel companies (including my clients) deserve to make a fair profit.
When I worked for a well-known theater company we often discussed ticket pricing and strategies to attract and keep customers. We agreed that we should reward people who bought tickets to more than one show, so we offered lower pricing for season tickets. And we had a wonderful group sales office who sold discounted tickets to groups. We also decided that if people bought early, like those who buy advance seats for airline flights or book advance reservations at hotels, they would receive an excellent price. Then we would sell all other tickets at regular price.
But everything changed the last couple of years, leaving most of us in a quandary about how and when to discount. Some companies are practically giving away their goods, while others appear to be jacking up prices so they can afford to offer deals.
A new industry of online discount marketers like Groupon, Scoutmob, Goldstar and Travelzoo have sprung up just to help businesses send out deals. What most people don’t realize is that these discount marketers are taking a large slice of the profits. So how are businesses able to stay profitable? This is a good question. Part of the answer is that some companies who are giving everything away are going under. Maybe we need to re-think the “slash and cut” mentality, re-think positioning and the power of our brand, and re-think our relationship with customers.
In the sea of discounting, what is your strategy not only for surviving, but for thriving? It’s good to offer occasional specials, but why train your customers to wait for a deal? In order to stay in business and keep staff employed, companies must make a profit. Here are a couple of ideas to to help companies encourage their customers to pay a fair price.
Offer Something Unique
Find Your Audience
Know Your Product
Sell A Premium Experience
Offer Sterling Customer Service
What are your ideas on discounting? Have special offers brought your company more profits, or have they created more work with minimal results? I’d love to hear from you.