How Brands Can Minimize Discounts
Thousands of businesses ‘accidentally’ give customers more discount than the profit they make on certain individual products or services.
NEW THINKING
Thousands of businesses ‘accidentally’ give customers more discount than the profit they make on certain individual products or services.
David Ogilvy, a legend along-side the likes of Rosser Reeves and Bill Bernbach, has some strong words to say about deals and price. They are certainly worth repeating:
Discount voucher sites are all the rage. Groupon, Living Social and a host of other players are entering the mushrooming markdown market. This begs the question if discount sites are good news for brand value?
Yesterday, I splurged on an expensive hair treatment that promises to give me frizz-free hair for 12 weeks. I first learned of this treatment a year ago, but rejected it as a frivolous indulgence at $350 a treatment. But when I was told of a $129 price promotion on the same treatment, I immediately said, ‘Sign me up!’ Now at $129, frizz-free hair is still a frivolous indulgence — but think of the ‘value’! A...
Many marketers asked Santa for a social coupon campaign for 2011. The explosive growth of Groupon and Groupon clones (BuyWithMe, LivingSocial, SocialBuy, and Tippr), offering “ridiculously huge” coupons (50-90% off), is taking marketing plans by storm.