I’ve just been running a very interesting promotion with a client and business that I am involved in.
But before I go into the nitty gritty of the promotion think about this… What actually turns you into a buyer when you didn’t want something in the first place.
I’ll give you an example, you sit down at a dining table and the waiter says “Would you like a bottle of wine with your meal?”
Would that make you buy?
What about if the waiter says “Would you like a bottle of wine with your meal, it’s on the house?”
Ah… Now we get down to the crux. You didn’t want wine when you had to pay… But now that it’s free suddenly you’ll have it.
To many marketeers this is not new in fact it’s a well tested and a proven technique known in the trade as moving the free line.
Let’s take another look at our waiter with the bottle of wine.
Suppose the meal is £25 for three courses… The bottle of wine is £15. Taking the meal is fine but the wine really hikes the price.
What if the meal was £40 and included the wine? Still too high?
Hmm… So the problem here appears to be the perception of the total meal and wine and price.
So what happens in the buyers mind when the meal is £25 and includes the wine.
At this point the buyer breaks down the purchase and concludes that whatever the price of the wine it would appear to be reasonably good value.
So is lowering the price of your goods the right tactic and will it bring more sales? More than likely you may get the odd sale but it is only when it is a bundle in a limited time frame that the sales pour in.
So when is a deal a deal? how do you know if something is a deal or not? Well most of us compare prices to determine a fair price for something. if you see product A in two different shops you conclude that the cheaper one is better value.
However you can change the buyers perception quite easily. You do this my offering longer money back guarantees. Free gift wrap, next day delivery, free delivery, buy one get one free, or deals that include vouchers against your next purchase.
Price is not everything. It helps, but is not the bottom line.
I once ran a promotion for a pond pump where we could not compete because we were always under cut. However when I added a free pair of pond waders and raised the price by the cost of the waders rather than their RRP sale price, the pond pump flew out the door.
In the promotion I just ran recently this was actually what happened here. The value of the service and products combined in the offer was quite substantial when bought individually, but by offering a large package to cover the cost of most and profitability of another the deal was seen as just that … A good deal.
So if you’re selling on the net and struggling, think again….. Could you sell that item at the RRP plus add on the COST price of some other item(s) so that this becomes a Great Deal? I bet you could!