5.10.2011

How to Define a Sale

From one day to the next, from one week to the next, from one month to the next, whenever I walk past a local New York Sports Club I cannot help but notice the billboard in the health club's window promoting the latest membership sale. Question to the company's marketing team: If everyday there is some sort of sale being offered doesn't the sale price then become the everyday price? And, if that's the case, then when is there actually a sale or what actually constitutes a sale?

I know this topic does not relate to 2D barcodes, but it is a strategic marketing question that I thought was worth asking. Is "discounting" membership from one month to the next the only way to lure people into the club and to possibly encourage or motivate them to join? Are there no other features or benefits of the health club that can be promoted?

To take this one step further, what about companies that promote discounts of 40%, 50%, 60% off of the everyday price of their merchandise? Do they ever think what a consumer makes of this type of offer? When I see a sign with a discount at these levels, I wonder how much I am getting ripped off paying full price and how ridiculous the mark-ups are to begin with. Sometimes, I even go out of my way not to purchase a product from a company that uses this type of pricing tactic or strategy, because it just reinforces the excessive levels of mark-up.

Yes, price plays an important part of the sales cycle and purchase decision, but so does engagement, interaction and brand experience. Instead of relying on price to drive consumer interest from one moment to the next, maybe the company should work to promote the brand/product/service experience.

Just a thought to share.

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