Discount Prices = Discount Image

Posted by Liese Gardner, Fuel, Mecca Communications

You’ve heard it before and here it is again — discounting your price discounts your product or service. Short term gains don’t outweigh longterm perception. A better way? If you need to make your product more affordable, lower the price for good by retooling and announcing a less expensive line (think Armani and Armani A/X) or offer a value-added service.

Here are two real-life examples of each tactic:

1. Recently a company I do business with a lot — Postcard Press – gave itself an overhaul. It became Next Day Flyers and did a lot of work behind the scenes before unleashing its carefully crafted new identity on its existing clients. It emerged from its catharsis with a new look, new name, new web site, new everything. Risky business. But this was backed it up with seriously lower prices, faster service, better quality and a plethora of related products that it could produce with the same equipment and staff. It got faster, leaner and meaner to the benefit of the customer (an important distinction to note). Plus, as an aside, it started sending out e-mail blasts with meaningful, useable content.

Fuel rating: High Octane!

2. For years now, event professionals have touted custom pricing and custom events over anything packaged. But with the downturn, a packaged price and event can make good sense. Yes, it has to be done without bringing the brand down, appealing to clients you normally wouldn’t take or talking down to high-end clients. A new campaign by Good Gracious! Events walked this fine line beautifully.

It introduced Party3 Cocktail Parties and Party3 Bridal Showers. The cocktail parties are pre-packaged with creative menues and three vendors — GG, Mille Fiori and Epicurean Umbrella — who work together to provide a quality package for less money. The same with Party3 Bridal Showers. These offer the client three themes at three very unique venues — the kitchen at GG, the warehouse of Rrivre Works and the floral design studio of Mille Fiori. The key is that the same creative thinking, attention to detail and commitment to excellence go into these packages as go into the custom work of these professionals. They aren’t just loss leaders to bring clients in, although they do that too. However, so far every client has wanted to add customized aspects to the events. Win-win.

Fuel Rating: Premium!