Tuesday, April 5, 2011

Does Groupon cheapen your product

A photo company offered a 74% discount. $305 certificate for $79

They sold all 95.

95 x $79= $7505

Half to Groupon and the photographer's take is $3752.50 less the credit card charges Groupon passes on to them. Lets assume 2-2.5%. $3658.68 left for the photographer.

Let's assume in a perfect world that each session is one hour. $3658.68 /95= $38.51 per hour session.

Hardly worth the effort. But the photographer is trying to stimulate business. Why else discount a $305 value for $79.

This type of deep discounting spells trouble.

So what is the true value of this offer? $305 or the $38.51 the photographer netted?

Is the photographer inflating costs?

You decide.

Tony Mariani

Monday, April 4, 2011

How satisfied are you

Any marketing that conducts a survey and asks you for a laundry list to choose from to answer their question is really not interested in your answer.

Will any of these answers give, say, your cell phone provider a clear cut vision?

1. Most likely
2. Moderately likely
3. Less moderately likely
4. Least moderately likely
5. Not likely

Not likely. These are called grey surveys and yes I just made that up. No possible strategy can come out of them. And while we are at it, asking me to rate a service on a scale of 1 to 10 with one least likely is no better.

Nothing beats a yes or no survey with the ability to state why you are less likely or most likely to recommend your cell phone provider.

Those answers fix your customer service issues and make for some great creative.

Tony Mariani