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socks and cat

Not sure what to do

Three of my competitors offer pole parties also. Two of them have dropped their prices and offer their parties for less. I will have no way of knowing if this will cut into my sales until the wedding season starts next month. So I don't know if I should lower my prices also. I know my parties are worth what I charge. My clients all leave VERY happy. But some one shopping online for a pole party doesn't know there is a difference in the level and quality of our services. They just think a pole party is a pole party and may go with the cheapest service.

Comments

What many advertising campaigns do to capture both bargain hunters and the more discerning customers with the same product is simply run multiple advertisements with one of them advertising a discounted price. Kind of like the way two people sitting next to eachother on a plane might have paid wildly different prices even though they are getting the same exact product. You could try to leverage a coupon, referral discount, or similar (ex: "mention this ad to receive 10% off")that would discount only some of your parties. Perhaps an "early booking" discount that undercuts the competition (ex: book 3weeks in advance and get 10% off)? You could stop offering or alter the early booking discount at any time if you feel you don't need to discount as deeply to keep sales (change it to 4weeks or 5% or whatever to increase your profit margin).

The goal is to discount only those sales that need to be discounted to not lose volume while maintaining the image that your product's value has not gone down. I don't know how, exactly, to accomplish this with your target demograph though and since you are selling a "service" and not an inventory that makes it even more complicated (at a retail store they can just run "while supplies last" type sales).

It's kind of an advanced marketing gimmick but it potentially gives you the best of both worlds: undercut the competition to keep sales that you would have otherwise lost AND keep all the sales you wouldn't have lost at full markup.

A very small referral discount might be the way to go. People who purchase based on referrals don't do comparison shopping. Even if the referral discount still leaves you as the most expensive option they will think they got a good deal and purchase from you without looking at anyone else.