Comments on: Deep Discounts Deep Six Dozens http://www.retaildoc.com/blog/management/discounts Retail and Small Business Blog by Bob Phibbs Wed, 10 Mar 2010 20:19:32 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Carla http://www.retaildoc.com/blog/management/discounts/comment-page-1#comment-341 Carla Sun, 19 Jul 2009 00:42:00 +0000 http://www.retaildoc.com/blog/?p=2513#comment-341 This is true in any industry!! I am a pet groomer and have a small dog boutique, my prices are what I want to charge. Another groomer opened up and was $10 cheaper then me, she lasted till the next 'cheapest groomer on the block' opened up, then someone else opened and undercut her prices...the cycle continues. Now I am four times the cost of my competitor. I gave her a ring because we are overflowing with clientelle and cannot handle them in a timely manner and wanted to know if I could offer her name. She said she has NO bookings all week and business is dead, even with her low prices (we are booked for 4 weeks in advance and 80% till mid Sept.). She wanted to know WHY we are doing so well. #1 We are good, I know we are good, our goal is to be pickier then my pickiest client. #2 We love Bob Phibbs and read his blog and listen to his advice and offer AWESOME customer service #3 When people call to price check we tell them the same line; 'We charge what we are worth!' No one questions this, about 90% of people do book. We also sell our services and advise they prebook all future appointments to avoid having to wait for an appointment. Nearly all do. A wise person told me, 'You can be the BEST or the CHEAPEST'...I chose BEST:) This is true in any industry!!
I am a pet groomer and have a small dog boutique, my prices are what I want to charge.
Another groomer opened up and was $10 cheaper then me, she lasted till the next ‘cheapest groomer on the block’ opened up, then someone else opened and undercut her prices…the cycle continues.
Now I am four times the cost of my competitor. I gave her a ring because we are overflowing with clientelle and cannot handle them in a timely manner and wanted to know if I could offer her name. She said she has NO bookings all week and business is dead, even with her low prices (we are booked for 4 weeks in advance and 80% till mid Sept.). She wanted to know WHY we are doing so well. #1 We are good, I know we are good, our goal is to be pickier then my pickiest client. #2 We love Bob Phibbs and read his blog and listen to his advice and offer AWESOME customer service #3 When people call to price check we tell them the same line; ‘We charge what we are worth!’ No one questions this, about 90% of people do book. We also sell our services and advise they prebook all future appointments to avoid having to wait for an appointment. Nearly all do.
A wise person told me, ‘You can be the BEST or the CHEAPEST’…I chose BEST:)

]]> By: Dave Hamel http://www.retaildoc.com/blog/management/discounts/comment-page-1#comment-339 Dave Hamel Sat, 18 Jul 2009 14:03:11 +0000 http://www.retaildoc.com/blog/?p=2513#comment-339 It may be a question of value. What you pay. What you get. If someone is deep discounting, there's a good chance that either someone else has a great value, or that the value equation for the product/offering wasn't strong in the first place. It may be a question of value. What you pay. What you get. If someone is deep discounting, there’s a good chance that either someone else has a great value, or that the value equation for the product/offering wasn’t strong in the first place.

]]> By: Phil Wrzesinski http://www.retaildoc.com/blog/management/discounts/comment-page-1#comment-337 Phil Wrzesinski Fri, 17 Jul 2009 01:34:15 +0000 http://www.retaildoc.com/blog/?p=2513#comment-337 The funny thing about this article is the egos of the people running these chains. No one is staying away from Pizza Hut or Burger King because their prices are too high. They're staying away because of problems in either A) quality of food or B) quality of experience. Besides, discounting never wins you fans. Bargain hunters have no loyalty to any store - only to the best price. The people behind these campaigns should be fired immediately since they obviously have o clue what drives their business, or what drives business in general. The only pricing issue that matters is whether or not the Actual Price of your product matches the Perceived Worth a customer has of it. The funny thing about this article is the egos of the people running these chains. No one is staying away from Pizza Hut or Burger King because their prices are too high.

They’re staying away because of problems in either A) quality of food or B) quality of experience.

Besides, discounting never wins you fans. Bargain hunters have no loyalty to any store – only to the best price.

The people behind these campaigns should be fired immediately since they obviously have o clue what drives their business, or what drives business in general.

The only pricing issue that matters is whether or not the Actual Price of your product matches the Perceived Worth a customer has of it.

]]> By: Ted Hurlbut http://www.retaildoc.com/blog/management/discounts/comment-page-1#comment-335 Ted Hurlbut Wed, 15 Jul 2009 20:31:04 +0000 http://www.retaildoc.com/blog/?p=2513#comment-335 If theses restaurants have followed the fortunes of all the retailers who've ventured out onto the slippery slope of deep discounting, they're smart to turn away from that approach. Better to earn business the old fashioned way, by offering outstanding value and a memorable experience, than start down the path of never-ending margin erosion. If theses restaurants have followed the fortunes of all the retailers who’ve ventured out onto the slippery slope of deep discounting, they’re smart to turn away from that approach. Better to earn business the old fashioned way, by offering outstanding value and a memorable experience, than start down the path of never-ending margin erosion.

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