August 29, 2013

Pricing Strategy

It doesn't matter if Walgreens is guilty or innocent of these charges (click here).

What matters is that most of us are willing to rip off one customer in order to give another customer a good deal, while at the same time increasing sales in the short term.

Consider my former company, Lands' End.

Here's the original eight principles (click here please), courtesy of founder Gary Comer. Yes, you can sense the pride of the voice of the owner, can't you?

And here's the six principles that the current Lands' End brand endorses ... notice that they aren't the same (click here please). Pricing is gone, and middlemen are gone, too, erased from the history of the company.

The internet promised pricing transparency. 

Instead, pricing is more elusive and unfair than ever before.

Yes, vendors do it, too. I bought both the Internet Retailer Top 500 and Second 500 guides this summer, paying $79.99 each. Today, they sent me a personalized, targeted, and highly relevant offer, giving me a chance to buy the guides again, for $59.99 each.

The CRM and email gurus love this stuff. Except, of course, for the minor problem where I already bought the darn things! The email campaign (not intentionally) rubs in my face that I overpaid by $40, total. 

Seems like there might be a marketing opportunity in being honest and consistent, don't you think?

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