A few weeks ago a successful upscale restaurant leveraged a push selling tactic which probably was counterproductive to its branding and long-term business. For a week it promoted a special of two meals for $25, including any choice of its award-winning made-on-the-premise designer desserts. Although in the depth of the economic downturn this restaurant had struggled, for the past 18 months it had been thriving.
From marketing experience, Image Marketing Consultants knows that such steep discounting will bring in business but those who try the restaurant out are unlikely to return as regulars. They can’t afford the standard premium prices. In addition, the regulars get to thinking if they want to be associated with a bargain basement. Some might not return if their dining experience had been marred by crowds who didn’t know how to comport themselves in an elegant setting.
Admittedly, many enterprises had to discount during hard times. But as the economy shifts from recessionary to growth, they have to be mapping out strategies and tactics to transition from push selling to those based on a differentiated product or service. The risk is losing the bottom feeders, which might not be a bad thing. To keep the doors open during The Great Recession, all business might have been welcome. Now, it’s wise to remember the 80/20 rule. That is, that 80 percent of profits usually come from 20 percent of the business and 80 percent of the headaches come from customers and clients who are probably contributing least to the bottom line.
Pricing sends a powerful signal. Make sure it’s sending the right one about your brand.
Kate Sirignano, founder of Image Marketing Consultants, welcomes you to a complimentary consultation about your marketing, partnership, public relations, special events, and social media needs kate@imagemarketingconsultants.com, 203-404-4868,