I just received an email from Amazon. In big, bold letters it said “FREE Super Saver Shipping Deadline Extended.” Quickly, what thought pops into your mind?
My initial thought was “Well that promotion wasn’t very successful.” I know that extending the deadline for a sale, for discounts and terms, like shipping, is a common practice for many businesses, but do these businesses realize what message they’re sending to the market? Let’s see whether you and I are getting the same messages. Here’s what came to mind:
- The promotion wasn’t successful, what makes them think that extending the deadline will help?
- I wonder what was wrong with the offer that it didn’t produce better results.
- Whatever it was I’m not interested in learning more about the promotion.
- The more frequently they extend deadlines, the less confidence I have in their offerings without even seeing them.
Of course the opposite could be true, the promotion could have helped them achieve their revenue goals. But then why extend the deadline? Oh that’s right, market share.
If businesses would expend as much energy improving their profit margins as they do going after market share, we’d all be better off. The business would be more profitable, allowing them to invest in innovative, to attract and retain talented workers and create a more satisfied, loyal customer base.
Regardless of the reason for Amazon’s deadline extension, here are the thoughts I’d like to leave with you:
- Don’t use discounts regardless of their form; they don’t generate greater long-term profits.
- If you do offer a discount and don’t generate the profits you’d hoped, don’t extend the deadline. The problem isn’t the price.
- Shift your focus from market share to higher margins. You and your customers will both be better off.
I’d like to take this opportunity to wish each and every one of you a holiday filled with love, joy and wonderful memories in the making. Happy holidays!
If you’d like to increase your prices, profits and customer base, call Dale at 314-707-3771.
- What If I Insisted…
- Revenue Grows > Price Increases