One Size Does Not Fit All: Pricing Gas/Car Washes
Here is a different approach to pricing a car wash. Typically buying gasoline gets you a discounted car wash. In this case buying a car wash gets you discounted gasoline.
The different approaches reflect a very important fact: people respond to different offers. There is no one size fits all approach that works for everyone.
In most places Offer A (discounted car wash with gasoline purchase) is more common, perhaps to the point where it loses any luster. Offer B, discounted gasoline with the purchase of a car wash, likely activates buyers that aren’t attracted to Offer A.
It’s a little like fishing – not all lures appeal equally. And a good fisherman will put aside even his most proven and successful lure if it stops producing.
Lands End email marketing is a great example of this. They constantly bombard you with offers, but the offers are always a little different. Some days it’s a straight percentage discount. Sometimes it’s $5 off the second item. Other times it’s free shipping.
They don’t just keep dangling the same lure in front of customers, they keep mixing it up in the hopes of finding the one that appeals.
Florists need to adopt a similar approach. Bundles – that include delivery and maybe a complimentary item (chocolates, greeting card, plush toy, etc.) don’t appeal to everyone, but they’ll appear to some. Discounts will appeal to others, pick-up specials others still.
It’s easy to think that compromise is OK, that if only 30% of people like bundles there is no need to offer them.
The problem is that the customer never agreed to be bound by majority rule. They want what they want. And if you won’t offer it to them someone else will. Flowers are available from how many different places?