As I was reading over fellow classmates’ blogs, I read an interesting post “The Price is Right!” written by Jo-Hannah Yeo. The post was based on an article by Jim Connolly on Special Offers. The article summarizes how to effectively use special offers to generate additional revenues without losing profit.
Being a somewhat price-conscious shopper, I have recently turned to online shopping to find the best deal around. This new phase of shopping has led me to start shopping at PLNDR, an online company (sister-store of KARMALOOP) that specializes in discounted swag. I’m now a loyal PLNDRer and proud member of the website, but since reading this article have questioned the special promotions that PLNDR has used to entice my business.
How PLNDR currently operates their deals. The site’s purpose is simple; the brands you want at the price you want to pay. They specialize in special promotion. Periodically, I receive an e-mail from the PLNDR, announcing 20-30% off plus free shipping on orders over $100 or $200, etc, the catch, it ends two days from now or even… TOMORROW! Time is now of the essence and as I scroll through all the new sales (all items are already 30-80% retail prices before the promo), I find that ‘one item’. What do I mean by that one item? I mean that one item that will make filling the rest of the order worth it (usually a watch). Finally I place my order using my promo code (usually themed to the event i.e.: TURKEY30 for 30% off at Thanksgiving), and anxiously await my new gear and the next PLNDR Promo.
Jo-Hannah’s thoughts on Jim Connolly’s article…
”What I took most from the article was the 4 things that need to occur for a discount price to be rewarding for a company: specialty, scarcity, targeted, and timed.”
Time to break-down PLNDR’s strategy using what Jo-Hannah saw as the most valuable.
Specialty: PLNDR definitely subtracts the price, offering many items at a major discount. They do however add value in that they will waive the shipping fees for orders over a specific amount, a promotion that was a catalyst for my first purchase from their site.
Scarcity: They do clean-up in this area, the items are there briefly, but if you do not pull the trigger on your order, you will not get the goods. Many times I’ve missed out on gear due to the speed of finalizing my purchase. The result, when I want something from the site, I get it!
Targeted: They do effectively cause additional purchases, as in order to fill the discount quota, (i.e. $200) I often throw in an additional item that I would not have purchased otherwise.
Timed: Even though items are heavily discounted before specials I do not buy unless there is a 30% off and free-shipping deal on. This is rather ineffective as even though during these events I spend a fair amount, I was equally willing before the promotions to pay the original price for most items. I have become their spoiled child and expect the same for much less. PLNDR is “training… clients to wait for… offers, before they [buy].” (Jim Connolly)
Overall PLNDR is effectively gaining repeat customers who expect discounted prices. Although, they do not fully utilize Jim Connolly’s advice on Specialty Offers, they have achieved loyal customers and become the first stop online for me when it comes to clothing.
Thanks Jo-Hannah for the great article!
