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Value Added Kamron Karington Don't cheapen your pizza by offering discounts. Bad marketing is like drug addiction. You're not getting high anymore - - - you're just frying your acuteness. More and more brings less and less. Pretty soon, it doesn't consideration how much you do... nothing happens. Take the crazy pizza business, for example. Lots of instant gratification junkies out there are riding high on epic discounting binges, frying their profits. Here's a quick analogy. Imagine you're a soldier who has just sustained a serious life - shaky battlefield injury. Two medics are nearby - - unparalleled has a needle and thread and the other has morphine. The needle and thread will stop the bleeding, and the morphine cede deaden the pain. You can only summon one medic. Which only will you recite? If you want to die with a grin on your face, grab the morphine. If you want to survive, you'll choose the needle and thread. Likewise applies to marketing. You have two roads from which to choose. One is inappreciable and leads straight to a cliff. The other is a little longer but carries you to the bank. Let's take the second road just now. I retain a map appropriate here. It all starts with a big concept, the audacity to compete on your product or support instead of your price. Imagine that - - yes, you'll actually " sell " your product instead of slashing your prices. Sway fact, you might even raise prices because the more sold a prospect is on your product, the less price - conscious they become. Once you've made the mental shift to compete on your product - constructing an effective ad to forward it is key. Now, let's get something straight. You can't just sell your product in an ad and expect to get the greatest return. You must pastoral make an offer to reel in the big bucks. The departure here is that instead of cutting the price, you'll add an incentive to sweeten the deal. This is called " value - added " marketing. " Value - added " simply means giving something free ( or super - discounted ) along with the purchase of the product. For example: I bought a Temper - Pedic mattress. They gave me two free pillows. What they did not do was lesser the price of the mattress by even a nickel. They instead sold me on the benefits of billions of foam cells that would support me as if I were floating on a cloud. Now, let's talk pizza. There are two kinds of customers: the bottom - feeders who are in a constant struggle to find the lowest price and the others, those people who are just looking for a decent value and stay fairly loyal once they've found essential they like. Here's the facetious thing: only 33 percent of people consider themselves coupon - clipping bargain hunters, while 67 percent divulge they're simply looking for value and are willing to spend more to get it. So, just based on those numbers, it seems crazy that most pizzeria marketing is aimed at the smallest and least loyal allotment of the population ( big opening for you ). And what those " dollar smother " ads are saying is: " My pizza isn't worth what I've priced it at. " Furthermore, the math of discounting reveals a sinister race with ruin. For example: A pizzeria running a 20 percent profit margin pockets $3 profit on each $15 pizza sold. So here's a question for you: how remarkably do you make when you put out a " $3 Cream! " coupon? Answer: not much, if anything. It's like pouring battery acid on your bank account. But what about value - added marketing? Doesn't that delight in into profits as well? Yes. Well-qualified is no freebie ride here. The difference is this, though: instead of doing a $3 discount, which comes straight out of your pocket, you can offer a $3 add - on means " free " with the cast of a pizza. The add - on is perceived at full price: $3. But, it only costs you a dollar in food cost, leaving you $2 ahead. Here's my suggestion: If you are going to rebuild your customer base with value added offers, start off with something aggressive alike free wings with any large pizza. Then transition to free breadsticks and salad. Then just gratis breadsticks. Here's the anatomy of a non - discount ad: - Benefit. Since we're not screaming about a low price, we the urge to feature a big benefit to pull prospects leisure activity the ad. Start off by telling them what they get: " The juiciest, tastiest wings juice undivided of Miami are yours FREE with your next order! " Now, magnify this value - added offer by creating a formidable - perceived value for your wings. - Sell the product. These are no ordinary wings. " These are the fattest, juiciest wings you've ever wrapped your lips around. A full quarter - jounce smothered in our private recipe wing sauce. They normally sell for 7. 99 - but they're yours free with your next large specialty pizza. I figure if I can get you to try 'em, next time you'll buy 'em. " ( Notice above how quarter - pound sounds bigger than four ounces? ) - Call to action. Delay is the death of a sale. So you must create requisite with a time limit, such as " Limited time offer good till May 17th. " Pulling yourself out of the price wars may not be easy, but you won't regret it once you make the move. So, instead of throwing away all your profit and attracting a temporary explosion of refuse traffic, charge full price for your pizza, attract the larger 67 percent of the population looking for value, and make a dollar on the deal. Much better aim for you. My experience has shown that value added offers work well in letters, box - toppers, flyers, even ADVO. Because of their smaller size, stick with coupon offers in direct mailers and door hangers. Yes, you read that correctly. You can use coupons. Just don't murder your profits by putting steep discounts in them. It simply isn't necessary. I doubled sales grease my own pizzeria in less than 31 days using nothing but a letter premium a free salad and garlic bread with the purchase of a large pizza. Importance actuality, it was well thanks to a ticks and a half before I even designed an ad with a coupon. |
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