Buying Frenzies….. Beneficial Or Bad For Business?

Hi. It’s Matt here.

I wanted to share with you this week about some online businesses and the certain strategies and deals they run.

In Australia we have one here called Click Frenzy. It’s just a new one last year that came out for the first time. And it was such an explosion of traffic to one website that the website actually crashed. They’ve done it again this year. They’ve been more successful.

What’s happened is literally hundreds of different types of business have combined into this one major campaign. And from that one major campaign, they’ve had all these different products for sale at huge discounts. And for one day only people can actually get onboard and buy these products.

They have a similar thing in America. I think they call it Cyber Monday. It’s literally a one-off campaign and it gets people all excited to want to spend their money on something that they probably don’t even need or want. But because it’s at such a discounted rate, they get out there and start buying.

Now, for us normal people, for us normal business owners, that’s a little bit harder to get involved with for a successful campaign reason. Yes, we could all drop our prices. Yes, we could discount what we do. But the reality is you don’t want to play that game. Maybe you might want to do a one-off campaign to build your database of customers that you can then convert. But if you don’t know how to do that you are really just running the gauntlet of a whole lot of product away at discount for no benefit to you.

These daily deal sites, we’ve seen people that used those and really don’t know how to maximize the whole reason for having done that.

What we do is we play the add value game. We don’t play the discount the price game. Discounting the price does not work for long term strategies. You see now that what’s happened is the general customer is starting to become programmed to only buy when something is on special or heavily discounted. These daily deal sites, or the Christmas specials, or Boxing Day specials, all those sorts of things, they are really just ways of businesses who don’t know how to do marketing to get customers in the door, and it’s just by discounting.

That doesn’t work for us. We’re a small business. We’ve got a limited amount of stock, a limited amount of stuff and resources. We can’t do that. You shouldn’t be doing that. You should think, “How can I be better? How could I actually become a better marketer? How can I get more customers in the door? How can I deliver better service, better value so people want to spend money with me and feel happy, content, and grateful that they are spending full price because it is so worth it?” We all know that we will do it. So you can do it. Stick to your guns. Become a better marketer. Don’t become a better discounter, because it just doesn’t work for the long term. Bye for now.

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