Pricing your products or services can be tough. Pricing your product or service for a daily deal offering is even tougher. This is where many businesses get it wrong. Certain price points and percentages can work for some businesses and not others. Even direct competitors have different margins so each daily deal promotion needs to be fully analyzed and have numbers crunched.
Even if pricing is absolutely perfect, it is still vital that the business over-delivers when the new daily deal customers arrive.
Here are 4 ways that businesses are winning with daily deal promotions.
1. “The Bundle”
The bundle is where you combine two or more of a business’ products or services as a bundle and offer a discount on it. Typically the business will not offer this bundle to the general public.
Examples are limitless, however a few are…
- Buy one ticket to Symphony Orchestra on __/__/__ and get another ticket for the __/__/__ show.
- Get a full meal for the price of a burger.
Running a daily deal on pizza? Why not offer a bundle package to include salad and a coke? Running a travel deal? Why not work to include airfare and a car rental? Often times it’s easier for a business to increase the value of the offering without taking as much of a hit if they can bundle 2 or more of their products or services together.
2. The Complimentary Bundle
Work with two similar / complementary businesses to offer a package deal that includes services or products from two separate businesses.
Some examples include:
- Running a travel deal? Why not work to include airfare and a car rental?
- Running a deal on your hotel? Why not include nightlife passes to the nearest attraction?
- Dinner and a Movie
- GA. Aquarium tickets & World of Coke combo pass
- Iphone and iphone speakers
- Dinner at a restaurant and ice cream at ice cream parlor across street
3. “The Special”
The special is where a business makes a unique offering on their services specifically designed for the deal site. Often times, this special is not available to the general public.
- 2 for 1 Valentines day pre-fixed dinner
- Laser Hair removal – Large, Medium, Small…
- Choice of appetizer, entrée, and desert from special menu.
- Software purchase with 1 year free hosting.
4. “The Standard Deal”
The standard daily deal is where a business follows the usual route of offering 50%-90% off one of their products and services.
Many businesses simply can’t afford to run a standard daily deal, however if they were to bundle products together or create a “special” specifically designed for the deal site, they might be able to make it work.
Before diving right in and running a deal promotion, spend time crunching numbers and properly educating yourself. Don’t be afraid to ask the daily deal site questions such as:
Q. What is the estimated redemption rate that buyers typical redeem coupons? In other words, out of 100 sales, how many customers might I expect to not ever redeem their coupon before the expiration date?
Q. What is the estimated amount of traffic and exposure that I can expect my offer to receive?
Q. What would you say is an average amount of sales that we might be able to plan for and accomplish?
Q. What type of offerings have some of our competitors run on your site? What were their price points? How many coupons sold? Do you have any testimonials from them?
Running a deal promotion can be really appealing because you are making money before delivering anything, but beware… This is not free money and you need to be prepared to fulfill the deal with excellent service, because as you know, if people have a poor experience visiting your business they are much more likely to discuss their experience with their friends, Yelp, and social networks.
Marc D. Horne
Daily Deal Builder
I originally posted this article on Daily Deal Media.
Nice Article !!