Sunday, July 21, 2013

Why reward late comers with discounts?

I was at the airline gate the other day when the customer service rep announced that they would gate check (for free) anyone who had a large carryon bag (you know, like the one I paid $25 to check at the ticket counter). 

And, by the way, people with just one personal item (that would fit under the seat) could board early.

I don’t know about you but this didn’t sound fair. 

Nor, does it seem like a good strategy for your loyal customers who follow the rules at the get go.

Now, this made me wonder about association pricing strategies: whether dues, webinars or in-person meetings.

Discounted pricing like this is one of the five forms of manipulative marketing that Simon Sinek talks about in his book and Ted talk Start with Why.  And, he notes that discounts – like the other four – usually result in short-term gains but long-term losses.

Some organizations offer discounts or reduced prices to get members to join or to register. I’ve seen offers of discounted first year dues for new members. 

 What other price discounts have you used or seen in our profession?

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