"Buy one, get one free!". Sound familiar? Of course it does: price led promotions are everywhere.
Show the world you're desperate
Years ago marketing tactics like this were less usual. They had more impact. Now they're the norm. There's a place for them, but more often than not, price promotions are lazy marketing, a not very imaginative way to show the world that your business isn't doing so well and you're desperate for trade.
Some people think they raise awareness of particular products but how can they do that when the market is saturated with them? When the 2-1 offer says nothing about the product itself. Price led promotions don't really help build a longer term market. Much of the time, they just focus the mind on the price instead of the benefits of the product or service.
Leaving money on the table...
What also happens is that visitors use the vouchers and offers when they were going to come to you anyway. Last weekend 3 friends and I had planned a visit to an art gallery, for which we were all perfectly willing to pay. Then someone noticed that if we took along our train tickets, we could get a 2-1 voucher for the entrance fee to the gallery. So we paid half the price we were willing to pay. Of course some people may be enticed into places for the first time because the price is lower than usual. It might help them decide to go. But will they go there again at the higher price? Or will they value it at the lower offer price?
Are 2-1 promotions ever good?
Sometimes. When they're properly thought through and not simply a knee-jerk reaction. When you want to open up new markets e.g. bring a friend who's never been before (doesn't always work though!) and when you've worked out how you'll follow through and build that new market. Attractions where there are opportunities to generate secondary spend through catering and retail may also benefit from getting more people in through the door with a discounted promotion. But don't let that be your first thought.
What are the alternatives?
2-1 offers may work some of the time, but they are unimaginative and it's hard to make an impact now there are so many.
Far better, to do something quirky, unusual, fun, interesting that helps demonstrate the emotional appeal of what you offer, that shows what you can do and why it's good.
If you rely on price promotions, it focuses visitors' minds on the price not the strength of the product. It encourages them to shop around instead of valuing what you do. And once you've reduced your price once, what happens next time? How low can you go?
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Please note: all articles are copyrighted Susan Briggs