Monday, October 17, 2011

Opportunities, do we seize them?

A recent email sent out by Storables promoted countertop compost pails.

Storables is a specialty retail chain in the United States [wikipedia reference]. Their communication was timely and was selected to promote a solution to a problem that area residents face.

Beginning Oct 31, single-family homes in Portland, OR will start composting food scraps with yard debris. The Storables line-up of kitsch came with prices from $19.95 for a simple waste can to $34.95 for an upscale bamboo pail.

The same day the Storables email went out a similar communication from Staples was released.

Staples is a large office supply chain store [wikipedia reference].

Staples selected an array of items and promoted top brands, but . . .

Staples only promoted price.

While price is a salient factor in most purchases, is this an effective way to advertise? If it is, then Staples should promote all these items on Groupon where consumers are known for seeking out discount pricing.

The difficulty with Groupon-esque business models, though, is that it is not a sustainable business model. How can a business afford to keep discounting prices, and at what point is the market immune to the percentage off fad?

As was asked early in What will last longer, the shoe or me?, deep discounts raise skepticism in viability of a product, the viability of the business and the viability of the economy.

Look outside the business for opportunity, seize them and promote them like there's no tomorrow.

Because without a good marketing plan there may be no tomorrow.