Thursday, August 29, 2013

Alot for a Little

I am amazed at how excited Patti gets from the discount she gets off of her gas from her grocery shopping.  At our place in Rhode Island, Stop-n-Shop gives a discount on cost per gallon at participating gas stations.  The most I have seen the discount add up for redemption has been $.60/gallon.  A ten gallon fill up equals a $6.00 discount.  Not bad, or so it seems. To get to that $6.00, she has to spend $300.00 in groceries.  So, one way to look at it is that this value is really more like getting a 2% rebate.  The beauty of this program is that they have transferred a savings from something expected to something not expected. The point here is that for very little, the positioning has significant perceived value to the consumer.  It begs the question, what do we have in our business that when transferred to some other area where discounts, sales or rebates would be unusual, that it would be perceived as very high value. 

(For a further faith-based application of this post you can visit here)

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