As I was driving from Sydney to Wollongong yesterday, I drove past an Office Works store advertising photocopies for 4c. Now, in Australia that’s a damn cheap price for photocopies.
In fact, it’s about half the price you’ll find anywhere else for low quantities.
And it got me thinking: Why do Office Works do it? Why provide such cheap photocopying, when they could get much more for the service?
And the answer is really very simple.
It’s the same reason why McDonalds offers ice cream cones (or they used to the last time I checked) for about 30 cents
It’s the same reason supermarkets advertise half a dozen of their specials in their newspaper ads and advertising brochures 오피
It’s the same reason why ‘happy hours’ exist at bars
And it’s something you should consider doing to drive traffic into your business.
You see, while McDonalds and Office Works probably make small profits on their ice cream cones and photocopying, it wouldn’t really matter if they didn’t.
Because they’ll make the money on what us marketers call “The Back End.”
“The Back End” is all the sales you generate from an existing customer ‘After’ they have made the initial purchase. For instance, if you walked into Office Works and invested in $20 worth of photocopying, wouldn’t you, perhaps remember you need a stapler… and some new pens… and perhaps even a new 3 ring binder. And why not get it while you’re there.
Same thing applies when your kids drag you into McDonalds for an ice-cream cone. ‘Since we’re here, why don’t we get some chips and a burger.’ And then they end up making a lot more from the chips and the burger than they do from the ice-cream cone.
Interesting, isn’t it?
So what are you gonna do about it? Let’s pick a few businesses and see how we can apply this principle.
Accountant: Offer low price tax returns to generate new business.
Art shop: Offer low cost weekend workshops on how to paint in order to drive traffic into your business (once they learn to paint, they’re going to need equipment to paint with, aren’t they?)