Pricing Strategy

My usual grocery store sells my favorite energy drink as $2.50 each.  A 4 pack is $7.99. 8 pack is $14.99

This week’s  sale (and often is) was 2/$3.00. Isn’t the idea of promotions to drive SOME form of incremental gains? This promotion drove down both units and basket size.  Nice.

I wise man said  “we all know only 50% of promotions work, but we don’t know which 50%.”  (Wise is a gross understatement, by the way. Possibly one of the smartest people in the universe, and a Chief Science Officer of a company just full of genius-level scientists)

So to my grocery friends- if you would like to run your promotion ideas past me, I would be happy to vet them and crunch the #’s for you in my spare time.  Stop doing things that throw away money. Just stop.

To the rest of you, another good quote from the week:  Never miss the opportunity to take advantage of a crisis.  When someone leaves money on the floor, be sure to pick it up.

I love the smell of money in the morning.

-That Planning Guy

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