Today I discovered an interesting example, to a question I commonly get asked about brands, when selling my soul on Facebook.
I’m no religious person, so I listed on my profile that I was selling my soul for $50 (not for real). I got no offers but I did raise some eyebrows. One person who will remain anonymous replied to me “I don’t care about your soul, can I have your body?”. Knowing that I want to hold myself in high regard, I replied to her, “It’s not for sale but if I do decide to sell, I’ll give you 15 percent off my body. You’re a lucky girl you know - that’s a discount of over $150 Billion dollars…”
If I had increased the amount I was discounting I would basically be saying that I’m not really worth the full price. So what does this lesson mean to the brand manager?
Well, in answering the question “Do discounts hurt your brand?” - Yes they do. So be careful when offering discounts, as it can hurt customers’ perceptions of the quality of your product/service, when overdone.
By the way, do not sell your body and soul. I didn’t sell mine.
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Posted by Robert Kingston on Friday, October 26th, 2007 at 12:40 am. Category: Marketing, Personal Branding. Comment Feed: RSS 2.0. Leave a Comment below, or a trackback from your site.
hi rob,
im not interested in your body but i would be interesting in a 9.7% stake in your mind.
what you are saying reminds me of what David Ogilivy was saying in the famous book “Confessions of an advertisng man” have you by anychance read it?
Robert Kingston's real body
November 1st, 2007
Hey Pete,
Gee you love that Ogilvy guy. I might have to take you up on that recommendation one day and read it. I hear a lot of good things about that book.
As for the 9.7% stake of my mind, let’s barter :P.
Robert Kingston
November 1st, 2007
Hey Rob,
Freya
Got to say whilst on the whole discounting does damage a brand…sometimes it can be a handy tool for increasing a brand’s placement especially in a new marketplace. Take us for e.g. We’re franchising and it’s a new franchise, so we’ve got to get the brand off the ground all over again. People already know us as Homefinders and know that we find homes and have the “sell for Free” service for home vendors already, but they may not know that we are franchising…so we’re selling into a new market. One of the best ways that we’ve done this is by “discounting” the franchise for a limited period to get new franchisees in the door and get the franchise brand off the ground. The key is that it has been for a limited time only and the way it works means it’s a great deal for the franchisee but we don’t actually loose any money on the venture, so it’s a cleverly structured discount…but it’s definatley not damaging the core brand of Homefinder but is instead helping to build our place in a side brand…ie franchising. It’s causing a stir and getting us PR that we wouldn’t otherwise get…so it’s all good! So is discount always a dirty word? Hmm usually yes, but sometimes no!
http://www.freyabletsoe.com
Freya Bletsoe
November 4th, 2007
That’s a good point, Freya.
Glad to hear that’s coming along for you… As with anything there is never a technique which works in each situation. It takes mastery to know when to use them strategically. I might post some videos I found to be eye opening over the next few days which talk about that.
Robert Kingston
November 4th, 2007
Rob,
A good response to the girl that wanted to purchase your body outright would be to rent it out. Of course there’s a name for that. But it sounds like more fun.
Nice to hear that Freya’s business is doing well. Discounting is a retailing staple. Since it’s causing a stir, it’s obviously differentiating her - bravo!
I don’t think discounting is a dirty word at all - it’s just how you position it.
Your blog looks and reads great Rob.
Ed Roach
December 17th, 2007
Hahaha, that would be good. Being a student, I don’t think she could afford that either. Maybe a lay by system would have to do?
Thanks for the compliment, Ed. Glad to hear you enjoyed reading my site.
PS. I’m looking forward to the response you will get from Sphin and whatnot with your Santa Brand article. I’m about to post that up soon.
Robert Kingston
December 17th, 2007
Great illustration Robert. Discounts do hurt the brand… although I think they only hurt the branding at the startup of a business venture. I don’t think people would freak out too much if Coke went on discount for a month! Well-established brands do just fine!
Greg Roy
May 8th, 2008