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It’s A Poor Carpenter…

I’ve written before about discounting and the pros and cons of that process.  (See: The Dreaded D-Word, Can You Have Too Much Business?)

I spend a fair amount of time each week reading various online resources; I came across Joel Cohen’s blog again this week.  Mr. Cohen bills himself as having “One of the top hospitality marketing blogs in the country” and Google likes him, as well.

The post that really caught my eye was

Restaurant Marketing: Is Social Media Turning Customers Into Coupon Clippers & You’re Whoring Your Product?

Now, I see the point he’s trying to make.  No one wants to discount all the time, and no one wants to create a customer base that evaporates when the discount ends.  Do NOT misunderstand me as saying anything different from that; again, see post after post about building customer trust, The Norm Effect, etc.

But to say that Social Media is turning customers into coupon clippers – to answer Mr. Cohen – sorry Virginia people have been coupon clippers for years now, and in economic downturns, it’s only to be expected that coupons would come more into focus.  Why is it Social Media’s fault?

Does discounting hurt your business in the long run (read – are owners really “whoring their product”)?  Answer.com, quoting from the Gale Encyclopedia of Small Business, even states

Consumers perceive coupons as a temporary special offer rather than a price reduction, so the withdrawal of coupons usually does not have an adverse effect on sales.

Now, I don’t know that this applies to our current situation and industry, but it is certainly something to consider.

I’ve gone in-depth on discounting on previous posts and don’t want to rehash it all here, but suffice it to say that all marketing is an effort to get the customer in the door.  What you do then decides whether the customer returns – deliver a quality product and great service, make the customer feel like a part of something and they will come back.  If you deliver all those things and they don’t come back, you need to look at your business model.  It is possible you can’t offer your service at a price point that works in your market – the simple truth is not every business succeeds.

That doesn’t mean just throw in the towel though – challenge yourself to try new avenues and ideas, do your research and find partners who offer solutions, not just blanket statements.  Social media is a tool.  That’s all – if you use it ineffectively you can create an untenable business situation.  But it’s not social media’s fault…  It’s a poor carpenter who blames his tools.  (Oh, yeah, and if I never see another “Virginia” reference, I’ll be just fine.)

-Karl

-Karl
@karlkoelle

With 10+ years in restaurants and 12 years in communications, I have learned a lot about how to successfully market a restaurant - yet I still learn something new every day and whenever I talk to a client.  Looking for help with your restaurant or small business, whether marketing or management?  Let me know, I am always happy to help.