Your best offer may not be the right offer when it comes to retail advertising. Each market has a way of setting its own price point for any product category.
Your best offer may not be the right offer when it comes to retail advertising. Each market has a way of setting its own price point for any product category. From mattresses to Mazdas, in-market consumers know the difference between a good offer and a bad offer. If you ignore your competitor’s advertising then you run a huge risk of wasting thousands in advertising. For example, in an aggressive automotive market like Houston, Texas, the current competitive offer on a new Ford F150 is between $12,000 to $15,000 off.
If you choose to go to market advertising $5000 off a new Ford F150, you have effectively told the market – DO NOT shop your dealership.
If you cannot be competitive with your retail message, then you can choose to not advertise or choose a different merchandising approach. In most businesses, there are many ways to merchandise a product, but researching your local market is the first step. Once you know the current price / offer conditions in your product category, you can choose to go down a similar but different path. If you cannot match $15,000 off a Ford F150, then you can choose to promote a price or a payment. Again, you need to know your market and the current market pricing to effectively promote your business.
As I have told many clients in the past, if you’re not taking a little heat from your advertising, then your retail message is not strong enough.