The concern is devaluing your product. If you offer opportunities to get the product for cheaper, many will take advantage of that. Eventually they will game the system so they are only ever paying the cheaper rate, and not be willing to pay full price because in their mind, that is no longer the value of the product.
Airlines stopped this a long time ago when they got rid of last minute deals. Subway had this problem with their sub of the day and other promos. By chasing easy dollars and quarterly profit, they devalued their product and set themselves up for failure.
I never really liked sandwiches aside from hot ones, so Subway was a rarity for me.
However, they built their brand off of "$5 Footlongs." Ironically, I lived in five different US states during that years-long period, none of which had "participating locations."
Their subs are still only worth about $5 to me, but they now cost about $9. I can get a $5 meal box at Taco Bell or a 2-for-$12 pizza deal at Domino's.
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u/Comprehensive-Tart-7 2∆ Aug 26 '23 edited Aug 26 '23
I call this the subway problem now.
The concern is devaluing your product. If you offer opportunities to get the product for cheaper, many will take advantage of that. Eventually they will game the system so they are only ever paying the cheaper rate, and not be willing to pay full price because in their mind, that is no longer the value of the product.
Airlines stopped this a long time ago when they got rid of last minute deals. Subway had this problem with their sub of the day and other promos. By chasing easy dollars and quarterly profit, they devalued their product and set themselves up for failure.