Found Around: Probabilities of Successful Marketing
Written by Joe Mahoney Posted in: Found Around on January 18, 2011
As the holiday season officially draws to a close, retail stores are hemorrhaging inventory at discount prices. This year music is among the most frequently discounted of products, as retailers and bands alike are lowering the price of their music in efforts to subdue the threat posed by the competition. Does this actually work? Does it make sense to price an album based on the going rate at other outlets? Jon Ostrow posted an article on Hypebot detailing the importance of offering a premium over a discount, and how bands can create more added value to an already available product. Let us know if you have any experience with this practice in the comments!
-Joe
(Hypebot) 4 Ways That Probabilistic Promotions Can Increase Sales and Sign-Ups
Credit: John Ostrow
This guest post is by Jon Ostrow (@miccontrol) of MicControl, a music blogging community that bridges the gap between musicians and music bloggers.
As the holiday season comes to an end, discounts have been deployed left and right in hopes of increasing music sales. The idea of these discounts is to offer your music at a lower cost than usual, and presumably, lower than the competition. But what good is a 10% discount if everyone else is giving one as well? This question was answered by a recent Amp Music Marketing article, in which they presented a simple solution: Probabilistic Promotion. The idea presented here was that it is better to charge full price and offer a 1 in 10 chance to receive the product for free, rather than give everyone a 10% discount. But while this form of promotion can be great, the idea suggested here is still missing a very important piece of the puzzle. You are still offering a discount rather than a premium!
