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Common Questions and Answers
The other day I saw a Wendy’s commercial advertising their 99 cent Chicken Sandwich and wondered why they are advertising that price point.
After all, in our part of the country you have to spend $3.89 a gallon for gas to get to Wendy’s. So, the cost of a sandwich will not stop a customer from buying.
I drove to eight different Wendy’s restaurants and observed very few customers purchasing a 99 cent Chicken Sandwich. Plenty of chicken sandwiches crossed the counter, most of which were combo meals for $3.89 to $4.89.
So why does Wendy’s spend so much money advertising a 99 cent Chicken Sandwich?
At each Wendy’s restaurant I asked the manager why they advertise a 99 cent Chicken Sandwich when very few are actually sold. Two managers told me
“To compete. The competition has a 99 cent menu.” Two others told me, “So we do not lose the low price buyer.” And one seasoned veteran told me, “To create the perception that Wendy’s offers VALUE!”
Of course all three reasons are valid. You may not want to, or need to, compete against low price sellers, and your industry may not cater to low price buyers. But you do need to constantly give the buyers the perception that your products and services give them VALUE!
What is your 99 cent Chicken Sandwich?
Recently I was shopping for a new mattress. We were looking at those Tempur-Pedic foam mattresses that they, the manufacture’s and sellers, claim is the greatest thing for your back and restful sleep since the invention of the innerspring mattress.
They sell for $3000. When I asked about the guarantee if the mattress did not help me I was told by on seller, “Once you use it you cannot return it.” A second seller will allow me to return it if I pay $250. I was not willing to take the chance. Then, when I was about to purchase an innerspring mattress, I saw a TV commercial by Tempur-Pedic offering 100% money back after a 90 day trial. They took the FEAR out of buying. I am awaiting deliver now.
Make sure your 99cent Chicken sandwich bring you increased sales and profits.
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