Should photographers offer black friday deals?
Image by: @kellysikkema
Let's talk about Black Friday. I see photographers in groups asking about deals, so they can save on things from their wish list. We are like most consumers - we want to minimize cost and maximize benefit. Why are we then so sour when clients want the same of our services? Yes we all know the "big corporation" argument but it doesn't change that when we can keep more of our money while getting something we want, it's a win. So let's not scroll our feeds looking for incredible deals behind the scenes and then gripe about deal-seekers, shall we? Let's reframe what a deal is instead and start thinking strategically for our business. Notice that I use the word ‘deal’ versus ‘discount.’
What is a deal?
All transactions that ever happen are rooted in value, no matter how they are structured and what form of currency is used. A discount is value in the form of money saved. Added value taps into the feeling of receiving a benefit that’s greater than the amount of money spent. In all cases people exchange currency in some form to obtain value of some sort. It’s only the balance of that exchange that shifts.
Marketing and advertising are fields that are very nuanced. Both discounts and the concept of ‘adding value’ exist to address our desire to get the things we want with minimal output for maximum benefit. The business world knows this because the business world is run by people who equally seek deals for their business, in addition to being individual consumers who appreciate a deal. But these mechanisms don't have to be seen as negative. We can give a deal, make an offer, give value, but the critical aspect is: we should never compromise ourselves. What is that compromise? Losing money, being seen as cheap, or having questionable quality products.
Positioning
That's where positioning comes in. Companies know that by offering a deal on Black Friday, they can bring in a lot of customers. They know this before the day. They plan for it in their annual plans. They calculate carefully how much they lose in discount or outlay for bonuses, versus projected sales and they wouldn't do it if they were losing money.
Most photographers don't plan deals in advance. Rather, it's a knee-jerk reaction to trying to book clients and more often than not, the photographer loses in the end. Most hate being asked for discounts because their finances can't handle it. Most have not thought about pre-empting discount requests to work with people's psychology instead of against it. The key is to be able to handle it. The other key is to control it. Don't wait to be asked. Control your offers, tap into this natural tendency for people to seek deals, and use it to your advantage.
Positioning means that you tell the story. You choose your words, and you spell out the storyline so no one interprets it differently. The story of Black Friday is deep discounts. A frenzy of a day that now retailers have turned into a week or even a month. They do this because the deal is lucrative for them! The Black Friday story allows them to 'excuse' the price or load a transaction with bonuses when associated with those words, so that people will pay full price on Monday and Tuesday and the rest of the year. They are insulated against being asked for random discounts because the day is the day and they told that story. Once the Black Friday craze is over, it’s back to business as usual. Have you ever heard a customer anywhere ask for a Black Friday deal the following Friday?
Calculated approach for photographers
For small business like ours, we may have less play in our finances, more riding on our individual reputation, and we want to avoid being seen as a commodity, so we must be more careful. As an example, you can tell a story that your services are never discounted, but your print galleries are under the story of Black Friday. People will tend to see their gallery store like any other store where discounts are typical and it doesn't take away from your reputation. One might say that this is a safe bet to take to generate sales that may not have been forthcoming otherwise.
You can also tell your story as you want. This is where "added value" enters. A deal is a deal. You can give money off, you can give an extra print. But what's hidden in ‘added value’ of the extra print (or any other bonus) is perception of the amount of deal. For example, $10 off is clear. A person knows how much $10 is. However, added value gives them something they perceive as having positive qualities that's greater than the money cost. The psychology? A gift adds an element of thoughtfulness and effort. For us as small business, adding value (that is still a deal) is very helpful to us because as a more intimate business than a big corporation, we can leverage the other positive elements of value.
Gift with Purchase
An enduring example of the added value deal is the "gift with purchase" pioneered by Estée Lauder in 1946 at the cosmetics counter. If Estée Lauder had offered a $10 or $20 discount, it wouldn’t have the same effect. Gifts make us feel special. Gifts elevate the perception of the brand that’s offering the gift. By not knowing the exact value, a gift can be perceived as being more expensive than the monetary cost. In the case of a straight discount, a consumer is empty handed because a discount just prevents money from being spent, but a gift gives you something tangible into your hands. It’s also labelled as free, which activates the thrill in us of getting something for nothing. In the case of gift with purchase, the desire to obtain the gift often drives increased buyer spending (i.e. spend $100 and receive a gift). If a customer has $75 of product in their hand, the gift is the pull-through to spend an added $25. In the case of Estée Lauder, she had received an order from Saks Fifth Avenue for $800 in product. When she offered the gift with purchase, the entire inventory sold out in two days. Both the Estée Lauder and Saks brands carry a premium reputation that was enhanced even by the deal and not tainted by it. Can you see how we might change our thinking on what a deal is?
We are not hypocrites for wanting our camera to be 80% off but having clients pay full price for our highest package. Let's stop that guilt and that conversation - it’s natural! But when we recognize that everyone - us, our neighbours, and even millionaires appreciate a good deal, we can use to best advantage.
You don’t have to offer any deals if it doesn’t align with your overall business strategy. It’s not for everyone and it’s a position all on its own that tells a particular story. Even among luxury brands, some offer deals and some don’t. As long as a business is prepared for the financial management of a deal (taking money off, adding a bonus/ gift, or bundling items) plans in advance and controls the story/narrative, there is nothing wrong with a deal for Black Friday or any other occasion. And by extension, think of what added value offers can be introduced into your business to naturally satisfy deal-seeking tendencies without ever being placed into a position of being asked for a deal. This is why the gift with purchase deal enjoyed great success to this day. The company wove the “free” item as a story of giving more and valuing the customer, and because they controlled that deal, they attracted clients by scratching the deal-itch and minimizing any out-of-their-control deal requests.
So, what’s going on in your business for Black Friday. Deal, or no deal?
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