From a pricing standpoint, one of the oldest tricks in the book is asking for a whopping price increase then ‘settling’ for a smaller (but still considerable) increase. The local power company just used this tactic.
If I want electricity in my house, I have to go through Duke Energy unless I spend a small fortune on solar energy and wait 20 years for an ROI. Or I could hook 2,000 hamsters to 2,000 wheels and yell, ‘go!’
So…Duke Energy is a monopoly. Yes…I can cook with gas and even run other stuff off gas but Duke Energy, due to state regulations (and the money they funnel to politicians through 'campaign donations'), gets to have a monopoly when it comes to electricity—with the State of North Carolina having final say over rates.
So this year Duke Energy asked for a 14% rate increase. The company faced howls of protest. So they ‘settled’ for 7% because they ‘care’ about consumers—the same consumers who face declining real income and a stagnant economy...and don't need hikes in power rates.
While I find monopolies abhorrent—especially when they are state sponsored—Duke Energy used a good pricing strategy.
Helping a Local Establishment
I’m really excited to be helping a local business, Sir Edmond Halley’s, with some marketing. We’re starting with some email marketing and we set up a birthday club to get some opt in emails. Yes…free dinner on your birthday from Sir Ed’s. GO HERE NOW!
We’ll be pounding away with direct marketing and some direct response copywriting.
I'm a direct response copywriter based in Charlotte, North Carolina. I specialize in providing copy and content for the direct marketing environment for clients around the world. Enter your info to the right for my free series: Seven Steps to High Converting Copy. Or contact me here.