Abstract: to get customers through the "subsidy" is equivalent to "step on the accelerator, can accelerate the customer’s existing habits, to quickly achieve economies of scale, such as" free lunch "and the recent" free breakfast".
an interesting thing happened recently. My home is about more than and 20 dollars from the taxi company, but recently sat "car" is often only need to spend 10 dollars, so I took turns with the car drops, one car, easy to Uber to book, every day sit car to work, and every time I would ask the driver to see me "" how many earn subsidies (cheap). Recently heard of drops and quick merger news, my first reaction was, I estimate a small cheap for long, but the results did not take long to see drops of public relations said "in order to provide a better experience we will continue on subsidies". Ah, what a happy time we live in, and let us wait and see.
and friends usually talk about these crazy subsidies, often relatively "ha ha" a smile. But the business logic behind the study of "subsidy" is a very interesting thing today to fudge it, see if you can give entrepreneurs some inspiration.
first class subsidies: accelerated subsidies
entrepreneurs like drive a car oil, may not reach my goal is to run out. To get customers through the "subsidy" is equivalent to "step on the accelerator, can accelerate the customer’s existing habits change, in order to achieve economies of scale, such as the familiar" free lunch "and the recent" free breakfast, free bus".
small recommendations: accelerate the subsidy strategy, more suitable for relatively high frequency and just need to carry out the category. A few months or even years before the purchase of a commodity or service, when the user needs the next time, with great probability or has forgotten you, or your competitors or replace the goods with advertising and subsidy policy cheated, even if the customer is back, the subsidy money to earn back a long time, resulting in cash flow pressure is too large. If the demand is not rigid, there is a problem, because the subsidy will attract a lot of customers do not need a strong demand to buy a subsidy to stop running.
second categories of subsidies: traffic category subsidy
retail industry often use zero or even negative to sell "gross profit gross flow category of goods, and then rely on cross selling by selling high margin" gross profit category "merchandise," flow category "lose money back. Milk, diapers, fresh, and even the mobile phone and the computer are common traffic categories". In many retail areas outside also have a similar strategy, low price for the car wash your car washed, pointing to the tire that you see a bag drum safety I’ll give you a warehouse to change the tire, or to say you look at the car engine cover paint bird droppings corrosion cause permanent damage, let us give you a "glaze"…
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