Friday, August 22, 2008

Product Sabotage: Hiding your best products

Companies sometimes hide their best products in order to bait consumers into purchasing other products with higher profit margins.  These products are the best because of their value for money.  However, owners sometimes hide or disguise these to discourage potential consumers from buying them.  Here are some examples of how these products are hidden:
  • Coffee shops offering smaller sized servings do not include this in the menu in order to encourage consumers in buying the larger servings which have higher profit margins.  These smaller servings are made available only upon customer requests.  (Starbucks and Coffee Republic)
  • Supermarkets packaged their cheaper products like they've been there for days (unappealing).  It's not because they can't afford better packaging but because they want to persuade richer customers to buy something more expensive instead.
  • Technology related products would offer high specification products at a premium price while offering the same product with some functions disabled at a lower price.
  • Restaurants sometimes offer discounts to customers who eat by the bar instead of sitting on a table. 
These marketing tactics are referred to as "Product Sabotage."


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