Monday, June 28, 2010

Paperly Promotions: The Good & The Bad

Save 25%!
Double your Hostess Rewards!
Starter Kits reduced to $149!

All of the above are examples of promotions Paperly either has offered in the past or could offer in the future.

Typically, Paperly offers such promotions once per month.  Some target customers who are interested in purchasing Paperly products: e.g. “save 25%” or “buy 2, get 1 free”.  Others target Hostesses who wish to maximize the free or discounted products they can earn: e.g. “double your Hostess Rewards” or “book a party at your current party and earn a $20 credit”.  And lastly, some target Consultants who either run, or wish to run a Paperly business: e.g. “Starter Kits reduced to $149” or “double the Paperly dollars you earn”.

Given that brief summary, most would say “Paperly promotions are good!”  But there are downsides to promotions.  First, promotions “train” customers, Hostesses and Consultants to “wait for a better deal”.  Like a bad drug, promotions are habit forming.  Plus, folks constantly expect better and better deals.  For example, a customer might say, “last year you gave 25% off, what are you going to do for me this year?”  To combat this behavior, Paperly purposely attempts to announce its promotions as late as reasonably possible, often just 7-14 days prior to the beginning of that promotion.  This purposeful tardiness lessens the likelihood of customers, Hostesses and Consultants delaying their actions while awaiting the next best thing.

A second negative is that Paperly’s promotions typically target only one constituent – either customers, Hostesses or Consultants – and the 2 remaining groups feel “left out”.  To be fair, Paperly tries to evenly rotate the promotions it offers.  However, certain promotions simply work better at certain times of the year.  For example, hosting a Paperly party in May can sometimes be challenging because the seasons are changing, schools are ending and sports leagues are in full gear.  Therefore, it may make sense for Paperly to offer a Hostess promotion in May.

All-in-all, Paperly will continue to offer monthly promotions, assuming it remains prudent, because we believe promotions are greatly appreciated by customers, Hostesses and Consultants.  Yet, Paperly also acknowledges that perhaps tomorrow, or some time far into the future, we may need to dampen the reliance on promotions.  Until then, I urge to take advantage of the promotions we offer… you never know when, or if it’ll come again.

Jay Rudman, CEO * Co-Owner, Paperly

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