The Dangers of BOGO - High-Def Digest Forums
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Old 11-16-2007, 09:05 AM
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Default The Dangers of BOGO

Just like everybody else, I love the BOGO sales. I've picked up 6 Blu titles from the past 2 sales, and I don't even own a Blu player.
There is however one little danger known to marketers when it comes to sales like that.
Simply put, when company's do it too often (Like Amazon has lately), their run the risk of "Training" the consumer to only buy when they see those sales.
I'm sure Sony already know's this. And I imagine they are taking the risk, in hopes that the they can use the sales numbers to convince the "average joe" that they are the better choice when it comes to which format to pick up. Because they can use those sales numbers to convince that "average joe" that Blu-ray wins every week, even when HD-DVD has blockbuster titles coming out. It's no coincedance that those sales have happened the weeks of the "Transformers" and "Shrek 3" releases. It's very calculated, and smart. But will it work???
That is probably why Toshiba keeps making big statements about "attach rates" and stand alone player sales, and it's cheaper players. It's the only defense they have. And it is a good defense. People want great prices. The BOGO sales prove that.
Considering the fact that Wal-Mart is the most profitable Retail chain store in the entire US, Based on it's ability to be Cheaper than anybody else, Toshiba still has a chance to last a long time in this format war.
If Blu-Ray were to decide to have a fire sale, and sell first gen players for $98, they would sell out just as fast as the Toshiba's did.
But instead, sony is being smart, by taking much much less of a hit by allowing the BOGO sales instead. And they obviously hope the $399 PS3 will be the knock out blow.
Will it work?? Nobody really knows for sure, but the Holiday sales numbers will certainly be interesting for more speculation.
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Old 11-16-2007, 10:57 AM
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Quote:
Originally Posted by cloudy View Post
I've picked up 6 Blu titles from the past 2 sales, and I don't even own a Blu player.
Thanks for helping our attach rates
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Old 11-16-2007, 11:18 AM
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Hey, it's wise no matter how you look at it... you build a library 1st and get a player when they're a decent price (usually around the Holidays) cept' unlike everybody else that blows their wad on an HDtv and a player they have a nice line-up of films ready to watch..

I personally owned about 13 Blu-Ray discs before getting my player 10 months ago... helped to have that existing library.

As far as "Training"... I dont know.. most of the time you'll see the Bogo sales are for titles that have been out for a while.. Casino Royale being probably the best of them. But Newer titles like Ratatuille, Spiderman, Lost, Die Hard, etc we all "Pre-order" because we know it'll be a year or so (if ever) they end up in a Bogo sale.

Bogo sales are good for picking up all those titles you're "Iffy" about.
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Old 11-16-2007, 11:18 AM
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I'm not for one side or the other, as long as I can watch HDM.
For now I buy more HD-DVD because I own one. I probably should have posted this in the General Forum. Unfortunately not as many people enter that forum.
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Old 11-16-2007, 11:23 AM
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I think it's training the existing owners. If people thought a $99 sale on an A2 conditioned people to only pay $99 for an HD-DVD player, then the same can be said for the BR BOGOs. I know if it happened with the same frequency for the HD-DVD side (as in, not "never"), I'd just wait to do the bulk of my purchasing during BOGOs. Maybe the HD-DVD studios see this as a possibility and don't want people getting used to such deals, but c'mon, throw us a Christmas bone at least!

That said, I am jealous -- I wish the HD-DVD camp would do some damn BOGOs.
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Old 11-16-2007, 11:28 AM
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Newsflash. Not many people are buying catalog titles on HDM at current list and discount prices for either format. When an HD DVD or BD costs $19-26 and the DVD costs $4-10 it is too much of a premium for most people to pay.

Remember, the BOGO sales are on previously released catalog titles, not day and date (where the lionshare of sales occur on HDM) or even newly released catalog titles.

I think the BD studios have figured out what people are willing to pay to get previously released catalog titles in their homes ($10-15). I think HD DVD studios will also find that their catalog titles will sell more than 500-5000 copies if they price them accordingly. Universal needs to wake up. They have over 130 titles released on HD DVD and not one has sold more than 25K copies (based on the most current data that we have).
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Old 11-16-2007, 11:34 AM
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The price has definitely made me pause my purchases for now. I'll pay $15 for an older movie without missing a beat. Paying $20 for it, while it's only $5 more, is a little harder to justify.
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Old 11-16-2007, 11:35 AM
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Id agree with the exception of the Day and Date releases and new releases, I always keep the previously released titles under the $15 radar.. even if it means picking them up used from Amazon (most of which you can get for around $12)

I cant think of one player I ever bought without owning a few media already to go with it.. I probably had about 12 cd's before ever owning a cd player, 10 dvd's before that player, etc...
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Old 11-16-2007, 11:38 AM
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From retail experience, there are two main types of pricing strategies. High-Low and Everyday-Low. Everyday low pricing is basically that, a price which is set at a level which is the lowest that can be offered to achieve the profit goals and it's the same price all the time. High-Low is when you price the product at a premium and continually run sales and discounts to drive sales. Like during the week a shirt would be $39.99, but every weekend there's a BOGO, or a scratch and save, or some other promotion which makes it cheaper for the weekend. Then on Monday the price is back to normal. What we (and other retailers) found was that we killed ourselves during the week when had huge spikes on the weekend. In other words the customers realized if they waited, they would get a better deal. There are plus's and minus's to each, but we dropped High-Low because we found we were able to drive more traffic in the stores overall by keeping everyday pricing and marketing normal sale items to get people in the store.

It's not good or bad, but it definitely does impact the customer and trains them to wait. The only reason I can think that BD Companies are running this many sales concurrently is that they're trying to increase the content sales to offset the growth in HD DVD standalones to ensure that they maintain the sales lead throughout the remainder of the year. There is no good reason to keep running these promotions this close together on the same titles except to boost sales numbers by giving titles away.
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Old 11-16-2007, 11:40 AM
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Quote:
Originally Posted by ack_bak View Post
Remember, the BOGO sales are on previously released catalog titles, not day and date (where the lionshare of sales occur on HDM) or even newly released catalog titles.
Disney had a Buy2Save$10 which applied to Day-and-date including the Rat and Cars the week they were released.
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