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28.06.2013


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%SALE% %SALE% %SALE% - marketing in australia... have a thought

It's often said, that after a couple of beers you get the best ideas, or in my case, the enlightenment. But lets start with some things I am wondering about since a while.


As long as I am here, I was alsways wondering about the quality of TV Commercials and Retail Advertising in australia. They are different to what i am used to in germany. When you think about it you realise that a lot of australias advertising is about %SALE%, %SALE% and %SALE%. Discounts everywhere. 50% off here, up to 30% off there. They really selling there consumer goods on a aggressive sales way, I normaly only know from a end of winter or summer season sale. Where shops want to get rid of there stock to make space for the new collection.

But here in australia "Sales" are everywhere for every cause. In my personal opinion as a guy who used to work in advertsing I fell that products getting advertised cheap. It can be a high quality product but if you out it on a "Sale" it makes it feel cheap. "We just want to get rid of it". I am missing advertising selling a brand, a passion, a feeling not a discount.


Getting to another topic. Pricing in australia. Everybody know that austrlia is not a cheap country. Things are expensive. Saleries are higher too. So you might say it balanced. But honestly, many consumer goods are ridiculous expensive compared to what they cost in germany. Prices are double or even higher than in germany. And often I do not see a reason why. For example IKEA. Thinks at IKEA are compared so massive expensive. And you know they got produced at the "neighbor" country indonesia. SO shipping coast can not be the reason. Sure rent etc coast are hight. Anyway i strongly believe those products could be sold for a defo cheaper price.
Long time I explaned it myself with: As long as somebody is willing to pay this money for this product you will sell it for that high price. Making money. And this is not wrong, you will agree I think.

BUT NOW IT COMES.

My theory: What if: Things are priced so high, so you can run big Sales Campaigns. If I price a couch, I could sell normaly for $500 and still make profit, instead for $800! This gives me a lot of leeway to run huge discounts to attract customers. This makes all sense for me now.

Ok and now I won't bother you with this thoughts anymore :P