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An Antidote to Discounting

We all know that many of America’s strongest brands are being forced to discount, as a result of a spending paralysis among consumers and businesses.

Take Neiman Marcus. According to yesterday’s Wall Street Journal, Neiman’s vice president for women’s designer sportswear Rachel Goldberger understands the imperative to sell at full price. “If you offer the value up front, you won’t get any of this discounting nonsense.”

Of course, there are alternatives to direct discounting. For instance, Neiman is offering a $500 gift card for those who donate “gently worn” suits to charity. It’s also sending a $50 “perk” card to use toward alterations.

To a degree, Neiman is pulling back on its more extravagant fashion pieces. In evaluating what to buy, Ms. Goldberger looks for items that are special and unique.

What can we learn from this?

First, for anyone in business, the time to consider whether and how to discount ISN’T at the point of sale. It has to be part of a smart pricing strategy. For Harrison Kohn, a soft economy may mean helping our client by offering six months to pay for a significant piece of work. But that may be better than discounting our price.

Second, all businesses must identify what we do (or could do) that’s “special and unique,” and therefore of greater value. These should be distinguished from the commodity-like products/services where we add no particular value. The more we do that’s unique and of great value, the more we can hold to our price.

Email me at mikeh@harrisonkohn.com if you’d enjoy reading the full story in the Journal.

mh

Perseverance

My son Sam with Furman baseball coach Ron Smith

As a sports-obsessed kid, I was fortunate to have some great coaches along the way. Now, it’s fun to see my son and daughter following in my footsteps. The past two summers, Sam (now 11) has attended Coach Ron Smith’s Furman Baseball Camp. Coach Smith is the guy you want your kids to “get.” He preaches enthusiasm, positive attitude and perseverance as much as he teaches technique. Kids need that. We all need that.

So here’s the kicker. Yesterday Sam and I are in the car listening to Furman take on 19th-ranked Clemson in an early season baseball game. The Paladins are losing 2-0, and down to their last out in the top of the ninth. Not only that, they’ve yet to record a hit. The crowd of 3,000 sounds like 30,000 as the Clemson closer goes into his wind-up and offers the 2-2 pitch. Instead of “Strike Three” and a celebration on the pitcher’s mound, the batter hits a chopper off the plate that takes forever to come down to the Clemson third-baseman. The hitter beats the throw for Furman’s first hit of the game. The very next pitch: (are you kidding me?) Homerun. The no-hitter, the shut-out and the lead went flying over the left field wall. Then in the 14th, Furman scores two runs to win the game 4-2.

Hey Coach: Congratulations! Keep up the enthusiasm! Keep those kids thinking positive. And even when you’re down to your last strike, never, ever give up!

The magic of sports can teach us all great lessons about business and life.

Mike Harrison

HK Launches OutplacementHTI.com

In one week, we went from concept to a live site. Check out OutplacementHTI.com, a microsite for established employment solutions firm HTI Jobs.

Because of the sensitive nature of outplacement situations, we used a Flash intro and careful writing to delicately communicate the benefits of HTI’s Outplacement Services.