This is Part 2 of our blog series about the New Economy of “Free. Here is a link to Part 1
The new economy of “Free” is causing a major economic shift that will not go away even after we recover from the financial crisis. Here is an example of two high-end (expensive) Steak House chains and how they are adopting (or not adopting) to the new economy of “free”.
Steak House #1 created a new “happy hour” menu in which they offer upscale wines by the glass for $6 per glass and fabulous $6 appetizers that are the identical portions as the same item on their regular menu. Their seared Ahi tuna appetizer is $6. Their prime beef cheese burger including onion rings is $6. Every day the bar area is packed! As they break even in the bar, they have a three hour waiting list for their main dining room where the prices are extremely high.
Steak House #1 leveraged buzz marketing to “pack the house”. Customers may go to happy hour three times to every one time they go to the main dining room, but they will bring friends and tell everyone they know about it. Steak House #1 has capitalized on the new economy of “Free”. Even during the recession they are thriving.
Steak House #2 attempted to match #1 but with cheap wine, mini-burgers and a $12 steak sandwich. The main dining room with a similarly priced menu and food that is of equal quality to Steak House #1 is nearly empty most of the week. They complain about the recession, but they are missing the new economic story of “free”. Will you?
We all know that buzz marketing is the “free-way” to success. Word-of-mouth advertising is not only free it is better than traditional advertising because people will more readily take the advice of trusted friends. Here are four tips to leverage buzz marketing for a nominal cost in your luxury real estate marketing practice.
Embrace the new economy of “Free”. Let us know how these tips works for you!
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