Against a plain green screen in a series of Mint Mobile commercials, Ryan Reynolds tells how they’re not spending much on the ad to pass the savings along to customers.
The deal is simple: $15/month for prepaid phone service, compared to similar service for lots more from other phone companies.
Though I’ve periodically toyed with switching to Mint, I’d forgotten about it until this past Saturday. That’s when I found myself at a party listening to a gent complaining bitterly about Mint’s offer.
“The ad suggests the $15 fee is forever” he squawked, adding, “If you read the fine print on the screen, you’ll see that price is only for three months. After that, they’re more expensive than anyone else.”
So, since he saw the low price was a come-on, he should approach them with caution, right?
Mint isn’t the only competitor using a promotional strategy to lure new customers. Many major carriers offer free phone deals when you switch, including AT&T, Verizon and T-Mobile. Of course, the phone isn’t really free; its price is baked into the monthly fee you’re paying.
But here’s the reality of all such promotions: The customer is paying for them. Every time someone gives away a pen or a T-shirt, they’re increasing their selling price by a small fraction to cover the added cost. That contest you entered for a trip to Tahiti? Same thing. Buy one, get one free offers? Ditto.
Never forget these businesses exist to make money. These types of sales promotions are obviously meant to promote sales. They’re meant to help your business stand out of the crowd and capture potential customers.
And like with anything else you’re buying, it’s incumbent upon the consumer to do their research before signing any deals!
Companies like Mint know at the outset that a portion of new customers will become long-term clientele. The cost of re-selling to them is relatively small, at which point they start generating real profits.
So, while I understand this gentleman’s frustration, from a marketing standpoint Mint’s ads have done exactly what they were supposed to do. His irritation suggested he wasn’t paying close enough attention when he bought their service.
Perhaps it’s time he switched back to Verizon. I hear he can get a free phone from them.
With that said, I wish you a week of profitable marketing.
Marketing Questions? www.askmrmarketing.com.
