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The Nood Furniture Concept In New ZealandNood is a new company in NZ that has come up with an interesting marketing concept. Their website is nood.co.nz. They have retail prices, but offer their customers a 20 off the retail price. How do they do this? Firstly their retail prices are pumped up. Many retailers do this, so it is not a new thing. What right do we have to say that their prices are pumped up. Well, they offer no warranty on their furniture. that is correct, No warranty! Even the cheaper furniture comes with a 1 year warranty. Why then would anyone buy off them? There are a couple of reasons why some one would buy from Nood, New Zealand. 1. They have a nice looking brochure. It showcases their product well. 2. Because their prices are high, it gives the sense of quality. You might not believe this, but it is proven that if you show some people 2 identical products and tell them that they are different but put different prices on them, they will 9/10 point to the more expensive item as the one that is better quality, even though they are exactly the same.
Now to get the 20 discount, right? Well now, they have all of your details, so they will never need to spend money on advertising again. Because whenever they want to move stock, they can just email everyone on the list and get some their message out there as quickly as you please.
Why don't the big boys (retailers) do this? Because they like spending money. Just imagine if you had a major retailer gather all of the details of the people who buy furniture from them.... They would not need to spend half as much on advertising as they do.
The other thing that Nood in New Zealand is doing is offering 50% off all stock. How can they afford this? Well first off, remember the prices are pumped up, so they are definitely not losing money. But even if they are not making a lot of money, they are getting all the details of people who want the discounts. So, when they come to do their next sales, they will not need to spend half as much, because the people to whom the send the email to will probably come back, but also they will forward the email to people they know. This is the New Zealand furniture concept of Nood.
By: Designer Furniture
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