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Discounting Time magazine

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Time magazine and the Pacific Coffee House group here in Hong Kong have put together a deal whereby you get a free 12oz coffee of your choice when you purchase the special issue of Time magazine for HK$38.

It’s an odd deal since coffee is the product of the venue promoter – Pacific Coffee House – yet their product is provided free. Usually, the freebee is the product you don’t usually sell. Pacific does not usually sell Time magazine. I am guessing this promotion is being run the other way around to get around circulation audit requirements.

This offer is reminiscent of the Starbucks Fairfax deal where The Age and the Sydney Morning Herald are sold for 50 cents at Starbucks outlets. As a retailer actively promoting newspaper and magazine brands, I’m not happy when I see such heavy long term discounting. It gives off a confusing message.

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