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Why discount cards right now?

Mark Fletcher
April 29th, 2008 · 6 Comments

342.JPGI checked the John Sands card offer at an Angus & Robertson more closely yesterday – it’s a three for two deal. Buy three Mother’s Day cards and you pay for two. Discounting Mother’s Day doesn’t make sense – it is one of the best card selling seasons of the year. A&R must be discounting to try and pull sales from the more traditional card retailers like newsagents and card and gift shops. While A&R can do this, it’s an odd strategy. But what would they care – I suspect John Sands is funding the deal.

I am concerned this steep discounting will educate customers what to expect during popular greeting card seasons from A&R. They did it with their Calendar Club offer for calendars and hurt calendar margins for years. If they keep this up for cards we will feel the impact in newsagencies.

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Category: Greeting Cards

6 responses so far ↓

  • 1 Brett // Apr 29, 2008 at 10:38 AM

    I’m more curious about how many Mothers you have to have!

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  • 2 Jarryd Moore // Apr 29, 2008 at 10:56 AM

    I suspect three is chosen to target a family buying the cards. One for the family’s mother and one for each partner’s mother.

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  • 3 Lorraine // Apr 29, 2008 at 6:10 PM

    I thought most retailers in shopping centres are restricted in what they can sell. I wasn’t aware that book shops were now greeting card and confectionary stores as well. Nor are they core products to a Book Store.

    I wonder when A&R will be asked to revert back to their “fit for use” requirements.

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  • 4 clem // Apr 29, 2008 at 6:45 PM

    Lorraine, I would imagine if they are selling the cards then the shopping centre is not concerned, otherwise they would be stopped already. How many shops already sell cards anyhow? The supermarket, department stores, every gift shop. I think you are hopeful to think cards will be a protected item not to be sold everywhere.

    Jarrod – 3 mother’s day cards. I am glad you told me that, as I was wondering, but forgot about the family mother. I would think that she would be most likely to by the partners’ mother’s cards, but not so keen to pick her own. This is one time father and kids need to step up, but get a man to pick the partners’ parents as well? No, I think the 3 idea is silly even without devaluing the sale as Mark said.

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  • 5 Jarryd Moore // Apr 29, 2008 at 10:31 PM

    Clem,

    Your right, mostly the “family mother” would purchase the partner’s mother’s cards – and she isn’t likely to pick her own. But if the family goes shopping together (Mum, dad & kids or just mum & the kids) they’re more likely to pick the two partners mothers cards and then choose the family mother’s card while she goes off somewhere else – and still pay for it all together.

    Maybe that’s just been the situation i’ve seen? Its not going to target a mass market, but then again no one said it was a clever promotion.

    Im interested in the John Sands approach. John Sands seem to e in more mass outlets – does this dilute the consumer perception of their brand?

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  • 6 Neville // Apr 30, 2008 at 2:06 PM

    This card discounting does not make sense. Mother’s Day is a big season for us and now the A&R people ruin it.

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