Gap Tells Shoppers to Name Their Price
No William Shatner in sight, but Gap clearly seems to have taken
a page from Priceline’s book with its most recent promotion that asked consumers
to name the price they wanted to pay for khakis.
Visitors to gapmyprice.com
were greeted with a simple message: “Let’s
make a deal. Say your price.” They then proceeded to make offers, which
based on a quick scan by RetailWire seemed primarily in the $35 range
for khakis with a normal retail of $49.50.
The gapmyprice promotion, according
to a report on the Advertising Age website,
was an attempt to be more targeted than normal coupon dropping, a goal set
out by Gap Inc. CEO Glenn Murphy during a conference call to discuss the company’s
fourth quarter performance.
“[2010 promotions] could have been done more surgically. [There] could
have been a little more thought and innovation and creativity brought to it.
And that’s the expectation of a company like ours,” Mr. Murphy is quoted
by Ad Age. “Anybody
can put an easel outside a door that says take an extra 25% or 30% off. We’ve
fallen for that trick a few times, and that’s not smart as far as I’m concerned.”
like others, is investigating the opportunity to build excitement and revenues
using daily deal and flash sales. Its deal with Groupon drew national attention
and sister chain Banana Republic has tried three-hour lunchtime sales. The
name your price twist was simply a variation on the theme.
Based on social media,
reactions to the promotions were mixed and Gap has not released any numbers
on how many pairs of khakis it moved. With the one-day event now over, the
only message on gapmyprice.com was, “Thanks to our
first supporters for making the Gap men’s khakis ‘Say Your Price’ promotion
such a success. Check back soon for the next exciting promotion!”
Discussion Questions: What do you think of Gap’s ’Say Your Price’ promotion? Are the numbers of flash sale sites popping up likely to dilute the effectiveness or is the lure of a deal still too much for Americans to pass up?