The hidden cost of repeat purchases
We all know the common culprits that we spend money on every day. It's more than milk! We're all human when it comes to brands and once a company has secured our initial purchases, studies prove that we are often very likely to stay with that brand when the time comes to purchase again. Many factors are involved in this, ranging from simple laziness through to the comfort that comes with familiarity with a brand and product.
The truth is that we all are beholden to certain purchases in life. Some things we just have to have in order to maintain the quality of living that we are used to! Recurring purchases are a hook that many companies have made their fortunes off, be it perishable goods in the food and drinks sector or non-reusable cameras (perhaps an old example by now!
So what examples are the best? Let's take a look.
Both men and women are familiar with this subject! The world of shaving razors is a bewildering place, full of powerful and aggressive advertising shouting the benefits of fifty blade, gas powered monstrosities available at your local store for the low price of a lot of money. The amount of marketing research that goes into the themes and trends of these products is staggering, with many organisations playing on the themes of masculinity and femininity in order to secure repeat business from their precious customers.
Razors are an interesting topic to review. The concept of paying a high price for branded packages of replacement blades is something that many are revolting against in recent years, spawning such famous companies as the Dollar Shave group. It's an increasingly difficult market for the main brands like Gilette, with many resentful customers becoming more savvy to the point that they are paying as much for the brand as they are the product they need so frequently.
Oh dear. We'll keep it professional in language and tone when discussing printers! An infamous example of the “rip off” that many have had no choice but to pay into, printer ink has long been complained about.
The problem that has led to such a negative view of printers and the ink required for them is that for a sizable period of time many manufacturers built their products to only work with their own ink. This product was then marked up in price significantly, crippling users of their products financially by forcing them to pay to continue using their printer.
While a solid business model that worked for many years, this practice backfired as many anti-consumer methods tend to do. The printer became an infamous example of white collar frustration, with the giants of the industry such as Hewlett Packard noticing the damage done to their brand and their continued profits.
This was an insidious success for such companies, with the bait and hook method of a cheap product and expensive refills proving tremendously successful in the short term.
There are many more examples of this type of business, ranging all the way from air fresheners through to the refillable capsules used in coffee making machines. An effective method for securing brand loyalty and continued profit, these products are built purposely to require the continued expense of refilling their machines and items with theirs and theirs alone.
While effective, the take home for an interested business owner or developer is to ensure that the customer is not made to dislike the brand. Forcing an artificial limitation on a consumer so that they buy is a tactic that can work in the short term but is very unlikely to ensure a positive image of the company and a happy user in the future – an important part of ethical business!
Source: Every Day Loans Ltd
