December 6, 2006
more thresher madness
There was some speculation in the national media that The Thresher virus might end up losing Thresher’s money.
Guess not:
“The effect has been fantastic,” Roger Whiteside, CEO at The Thresher Group told the drinks business. “Sales are up over 60% in the days the offer has been operative.”
The suggestion by certain national newspapers that The Thresher Group might suffer as a result of the unexpected rush of shoppers has not proved true. “It is a heavy discount but there is still a positive margin and we have made more money out of it in the end,” explained Whiteside.
However, the drinks retailer was surprised at the response. “We didn’t plan anything like this,” he admitted. “We have sent our corporate partners coupons the last two years and on this occasion they sent it onto friends and family.”
Whiteside, who was previously joint MD of on-line supermarket Ocado, added, “I have been in internet marketing for years and viral campaigns happen by luck, not by design.”
Basically, their margins were hit somewhat, but the increase in store traffic more than made up for it.
What’s more interesting to me is what Thresher’s can learn from this little episode, to improve their business long-term.
How long before the irritated media search for the Stormhoek conspiracy angle?
I love your blog. I eagerly await each new card!
My favorite one is “hate”, that was just beautiful.
I’ve got the Microsoft change the world one printed out on my wall.
Now that Thresher is in people’s consciousness in a new way, maybe they can invoke the Hawthorne Effect, wherein people will respond, just because of a change, any change.
You know: slash prices, people rush in; raise prices (because of certain unique wines?), people rush in; slash prices again, more people rush in.
If they just focus on discounts, the competitors will rush in, and they’ll all suffer (kind of like the airline industry in the States).
Like you said Hugh, there’s plenty of wine in Threshers not already in the 3 for 2 offer or covered by the 40% off deal so chances are they will have made plenty more margin than they are letting on!
One thing though…if the voucher was intended for corporate partners, why did you decide to launch it on the internet?
Was it an online game of dare? “Even though we’re not supposed to, we’ll put it out there to see what comes of it. Even if we get a bollocking, sales will go through the roof and Threshers won’t care…”.
This was never an issue but something the naysayers want to punt so others can keep their margins as well by driving business away from a company perceived to have failed.
If those same hacks and other half wits had more than two braincells opeating in tandem, they’d have done what I did and checked out Threshers operations to figure the effect.
Net ACCRETIVE. Story over.
Doesn’t sound like the kind of company that sells below or at marginal cost to me.
But then what do I know, I’m only an accountant?
Lovely post Hugh… Facts triumphing over news media FUD conjecture!!
The blog world (Thresher’s customers and Thresher) are the hands-down winners!!! YAHOO!!!!
Whiteside said: “I have been in internet marketing for years and viral campaigns happen by luck, not by design.”
I think Mr Whiteside and Stormhoek are being rather modest — in my book the harder you work the luckier you get…
I doubt Threshers care because they their pricing structure is built around ideas like this. Bin ends are 40%. Most wines are 3 for 2 anyway. And they always seem more expensive. About 40% more expensive I would say. I would say I am turned OFF from Threshers as a customer at the moment. I don’t understand why I am paying 40% more the rest of the time when I don’t have a voucher!