As a kid, I went to Six Flags Magic Mountain several times. Often it was with a group from one of the camps I went to, but I also went often with my friend Adam who lived near the amusement park. We got to know the rides pretty well, and I have fond memories of those trips. We'd debate whether the front or the back was more fun on Ninja, see who could make the best faces for the picture on Viper, and scream inappropriate things on the big drops of Colossus. Good times all around and the perfect place for adolescent boys.
In the years since, I've had two main thoughts about Magic Mountain: I don't even know what rides are still there since they kept changing everything, and I hate the commercials with the dancing old guy. (Note: If you've never witnessed the commercials of which I speak, do yourself a favor and avoid looking for them online. You're much better off that way.) But over the past week, I've heard a radio commercial for Magic Mountain that's left me a little perplexed. In it, the offer they make is as follows: buy a one-day pass, and you get the whole year for free AND one free kid's admission.
I'm all for good deals, but there's that line that every deal can cross that moves it over to a different category - the Hmmmm Category. If a restaurant is having a special and their hamburgers (normally $8.99) are only $5.99 for a limited time, that sounds like a good deal. If they were running a special where those same burgers were $0.49, they enter the Hmmmm Category. Why are they so eager to get rid of those, and how good could the quality possibly be at that price? It's why we wouldn't go to a place advertising laser eye surgery for 20 bucks.
In the years since, I've had two main thoughts about Magic Mountain: I don't even know what rides are still there since they kept changing everything, and I hate the commercials with the dancing old guy. (Note: If you've never witnessed the commercials of which I speak, do yourself a favor and avoid looking for them online. You're much better off that way.) But over the past week, I've heard a radio commercial for Magic Mountain that's left me a little perplexed. In it, the offer they make is as follows: buy a one-day pass, and you get the whole year for free AND one free kid's admission.
I'm all for good deals, but there's that line that every deal can cross that moves it over to a different category - the Hmmmm Category. If a restaurant is having a special and their hamburgers (normally $8.99) are only $5.99 for a limited time, that sounds like a good deal. If they were running a special where those same burgers were $0.49, they enter the Hmmmm Category. Why are they so eager to get rid of those, and how good could the quality possibly be at that price? It's why we wouldn't go to a place advertising laser eye surgery for 20 bucks.
A lot of infomercial products straddle this line. They build up the applications of the product so much and slash the price so often, that it starts to seem like a really good deal. Then they say, "Act now, and we'll throw in another one FOR FREE!" Hmmmm, I say, Hmmmm.
The line is a fine one, and I think of it like a value bet in poker. If I know for sure that I have the best hand, I want to bet the highest amount possible that I can get other people to call. If I quickly go all-in, it'll scare people away. However, if I bet too small of an amount, it sends the signal that I'm trying to get people to stay in. Professional poker players know this amount, and I always watch in awe at their accuracy.
Back to Magic Mountain: My thought on that commercial and that deal is that they're showing their hand way too eagerly. It says to me, "We know that hardly any of you will come back enough times to make this worth the $59.99 you're shelling out, so we're trying to make it as appealing as possible." The term used for this is "breakage," and companies love it (and rightfully so). The rebate forms that aren't filled out, the gift cards that are forgotten in a drawer, the "three more times and get one free" card in that same drawer - they all equal more profit for the companies.
So if you're going to Magic Mountain because of that great deal they're offering, you'd better get $60 of enjoyment out of that first trip, because chances are that'll be your only time there in 07. That is, if Magic Mountain's still there - I think Jack Bauer watched it get annihilated last night. Sorry, Valencia.
The line is a fine one, and I think of it like a value bet in poker. If I know for sure that I have the best hand, I want to bet the highest amount possible that I can get other people to call. If I quickly go all-in, it'll scare people away. However, if I bet too small of an amount, it sends the signal that I'm trying to get people to stay in. Professional poker players know this amount, and I always watch in awe at their accuracy.
Back to Magic Mountain: My thought on that commercial and that deal is that they're showing their hand way too eagerly. It says to me, "We know that hardly any of you will come back enough times to make this worth the $59.99 you're shelling out, so we're trying to make it as appealing as possible." The term used for this is "breakage," and companies love it (and rightfully so). The rebate forms that aren't filled out, the gift cards that are forgotten in a drawer, the "three more times and get one free" card in that same drawer - they all equal more profit for the companies.
So if you're going to Magic Mountain because of that great deal they're offering, you'd better get $60 of enjoyment out of that first trip, because chances are that'll be your only time there in 07. That is, if Magic Mountain's still there - I think Jack Bauer watched it get annihilated last night. Sorry, Valencia.
3 comments:
Great minds think alike, Pete. I, too, have wondered about the message that is sent when the advertiser throws in a second set of Ginzu knives and a bonus chopper. Although "free" is my middle name, it does give one pause for thought.
Couldn't agree more. Though I must pride myself in rarely failing to use a gift card or take advantage of a rebate. The way to get a good deal is to wait until something goes on sale at a store where you have a coupon AND a gift card that was actually really a gift (not a return). I recently got $150.00 in PJs and a robe (hospital wear for after the baby comes) from Victoria's Secret, and I ended up paying $30.00. If they had just put those on sale for $30.00, well, I dunno how I would have felt about that!
Ah, Danielle, I knew there was a reason we became friends.
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