This afternoon I headed to the same place I went last year for my pumpkin to carve – the Methodist Church (UMC) on Reynolda Road. Although I’ve only lived in Winston-Salem these two Halloween’s, I have found UMC to be the best location because of their great selection, friendly volunteers, and price – all unbeatable. As I purchased my pumpkin today, I began thinking about the unique pricing method used by the UMC and whether they were actually missing an opportunity to make more money.
The UMC pumpkin patch has a row of what looks like 20 pumpkins in front of its register, each with a different price in $1 increments. Volunteers stand behind the register, and as you approach with your carefully selected pumpkin, they approximate its size to one in the row. I noticed last year, and again today, that the volunteers typically choose the size and price on the lower side; they do not round you up to the more expensive pumpkin, and if you are in between sizes you will always get the smaller size and price. Since this is a fundraiser and really not a for-profit line of business, it makes sense the volunteers would do the nice thing here, but it made me think….If the volunteers just monitored your pumpkin pairing, and didn’t pick a pumpkin to pair you with, and knowing all profits are charitable, wouldn't most people probably choose the larger, more expensive priced pumpkin when they are between sizes and price? I think this is an interesting idea for 2 reasons: First, this would not work at Wal Mart, Target, the grocery store, etc… because they are always in the business of making money and their customers are in the business of getting deals. Second, very few people, in my personal observations and experiences, would “low ball” a charity, meaning the margin for additional profit is probably in the area of $1-2 per pumpkin sold. If you’ve seen the number of pumpkins UMC sells, this is a substantial profit. So it begs the question if UMC has thought of this, are they happy with their profits, and want to be as affordable to a maximum audience? OR is it more so that in the spirit of good will they haven’t even noticed the potential business opportunity available with their yearly pumpkin fundraiser?...
Bridget Wilson
Bridget Wilson
Great post and tricky concept. On the one hand I agree that most people are not looking to game the charities but on the other hand people are very sensitive about their money. I am sure UMC never wants to be a position where people are feeling “cheated” and run to a Walmart instead.
ReplyDeleteMy solution, first thank the customer for supporting the church and maybe have a specific cause the pumpkin patch is funding this year. Then ask the customer which of the two sizes they think their pumpkin is closer to. If people are in the charitable state of mind they may choose the larger, if they are watching their dollars the smaller. If the volunteer are systematical choosing a smaller size already there is no downside.
Thanks for putting me in a festive mood!
Alyssa Thomas
I think the idea makes sense on paper but might not in practice. My general observations lead me to believe that people like giving money to charity but they are most concerned with saving money. Carving a pumpkin is typically a discretionary item and I believe that erring on the smaller size may lead customers continually think of coming to the same location every year for their pumpkin needs. I know I myself always see Pumpkins at the grocery store and think it would be fun to carve one but then I think to myself that the price is kind of high. I could also see some consumers buying more pumpkins if they felt like it was a really good deal. I think parents might be more likely to buy one for themselves as well if they aren't overpaying.
ReplyDeleteI need to go buy a pumpkin now...
-Chris Gabriel