Is Disney Addicted to Discounts? What's your opinion?

[Mouseaholic!!!]

I think its a huge problem because people find the product less of a "premium product".

As an example, Abercrombie & Fitch rarely discounts merchandise outside of last season lines, why? Because it devalues their entire product line if they start discounting current items; people feel the full price product is not worth as much and sales drop even quicker when they try to reign in the discounts then they did prior to the sale.

Companies like JC Penney, Kohls, etc are addicted to discounting, and consumers reflect that in terms of their quality of offerings, people won't shop there unless there is a sale (their own market reports support this). So they constantly have to offer sales and advertise them.

Do I think Disney is a little different, yes, in both good ways and bad. First what they charge for their premium product is completely out of line of where it should be, but people pay it because its "Disney". Disney doesn't offer a 5-Star hotel, it barely offers a 4-Star with Grand Floridian, yet, they charge prices that make some NYC and London 4 and 5 star hotels envious. So their price levels are out of sync with what their product really reflects. So maybe their discount price is really their value proposition price, but shareholders and the management do not want that because it lowers the value of the company. The converse is that Disney has traditionally been able to secure room rates that are well above market because they have a corner on the "on-property" rights and the perks that go with them. Will this change in the future when they sell of their land or lease their land to other developers, maybe and in the end that would be a much larger concern then the discounting for Disney.

I have to agree.

Isn't their current problem the fact that the discounts are managing to bring the guests to the parks....but $$$$ spending is WAYYYYYY down once they get there? That's not helped when they standardize the stores so everything is the same.

We all know Disney isn't giving away all these discounts because they LIKE us!

 

[Snowgod]

According to my former Economics professor, the only way for this to end is for them to lower the prices to a point people are willing to pay. I have never seen Disney lower prices, they just discount things. The economy is bad and it is the people that stay in the value and moderates that are the bread and butter of WDW. They bring their kids and Grandkids and will come back as often as they have the money. Well the money is gone and if Disney wants to keep them coming back they will have to at some point cut their prices. Parking up to $14 dollars a day, $79 a day for a park ticket. when will they realize that they need to have a perception at least that they are offering a good value. Even Nascar is lowering their ticket prices.

Fire a few MBAs and lower the prices 10-15% and people will come back as soon as they have a job.

 

[Mouseaholic!!!]

According to my former Economics professor, the only way for this to end is for them to lower the prices to a point people are willing to pay. I have never seen Disney lower prices, they just discount things. The economy is bad and it is the people that stay in the value and moderates that are the bread and butter of WDW. They bring their kids and Grandkids and will come back as often as they have the money. Well the money is gone and if Disney wants to keep them coming back they will have to at some point cut their prices. Parking up to $14 dollars a day, $79 a day for a park ticket. when will they realize that they need to have a perception at least that they are offering a good value. Even Nascar is lowering their ticket prices.

Fire a few MBAs and lower the prices 10-15% and people will come back as soon as they have a job.

WHAT? Fellow Castmember Bob not get his $38 million dollar bonus this year? Heck no.....he will just lay off another 10% of his fellow castmembers across all cost centers like he did this year 10 days into January!

 

[ilovethisplace]

I recently returned from a week-long WDW vacation and for the first time, after dozens of trips I came home without a single piece of merchandise. No pins, no t-shirts, nothing. I also used my TIW card a ton and I entered the park on a discounted DVC AP. I honestly believe that I'm becoming more of the typical guest, not the blank check vacationer that Disney wants.

 

[sweetdana]

I started going about 3.5 yrs ago. Started with 1 trip at full price. 6 days at and off site. I loved it so much when I heard about "the sale" at that time it was free dining, I stayed on site and the POR for 11 days. I went back 3 months later with 40% off I think and then 4 months later at the 7 for 4 and again 4 months later for free dining. I purchased a DVC (right before returning for free dining), because now we go seems every 4 -6 months and seemed worth it. Honestly witout the promos I would never have returned so quickly and never purchased DVC.. NOW and AP holder and a lover for life. It worked for me. Now if no sales.. no problem still will go 2 times with DVC. More sales (like 40% off Visa holder) I just made my trip 10 nights instead of 7.

 

[Starr W.]

I recently returned from a week-long WDW vacation and for the first time, after dozens of trips I came home without a single piece of merchandise. No pins, no t-shirts, nothing. I also used my TIW card a ton and I entered the park on a discounted DVC AP. I honestly believe that I'm becoming more of the typical guest, not the blank check vacationer that Disney wants.

I hardly buy anything on our Disney trips, perhaps a new T-shirt for the boys(if they have out grown the old one). DH gets a new DVC b-ball cap once a year. But I still see plenty of people on the plane home with WDW bags full of stuff(they don't like people like me who carry-on my wheelie, hence cutting down overhead space for their purchases).

 

[Geubux]

True, once you've gone a few times, you tend to buy less; BUT, there is a whole new generation being born everyday. And in a few years, they'll all want to go to WDW for that ONE trip. Now, while the economy is down, they'll discount, but those will slowly go away. Once bookings increase, look for a limited number of free dining, then, no free dining. Then the room discounts will go. They may even offer discounts for booking in advance.

Seems to me that there were also some generous discounts and advertising in the 80's when things were slow. Also some nice room discounts in 1998, again, when the economy was slow.

You offer discounts and keep the lodging full. True, you don't make AS MUCH, but they are still turning a PROFIT. How many companies would like to do that right now?

But, it may be best if you naysayers go to Universal. Wonder why they offer multiple days for one low, low price? Could it be that no one goes there? If all of you would leave WDW, MY FAMILY could do more when we go.

Look forward to NOT seeing all of you on my next trip!

 

[wdwpins]

According to my former Economics professor, the only way for this to end is for them to lower the prices to a point people are willing to pay. I have never seen Disney lower prices, they just discount things. The economy is bad and it is the people that stay in the value and moderates that are the bread and butter of WDW. They bring their kids and Grandkids and will come back as often as they have the money. Well the money is gone and if Disney wants to keep them coming back they will have to at some point cut their prices. Parking up to $14 dollars a day, $79 a day for a park ticket. when will they realize that they need to have a perception at least that they are offering a good value. Even Nascar is lowering their ticket prices.

Fire a few MBAs and lower the prices 10-15% and people will come back as soon as they have a job.

I recently noticed that Disney has in fact lowered prices on some pins, which really surprised me. Check out the link below for the ear globe resort pins--those released in November and December (typically a busier time) cost significantly less than those released earlier in the year. I saw a similar price reduction on the Haunted Mansion pin of the month collection, too.

http://eventservices.disney.go.com/pintrading/search/results?keywords=resort ear globe

On a side note, I think many families have discovered the outlets. My friends and relatives who visit WDW are shocked to see such price reductions. I even bought for myself a few years ago a WDW red hooded sweat shirt--$14.99 at the Character Premiere store, $49 in Magic Kingdom.

Has anyone else seen any sort of quiet price reductions at WDW lately besides pins?

 

[Karlzmom]

It used to be called "supply and demand"...when lots of people want X product, prices can go up, as the limited availability drives the price upward until the number of people who *can* afford the price matches the number X's to be had.

Same thing in reverse. There is far more Disney available, based on the prices, than people willing to pay. If consumers aren't willing to pay $$, then the price has to drop until the demand catches back up with the supply...discounts is the way to short term the price regression.....rather than simply cutting prices across the board. The reality is that Disney seems to have found the price point where a sufficient number of people are unwilling to pay for the experience, and is having to pull back a bit.