SG Wedding Guru recently launched their Actual Day Wedding Photography Package at an extremely attractive price of only $680. Since its launch response had been positive with numerous bookings.
What SG Wedding Guru has done is to create what is termed a loss leader. I must emphasize here that a loss leader is different from a "bait and switch". The bait and switch is essentially a scam where potential clients are baited by an offer only to be sold something else. The company, in this instance, has no intention of ever selling the bait. A loss leader sales strategy on the other hand is a strategy that involves selling a product or service at a low price (even at a loss) in order to bring in the customers. Since the customer is already in the store, chances of him buying something else at regular price is high and this is where the company makes their money. The loss leader strategy is commonly used by supermarkets.
In the case of SG Wedding Guru, their cheap wedding day photography package is for the purpose of building a relationship with the bride-to-be. Cross and up-selling occurs when Wedding Guru subsequently promotes other wedding related services as part of their "one-stop" service as brides not only need a wedding day photographer, but they will also need wedding favors, decorations, catering and even travel insurance for the honeymoon. The list is long.
What SG Wedding Guru has demonstrated here is that, sometimes in sales, we should not forget the forest for the trees. A single sale of a wedding day photography package at regular prices may reap you a return about $400, while cross-marketing a suite of products can instead reap you a return of many times that. The loss leader strategy is powerful and should not be neglected. In our opinion, SG Wedding Guru has implemented theirs well.