Discounts in a tough economy?

Everywhere you look it seems businesses are offering discounts. That is a good way to stimulate sales and get attention. But what does that say about where we have been? Have all our price points been artificially high or is it a way to get more aggressive with marketing. I think in a lot of cases the most effective approach is to re-market existing products.

Let's take Subway as an example. I think this is brilliant. The five-dollar foot long has really always been there. You can get a 6" sandwich for 3.99 and for about another 2 bucks you could always make it a 12" sandwich. There's your $5 foot long. What is does is get you in the store and from there you will make additional purchases. Pretty clever if you ask me.

Take what you have and wrap it in a new package and drive business to your place.