Near where I work, an Arby’s restaurant and a Valvoline Instant Oil Change service center are side by side. In front of each today was an employee with a sandwich board. The Valvoline sign said, “NO WAIT.” The Arby’s board read, “FREE SHAKE.” (The fine print: “with sandwich purchase.”) Both employees looked forlorn.

Convenience or price? Which is the better promotional strategy in the short run? The long run?

How do prospects view Valvoline’s no-waiting promotion:

• When I drove by, the doors were open, the bays empty. It was a little sad. “There’s no one here. Please stop and talk to us. We’re lonely!”
• Immediate service is a plus. I noticed, however, that I could have had it anyway. Sign or no sign, I would have been the only customer there. It’s not like they busted a hump to offer it to me. It cost them nothing, so I don’t perceive any added value.
• Still, not having to wait is attractive. If I needed an oil change, the no-wait benefit might motivate me. Their business model requires prompting customers every three months or so.
• Long-term, Valvoline’s value proposition remains intact, for better or worse.
• Short-term, it’s not much of an incentive.

How about Arby’s promotion?

• “Free” always draws traffic, right? In any economy.
• “This Wednesday only” gives it urgency. “Do it now! Tomorrow you’ll have to actually pay with actual money!”
• Most quick-service restaurant customers are used to meal deals, special offers, and coupons. They’ve been trained never to buy at full price. Accordingly, there will be no long-term loss of brand equity. A free shake is not a recession strategy — it’s business as usual.

Are you more motivated by low prices or by convenience?