Don’t be Vincent Van Gogh

Don’t be Vincent Van Gogh

By Scott Sambucci | May 7, 2012

Cutting deals to win customers? Don’t do it. 

Read this article from today’s LA Times on American Airlines and their “travel for life” tickets.

From the article:

But all the miles they and 64 other unlimited AAirpass holders racked up went far beyond what American had expected. As its finances began deteriorating a few years ago, the carrier took a hard look at the AAirpass program.

Heavy users… were costing it millions of dollars in revenue, the airline concluded.

Telling your partners not too worry about bending on price?  Explaining to your investors that while you’ll lose a little on this deal, you’ll make up for it with publicity and referrals? 

You won’t.

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