Her name is 'Dangerous Donna,' one of the most innovative hair stylists in the world, and she has earned the right to sell educational DVD's. She loaded up the SUV and along with a couple of her co-workers, headed to the Bronner Brothers Hair Convention in Atlanta. It was time to get paid.
'Dangerous Donna' took over 2,000 DVD's to the show and vowed to bring home none. Once the trade show floor was on jam, her DVD's weren't selling fast enough. What she didn't realize, it was a bad year for all the vendors. After Sunday sales of only 250 DVD's, 'Dangerous Donna' literally turned into 'Discount Donna,' as she marked her $99 DVD's to $49 and her $49 DVD's to $25.
One of her top competitors, 'Winkie The Wonder Weaver,' who operated a booth directly across from Donna, stayed firm on her DVD prices ($49 - $89). When the convention was over, Donna disappointedly took home over 800 DVD's. She said that would never happen again. Once at home, she found a cheaper way to make DVD's by buying her own camera, editing and duplicating equipment - although she knew the quality wouldn't be the same. Her new plan was to sell more DVD's (at cheaper prices) and hopefully make more money on volume.
The following year, 'Dangerous Donna' returned to Atlanta with 3,000 DVD's and a bigger booth. Her new prices: "All DVD's $14.99." The hair industry was SHOCKED. They couldn't believe 'Dangerous Donna' was selling her techniques for 'chump change.' This made most stylists on the trade show floor drop their prices in order to compete. 'Dangerous Donna' was regarded as a 'leader' in the hair game, so she set the standards. 'Winkie The Wonder Weaver,' who also returned to Atlanta, refused to drop her prices. When the convention was over, the final numbers told the story.
THE BREAKDOWN
'Dangerous Donna,' with a bigger booth and bigger staff, resulting in bigger expenses, sold all 3,000 DVD's. Winkie sold only 850 DVD's.
Donna's expenses (3,000 DVD's, 2 booths, staff, hotel expenses, transportation, food, etc.) came to $29,500.
Winkie's expenses came to $13,200.
Donna sold 3,000 DVD's at $14.99 ($44,970) minus expenses = $15,470 profit.
Winkie sold 850 DVD's at an average of $69 ($58,650) minus expenses = $45,450 profit
'Winkie The Wonder Weaver' was outsold by more than 3-to-1, but made almost $30,000 more than 'Dangerous Donna.' "I'm not trying to outsell anyone," says Winkie. I just want to get what I'm worth, and I'm worth more than $15 a tape".
As far as Dangerous Discount Donna's next move: she's planning on returning to Atlanta with a new price: $9.99.