Saturday, June 18, 2016

Domino's & T-Mobile discover there is no such thing as free pizza. Too many took advantage of offer. They ran out

See T-Mobile Ends Free Pizza Promotion as Domino’s Runs Out of Dough by Saad Chandna of Bidness Etc. Why the give away in the first place? Competition: "With AT&T having launched a similar thank you service for its customers, T-Mobile needs to keep the ante up as rival carriers initiate methods to keep their own customers hooked."

Here is the definition of a scarce good I use in my classes:

Scarce-A good or resource is scarce when the amount available is less than the amount people would want if it were given away free of charge.

So pizza is scarce!!

Excerpt from article:

"T-Mobile Tuesdays has provided the un-carrier’s customers with a lot of free goods, but free Domino’s Pizza will not be one of those promotional items anymore

Domino's Pizza, Inc. (NYSE:DPZ) has had to back out of a T-Mobile promotion owing to a demand-supply discrepancy. The un-carrier recently launched its T-Mobile Tuesdays app on iOS and Android in a bid to say thank you to its customers for their loyalty. Among other freebies, T-Mobile offered coupons entitling customers to a free Domino’s medium pizza with toppings. The restaurant chain, however, has been unable to handle the surge in demand every Tuesday, and has now discontinued the service.

T-Mobile US Inc. (NYSE:TMUS) promotions tend to create quite a bit of a brouhaha, and T-Mobile Tuesdays was no exception. The app crashed soon after it launched, as customers rushed to get their hands on free goods. Demand has been so high that it put a strain on Domino’s stores, as they tried to cater to the orders. T-Mobile CEO John Legere acknowledged this in an internal Domino’s memo, saying that the promotion would not be renewed unless a viable solution was found.

The T-Mobile CEO noted in his tweet that the promotion will not be valid on the next Tuesday, June 21. Mr. Legere was appreciative of Domino’s efforts to facilitate the extra orders. According to his tweet, Domino’s sales went up by around three to four times the sales accrued on any given Tuesday, as a direct result of the T-Mobile promotion.

According to TechCrunch, Domino’s appreciated the number of T-Mobile customers who are fans of the pizza chain. However, the restaurant giant had already started capping the number of free pizzas per store, while some T-Mobile Tuesdays coupons were not accepted altogether. This understandably left a lot of customers unhappy."

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