This is one example of turning a problem into an opportunity. This works especially well for people with high profit margin items that require marketing.
For example, the gas retailer is making next to nothing on each gallon of gas. They’re hoping for “impulse” and convenience buys to make them money. It must be working or they’d all be broke! But still big name grocery stores offering double and triple coupons and doing massive advertising may find they are spending NO MORE and actually may spend less on this kind of promotion compared with their normal advertising routine.
Let’s say you’re a home based photographer with a hefty profit margin but few customers.
Let’s say you’d pay up to $25 to get a new customer on average and your average profit is $125.
Would you gladly “give” away $25 gas cards all day if each card represented a paying job that put another $100 in dollars in your pocket “clear” after the cost of the gas card? You know your own businesses numbers. You do the math.
From Dane’s Blog
Wisebread:
Good news for those who shop for food and gas in the Northeast and Canada.
Shaw’s Market and Irving Oil are teaming up to save you money. In a recurring promotion for both retailers, Shaw’s will give you a coupon worth ten cents off every gallon of gas that you purchase at a participating Irving BlueCanoe, or Mainway Stations. The more groceries that you may need, the more you could potentially save.
Here’s how it works: for every $50.00 you spend on groceries, Shaw’s will give you a coupon worth ten cents off every gallon of gas at participating stations. If you spend $100.00, you’ll get twenty cents off, and $200.00 gets you forty cents off., and so on.
For more information about the promotion, as well as locations of participating stores and gas stations, check out the Shaw’s Rewards website.
Editor’s Note: Any business could set up a similar promotion with a local gas retailer. It’s not going to make the business rich, but it does bring in traffic for a nominal expense.
Photo by tome213.
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