Hello there,
Im part of a local franchise with 17 locations in the area. One of our franchisee wants to do a promotion for the University in his area. His plan is to have students by pizza, enter there name into a draw and the winner gets a $5,000 towards there next school tution.
I was trying to explain to him that he would probably get a better ROI if he were to have more of a pyramid setup of prizes such as a grand prize of 2 trips to the Caribbean, runners up prizes of 1 of 2 labtops and 3rd runners up prize of 1of 10 GPS systems and then 200 free medium 1 topping pizza.
The idea im trying to get across to him is that with his promotion there is only one winner at the end and some students already have there school payed for them.
What do you think is the better option? and if you have any opinions or changes you think would work I would really appreaciate it.
I think your idea is better but I honestly think these types of things are not worth the prize money involved. Do you think people are going to buy more pizza because they think they “might” win? Imo, these big prize promotions are best left to the big boys although I still do not believe in them.
Personally I think its more interesting/appealing to college students to win free ipods. Inexpensive and you can engrave your store name on it 
Create something fun for people to get involved in. Weekly NFL picks. Winner gets a free XL 2 Topping pizza for next weeks games . . . Pizza of the Month contest where people can create their own pizza and you pick one to feature the next month. Then its a free pizza every week for that person during that month. I think these options create more interest and buzz about your store. Gets people involved and feel a part of it.
I’d agree with pizzapirate; the big prizes never interest me in buying more because the chances of winning are so small. If you are going to invest that kind of money IMO you’d be better with something that a) more people can benefit from and b) there’s and incentive to increase the value or frequency of your order.
Which would be better (for you) to give away $5000 or $5000 of pizza?
Or from a cost perspective, 5 x $2,500($12,500) gift cards versus $5,000 spent somewhere else?
These should both cost about the same but the gift cards have a higher perceived value…