An area High School will advertise my pizza restaurant in their monthly newsletter, which is mailed to each family in the school district. They would like a donation for each family that responds to the advertisement placed in the newsletter. What do you feel would be a fair donation; as a percentage of sales? Note: They would still be able to use coupons.
There are so many questions that I would need answered before voting.
- How many students?
- What kind of coupons are you be allowing.
- Will you deliver and if so do you recover the delivery costs?
- Do you have an existing relationship with the school?
- Are there any restrictions on what and when the purches are made?
I prefer a flat amount per order. That amount could vary according to what offer was in the paper. We did a 2fer offer where we offered $2 off your order on a 16" pizza and donated $2 to the fund. Simple, easy to track. They had to tell us what school, we set up separate coupon button on the POS for each school.
B- I just want to clear this up for people when it comes to donations and money off coupons, etc. You have to know what your net profit is so that you can realistically set up a discount/donation program.
Lets say your net profit is 20% of gross sales before any discounts/donations and you decide to give them a 5% donation on sales brought to you. You and many others may know this but I just want to make sure that others know what they are doing to their bottom-line.
5% donation ends up being 25% of the net profit! That is way too much for this industry unless you have a super grossing biz. People always think we make a killing in this biz and it bugs the heck out of me when soliciters come knocking!
I understand we do this stuff temporarily to increase sales to increase profits, yadayadayada… Give them what you feel comfortable with and don’t hurt YOUR paycheck!
My profit on incremental sales at this time of year is 35%. My average order is around $20. My normal coupon percentage is about 18-20%. giving $4 ($2 discount & $2 donation) works fine with that math.
To the extent that customers use that offer instead of some other one on an order they would place anyway I suppose I come out 50 cents behind, but on the other hand I come out ahead on any order I would not have gotten and way ahead on any customer that discovers us this way.
I am continually suprised by the number of people that have not tried us after over 8 years and 5 million in sales!
1,100 students,
Coupons allowed would be Lg BOGO, and our meal deals, which most are priced $16 to $25. Donations would be for pick-up/eat in only. Purchases would be allowed anytime.