We’ve done combos, 2 for 1 sales (BOGO), Welcome Wagon coupons, over certain $$ get x kind of deals. I always try and figure out how to increase sales without too much of an increase in labor (especially now with such a labor shortage). What would you consider some of your best ideas?
Combo works best in my shop
This wasn’t my idea. People who are smarter than me suggested I do this.
I put an ad in the local good new paper (circulation 18,000 people they claim) I gave away a free small cheese pizza. If the wanted to add pepperoni it was a dollar extra per topping. I did it for 3 days. We gave away 548 pizzas. It was a crazy three days.
My food cost was about $1000, I made $1100 from the $1 up charge which paid my food cost. The ad cost me $700.
We saw the best sales we had in 23 months.
My sales have been about 4% above my 2019 sales since.
I want to make sure i understand this…
You gave away 548 pizzas which cost you $1000 in food costs plus $700 in ad costs (what about fixed costs?). You made $1100 up-selling toppings. It cost you $600 to run this promo or $1.09 to acquire the customer.
The idea was, that by running this promo, you’d gain new and repeat business? And that amounted to a 4% increase in sales? That’s pretty good.
You used this method to build your house-list of customers so you can send them offers and drive repeat sales for next to nothing?
I have felt we are the best kept secret in town for a while now. So I made some bold moves.
Since the promo I have also been dooing Radio and TV ads. It is cheap right now. Radio is about $17 a spot and TV is costing about $50 a s spot at prime time.
My radio ads say “The Best Pizza in Fprt Smith or it is Free”. I think the free pizzzas got the ball rolling. I am taking steps to keep it going to get them to get in the habit of calling me.
That’s some bold move i’d say. And it worked out well for you. Nice way to create some goodwill.
Wow that’s some cheap ad costs as long as you know it’s working, don’t stop. And having/stating a guarantee is smart… few seem to do it.
Since you’re paying these advertisers for attracting customers do you have a way to collect their info so you can build a house list and market to them directly?
There’s lots of benefits building an in-house list. Here’s some off the top of my mind…
- dirt cheap to market to them so a big ROI for you
- in case something happens to your place you’ll have a way to communicate and keep them in the loop so when you’re back on your feet they’ll be excited to spend money with you again
- increases the value of your business so when you’re ready to cash out, you can demand top dollar
- you’ll have a way to keep regular contact with your customers so you stay top-of-mind (increasing repeats), while giving you a chance to build a connection with them so they’ll stay loyal, refer more, and defend you from evil doers… kinda like a small army protecting your castle.
We attempt to sign them up on our reward program. That is working well.