Kickbacks

[system]

Yeah I see that now… My head is not thinking 100% right now… had a water main break in our street today and flooded half my basement. Fun Fun!!! Either way… I agree with your thoughts on the entire issue. Yes marketing is an expense that is spread over all of your orders no matter how you look at it. I just do not see this working unless we are talking about a very large hotel complex with a 100% exclusive contract for pizza needs and only financially working out for those that make a high-end pizza and charge accordingly for it. I do not see this working for anyone that is selling a more price-friendly pizza. $3 a call/order would take all of the profit out of those type of sales. Not too mention that most hotel orders are not going to be multiple pizza orders. Just curious if anyone out there actually uses a marketing firm as such and since I do not sell price-friendly pizzas… how does this work for you? :?:

 

[Rockstar_pizza]

The firm I used was Key Marketing, I do know that they have worn out there welcome here in my hotels and the LAST day of the contract we are sitting down at management (at there request) to see what we can do.
Marc whats the name of your company?

 

[royster13]

Richard, I think pretty much every pizza place has prices that are unfair to 1 client or another…For example, why should I pay 100% of the price if I want 1 pizza but 80% each if I want two…On a food cost basis both pizzas cost pretty much the same…Also, why is a delivered order only 2.00 more than a pickup order…Surely it costs more than 2.00 to deliver an order…So are pickup clients subsidizing delivery orders?..

Now getting back to the subject at hand…I am sure different hotel/motel properties will require a different approach…Some will welcome every pizza place that comes bearing gifts in…Others will have exclusive deals that require you pay to play…If you need to pay to play, then you will have to decide if the “ante” is worth it in your circumstances…

I am still thinking that 3.00 to get an order I could not get otherwise is worth it…Yes sometimes they will be tiny orders but other times they will be large orders when a coach has to order pizza to a teenage hockey team…

 

[system]

Ok I wanted to clarify something that I think I missed while reading this thread. Who is MarcTheMarketer? I thought by his name he was representing the marketing company, but his posts sounds like he is the end-user of this service. So, as far as a reference…you are the end-user. Now Marc’s Sept 5 2010 post under the Key Marketing thread, from over a year ago, says he is trying to find a company that offers this service…but also sounds like a sales pitch. Then under the Kickbacks thread he is now working with a company that does this and wants to see who else would be interested in such a service. I guess I would like too know who Marc is? Works for? Is he a pizzeria owner or manager or does he represent a marketing company. Maybe it’s just me but the posts don’t add up 100%. Close…but not quite. :shock:

 

[MarcTheMarketer]

Hi QCFMike and others reading this thread,

Here’s some clarification about me for those who are interested : )
I have been in the promotional products industry since 1990 and have focused most of my business on the hospitality industry. I have several clients (restaurants/pizzerias who deliver) that I represent. Although I am outsourced, my relationship with many of my clients is more of a partnership rather than a vendor.
A while back I was introduced to an individual who was doing hotel marketing for pizzerias with hotel key cards, hotel guest directories, etc. As such, I have been doing some market research on the “pay per delivery” method, as it intrigued me since the local owner/operator only has to pay when a sale/revenue has been received vs. throwing out a montly or yearly advertising dollars with no way of knowing if or how much of a return on investment there would be on any particular promotion.
Through my research I have found that a majority of restaurant and pizzeria owner/operators would prefer the “pay per performance” method of investing in advertising, marketing and promotion. In fact, many owner/operators have told me that they would LOVE IT if thier local Val-pak sales rep, radio rep, billboard/bus bench rep, door-hanger printer/distributor, and yellow pages rep would offer their advertising/printing services using a “pay per performance” method! Of course, none of these reps or companies is willing to take that risk…They feel that the pizzeria/restaurant owner should be the risk-takers by paying the advertising bill every month regardless of results!
I have since started working with this marketing company who is still in the testing phases of offering local pizzerias this “pay per performance” method of getting new customers. It’s still very new but we anticipate getting great results. Again, there is no financial risk on behalf of the restaurant owner/operator, as long as they are comfortable with the dollar amount they pay to acquire an order that they would lose to a competitor if they didn’t chose to participate. For example, a promotion that would normally cost a pizzeria $1000, would only pay $9 total if the promotion only yielded 3 deliveries (based on $3 per delivery). Anyway, it makes sense to me as a business person, and just wanted to get some more opinions from pizzeria owners/operators.Hopefully this clarifies the reasons for my postings, thanks.
Marc