When it came time to pay the bill for dinner I must admit, I felt a bit foolish.
There I was handing over a $10 discount coupon for a bill that was $190 but I had to admire the marketing savvy of the restaurant owner.
A few nights before, my wife had been conferring with our good friends Leslie and Will and Leslie offered to pick the restaurant and make the reservation.
We knew we were taking our chances with a new restaurant but it turned out both the food and service were first rate. My only complaint was the techno music blaring from the bar.
Which brings me back to the math.
The restaurant owner spent money on a mailing to selected homes in Greenwich, CT offering $10 off. That’s right, just $10 off in a town where the average home sells for a million dollars.
The result was that he generated at least one sale of $200 and given that we’ll be back and I’m telling all my friends – just this one $10 coupon is likely to generate a couple thousand dollars in sales over the next couple of years.
Add in a few more new loyal customers the mailing generated and the simple $10 coupon more than paid for itself.
Now I know many people worry about giving discounts. After all it seems contradictory, if you want to increase your profits – giving away money doesn’t sound that smart.
And it’s true, cutting your prices dramatically isn’t the brightest move to make if you want to stay in business. That’s what General Motors did just before they filed for bankruptcy and got bailed out.
On the other hand, using discounts to generate leads, to get people in the door so you can create loyal customers who will buy from you over and over again is just plain good business. That’s what the owner of Tengda did and you should do it too.
Speaking of discounts. Want to save $10 on any MarketingForSuccess product?
Just enter “MFS-10” in the coupon code box before 12/20/10 to save yourself $10 on any order.
Talk to you later,
P.S. What’s the easiest way to get more people to your web site, or to your place of business?
Give them a reason – even one as simple as $10 discount coupon. Who knows – it could easily bring you in dozens or even hundreds of new customers and tens of thousands of new sales that you would have otherwise missed.
P.P.S. What’s the best discount strategy you’ve used to increase sales and profits?
Just leave your idea as a comment to this post and provide the link to your site, and get some free press for your business.