How To Offer Discounts That Can Explode Your Profits
Discount cards are another great option to consider when attempting to add value to your business. This is a very simple way to reward your loyal clients… ensure repeat business… and generate great word of mouth.
By offering a '10% off' Discount Card to your loyal clients, you're taking a 10% hit on margin but you're generating tremendous reciprocity and 'good will' for your business. Once again, if your competitors aren't offering a discount and you are, you're differentiating yourself.
Can you offer your services to your customers in the form of a booklet where they can buy ten and then get one free? A lot of people who are using the product or service you provide will use you if you reward loyalty when others don't.
Two additional considerations here.
First, if you offer a "buy ten - get one free" discount card, consider giving each new customer credit for the first one or two purchases on the card. Research shows this highly motivates the vast majority of the prospects who now feel obligated to complete the ten purchase sequence so they can claim their freebie.
Second, if you have a product or service that appeals to kids and you have a way to capture the date they were born, send them a discount card good for a free whatever as a special birthday present. There isn't a kid in the world who won't want to redeem that birthday present, and when they do, their siblings and their parents will practically be forced to buy as well.
This works especially well for restaurants, yogurt and ice cream shops, retailers offering clothing and low end jewelry, video games and entertainment establishments like movie theaters, bowling centers, ice skating rinks and so on.
Let's look at several additional example of service-based businesses that could easily use discount cards. A hairdresser could offer a buy five, get one free. The free offer could be a $30 product voucher. A chiropractor could offer a buy one get one free treatment. The local dentist could promote to bring the whole family twice a year and receive free mouth guards for the kids. A stock broker could make an offer that for every ten trades executed in one month the client receives their first trade free next month. The local cafe could offer every tenth coffee for free.
The massage therapist could make an offer that for every 60 minute massage that's booked they will provide an additional 30 minutes as a bonus. This would be an excellent promotion to businesses with 10 or more employees. The therapist could offer to let the business book a series of 60 minute massages... provide them with 90 minutes of actual service... and then allow the company to give these massages to their employees as 15 or 20 minute "on premise" chair massages. The company could position these massages as employee bonuses or VIP thank you's. Everyone wins in a deal like this.
A beautician could offer that for every four facials you purchase you receive a free eyebrow shaping, manicure or pedicure. Mechanics - have your car serviced four times a year for a free detailing. Commercial cleaning company - buy a booklet of 26 office cleanings and we'll clean your entire home. Gardener - pre-purchase ten rounds of lawn-mowing and get a free compost bin. Photographer - develop twelve rolls of film and get a free photo album.
Pet groomer - buy a book of twenty dog washes and receive a free leash and dog bowl. Driving instructor - pay for ten lessons and receive a free GPS. Personal fitness trainer - buy a book of ten sessions and receive a free session with a certified nutritionist. Pool cleaner - agree to 3 seasons where we open and close your pool and receive your first year's supply of chlorine. As you can see, this is a strategy that can be easily applied to practically any business in any industry.
V.I.P. customer programs are also worth considering. As the name suggests, this is simply a way to recognize and reward your best clients and can be as simple as providing a discount card or, depending on your level of creativity, you could combine several strategies mentioned in this document. Consider a V.I.P. Customer Program that combines a discount of 10-15% off all non-sale items, comes with extended warrantees and guarantees, free home delivery, various prizes and interest-free financing.
This is a great way of bundling a handful of value-added concepts into one very powerful program. As each business is different, with different margins, products and services, you will need to determine what the appropriate program is for your clients. Whatever it is, being unique, innovative and super-creative will enable you to remain at 'top of mind' awareness with your clients and keep them coming back to you again and again.