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View Full Version : my first coupon...opinions?



huggytree
09-09-2009, 11:08 PM
I have decided to put a $20 off coupon on the back of my next 1,000 business cards. The purpose is to increase referrals and future work. On 1 hour jobs ill probably lose alittle money, but its rare to have a 1 hour job. I see it as a way to increase my referrals and get into more homes. My hope is to increase my customer base 25%+ faster. It will turn my business card into a $20 bill.

here's what's going on the coupon:

$20 OFF COUPON
Present this coupon to recieve $20 off
your next plumbing service call.
Limit one coupon per household. Expires 12-31-11



is there anything im not thinking about?

I almost forgot the 'limit 1 per household'...someone could collect 20 of them(somewhere) and get a $400 free plumbing job.....

I have no experience w/ coupons, so i need advice!

Business Attorney
09-10-2009, 01:11 AM
I'm not sure about Wisconsin law, but some states have rules that require a cash equivalent (which is why almost all coupons say something like "cash value 1/10 of a cent" in very small print).

Also, the word "receive" is misspelled.

Harold Mansfield
09-10-2009, 02:21 AM
I have decided to put a $20 off coupon on the back of my next 1,000 business cards. The purpose is to increase referrals and future work. On 1 hour jobs ill probably lose alittle money, but its rare to have a 1 hour job. I see it as a way to increase my referrals and get into more homes. My hope is to increase my customer base 25%+ faster. It will turn my business card into a $20 bill.

here's what's going on the coupon:

$20 OFF COUPON
Present this coupon to recieve $20 off
your next plumbing service call.
Limit one coupon per household. Expires 12-31-11



is there anything im not thinking about?

I almost forgot the 'limit 1 per household'...someone could collect 20 of them(somewhere) and get a $400 free plumbing job.....

I have no experience w/ coupons, so i need advice!

The wording is fine, but I thought we were going to see the actual coupon:D. It's the presentation that catches the attention.

Steve B
09-10-2009, 06:54 AM
It sounds fine - but, I would keep your expectations in check. It's entirely likely you will see zero results from this. But, it usually doesn't cost anything to put some printing on the back of the card - so it can't hurt either.

I did lots of coupons the first couple years and almost none of them were turned in. Mine were for $50, $75, or $100. My typical job is around $900. $20 is not enough to motivate most people - I'm guessing that $20 is going to end up far less than 10% for most of the jobs. People are also cynical of coupons in a service situation and will assume you will figure out a way to jack up the price to recoup your twenty bucks anyway.

Again, the wording sounds fine and it can't hurt. If you get just one person motivated as a result it will have been well worth it.

I see the cash equivalent on food coupons, but for some reason I've never seen it on a coupon for service. I published a coupon magazine for two years and it was never mentioned by anyone. Either a lot of people are flirting with the law, or there is some exemption for this type of coupon. Or, perhaps it's not necessary in Kentucky, Pennsylvania or Texas where I have lived.

huggytree
09-10-2009, 08:21 AM
its all going to be in b/w with a dashed line around the border
with '$20 off coupon ' in large print

$20 is enough money to be worth saving....im trying to get some existing customers to keep track of my card better instead of losing it and forgetting about me. Im also planning on showing the customer the coupon on the back of my card and asking if she would like to give their friends $20 off too? hoping they will spread my cards to help their friends...

I know $20 isnt much when most jobs are $500+, but its something and doesnt cost me much to print...

if it gets me 1 job ill be very dissapointed....its a test....if it shows no results my next 1,000 cards wont have it on.

Patrysha
09-10-2009, 09:02 AM
I personally haven't seen coupons work especially well. None of the ones given out at the Trade Show managed to make their way back to the mall merchants.

I am not a coupon person...I hardly ever remember I have them before they expire even if I am shopping at the stores or buying the products that were on them.

When my husband won a $75 gift certificate to a job wear store it took over 9 months to redeem them even though during that time he bought workboots, overalls and lots of gloves...

Harold Mansfield
09-10-2009, 11:17 AM
When my husband won a $75 gift certificate to a job wear store it took over 9 months to redeem them even though during that time he bought workboots, overalls and lots of gloves...

I feel the same way about coupons, but a Gift Certificate is another story. That's like cash !
That sucker doesn't stand a chance to make it a week before I'm redeeming it, especially if it's clothes or electronics.

Side Note: the other day I saw a cute plumbing truck on the road that caught my attention.
It was a spin on "No" signs (No Left Turn, No Crossing) You know, the red circle with the line crossing diagonal ? Inside the "No" circle was a cartoon plumber bending over with his butt crack showing. As in "No Butt Crack".
It was funny enough for me to remember the company's name, and I don't even need a plumber. That's good stuff !

KristineS
09-10-2009, 12:55 PM
It can't hurt to put a coupon on the back of your business card, but it may not help that much either, so keep your expectations realistic. For most plumbing jobs, $20 isn't that much, and I'm guessing it won't be enough to sway people to use you if they don't have any other reason. If they were already considering you, it might be a final push.

Also, if it were me I wouldn't put a dotted line around the words. To me, coupons with dotted lines around them are the cheap fifty cent off kind. Just having the words on the back of your card should be enough.

bacterozoid
09-10-2009, 01:09 PM
Hey, money is money! I got a $20 coupon at my auto mechanic and it's in my car waiting to be used. I got a quote from them for some car trouble today: $1,000 bucks. I still plan on saving $20...it's just that much less that I have to pay.

Steve B
09-10-2009, 02:22 PM
"I got a $20 coupon at my auto mechanic and it's in my car waiting to be used"

That's actually another good point. If I'm reading that right, he got that at the mechanic he already uses. The few coupons I got redeemed over the years were from people that were going to use me anyway, so it didn't get me any new business, but cost me profit.

bacterozoid
09-10-2009, 03:05 PM
But I'm more inclined to tell my friends about them and happier with them in general. I forgot to mention I got the coupon as a result of my first visit, which is part of the reason I'm going back.

huggytree
09-10-2009, 07:30 PM
does every customer save my card? i think most throw them out and try to use their memory to know who i am (i also sticker the house in 2 spots)....i want them to keep the card....

i ok'd the printing a minute ago....so ill let you all know how well the referrals go

RJ2
09-10-2009, 10:02 PM
eborg9,

This company has a whole line of shirts to solve the problem you mention. I guess they are just tall shirts, but marketed with humor. It all started with the Longtail T.

Work T-shirt - Men's Short Sleeve Longtail T - Duluth Trading Company (http://www.duluthtrading.com/store/clothes-workwear/mens/mens-shirts/95587.aspx?feature=product_1)

Jean-VA
09-14-2009, 06:52 AM
It really depends on the market. In my area where there are a lot of retirement communities, people actually do use coupons. I guess it makes sense since retired people have a lot of time on their hands to clip coupons and use them.

Plus your coupons would have a long expiration date. Even when people don't need them right away, they either save them, or hand them over to people they know who need your service sooner.

Really the thing is it doesn't cost you anything extra, and it might work. Consider they don't throw them in the garbage, to the least when they misplace it and find it some time in the future, it kind of remind them of you, and they might need your service by then.

A plumbing contractor company I used to work for use different offerings for their coupons. On the local flyer/coupon magazines, they put "Free Diagnostic With Service" and at the back of the business cards (given to existing customers), they give away $25.00 if their referral turns into a job.

The way they do it, they have the existing customer fills out the back of the card with their info, and give it to whoever they know. Person using it hand out the business cards when they pay, and they will get another business card for a chance to earn the same $25.00. Oh by the way, the company will send a check of $25.00 to the person who refers that new customer.

Just some thoughts. Please do let us know how your coupons work.

Remipub
09-16-2009, 03:52 PM
Like Jean suggested, you may find it more effective to advertise a bird dog fee for referrals on the back of your card. Auto dealerships do a lot of this.

With a $20 bird dog, you end up losing the same amount of money (although I don't consider it lost money but rather an investment), but you have a happy customer doing sales for you - and one happy customer could bring you more than one new client.

Side bar... One thing many people don't consider with coupons, most businesses are up against stiff competition - free market at its best. Consumers will spend their money somewhere, the trick is to make sure they spend it with you and not the guy next door. If you want a sandwich, you are more likely going to go to the sandwich shop who sent you a coupon. Rather than thinking of it as cutting into profits, think of it as getting the business that would have gone to someone else.

rezzy
09-17-2009, 01:08 AM
I have been thinking about using coupons in some of products. I think coupons work for a certain type of product/service.

You wouldnt offer a coupon for an expensive car. One thing I learned in school is, if you see an ad and they include price, the buyers are price important. A watch like a Rolex, will never include price. But Casio or similar is more likely to.

dbelmont
09-20-2009, 05:36 PM
Since I'm new around here let me say first that nothing I say is meant personally in any way. I assume you want an honest opinion. If I criticize an idea it's only with the intent to give you my best opinions to help you reach your goals.

Putting the back of your card to some good use is an excellent idea. Motivating folks to hang onto your card isn't easy. However I have a few concerns about putting a straight $20 off coupon on the back of your card.

Side thought: Judging from most areas I've ever been in a one hour job should never lose you money under any circumstances. It's hard (at least in most places) to get a plumber to do such a small job. Your price for that should always be lucrative and make you money as well as covering all your costs which are higher for that first hour (transport, mobilization etc). Give them a discount on the 2nd hour which is a motivation to have you do more work when you are there. And you have lower costs for the second hour as you are already there.

A coupon locks you into a specific offer for a specific time. When I issue coupons or special offers I put the details on a website and direct folks to go there for details. That way I can adjust the deal as I want and need to.

The advantage is also that instead of one offer (which will only appeal to a few folks at once) you can create excitement and interest by having offers that change. And there's nothing wrong with having a published list of deals that are coming down the pike. So if somebody is motivated by the special offer coming in 2 months they may well ask you if they could ave it sooner. (And your answer would be Yes of course)


It would be better (IMO) to offer a referral reward program since that is what you are looking for. Don't give a discount and hope for referralss. Give rewards for the behavior that you want. The referral .

Your existing customer gets something special for finding you business. And what they get doesn't have to be your services. It could be anything including cash. But I've always believed most folks like stuff better. And the advantage of giving stuff is that in many cases you can buy wholesale and the customer has a perceived value at retail. Gift certificates to restaurants are excellent , especially if you can find a restaurant that wants to build their traffic. You can often make a deal. (But be sure they are a good restaurant)

And the restaurant idea can keep on giving. Give certificats to different restaurant and let your clients pick. You'll have people who will make a sideline of promoting your business. And the referral can be crafted so that folks earn a smaller reward for just a referral and a larger one if it turns into business.

So instead of a fixed, unchanging offer of a discount that doesn't explicitly encourage the behavior you want you replace it with an offer that explicitly asks your current customers to Help You Build Your Business or to Help You find good customers like themselves. And the cost to you is clear since you only payout if you get what you want. (a referral) and some work.

If you want to combine that with the 2nd hour discount (since you say most folks have 2+ hour jobs it will still be effective. And not lose you money at any point.) it will also let your current clients feel like they are doing the referred person a favor by saving them money. But frankly I'd try it without first and see how it works.

Now I wouldn't use this on the back of your card. I would do a special mailing to your existing customer base to introduce your "referral reward program" and ask for their help (people love to be asked to help) in building your business. I use greeting cards for this myself. Folks find them special because they don't see them as mass produced like postcards. But that's my opinion. If you're interested drop me an email (cards@wisehi.com)and Ill hook you up with a guest account to try for free on the system I use.

Side Note: If you don't have a website yet then yu're missing a bet for sure. It's better for local business then many folks realize. But that's another discussion.


Don Belmont

dbelmont
09-20-2009, 06:15 PM
Another thought on the never ending coupon. Most folks will believe (rightly or wrongly) that a never ending coupon isn't really a deal. On the back of your card that's what it becomes in effect even if you limit it. They will figure that you have built the cost into the price so it's not as special as it seems.

That's another reason when using a coupon you want to really limit the time frame. Use the time limit to create as real sense of urgency so you get the business you want now.

I'm currently using a coupon on my promo flyer to offer FREE thermal imaging scans on horses. But only until 10/31. And only on one horse when most folks who are horsey around here have more then one. It clearly identified as very limited because it's to introduce the service. I wouldn't want to make this offer and have to live with it for 2 years.

The point being I defined the purpose of the offer (Introduce something new) and used a limited time coupon to remove customer risk (FREE) and to create urgency. (end of Oct).

I should probably add this is about the only time i would ever make an offfer that I don't at least cover costs. But even that rule has exceptions.

Don Belmont

huggytree
10-20-2009, 08:27 PM
i finally got my business cards w/ $20 off coupon on the back today.

i handed them out to my networking group this morning - 25 people

when i announced it i heard oooohhhsss and ahhhhssss...then i handed a large bundle around the table....they ran out before they got to the other side...

it was just interesting to see how people react to $20 off...my initial gut feeling is i have a winner....my gut is at around 90% right.

im doing so little right now for homeowners it may take a year before i see a noticable result....