Rebates for customers?

[SameDay Signs]

I wanted everyones opinion on rebates for customers. My local Ace Hardware gives $5 for every $250 someone spends and honesty its about the only reason I come back is because I figure I have $5 worth for free why not spend it. Now business is good at my shop but I was just thinking my shop minimum is $20 so giving a $5 rebate for in store use wouldn't hurt and it would also get a lot of those people who come in for 1 off banners to come back. I'm just wondering on thoughts & if any of you have ever tried this before.

Also the way I look at it is if I make a $250 sell then Im not concerned about $5 rebate because I'm making plenty with markups as it is and it will motivate hopefully the consumer to keep coming back

 

[BK Vinyl]

Honestly, it would work for me. I'm a sucker for that kind of stuff. I just bought a bunch of food at ACME because of the monopoly game pieces they got me.
When I wake up and there is an infomercial on, I have a strong desire to buy the vacuum/food sealer/whatever-it-is that they are selling...

 

[Billct2]

Wouldn't work for me, sounds like something that might work for a place that specializes in "retail' sales. I personally hate having to deal with coupons, rebates, loyalty cards etc. just give me the best price and be done with it. Always feels like you're getting ripped off if you just buy something.

 

[SameDay Signs]

Wouldn't work for me, sounds like something that might work for a place that specializes in "retail' sales. I personally hate having to deal with coupons, rebates, loyalty cards etc. just give me the best price and be done with it. Always feels like you're getting ripped off if you just buy something.

I understand what you mean by hey why not just take $5 off of it. I'm giving you the best price already though is the way I look at it but because you spent XXX amount here is a free $5 for anything in store you'd like. Granted we do a lot of businesses compared to walk in retail but alot of the businesses in my area would order those business cards quicker or maybe get that set of magnetics not only because they have a $5 off coupon but because it expires maybe a month or 2 afterward as well. I see it as helping traffic a few more sales

I myself am going to offer it I just wanted to get opinions and wanted to see if anyone else has experience with it and how it worked for them.

 

[Trip59]

This is one we've been talking about for a while, trying to figure out the best approach. What we've arrived at so far is that we're not going to do any cash back anything, rather some sort of points system towards discounts on future orders. Much easier for me to charge a little less than for me to hand over already earned money

Initially, what we're thinking is limiting it to certain customers, more of a referral reward type thing, so many points for what other business they bring in. We already toss in an extra item here or there on large orders, something easy and unexpected.

I too am a sucker for these, but I know that they're very rarely a real deal, more of a feel-good thing.

 

[Jillbeans]

I think it would be a hassle to deal with, potentially a pain in the butt because you would have to make sure everything was in writing to avoid someone trying to rip you off or claim that you ripped them off.

Signs are usually a one-time deal (for me anyway, even repeat people are usually once a year) and I doubt that a $5 rebate is going to bring anyone through your door. It might also make them try to haggle (which I hate) or make them suspicious that you are jacking up your prices.

You would be better served, I think, to give away a "feel good" type freebie with a sale, like a custom hat or T shirt, or a quickie "Opening Soon" banner when someone buys a big business sign from you.

Love....Jill

 

[Gino]

Well, this is a little in reverse.

Twice this has happened to me, but only once the guy explained it to me.

We did a customer's truck some years back and after he paid me, he gave me 3 gift certificates worth $50 a piece to a nice restaurant in the area. I thanked him and said, being the owner I can't accept it, but I'll give one to each of my employees. I told my wife and she beamed me on the head for not taking at least one of them. Anyways, a few months later I saw this guy at a local paint store. We chatted a little and I thanked him again for the kind gesture and asked him...... if the truck cost you $800. why did you give an additional $150 ?? He said, someone did it for him, he thought it was really neat and had the opportunity to do work in a local restaurant which happened to be the one he had all the cards for and they gave him a bunch to drum up business.

For some reason, while it was a nice idea, I think most people will figure you're holding something back, by giving them something for nothing. Ya know the old saying..... nothing's free. Ya pay for it somewhere along the way.

I just tell people to c'mon back and we'll treat ya good the next time, too.

I can't tell you how many $5. coupons for pizza, ice cream, store merchandise and whatnot, I've lost over the years, cause $5 bucks just isn't worth worrying about. We get $10, $25, and $100 dollar coupons if we buy XX amount of something else. So, to save $100, I hafta spend $500. How am I saving if I wouldn't've spent it in the first place ??

 

[Techman]

At the most recent marketing seminar.

It was shown that given some kind of small reward gets a customer to actually spend more on each sale. How much? The average of about 9- 14% more.. The idea is to get the average sale amount higher. That is the reason for reward cards etc. Fast food joints use the salads as a hidden reward for purchasing burgers. It was shown that merely listing a healthy choice on a menu will get a customer to make unhealthy choices and spend more. That expensive bowl of lettuce pay huge. There is more to it than what can be posted here. However, it is just another way of using the decades old idea of green stamps.

Its all about the outcome..