Retailer's snowfall wager was an effective promotion

Written by Shirley Lichti for The Record, October 28, 1998

Small business owners must run successful promotions that are cost effective. Spending as little as possible should not be the driving factor, however. Some promotions work because they are well planned, others because of their creativity. And some promotions, simply don't work. Let's look at some examples.

Mary Martin, owner of Crowley Jewellers & Goldsmiths, an independent jewellery store in Edmonton, was looking for a promotion last year that was a little bit different. The market was very competitive with many stores vying for the same customers.

After extensive research, she hit upon a novel idea. Anyone who made a purchase at her store between November 16 and Boxing Day would be eligible to get a full refund if Edmonton received more than 7.5 centimetres of snow on New Year's Day. With El Nino's promise of a mild winter, the odds of this were 1 in 18.

The promotion, supported by ads in local newspapers, was a huge success. It attracted many new clients, some who travelled from well outside the city. Everyone was excited about the chance of getting his or her money back. And as it turned out, they had reason to be excited. Edmonton received 12 centimetres of snow on January 1!

Fortunately for Crowley's, the store had taken out insurance to cover this possibility. While the promotion was fairly expensive, "it was worth every penny," said Martin, who also ran a special no GST sale for all clients who were eligible to get their money back. As a result, most respent their winnings making February almost as big a month for sales as December.

Trying it Out
The restaurant business is extremely competitive. Getting customers to try a new restaurant can be tough. So when John Butkus decided to open The Mongolian Grill in Waterloo, he knew he needed innovative promotions. The restaurant lets diners select their own fresh ingredients, sauces and seasonings, and be entertained watching expert chefs cook the meals on a huge central grill.

Promoting the concept meant educating customers first. Butkus felt that advertising would be wasted until customers understood what the restaurant was all about. To this end, people from local businesses were invited for a free dinner on two nights before the grand opening. The restaurant "hoped customers would see the concept as unique, enjoy the evening and tell their friends," said manager, Andrea Conyers. And it worked, Conyers said, generating both awareness and trial. Word of mouth referrals have been key to the restaurant's success.

Just recently The Mongolian Grill marked its first anniversary with another 'by invitation only' meal to thank customers for their patronage. While offering dinners and drinks is an expensive promotion, Butkus views them as an investment, not an expense.

Show, Don't Tell
Most companies tell customers about new product introductions or services using letters or flyers. Rather than relying on the printed word to promote a new service, Trace's Screen Printing in Waterloo decided to show people. Owner Tracy Johnson-Aldworth invested in state-of-the-art embossing equipment knowing that "these days people like to wear something a little classier than ink on a t-shirt." Embossing provides a classy, subtle look and costs less than embroidery.

Johnson-Aldworth also knew that seeing is believing. So she embossed t-shirts and sent them to clients. To keep the cost down, she approached one of her suppliers, Fruit of the Loom, to donate t-shirts. She then convinced the manufacturer of the embossing plates to provide a design based on Fruit of the Loom's logo free of charge. The promotion proved to be cost effective and client response was enthusiastic.

Good Corporate Citizen
Giving products away can be an effective way to promote your company and generate goodwill. Braun's Bicycle & Fitness of Kitchener has been in business for 73 years and wanted to give something back to the community. The company views cycling as a viable means of commuting and realized it could do its part by making the city more cycling friendly. General Manager, Robert Braun, said that "staff brainstormed and came up with the idea of donating 15 bicycle parking stands to go in K-W areas where there was a need."

The hardest part of this promotion was to find people who wanted the stands. People couldn't believe the store would give them away, Braun said. The stands, which bear the store logo, are now in locations ranging from Budd Park in Kitchener to the Good Life Fitness Centre in Waterloo. The promotion generated a benefit for cyclists and very positive feedback for Braun's.

No Recipe for Success
Giving away products doesn't always guarantee success. Robin's Donuts & Deli in Kitchener recently offered customers a free eight-ounce cup of coffee just for visiting one of two locations on September 12. This kind of promotion had been successfully run at other Robin's franchises and was well supported with newspaper advertising.

On this occasion, however, "the promotion didn't work out very well for us," said Don Robinson, owner of the two outlets. "Maybe the weather was still too nice or perhaps people were simply too busy to take time out for a free coffee." Asked if he would try his luck at this kind of promotion again, Robinson said he would consider it, but in the meantime he has a lot of other great promotions brewing.

Close Window