How to Start a Profitable Discount Card Business While Helping Charitable Groups in Your Community
The objective of this report is to show you how to produce a simple discount card for merchants and consumers in your community. We will show you how to get the merchants to participate, how to get your cards produced, and how to market your discount cards to people in your community.
Getting a Sponsor
The best starting point when producing a discount card for your community is to get a sponsor who will be the beneficiary of the project. Local youth groups or any other charitable group will prove worthy and would mutually benefit from a project like this.
Getting the Merchants
Discount cards work. Whether a merchant will admit it or not, they love discount cards. It brings new customers to the business, and brings old customers in more often.
When producing your discount card, you have to decide on a format or theme for your card. You have to decide what types of merchants to feature. (restaurants? hotels? retail stores? ) You have to decide how many merchants and the amount of discounts each has to offer in order to participate in your program.
For many merchants, participating in a discount card program is the cheapest, no-money-out-of-pocket way to advertise their business. All they have to do is offer discounts to customers who are already willing to purchase something -- the people who have your discount cards.
15 Restaurants 15% Discount
For the purpose of this report, we will produce a discount card that features 15 restaurants offering a 15% discount on meals. These restaurants can range from the low-end family diner to the most expensive restaurants in your area. In fact, it is the more expensive restaurants that like discount cards the best!
Once you have decided on your theme or format, it is time to start writing the restaurants in your area. You can mention to the restaurant owners that only 15 restaurants will be featured in your discount card, and that the sale of the discount cards will benefit the local youth club or whichever your charity sponsor may be.
You must prepare a simple one-page agreement where the restaurant owner or manager can sign, agreeing to participate in your discount program and promise to extend a 15% discount to anyone who presents your discount card when paying their bill.
Printing Your Cards
Print your cards the size of a business card or a credit card. On one side, put the name of your card and the name of your sponsor. For example, you call this card the "dine-around-town" discount card featuring 15 restaurants offering 15%. Use a colorful design to make it attractive and difficult to duplicate.
On the reverse side of the card, list all the 15 restaurants that are participating in your program and have their phone numbers and a brief description of the type of cuisine they serve. (Continental., French, Italian, Greek, Chinese, etc.)
There are two details you must attend to when producing your discount card: (1) Get your cards numbered. You can use a numbering machine which you can buy for around $60 each, or you can have them numbered by your printer. (2) Get your cards laminated after they are numbered. Not only will this prevent pilferage, it will also make your cards last longer.
Altogether, with 2-sided printing, a second color ink, numbering and laminating, expect to pay around 25¢ for each card. This means that if you ordered 2,000 cards, your cost is $500.
Get 15% discount at 15 restaurants for only $15. That's the slogan by which you can promote and sell your discount cards. But here's the clincher... You don't do any selling. This is where your charitable group/sponsor will come into play.
By selling the cards for $15 each, you can offer your charity sponsor to split the sales 50-50. You've done all the work, now it's their turn to market the cards to offices, other merchants and to consumers.
Getting Your $15,000 in 4 Weeks
For every card they sell, you get $7.50. You and your charity sponsor must mutually decide and agree how often you will do your accounting and how often will they have to give you money.
In general, if you have an influential group as your charity sponsor, they should be able to sell all 2,000 cards in a matter of 4 weeks. If such were the case, you can make an arrangement where they remit money to you every Friday. With a share of $7.50 per card, 2000 cards would bring you $15,000 - possibly within a short four weeks.
If you've been in mail order for more than a month...chances are you've been ripped off by one or more ad sheet printers. This report won't make you a mail-order genius but might keep you from loosing your shirt prematurely.
When you have accumulated sufficient knowledge from preparing your own circulars and from co-publishing magazines and ad sheets of others, you may want to become a publisher.
Have you placed your display ad in a national magazine with over 20 million readers, then waited for the orders to pour in? But the days go by and there is little or no responses?
There have been entire volumes written on mail order selling. For printed information, the best way to learn HOW & WHERE to advertise is to go to your newsstand and check through all the magazines carrying large numbers of classified and space ads.
Regardless of what you're trying to sell, you really can't sell it without "talking" with your prospective buyer. An in attempting to sell anything by mail, the sales letter you send out is when and how you talk to your prospect.
This method of getting free printing is currently being used by several different mail dealers. It works! Here's the plan: Run an ad similar to this in any mail order magazine:
The opportunities for getting free advertising for your product or services are limited only by your own imagination and energies.
Here are some interesting results of a study conducted on readerships of magazine ads. Most of the stats are from Starch INRA Hopper, Inc and other studies.
What is a Big Mail? If you are a total beginner to the mail order world, you will have no idea what the term means. Before I knew better, I used to think a Big Mail was just a big envelope containing some type of free samples.
Most business beginners think Direct Mail means purchasing a mailing list and mailing an advertising flyer to a bunch of folks they know absolutely nothing about. This IS NOT what Direct Mail marketing is.