Question

Topic: Advertising/PR

How To Set Up Corporate Discount Program

Posted by Anonymous on 1/28/2010 at 12:59 PM ET 250 Points
I work for a company that sells home improvement products. Most of our products are big ticket, once in a lifetime purchase type items.

We want to market to a local property management company, by offering a corporate discount or customer loyalty type program to their employees. However, since our products are not things that are purchased frequently (or sometimes may not EVER be purchased in a person's lifetime) we are trying to figure out the best way to actually run this program. So far ideas include

10% discount to employees of these prop. mgmt. co's.

Offering a one time "special" sale ONLY for employees of these companies. For example "Employees of company ABC will get a free lat screen TV if they come in during the month of march and install vinyl siding on their home" ( or something like that..)

I'm not sure either of these are the way to go, but would love some more ideas from people on here, who may have more experience with this type of program

Thanks so much!
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted by CarolBlaha on 1/28/2010 at 1:24 PM Accepted
    Rooms To Go has had a very successful program including big screen TV's in their packages.

    If you give 10% off they'll quickly do the math and still shop for the lowest price. I like the big screen.

    I work with a person who sells roofs. He offered a program to a property management co that had several of their own roofs to replace due to hail damage. (He does this with churches and other groups). He rebates a % of sale to the company for sales of employees and other referrals. That rebate more than covers the insurance deductable for roofs they have to replace.
  • Posted by CarolBlaha on 1/28/2010 at 2:59 PM Member
    Well don't you think stuff like vinyl siding- and most other major home equipment comes from need vs want. I sure don't want to replace a roof-- I have to. He can create a degree of urgency with monthly promos. I've been looking at that ugly siding- -and now its time.
  • Posted on 1/28/2010 at 3:56 PM Author
    Phil-we have home improvement products and if someone has a home that needs improving they will certainly have a need/want for our product. My comment about people who may never purchase our products was mostly geared towards people who may never own their own home.

    My intention with the special offers was to hopefully find the person that wants to replace something in their home, lets say a roof and the free TV or whatever is the little push they need to finally get the roof replaced. The tricky thing here is that how do we create a program for other companies in our area to give their employees a special discount (or whatever) if they use us. We want to use this to help build a relationship with the different prop mgmt companies, etc.
  • Posted by thecynicalmarketer on 1/28/2010 at 9:31 PM Accepted
    You are on the right path with the 10% discount. It won’t win you the business, but it will get you in the game.

    For most services such as yours, there are literally dozens of providers to choose from. Most home owners narrow it down to just 3 or 4 and then get quotes from those few and make a decision based on a host of factors including cost (of course). The incentive will not influence those final factors except cost. Where it will help you is to get you on that short list of 3 or 4 where you can fight for and win the business.

    So, yes, everyone will do the math and figure out what your price is after the discount (or the TV, or the vacation, etc.). You just need to be in that final round of selection and the incentive will get you there more often than you would without it.

    Best of Luck, JohnnyB.
    if you like the advice, read the blog, https://bit.ly/75KkSG
    https://twitter.com/tcmblog
  • Posted on 1/29/2010 at 12:45 AM Accepted
    HI.. !!!
    I worked for NGO in charity section so i personaly belive that any thing can be sold beacouse i saw people giving cheques of Lac's of rupees for charity in just 10-20 min. to representative, so you dont worry about sale

    I think that you can implement following strategy it will work..

    1. Continue with your 10% discount and TV plan.

    2. Always force client company to Tie-ups and ask for reffrences.

    3. Provied prompt service and also offer free service for fixed period of time

    4. for employees..
    Tell that they will get gifts and commission (if possible for comission), if they bring any other (new) costomer this is MEMBER GET MEMBER (MGM) strategy generally used in banks to get new costomer for Loans.Reduce the discount if its not possible for company to give both

    I hope this will work...

    Thank you

  • Posted by matthewmnex on 1/30/2010 at 8:13 PM Accepted
    Dear stmgra,

    Your problem here is not so much to develop loyalty, but to 'find new customers'.

    SI, If I were a potential customer and the company thta I work for was endorsing a particular supplier; then I think I would definately go with that supplier.

    The key here is back to the old 'testimonials' issue.

    COmpany HQ needs some vinyl sidings - all the employees are impressed with the lovely new look of their work environment.

    THen a nice bulletin appears on the board announcing that the supplier also does homes and that since you have done the HQ you can offer your services to the emplyees too with a small discount but with a very BIG Guarantee of qualitya dn workmanship (warranty).

    What would be even better is if yoou could get the company HQ to assist the emplyees to finance the work :) salary loan or just a guarante or bond maybe. (not sure if this might get too complex for the corporate but they do it for cars so why not home improvements).

    You are definitely on the right track here - you are trying to speak to potential customers where they work instead of in the general market place.

    Some companies may not loet you in but some may welcome the opportunity to add value to their employmanet offer by helping employees to enjoy special corporate discounts and helping their emplyess to have a better life.

    Good luck.

    Matthew
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Advertising/PR)