Question

Topic: Strategy

How To Make A Sponsorship Deal For A Sports Team?

Posted by ziczacxann21 on 125 Points
I am making a sponsorship program for some sports teams, which will include some special discounts.
However, I am worried that my dealers may get angry and accuse me of "under cutting" the prices.

I have told my dealers that they are not allowed to give more than 15% discount to end-users. Even in my own shop, we do not give more than 15% discount even to regular customers who have been buying and bringing their friends to buy from us.

Now if I give 20% or 25% discount to the sponsored teams, will it be deemed as "unfair" to the dealers and to those "regular customers"?

Of course by sponsoring the team, they are required to promote my brand and have my logo on their website or somewhere, declaring us as a sponsor. But I'm worried that some end users may ask for the same discount, claiming they've been buying so much from me and they've been promoting to their friends etc...

Every team that comes to ask for sponsorship promise they will do their best to promote the brand...I'm willing to give these teams a try even though they're not really the top teams who always get gold medals.

And if these teams manage to bring some customers to my shop, I'm afraid these customers will want special discounts too.

How do I draw the line between what's fair and what's unfair?
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RESPONSES

  • Posted by michael on Accepted
    I'm trying to understand how anyone would know what the discount is? This is something that is part of the agreement and should be confidential.

    I've done this in the past (for local IHL Hockey team) and just kept them on notice that the deal is over if the discount leaks out.

    Maybe I'm missing something.

    Michael

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