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Management

work in your store, but they can’t be behind the cash register! I’ve had good luck in turning the following types of busi-
An effective marketer on your cash register can help drive a lot nesses into advertising allies:
of extra sales. • gas stations
For example, if your morning cashier can influence • DVD rental stores
and extra 20 customers a day to buy a pastry with their cof- • pizza delivery restaurants
fee, at an average price of $2.25, then they will increase your • beauty parlors
sales by $45 a day, $1,350 a month, $16,200 a year. And, if • fruit & vegetable stands
your lunch cashier can drive up panini sales by 5 sandwiches • health clubs (gyms)
a day, at $6.50 each, that’s an additional $32.50 a day, $975 a There are reasons why these businesses work well, but
month, $11,700 a year. If your PM cashier sells 6 more des- without getting into another 5 pages of explanations, I’ll merely
sert each night, at $4.50 each, you’ll realize another $27 a day, ask you to trust me on this one. Next, you need to mockup a few
$810 a month, $9,720 a year. And finally, if all your cashiers sample coupons offering a free drink at your place, offered as
combined influence 30 customers to order a large drink for an a gift from them. In other words, if you want to make Harry’s
additional 50¢, this will add another $15 a day, $450 a month, Chevron Gas Station one of your advertising ally, the sample
$5,400 a year. coupon should say something like:
These are not ambitious sales goals, and I’m sure many
of you would agree that they are probably attainable numbers for
your business. The net effect of the scenario above would be an
extra $3,585 in sales each month, or $43,020 annually. Could you
use an extra $3,585 a month in sales? Subtract the cost of goods
(45%? - always higher on items you buy and resell like pastries &
desserts), and this means that an extra $1,972 went into your
checking account! (There’s almost twice the $1,000 of monthly
bottom line income I promised, from just doing some simple in-store
suggestive selling!)

When you go to propose this to Harry, make sure you
explain how this will be of mutual benefit. Here is how the con-
versation might go. Remember, I’ve been cultivating a first name
relationship with Harry over the last month or two.
“Harry, I wanted to know if I could ask you a favor? (Hope-
fully he’ll say sure, what do you need?) I’ve been trying to get my
business volume up, and I came up with an idea that I think can be
beneficial to both our businesses. (Now you’ve got his attention.) I
created this coupon (show him the coupon you mocked up for his
business), and I wanted to know if I bring you a big stack of these,
would you hand them out to your customers?
After all, we don’t have competing businesses, and your cus-
tomers would certainly be appreciative to you for providing them with
Find some marketing allies this gift. And, think of the good will it will create next time gas prices
The final marketing tip I’m going to suggest, is finding go up, and your customers might be thinking of going somewhere else
some allies to help you market your business. This is referred to because they can save a couple of cents per gallon.
as alliance marketing. Remember earlier, when I was suggesting Also, if they get hooked on my great drinks, and come every-
you distribute to go menu with coupons to your surrounding day to buy one, since you are near by, if they need gas, it will probably
neighbors, and I told you to become friends with them? It’s pri- ensure that they will fill up at your place. This is the type of thing that
marily from this group that we are going to try to find some allies will buy you more customer loyalty! And, if you have any promotional
who wouldn’t mind promoting our business. We are going to ask materials that you would like me to distribute to my customers, I’d be
them to distribute some of our promotional materials to their more than happy to do that for you!”
customers. So what would make them want to do this you ask? This is the key in persuading others to market for you.
Well first, we are going to offer to distribute their promo- You have to spell out the advantages to them, make your coupon
tional materials in return. Second, we are going to structure our look like it was a gift from them, and make them look like a hero
promotion so it makes them look like a hero to their customers. to their customers.
Here’s how it works. You only want to approach people
to be your advertising ally if they don’t have a business that will Summary / Action Plan
compete with yours. For example, since your coffee business is I. Cutting Expenses
a foodservice business, that does the majority of its sales in the A. Ask you current purveyors for a price reduction
morning, don’t ask the manager of the pancake house to be your B. Put your products list out to bid with other purveyors
advertising ally. You would both probably see it as a conflict of C. Check out the food warehouse outlets for prices on key
interest, since you are both competing for similar AM consumers items
(people who want a cup of coffee and something to eat). So what D. Switch to the sources that can provide you with the best
type of businesses should you approach? prices
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