Posts tagged: free groceries and gas

Where Do Fr*ee Gas and Grocery Incentives Come from?

Believe it or not, free gas and grocery certificates are one of the most successful incentives in the marketing world. Such incentives can increase sales up to 30%, making it one of the highest rates of return on investment. For some, however, this may seem completely illogical. If a customer buys $500 worth of my merchandise, and in exchange I give them a certificate for $500 worth of free gas, how could I possibly make a profit?

The simple answer is that a $500 free gas certificate does not cost you, the retailer, $500. Instead, you buy the certificates in bulk at a greatly discounted rate, just pennies to the dollar (and the more you buy at once, the lower the cost per certificate). Therefore, the comparatively small cost of the certificate justifies itself by encouraging a customer to make a large purchase they might not otherwise have made.

Okay, that makes sense, you might say. But doesn’t that mean that someone, somewhere, is losing money. The answer to that question is yes… and no. It’s complicated. The goal of this article is to explain that complicated system to you, so that you understand how everyone involved benefits from free gas and grocery incentives.

Free gas and grocery incentives are underwritten by fuel and food companies as part of a strategy to generate guaranteed repeat sales, regular customers, and brand loyalty. They see the free gas or groceries not as a giveaway, but as an investment in creating a loyal customer from whom they will make much more that $500 over the course of their lifetime.

You see, in order to use the certificate for free gas or groceries, the customer has to select one grocery store or gas station where they can redeem their free goods.
And they don’t get, for example, $500 worth of free gas all at once—they get it gradually over several months. Rather, they purchase gas and groceries as usual, and at the end of each month they mail their receipts for the gas or groceries along with a redemption coupon to the redemption company. If they spent at least $100 dollars on gas or groceries that month at the store they previously selected, then the redemption company send them a gift certificate for $25 at the store they selected. This continued every month until the customer has redeemed the full value of their free gas or grocery certificate value.

So, although a gas company may be giving away, for example, $500 worth of free gas, they are guaranteed at least $2000 worth of sales from that customer, for a net return of $1500. Furthermore, they have this customer’s loyalty for a period of months or even years. For example, for a customer to redeem the full value of a $500 free gas card, they’d have to fill up at the same gas station for 20 months ($500 divided by $25 per month = 20 months). Besides, once the free gas certificate runs out, the customer will probably still shop at the same gas station or grocery store anyway—stuff like that becomes habit forming after several months.

So the grocery and gas companies get guaranteed sales, the redemption companies that sell the certificates get paid for their services, retailers like you make more sales, and the customer gets free stuff. It’s a win-win situation all around. Or, more specifically, a win-win-win-win situation.

Michael Goulet
Free Fuel Nationwide Team Leader
http://incentivesgroceryandgas.com
w-612-235-6372
Fax-480-304-9095
michaelg@freegrocerycenters.com

Marketing minds have come up with incentive program.

As a business owner, have you been looking for the magic answer to attract new customers to your business?  Would you like to reward those loyal customers who have been with you for a long time?  We have a new and economical way to help your business with an advertising plan that will amaze your customers and leave you glowing from the results.   We can give you a way to use the rising costs of food to your advantage and grow your business while providing a benefit to your customers that will make them loyal for the long term.

Marketing minds have come up with a incentive program.  Our program allows you to purchase grocery certificates at pennies on the dollar to offer to your customers.  Grocery certificates are something that will get everyone’s attention since 100 % of people eat and most drive.  By giving grocery certificates to your customers, you are boosting your business while retaining your sales.  How does this work?  Well, when marketing minds work in synch, we can find a unique way to help you.  When your company buys these certificates from us, you hand them out to customers. Once they have spent a set amount of money with your company, they can be redeemed for groceries or gas at any location.
It’s a gas or grocery certificate that entitles their customer to participate in an EXCLUSIVE, INVITATION ONLY rebate program.

The ways you can use this incentive program is limitless (2 minute presentation) – you can do this as a Grand Opening incentive, customer loyalty award, new customer reward, or any other way you can imagine. Some businesses use them to schedule in-home demonstrations.  The success has been phenomenal for these businesses.  “One large Northwest furniture outlet with 24 locations used over 3,000 gas certificates for a three month promotion. To qualify for a $500 certificate customers had to purchase at least $999 worth of furniture. You do the math… the company brought in over 3 Million dollars during that promotion. And since then they have purchased 1,000 grocery certificates for a new promotion.”

Let us explain how this program works.  Your company purchases the certificate for a greatly reduced price.  You give your customer the certificate when they spend a certain amount of money with your company, and you are only spending pennies on the dollar to offer this deal.  Companies who tested this method of incentives for customers with one hundred certificates are now ordering them every week because of such a huge increase in business.  See an increase of up to 30% in sales!  This will be invigorating to your employees as they see the increase in traffic.

Please visit my site and watch our Presentation, review our FAQ for additional details http://incentivesgroceryandgas.com

Now that you have found the secret to increased sales and customer incentives, hurry and contact us so we can help get your business going!

Michael Goulet
Free Fuel Nationwide Representative
michaelg@freegrocerycenters.com
612-235-6372

Dansette