Sell when you're bored..
Use your spare capacity by getting customers to come at times when you have plenty of time. That’s the little idea I brought home from Starbucks this morning. Growth doesn’t always have to mean investing more or hiring more people. Perhaps we can first get more out of the resources we already have.
When I bought my coffee, the assistant gave me the receipt and told me it entitled me to a half-price iced coffee later in the day. I think that’s bloody clever.
They already have a customer who can come back
I’m already a customer. I’ve just walked in and bought a cup of coffee, so there’s a reasonable chance I quite like the place.
But if I’ve been there in the morning, it might not be particularly likely that I’ll also come in the afternoon. This gives me a reason to do so.
I don’t know whether it’s something the whole chain does or just that particular store. I think the offer applied sometime around two to four o’clock. That’s my experience here in May 2010, not a precise account of the offer’s terms.
My guess is that it might be a time with shorter queues and fewer customers. People typically haven’t finished work yet. So it makes sense to tempt a customer back then.
And when that customer returns, they might buy more than just an iced coffee. Before you know it, something like 100 kroner could have gone into the till. That’s my example of what an extra visit could be worth.
Use your spare capacity at the bakery or nightclub
The idea can be used in lots of other places. I imagine a bakery, for example. When a customer buys breakfast rolls, you could offer half-price rye bread if they return between two and four, when there might not be much to do.
Or a nightclub where people come in and have a good time on Friday. They could get a free ticket for another, quieter evening when you’re putting on an event.
I don’t know the Danish rules for offers like these. I also take a little dig at the Consumer Ombudsman in the video, because I don’t know what’s regulated. I don’t have a handle on the legal side. What I’m talking about is the business idea.
Shift sales before investing more
I’m thinking about all the places that have spare capacity at certain times and too little at others. Can you shift some of the demand so the resources are used better?
Instead of mindlessly hiring more people, perhaps you can get customers to come when the existing staff have time. Or get more out of the production equipment you already have.
It’s just a little inspiration from a cup of coffee. But I think it’s worth considering: More sales don’t only have to come from bigger investments. They can also come from spreading sales better across the times when you have room for them. I share my own experiences of developing a business in Iværksætter til jeg dør.
Spread sales across the times when you have plenty of time.. Best wishes, Martin
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