Competition marketing gaffe

[mellofelow]

In the spirit of the holidays, my mat is offering free wash (4 for the price of three, front load only – same day). A week into the promotion it’s really kicking in some good volume customers.

Yesterday, a new customer walks in admiring the facility and loaded up machines. Suddenly, she hands a flyer to my attendant requesting for $4 credit. Caught off guard by this gesture, she took a closer look at the paper. A bit surprised and smirked back to the customer, “Umm… this is the wrong Laundromat; it’s the one down the block. No problem, you will like our special.” The customer appeared a bit embarrassed but all worked out in the end.

I’ve heard of this competitor’s flyer from my regular customers. They are direct mailed to neighborhood homes. Obviously I’m a bit concerned because it’s a pretty aggressive promo, $4 wash credit right off the bat. And since this new customer took advantage of this offer, albeit to the wrong mat, the ad campaign did work. However, I have to question whether it’s cost effective. First of all, the flyer and mass mailing must have cost a fortune. Secondly, to offer free wash credit without contingency, in my humble opinion is a losing proposition. I don’t get it… what do you think? Man, it’s a war out there.

[rogergood]

Need more details on the offer to give an opinion.

[CanCanCase]

Mellow:

All free wash credit promos are not created equal, nor are all patently bad. When I bought my second store, we prepared our regular customers by handing out EasyCards pre-charged with a $2.50 credit. It was billed as:
-We're getting ready to close this laundromat for remodel.
-When this laundromat re-opens, it will be just like our other store across town.
-First wash is on me because I know it's a pain to schlep across town to the other store while this one is closed.
-Give our other store a try while your favorite attendants are there. They'll show you how to use the new EasyCards.

Obviously our markets are quite different. How fun would it be to be a fly on the wall of both stores to determine the relative effectiveness of each promo!

-Case

[mellofelow]

Need more details on the offer to give an opinion.

Sure, here you go. A free dry mat no less. Check out the fine print, "money will be refunded by return mail."

I wonder if the mat changed ownership recently...

http://i53.tinypic.com/2cosoev.jpg

http://i51.tinypic.com/33tiiw4.jpg

[Adamski]

Bruce,

That is a very poorly designed promo. All the receiver has to do is stop by the laundromat and drop the coupon in the mail slot and wait for her $4.00 to be mailed to her. She doesn't even have to actually wash any clothes to get the money. Now imagine hundreds or thousands of people doing just that.

If this owner doesn't wise up soon, he'll be out of business in 6 months.

[dbrown2508]

I've got an idea that will help us all.

Bruce - you grab a whole bunch of coupons from the neighbourhood.

We wil tell you all of our names and addresses.

You fill them in and drop them off in his mail slot.

For you - a competitor has to pay out a ton of money for a poorly designed promo.

We each get 12 bucks apiece.

I'm in. Think he will wonder why he is getting customers from Canada? ;)

Doug

[Super Clean]

I've got an idea that will help us all.

Bruce - you grab a whole bunch of coupons from the neighbourhood.

We wil tell you all of our names and addresses.

You fill them in and drop them off in his mail slot.

For you - a competitor has to pay out a ton of money for a poorly designed promo.

We each get 12 bucks apiece.

I'm in. Think he will wonder why he is getting customers from Canada? ;)

Doug

I'm game for that as well, I'll even have the money sent to a Florida mailing address.

[JamesD]

I say crank up that copy machine, with color of course, and we'll supply the names and mailing addresses!

[Profits]

Mellow:
How fun would it be to be a fly on the wall of both stores to determine the relative effectiveness of each promo!


Easily accomplished using video / sound surveillance. You could outfit your facility for the ultimate in market research "Big Brother" style, for maybe $600 or so.