Token promotion + a price increase

[Sequoia]

I?m considering a ?token promotion? of 30% if a customer breaks a $10 or a $20 bill. 13 tokens for $10; 26 for $20. No promo for a $5. The promotion would begin simultaneously along with a substantial price increase of at least 30%.

The goal is to get customers in the habit of breaking large bills to buy tokens. In the future, I?ll reduce the promo back to 20%, then 10%, then eventually zero. So it becomes a price increase via a reduced promo.

The missing piece is how to forecast how many customers will change habits and start buying tokens in $10 and $20 increments instead of a $1 or a $5. I?d think a 30% promo is a very good incentive but I have no way to forecast customer habits.

Have you done a similar token promotion before? If so, how much of an increase did you see with the use of large bills?

 

[Ric]

I give bonus tokens. 6 for a $5 bill, 12 for a $10 bill, 24 for a $20 bill. I get lots of $5 bills. Far less of $10 & $20 bills. With the fragile economy in my market not many people are willing to jam a $20 bill into a self serve carwash changer in exchange for tokens. In my situation I don't think I'd get many takers if I did not include the $5 bill in the bonus token offer.

 

[Sequoia]

Promotion

Thanks for the reply.

The goal *is* to convince customers to break a $10 or a $20, and I figure a large incentive will be needed to make that happen. Like you, I don't get many 10's and 20's now, and like you I get a fair number of 5's.

Has anyone sold tokens (as I do now) with no token promotion, and then switched to offer a promotion on large bills only? If anyone has, I'd be curious to learn their results.

 

[pitzerwm]

IMO, I doubt if many people think about "tomorrow", they are there to wash the car, they look in their wallet, know that it will take more than 1-2 dollars, so if they have a 5 in their wallet, they pull it out and buy whatever you are selling.

 

[I.B. Washincars]

I agree with Bill. I give no bonus for a 5, 12 tokens for a 10, and 25 for a 20. I get lots of fives, a few tens, and an occasional twenty.

 

[Sequoia]

I.B. Washincars--

Thanks for the reply. That helps.

Just curious-- how much signage do you have that explains the token promotion. And, do you have signs only at the changer or in the bays as well?

Thanks again ...

 

[I.B. Washincars]

I only have the labels on the changer, nothing else. I know it would probably work better if I shouted it from the rooftops, but I never seem to get around to the details.

 

[Ric]

IMO, I doubt if many people think about "tomorrow", they are there to wash the car, they look in their wallet, know that it will take more than 1-2 dollars, so if they have a 5 in their wallet, they pull it out and buy whatever you are selling.

Good point Bill. Never thought of it from that angle.