In an effort to try and bring some reality as opposed to hype Daily Deals, we’ve put together an interactive spreadsheet sheet to try and help you get to the bottom of the numbers.
There are so many variables it can really be a bit of a nightmare. But hopefully below will at least give you an indication of how a potential promotion might do.
There are a few items that you can fill in with certain levels of confidence and others that are very much picked out of the ether. One those, it’s best to try and err on the side of caution.
- Face Value: is as it says; the normal selling price of the goods or services you are going to offer.
- Voucher value is the promotional price. The discount to the right is worked out automatically.
- The number of vouchers you expect to sell (be realistic!)
- Vouchers redeemed: the percentage of all those sold (3) you expect to be redeemed.
- What portion of the coupons will be new business.
- How much (one average) does a regular customer spend? If you are a food outlet, I’d suggest you calculate that average without alcohol
- What is the full cost, to you, of the product/service you are selling?
- The percent of sales above the voucher, people buying more than the offer.
- What percentage amount above the coupon will that be?
- Of the news customers (in 5), what portion will return?
- The Daily deal site – they will clip the ticket – but for how much?
- It’s a catch all: would you have to put on extra staff to deal with the coupon or back it up with marketing/advertising. Any extra cost you have to incur because of the coupon promotion has to be added in here.