HELP! 9th Free or 10th Free Stamp Cards - Need Advice Please

[susansaddiction]

Hi all
Well, I've been open almost 1 year now and for the most part it's been great. Haven't made any $$ yet really, but holding my own. The question I have for you seasoned owners is about the stamp cards. I currently have buy 8, get the 9th free and have been giving away on average 150 drinks per month. Most of the other local shops in town are buy 10 or 11 to get a free drink. There is one in town that offers buy 5, get the 6th 1/2 price, then buy the 10th get the 11th 1/2 price. I kind of like that idea, as I'm still getting some income off each drink. Please tell what you all do and what you find successful.
Thanks!
Susan in South Dakota

 

[javaluva]

If I were you, I would do 10th free. I think it is a better deal, you could always pick a day, or time when it is really slow, and do a double stamp between a few hours. I love how so many people read, and no one replies. :shock:

 

[javahill]

To give away 150 cups a month, that means you have to be stamping 1200 a month at buy 8 get one free. To switch to 10 means you'd be stamping 1200 a month and giving away 120. That would save you 30 cups a month - 1 a day. The coffee cost is about 14 cents. Throw in cup, lid, milk, sugar and labor and you're what - 50 cents a day? $15 a month?

Is taking risk of alienating loyal customers worth saving 50 cents a day? What does your rent cost per day? Please keep this in perspective.

If your competitors are at 10 to 1, you can use your 8 to 1 to your advantage. Nothing is coming to mind, but maybe someone else will have some ideas.

 

[susansaddiction]

Thanks you two

Thanks so much for your responses - and I too did the "math" and thought it wasn't worth saving so little and putting off my loyal gang. So, I'll stick with what I'm doing and just hope that in December when the road sign goes up (with an LED display for me to advertise on) that traffic in general will pick up.
Thanks again!
Susan

 

[javaluva]

I think you have to do what ever is best for you. I get just as discouraged as you, when I hear...well, I just hope it picks up. You create coffee experts, they don't create themselves. I actually have three cards, a gourmet card, a specialty card, and a non coffee card, when we implemented them 4 yrs into the business, I noticed a reaction that I didn't really like. Customers would buy smalls and want the bigger for their free one, and some even just bought a buck gourmet, and then when they got to their free drink, they got the most expensive they could. I eliminated that buy the 3 cards. I have three cards, and allow for a purchase of all 3 sizes, but I only allow them to receive a sm-med for the free. When I switched only a few asked, and I explained that I needed to switch it for the paper work. It works out great, they love the cards, and I don't get upset when I have 45 people using their free all in one day. I make my coffeehouse my CUSTOMERS coffeehouse. It's perfect.