Currently I live in Mexico. The economy is bad and everyone's looking for a bargain. The lure of free things helps here.
I have a small internet cafe that I am going to open soon, by small, I mean one computer to start with, in my house.
I intend to start selling pizza slices within a few weeks of opening and I want to offer coupons for both internet usage and pizza purchases.
What I would like to do, is give a coupon that works like the old Green Stamps or if you've ever been to the Jersey Shore, like the arcades they have there. The coupons are worth points and you turn them in for free products.
I need some recommendations for how to structure this. I don't want to shoot myself in the foot by giving away too much and I don't want to make it unrealistic for the people to redeem them.
Looking for a good rule of thumb as to how much they should be worth. Do you calculate it on sales / profits?
For example I charge 10 pesos ($0.80) per hour and 6 pesos ($0.47)for 1/2 hour for the internet. How many points should I give for each visit and how many would I need to specify to redeem the points for a free hour?
And how would I do it for pizza? You have to remember it's brutal trying to make a living here selling food. Especially if you like to use quality ingredients. The ingredient cost here is similar to the USA; often a little higher, but the selling price is only a fraction of the prices in the states.
For example gourmet cupcakes sell in the states from $3.00 - $6.00 dollars each. Here, it doesn't matter, they don't understand "gourmet" and the best price you're going to get on a cupcake is 4($0.32) to 7($0.54) (if your real lucky) pesos for each one.
I have a word, but I'm not sure if it is appropriate or correct. Par value?
Look, the way I see it I could try to add more to this explanation and it would get worse.
Due to my lack of clarity, I hope that there is at least one person that "gets" what I am trying to do