Coffee Promotions: Discount, or FREE?

When deciding whether to use an offer with a free giveaway versus one with a discount, the key is to closely define your goal.

Free promotions are ideal for driving traffic, which can increase overall sales volume, and for enticing trials of new or unusual products. “Free” will often also generate excitement and buzz, acting to increase awareness as the word spreads. Giveaway items can also be used for the purpose of cementing customer loyalty to secure future business.

Discount offers often have a higher perceived value (“If it’s free, how much could it be worth?”) and can be used strategically to increase sales of particular items. Greater volume at a reduced margin needs to be weighed against standard margins. Consider offering a discount on targeted items at a particular time of day with low traffic (often called “Happy Hour”) to increase sales during these slower times.

  

/// S&D Coffee & Tea, in continuous operation since 1927, serves over 90,000 customers through national distribution and direct store delivery. Operators can learn more about the innovative beverage solutions that S&D Coffee & Tea offers by visiting the company website at www.sdcoffeetea.com or by contacting Jim Edmonson at edmonsonj@sndcoffee.com.

The opinions and advice given by guest contributors are not necessarily those of NATSO Inc. The posts should not be considered legal advice. Qualified professionals should be sought regarding advice and questions specific to your circumstances.

John Morris

S&D Coffee & Tea, in continuous operation since 1927, serves over 90,000 customers through national distribution and direct store delivery. S&D has been distinguished for supplier excellence by many of the largest retailers and consumers of coffee and iced tea, including McDonald’s and the U.S. Military. In 2009, S&D added a state-of-the-art Liquid Extracts Division, which extracts the flavors of coffee, tea and botanicals for use in iced coffee, shakes, ice cream and frozen desserts, energy drinks and other packaged and dispensed products.More
Source:
Chairman Circle Contributor
Supplier Focus:
S&D Coffee & Tea

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