Lucky Envelopes

misha replied:

Hi Janine, I really like the sound of your lucky envelopes although I have a question, how do you cover the cost of these prizes, do you take it off your commission, do you pay for it out of your pocket, if so I assume this is cutting into your commission therefore your not collecting your full commission? Does your company provide you with gifts to offer for free?

I'm curious because surely some parties make enough sales to cover costs but at the same time you're paying out to earn back which doesn't always work if sales are low and that happens occasionally

Janine replied:

Hi Misha,

Only those who book a party or those who spend up get to open their envelopes. I did this a party with company prior to starting you own business and it came out of my pocket/comissions. They do not need to be out of your range they could be just cheep things you have picked up. They do not even have to be a certain price, they could be old display stock (unused of course if you sell candles, makeup etc..) or discountinued items from your kit even. The freebies do not even need to be of vary value but it does help alot especially with bookings as sometimes you have friend who try and out do each other with their extra gift - who can get the best and the most expensive item for free. A lot of companies have sellouts or you could even you freebies you have received from the company such as sale comp prizes, samples, display stock etc... I find it works better for party bookings than sales but you choose what sales level you will give freebies from. If you have higher priced items and your average order is $150 per customer then you would let those who spend at least $200 each open their envleope. But if you have lower priced items and you average $40 per sale then you could have envelopes for those who spend $60 or more.

My customers loved it as it was not a game but kept eveyone waiting untilthey placed their order and they love the idea no one know exactly what is each envelope. I also figure that you need to spend money to make many but you only offer what you know you can cover plus stil be able to make money too. If you know what know. For example if your parties are $300 then you offe little low cost items or if your parties are $800 plus then you offer a little better freebies. Sit down work out your average sales, have a look at your up and coming parties, look at your average party bookings from one party and go from there. Go by your average party's comission and decided just how much you can afford to spend on bonus gifts.If you need more parties booked in certain weeks then throw in the envelopes. If you are fully booked then do not. If you are just short of meeting a sales target throw them in too and get those parties booked before the target close date ends. I am a firm believer that you do need to give a little extra and you will in turn get alot more back in sales.

Cheers

Janine

www.cheekychopskidsclothes.com and Saucy Fish too!!

CuddleBee replied:

It's a good incentive to keep people at the party that would probably leave a little early ( I am ashamed to admit it but I have been guilty of this). It probably encourages people to book their own parties too! I think I am going to have to give this one a go!

Janine replied:

Hi Cuddlebee,

I find this is great and I always get at least 1 to 3 party bookings out it.

Cheers

Janine

www.cheekychopskidsclothes.com and Saucy Fish too!! 

sparklingvoodoo replied:

I think this is a great idea. It would keep people interested until the very end of a party. Also some people if told they needed to dpend only $20 extra might open it just to get the suprise inside. Although it would have to end up being worth the extra money spent.