Is Welcome Wagon Advertising Cost-Effective for Small Businesses?

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Discussion Overview

The thread explores the potential cost-effectiveness of advertising through a Welcome Wagon service for small businesses, particularly in the context of Pampered Chef consultants. Participants share their experiences and thoughts on the financial implications, effectiveness, and strategies for maximizing returns from such advertising efforts.

Discussion Character

  • Exploratory
  • Opinion-based
  • Anecdotal

Main Points Raised

  • One participant, identifying as a consultant, discusses the proposed costs of using the Welcome Wagon service, including a $100 deposit and $2.75 per new resident visited, expressing concern about the return on investment.
  • Another participant shares their experience as a former Welcome Wagon representative, noting that the service generates income by charging businesses for contacts made, and suggests negotiating the upfront fee.
  • Several users mention the importance of understanding how many people respond to the advertising efforts and the effectiveness of included promotional materials, such as coupons and mini catalogs.
  • One participant highlights the potential for a trade arrangement with the Welcome Wagon representative, suggesting that providing products instead of cash could be beneficial.
  • Another participant emphasizes the need to gather information from other businesses using the service to gauge its effectiveness before committing financially.
  • One user shares a different Welcome Wagon experience, noting a lower monthly fee and a higher number of contacts, which they found to be financially viable.
  • Another participant suggests creating enticing coupons to encourage responses and potentially generate cooking shows, which could offset costs.

Areas of Agreement / Disagreement

Views differ on the cost-effectiveness of the Welcome Wagon service, with some participants expressing skepticism about the potential return on investment, while others share positive experiences and strategies for maximizing benefits.

Contextual Notes

Participants discuss various pricing structures and experiences with Welcome Wagon services in different areas, indicating variability in effectiveness based on location and individual business strategies.

Who May Find This Useful

Consultants considering advertising options for their businesses may find insights from shared experiences and strategies relevant to their decision-making process.

N
noelskitchen
Messages
300
I mentioned this in a different thread that I was thinkinh about advertising my business with the Welcome Wagon lady. Well I met with her a couple weeks ago and this is what she proposed: I give her a $100 deposit which is refunded at the end of a 12 month period plus I pay her $2.75 per new resident she visits which is invoiced to me at the end of each month. In her contract she had that she saw 20-25 people but she said business was a little slow so she crossed that off and put 15.

Now I'm trying to figure out what I should really be putting into the basket and what coupon to provide that's REALLY going to get people to remember me. I of course have a letter to potential new residents that I did up. But I don't want to fork out a bunch of money if I get nothing in return. I have to find out from her how many people use the coupon book with her other merchants. I know I could do mini catalogs with my business cards but will people toss them aside like a magazine? I could also include the Bamboo Spoons.

Now the welcome Wagon lady did say that we could work out a trade that when she invoicing me instead of paying her, she'd get PC product in turn. :eek: I guess that might work if she purchased PC products she's considered a customer and I get commission. Any thoughts????

She's suppose to call me tomorrow so we can meet again but I'm not sure if this will be a costly advertisement for me.:confused:
 
How did you meet her? How would I find out if there was a lady like this in our area?
 
Have you done the math? It will cost you $425 a year just for the $2.75 per contact @ 15 per month. Plus $100 up front & anything you include in the bags. I don't think I would do it but I guess it depends on the area and what you are looking to get out of it. It sounds like she wants you to buy her products instead of paying the monthly fees. You will still be out the $ for producst but would make some back in commission. You would need at least 6shows w/avg. sales to break even.
 
I used to be a Welcome Wagon lady and that is how they make their money - by charging the companies that they represent per call made. i don't remember an upfront fee though. But then, when I did it Welcome Wagon was a nationwide organization and I believe now it's more private/local.

I would negotiate a dismissal of the upfront fee - maybe offer her $$ in product for every ___ names. I did not represent any direct sales people but I would have done something like that. It's a good way to get your name out there but I have to add that most of your leads will be at most an order unless you keep in frequent contact with them.
 
  • Thread starter
  • #5
Amie,

I met the Welcome Wagon lady by calling her after seeing an advertisement in our area. She came to our house and brought resourceful information when we moved up to the area. You could also do a search for Welcome Wagon in your area.

Yes I have done the math. My concern is how many people will respond in order to make my money back. I know that we used a lot of the coupons in the coupon book and some of the items in the basket.
 
I would find out the names of other compainies/people who advertise with her and find out how it is working for them before I'd commit if I were you.
 
I'm interested in how WW selects the newcomers they will visit. Would be asking who is selected, who is ruled out, what demographics are used to target visit.Whatever your decision, bidding you prosperity!
 
My welcome wagon is only $20 a month with 40 people contacted (new to area or new home purchases that may have lived in our area already). At the end of the month I get the names and addresses for further contact. I included a mini catalog and a coupon I made for a free cooking show in their new home. It will only take a small order to recoop any money I put into it. Check with your chamber of commerce or downtown association. They will surely have a contact.
 
CookingwithMary said:
I'm interested in how WW selects the newcomers they will visit. Would be asking who is selected, who is ruled out, what demographics are used to target visit.
Click to expand...
The WW lady goes to local businesses and gets them to sign up. When I joined there were 2 or 3 national accounts that were given to me as well as the local civic contacts and I had to find the rest. It's all about relationship building - like our business.


Oh WAIT! You asked about the people they visit...

Some leads were given by the WW organization but mostly I got them from builders, realtors and official records. It wasn't easy. I also used word of mouth to get the word out. Oh, and they had a running ad in the local paper telling newcomers to contact me.
 
Give a "free shopping" for $20 coupon, which you also indicate, "Contact me to find out how to turn this into $50-100 in free product by hosting your own cooking demonstration--you buy the ingredients, I'll cook and amaze your friends!" Those who don't turn in the coupon cost you only the contact fee. Those who do, will make all of this financially worthwhile. If you get 4 shows, you've paid for the year. If you get 8, you make a handsome profit.
 
noelskitchen said:
Amie,

I met the Welcome Wagon lady by calling her after seeing an advertisement in our area. She came to our house and brought resourceful information when we moved up to the area. You could also do a search for Welcome Wagon in your area.

Yes I have done the math. My concern is how many people will respond in order to make my money back. I know that we used a lot of the coupons in the coupon book and some of the items in the basket.
Click to expand...

Can you get a list of the people that she visits? So if you do decide to do this you could do some sort of follow up?

Stephanie
 
noelskitchen said:
I mentioned this in a different thread that I was thinkinh about advertising my business with the Welcome Wagon lady. Well I met with her a couple weeks ago and this is what she proposed: I give her a $100 deposit which is refunded at the end of a 12 month period plus I pay her $2.75 per new resident she visits which is invoiced to me at the end of each month. In her contract she had that she saw 20-25 people but she said business was a little slow so she crossed that off and put 15.

Now I'm trying to figure out what I should really be putting into the basket and what coupon to provide that's REALLY going to get people to remember me. I of course have a letter to potential new residents that I did up. But I don't want to fork out a bunch of money if I get nothing in return. I have to find out from her how many people use the coupon book with her other merchants. I know I could do mini catalogs with my business cards but will people toss them aside like a magazine? I could also include the Bamboo Spoons.

Now the welcome Wagon lady did say that we could work out a trade that when she invoicing me instead of paying her, she'd get PC product in turn. :eek: I guess that might work if she purchased PC products she's considered a customer and I get commission. Any thoughts????

She's suppose to call me tomorrow so we can meet again but I'm not sure if this will be a costly advertisement for me.:confused:
Click to expand...

I like the trade part. I traded a new stock pot for 15 hair cuts last fall when we could earn free cookware.
 
  • Thread starter
  • #13
scottcooks said:
Give a "free shopping" for $20 coupon, which you also indicate, "Contact me to find out how to turn this into $50-100 in free product by hosting your own cooking demonstration--you buy the ingredients, I'll cook and amaze your friends!" Those who don't turn in the coupon cost you only the contact fee. Those who do, will make all of this financially worthwhile. If you get 4 shows, you've paid for the year. If you get 8, you make a handsome profit.
Click to expand...


I do get a list of names she contacts no phone numbers though. I only received mailings from the merchants after she visited my house.

Does anyone have sample coupons designs
 
I have a letter that my director had given to the WW when she did it and it was a 3 part certificate that they could redeem one of them. If you are interested in seeing it I can find it and scan it to the computer and post it.
 
Last edited:
Just a thought...but...

Our Chamber of Commerce has a welcome bag that goes out to EVERY new member of the community. Actually, they catch some old members, too. (if they move within the community) This is a free service. If I join the chamber, then I am able to contribute a flyer, etc... I just drop them off at the Chamber office and they take care of the rest. It's a perk of joining the Chamber. I am debating what to put in mine, but maybe that is something you can do?
 
  • Thread starter
  • #16
Marylou,

Yes, thanks for the information. I am definitely planning on joining the chamber.
 

Frequently Asked Questions

Is Welcome Wagon Advertising Cost-Effective for Small Businesses?

Welcome Wagon advertising can be cost-effective for small businesses, especially those targeting local customers. By reaching new residents in the area, businesses can create brand awareness and generate leads without the high costs associated with broader advertising methods.

What are the benefits of using Welcome Wagon for advertising?

Welcome Wagon provides businesses with the opportunity to connect with new residents who are likely looking for local services and products. This targeted approach can lead to higher conversion rates, as the audience is already in the market for what the business offers.

How does Welcome Wagon advertising compare to traditional advertising methods?

Welcome Wagon advertising often has a more personalized touch compared to traditional advertising methods such as print ads or billboards. It allows businesses to engage directly with potential customers, which can foster trust and loyalty, making it a more effective option for small businesses.

What types of businesses benefit most from Welcome Wagon advertising?

Businesses that provide essential services or products, such as home improvement, healthcare, dining, and local retail, typically benefit the most from Welcome Wagon advertising. These businesses can directly address the needs of new residents who are settling into the area.

Are there any hidden costs associated with Welcome Wagon advertising?

While Welcome Wagon advertising is generally straightforward, small businesses should be aware of potential additional costs, such as promotional materials or follow-up marketing efforts. It's important to review the terms and ensure that the overall investment aligns with the business's budget and marketing goals.

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