Is Welcome Wagon Advertising Cost-Effective for Small Businesses?

[noelskitchen]

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. 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.

 

[AmieCream]

How did you meet her? How would I find out if there was a lady like this in our area?

 

[stacywhitlow]

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.

 

[BethCooks4U]

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.

 

[noelskitchen]

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.

 

[pamperedlinda]

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.

 

[CookingwithMary]

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!

 

[lockhartkitchen]

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.

 

[BethCooks4U]

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.

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.

 

[scottcooks]

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.

 

[StephsKitchen]

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.

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

 

[Chef Bobby]

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. 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.

I like the trade part. I traded a new stock pot for 15 hair cuts last fall when we could earn free cookware.

 

[noelskitchen]

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.

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

 

[jenniferm]

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.

 

[MaryLou]

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?

 

[noelskitchen]

Marylou,

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