Should I Offer a Bonus Incentive to June Hosts?

[krahema]

I am fairly new to PC, and am very excited about the June sell-a-thon. I WANT to get the new fall product for free, along with 5% of sales in PC$'s

So, I'm thinking of ways I can get my hosts really excited, and in turn help increase sales. $6000 is a lot in sales, but definitely not impossible:chef:

I had a handful of future/potential hosts that wanted to book July parties, since in the past, PC has offered bonus free product to hosts in that month, based on sales It doesn't look like they are offering that this July, so I was thinking about offering a similar bonus in June.

Here is what I would do:

In addition to all the great host rewards benefits PC already offers to our hosts, I would like to extend a bonus offer of $35 - $70 in additional free product to my hosts. If guest sales exceed $650, as a host you may choose an additional $35 in free merchandise. If guest sales exceed $1,000, you may choose and additional $70 in free merchandise.

The reason I chose $650 as my "threshold" is that is PC's threshold for the new outdoor picnic tray, so I thought I should just use the same figure instead of throwing another number out there and making it more confusing.

I figure it doesn't actually cost me the $35 or $70, since the host will already qualify for either 25% or 30% off, and I will make (most likely) a 25% commission on the additional sale of merchandise. So, as I calculate it, the $35 bonus will actually cost me $19.69 and the $70 bonus will cost me $36.75.

So, does this seem crazy to do? I'd really love to get the fall products free AND earn all those PC dollars (I've already earned $600 PC dollars in my 1st 90 days and I'm having so much fun spending them!). Does anyone have any thoughts/advice on this subject?

TIA!

 

[Melissa78]

I love to 'dangle carrots' but I must say, $70 is aweful generous and I think overpriced. I have had many hosts work their tails off to get to the $550 for the special item and then I may offer "a free gift" (they don't know what it is). It can be something as small as a $1.00 cookbook or I will often do "Cookbook of their choice". That's only $14.75 and may get you the same results and not cost you as much. If this is your first trial, start smaller and then move up if you feel you need to.

Just my two cents...

 

[mailgirl1978]

Id be really ticked though if worked my tail off for a cookbook...hahahaI think its a great idea since you are working for the free fall products ...you just have to outweigh the cost of the gifts versus just buying the new fall products yourself with your discount...

 

[Jennie4PC]

If I dont have enough shows I always offer free cooking shows. I provide the ingedients, they get the people there.

 

[raebates]

Krahema, there's nothing wrong with what you're offering. I just want to caution you again being overly generous with additional incentives. You can set a bad precedent. That said, if this is what you want to do in order to encourage hosts to choose June instead of July, I say go for it.

 

[sandilou]

That's the cool thing about this biz, you can do what you want. I agree about setting a precedence. People will expect that for them, too. For example, I will never buy anything full price a popular clothing store or book store. I know they have a coupon every other week.

I would like to suggest helping the host have high sales -- and then she will get huge benefits. Someone one here suggested letting the guests know ahead of time that they will get $1 off for every outside order they bring. Or I have used 'Pool Party' -- its a grid with 50 squares. The host 'sells' spots for $2, and then we draw for the winner. They can't use it towards their order -- its a shopping spree. If all the squares are sold, that will boost sales $100.

Here's to an awesome June!
Sandi

 

[Melissa78]

Id be really ticked though if worked my tail off for a cookbook...hahaha

I think its a great idea since you are working for the free fall products ...you just have to outweigh the cost of the gifts versus just buying the new fall products yourself with your discount...

No you actually worked your tail off for those host benefits...

 

[SueAdx]

All I do for my day job is crunch numbers and run averages. A quick calculation would be that if you hit the $6,000 mark that would be about 9 shows that you would have offered the bonus to. This would mean you spent $180 out of pocket to get the items for free but your 5% bonus on your sales would be $300. You would still make $120 AND get the products for free.

A twist I have done that gets hosts REALLY excited is to offer them 1/2 off the entire catalog if they hit $1000. Once they have used all their free $ and 1/2 benefits they have alot. You don't have to worry too much about them costing you a ton of $. That would only take 6 shows.

Good luck! I earned all the free products my very first month and when I saw what they were in the spring I was SOO glad I made the effort.

 

[pampered1224]

If I am really crunched for parties I offer the host special for free. Costs me less than offering something else. And I too stick to the same guide lines set forth by the HO for these. So... $16.80 for the new product from my $143 commission on that party is still $126.30 in my pocket!

 

[twinmtngirl]

I am offering the Cool and Serve free when they reach the $650 mark. Ten shows at $650 will get me the new fall products plus the PC dollars and very little out of pocket. Benefits outweigh the cost.

June goal: $6000 in sales
10 June shows
10 July shows

National Conference, track B

 

[ChefMary412]

I am offering the Cool and Serve free when they reach the $650 mark. Ten shows at $650 will get me the new fall products plus the PC dollars and very little out of pocket. Benefits outweigh the cost.

That is exactly what I am doing... already have 4 shows booked from that!

 

[cheflorraine]

I am offering the Cool and Serve free when they reach the $650 mark.

I love that idea, but that's assuming they will all want the C&S, and not the other host specials... is that what you're finding so far? That the C&S is such a hit it far outweighs the others? Or would you offer one of the other host specials for free at the same level of sales?

 

[thehaleykitchen]

Would you be offering the C&S free only if they pick that as the host special or are you letting them pick at free at $42, on top of the other host specials? I want to do this, and hit that $6,000 mark for June but unsure how to word this to potential hosts!

 

[esavvymom]

Would you be offering the C&S free only if they pick that as the host special or are you letting them pick at free at $42, on top of the other host specials? I want to do this, and hit that $6,000 mark for June but unsure how to word this to potential hosts!

Either way- you are going to enter the order on the Host order, so you'll get HER host discount on the order up front, and then your commission, so you wouldn't pay the full $42. I would think if you are offering that as a bonus, I'd say you are doing it in addition to the Host Special? But my hospitality SED does this: She offers to pay for half of whatever Host Special the host chooses. So if she chose the Grill Tray which is $11.80- she'd give it to the Host for $5 (or free). The Bowls are $24- she'd offer it for $10 or $12....So you can work it however you want.

Just be sure to do your math- make sure you aren't spending more than you need to or want to, etc. Do what works for you. I also would say keep it SIMPLE. If you overcomplicate the offer, you'll forget something, and your host will be confused.

 

[lesliec]

I like the idea of offering the C&S (or whichever host special they pick) for free.... I might have to think about doing this.