Do You Offer A "refer A Friend" Discount?

Business By tarheelgirl Updated 13 Apr 2010 , 1:56pm by cakesdivine

tarheelgirl Posted 12 Apr 2010 , 2:46pm
post #1 of 10

Does anyone offer a discount if someone refers a customer to you? What about a discount for a new customer?

9 replies
Spills Posted 12 Apr 2010 , 2:56pm
post #2 of 10

Funny you mention this; just last week I made up some 10% off your next cake order coupons for my customers that I get a CONFIRMED referral from. And for new customers I don't give any discount b/c if they ordered again from you, they'd expect the same sort of pricing - but that's just my opinion - of course, close friends etc, are different ; )

sari66 Posted 12 Apr 2010 , 3:01pm
post #3 of 10

Yes, I offer a 5% discount to customers who refer a friend and have a paid order.

tarheelgirl Posted 12 Apr 2010 , 3:10pm
post #4 of 10

Do you have a dollar amount to cap the discount on? Also expiration date..

KHalstead Posted 12 Apr 2010 , 3:23pm
post #5 of 10

Indydebi used to do something like this, I tried it but found it hard to keep track of everyone, so now I just offer 10% off total order for all first time customers!


Indydebi used to offer a 5% (I believe) credit for cakes.

For instance is Sarah F. orders from debi and tells her mom Michelle about the cake. Michelle orders and spends $200.00 on a cake............Sarah would receive 5% of the money Michelle spent as a credit towards a future purchase. So Sarah would recieve a $10.00 credit.

This is a way to get people to WANT to refer you because THEY reap the benefits of it! Great idea........I just never figured out an easy way to keep track of everyone!

tarheelgirl Posted 12 Apr 2010 , 3:30pm
post #6 of 10

I remember Indydebi posting this! I couldn't track it down within the forums. My fear would be keeping track of everything as well. icon_wink.gif

indydebi Posted 12 Apr 2010 , 4:32pm
post #7 of 10

I didn't have a big system to keep track of it. Sarah referred Michelle. If Sarah had an open wedding order, I'd apply the credit immediately to her order. If Sarah didn't have an open order, I'd send her an email telling her she earned a credit. She had to bring the email with her or reference the email when she placed her order. It was the only record of the credit. Use it or lose it.

Most of my brides had open orders and used their credit immediately. I can't even think of a time when I had an outstanding credit and I never had a bride/client who saved them up.

Maybe it's a little different for me because I pretty much only did weddign cakes and catering, so I didn't have little $3 and $5 credits to keep track of. Most of the credits were over $100 (5% of a $2000 catering bill, for example) and the bride wanted to use that big credit right away.

You could always go back to basics: Get a small recipe box and some 3x5 cards and keep track of each person's credit in a paper file. Archaic idea, I know, icon_rolleyes.gif but it still works! I know a "little old lady" who runs a trade-a-book store and she keeps all of her trade in numbers this way.

snowshoe1 Posted 13 Apr 2010 , 9:53am
post #8 of 10

With each cake we delivery, we give the client pre-designed card that has a short description of our referal program or send an email with the information. We call it their "Bake Account" - everytime they refer a client to us that orders a cake of $200 or more we apply a $10 credit to their "Bake Account."

It's simple to track in a spreadsheet and automatically send a formatted email to them with their bake account balance.

We have a minimum cake order so that is the reason for the $200.

KHalstead Posted 13 Apr 2010 , 1:39pm
post #9 of 10

I believe cakes Divine has a system like this.........maybe she can help with how she does it?

cakesdivine Posted 13 Apr 2010 , 1:56pm
post #10 of 10

What I offer is a community rebate system not so much a referral system. The way my program works is any non-profit organization, church or club can sign up their organization with my company. Then I send business cards with their company or organization name on the back for them to distribute to their members. If a member orders and mentions or shows the card 10% of that order is then placed into a designated account for that organization. Checks are distributed at the end of each quarter. Checks are only distributed once an account has at least $50 in it. This helps build your client base, return client base, and allows you to give back to your community or tithe.

I keep track of the transactions in an Excel file.

To see how I have this set up you can visit www.cakes-divine.com/communityrebates.html There is a form right there for them to fill out. Oh and to add because it is classified as a donation it is tax deductable. And you will generally receive a receipt from the organization/church stating it as such.

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