Challenges of Specials

So if specials are so great, why isn't every shop out there doing them? I mean, Starbucks might change their menu boards often enough to drive me crazy (their way of pushing customers towards certain products) but they don't offer promo pricing or even advertise. McDonald's and Wendy's have their special sandwiches, but no special pricing. Why is this?

Specials are a lot of work, and can backfire horribly if you don't get it right. Think about the Papa John's 23 cent pizza give away. It was a spur of the moment decision that did not have the logistic support necessary to even come close to meeting demand. There were understaffing issues, customer flow issues, store size issues. There was violence outside some stores, inability to operate anywhere close to normally, and a plethora of pissed off customers who didn't get their cheap pizza (since stores were out of product by about 2pm in nearly all cases). Absolute nightmare.

Another problem is if no one knows about a promotion. Unless you're able to get the word out, either with advertising or relaying directly to a customer ("...and here's your free scone. We're giving them away all week to let you try our new recipe") you'll never be able to accomplish your goals with the promotion. A classic example of this is a local coffee shop I know that offers a significant discount on coffee when you bring your own cup. I had no idea about this until I saw a another customer get the special rate and asked about it. If they're trying to cut down on paper cup use, they're failing pretty hard.

To recap:

• Make your customers--current and potential, depending on the goal of your special--aware of the offer. Make it clear, define it well, and get the word out. A special no one is aware of is not very special.
• Be operationally ready for it. For the love of everything just and righteous, be ready for the increase in demand/volume/product/everything. If the special takes off, you'll anger customers and stress out employees...not good goals for a promo.

The most brilliant special in the world will only hurt your business if the execution isn't dead-on. Don't design a promotion around what you could do, design it around what you can do.

Value of Specials

"Specials," as in a special price for a particular item, are a key business practice in the food industry. You'll also hear these called "promotions," "sales," and "events." Whether it's a special product (McDonald's McRib or the Wendy's Fish Sandwich that only come by once in a while) or special pricing (Pizza Hut's $10 any pizza deal) a special can do several good things for a company, oftentimes at the same time.

Some of the goals of a special...

• Bring in new customers. Whether it's a new product a customer isn't used to seeing from your business, or they perceive you're typically too expensive a special can convince a person to give your business a try.
• Lure back old customers. Maybe a customer had a bad experience and hasn't been around lately. Or maybe they've just been enticed away by some other chain. Either way, a cheap deal or a novel product could bring them back to the fold.
• Push volume. Maybe I only get coffee from a shop three times a week, but if 20oz of coffee is only $.25 if I bring in my own cup during April (Earth Day is in April, mind you), I'll prolly drop in much more often.
• Alternately, push product count. Buy 3 scones, get a 4th free. Free bread sticks with every large pizza. Each BBQ sandwich only $2 instead of $4 (might see plenty of people buy a 2nd sandwich now).
• Help a struggling line. If sales have dropped on muffins, maybe your customers have forgotten how yummy they are. Give one away with each coffee for a week Changed the recipe on your bagels? Sell them at a discount to lessen buyer wariness.
• Expose a new service or product. If you're trying to encourage a new delivery service, maybe all delivery customer's get a free 2 liter of soda. New dine-in service includes free dessert. Decided to share that new lasagna with the world? Start offering samples or even giveaways for a limited time (with or without purchase).

When the bottom line needs a kick in the pants, a special can do the trick when advertised and operationally supported. Strategic goals, such as expanding menu and services, can benefit just as much if not more from a well-executed promotion. The key there is well-executed.