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How Much Can I Charge A Local Business To Set Up and Maintain Their SMS List?

by moneymax
14 replies
I have this marketing idea that I would like to see how much I can charge a local business such as a restaurant for.

I would set up a SMS Marketing System for the business.

I would provide the business with their own app that customers can download.

From this app or portal website the business can send out unlimited text/push notifications announcing specials, discounts and the like. The business can do it or I can do it from my web portal.

In the business we will have a GEO beacon that would send a message to phones inviting them to join the sms list for discounts, coupon and more. If patron doesn't have notifications on, we would have a sign in the business that would allow customer to sign up via QR Code or on the web.

I would do local Facebook fan page marketing announcing the new app for the business so others can sign up and I would also run a contest to bring others to the app.

In short, I would be in charge of building this business SMS Marketing list and would like to charge a monthly fee for this.

My question is this: What else can I bring value and what if any could I charge a business to manage this for them?

Thank you.

Al Pooser
#business #charge #list #local #maintain #set #sms
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  • Profile picture of the author eccj
    Originally Posted by moneymax View Post

    I have this marketing idea that I would like to see how much I can charge a local business such as a restaurant for.

    I would set up a SMS Marketing System for the business.

    I would provide the business with their own app that customers can download.

    From this app or portal website the business can send out unlimited text/push notifications announcing specials, discounts and the like. The business can do it or I can do it from my web portal.

    In the business we will have a GEO beacon that would send a message to phones inviting them to join the sms list for discounts, coupon and more. If patron doesn't have notifications on, we would have a sign in the business that would allow customer to sign up via QR Code or on the web.

    I would do local Facebook fan page marketing announcing the new app for the business so others can sign up and I would also run a contest to bring others to the app.

    In short, I would be in charge of building this business SMS Marketing list and would like to charge a monthly fee for this.

    My question is this: What else can I bring value and what if any could I charge a business to manage this for them?

    Thank you.

    Al Pooser
    I know this kind of sms marketing was talked a lot about around here a few years ago.

    Personally and from what I have seen here, it isn't a good business. I don't know of anyone who is making what you are talking about work.

    I don't know why it hasn't worked but a few guesses as to why I think it is a really hard sell:

    - it's hard to explain to a restaurant owner: why would he want to be giving discounts out to people who are already in his restaurant?
    - He doesn't want to give out the incentive for people to sign up in the first place when they can opt out the next day.
    - there aren't success stories to point to.
    - there were a bunch of people out there trying to sell this so the low hanging fruit, if there was any, has already been picked.

    It's also really hard to sell to restaurant owners. If anyone knows a good way other than walking in at 2:30 I'd love to hear it. Phone calls to restaurant owners is generally a nightmare. Lot's of the time the owner isn't around.

    I think you would have a hard time doing it for free to be honest.

    The place I would start is finding someone out there that is actually doing what you are talking about and is making real money at it NOT making money selling the sms software or the course but on a real business setting up SMS lists.
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    • Profile picture of the author moneymax
      ECCJ, thank you for your valuable input. I have been researching on someone that does this, and have not found anyone as of yet. It seems this would be great for a business to have in place (I used to get Sonic Restaurant text) but I don't know of anyone who does this. Again, thanks. I appreciate it.

      Al
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      • Profile picture of the author eccj
        Originally Posted by moneymax View Post

        ECCJ, thank you for your valuable input. I have been researching on someone that does this, and have not found anyone as of yet. It seems this would be great for a business to have in place (I used to get Sonic Restaurant text) but I don't know of anyone who does this. Again, thanks. I appreciate it.

        Al
        I signed up for an SMS thing at a pizza place because they had a huge incentive to sign up.

        I think I got one text and never got another. This was a chain too, Jet's Pizza.

        Pretty savvy marketers. They have probably the best direct mail going in the pizza biz.

        If they can't make it work and neither can Sonic I doubt many others can.
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        • Profile picture of the author moneymax
          Originally Posted by eccj View Post

          I signed up for an SMS thing at a pizza place because they had a huge incentive to sign up.

          I think I got one text and never got another. This was a chain too, Jet's Pizza.

          Pretty savvy marketers. They have probably the best direct mail going in the pizza biz.

          If they can't make it work and neither can Sonic I doubt many others can.
          It sounded like a great idea and I see how it could work, but since there is no one else doing it, I guess I should have known if no one else is doing it, it may not work. Nothing new under the sun is what the wisest guy said. Thanks for your help.

          Al
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          • Profile picture of the author Lin He
            Originally Posted by moneymax View Post

            It sounded like a great idea and I see how it could work, but since there is no one else doing it, I guess I should have known if no one else is doing it, it may not work. Nothing new under the sun is what the wisest guy said. Thanks for your help.

            Al
            Don't stop. I think you should do more research. For example, ask 20 restaurants (or other industries) to see if they'd buy what you offer. Clearly explain the value to them. It's better to hear from potential customers.
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            • Profile picture of the author moneymax
              Originally Posted by Lin He View Post

              Don't stop. I think you should do more research. For example, ask 20 restaurants (or other industries) to see if they'd buy what you offer. Clearly explain the value to them. It's better to hear from potential customers.
              Thanks for the encouragement. I am still doing research and the next time I go to my favorite mom and pop eatery, I will pitch it to them and see how they answer. Thank you for your comments. Al
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  • Profile picture of the author DWolfe
    Have not seen anything about that in this section like the poster mention above. However alof of mobile talk when to that part of the fourm. Maybe ask the same question there.

    I have seen this type of thing. Wawa has a phone app you can pay your bill on. Every x amounts of purchase equals a free drink or other reward. They use this app to occasionally offer a discount that is not part of the normal rewards. https://www.wawa.com/about-wawa-rewards This is a non affilaite link if you want to see how this idea works.
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    • Profile picture of the author moneymax
      Originally Posted by DWolfe View Post

      Have not seen anything about that in this section like the poster mention above. However alof of mobile talk when to that part of the fourm. Maybe ask the same question there.

      I have seen this type of thing. Wawa has a phone app you can pay your bill on. Every x amounts of purchase equals a free drink or other reward. They use this app to occasionally offer a discount that is not part of the normal rewards. https://www.wawa.com/about-wawa-rewards This is a non affilaite link if you want to see how this idea works.
      Thanks, DWolfe, I will pose the question there.

      Al
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  • Profile picture of the author ddomingu
    I think the challenging part of local sms marketing business is building the list. If you can figure out how to build a local list fast for a local business, they would jump on it.
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    • Profile picture of the author moneymax
      Originally Posted by ddomingu View Post

      I think the challenging part of local sms marketing business is building the list. If you can figure out how to build a local list fast for a local business, they would jump on it.
      Thank you for your answer. I was planning on running a contest to get the word our and give away something from the business. Al
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  • Profile picture of the author cherrybowl
    Try to figure out how much of their sales you can increase by these actions. Include the cost to set all this up, then double (triple it if you can get away with it), and then usually you're going to charge 2% of gross revenue from additional sales generated or 20% of net revenue. There should be a minimum monthly retainer as well (like an advance) that will come out of your ongoing commission, and expectations that this will take 3 - 6 months to get to full steam.

    You don't want them to just pay for the system, you want to make sure they are using it and growing profits.

    It helps if you understand the restaurant industry and their profit margins; usually they want to charge 3x their food costs, and be netting 20 - 30% of gross sales.
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    • Profile picture of the author moneymax
      Originally Posted by cherrybowl View Post

      Try to figure out how much of their sales you can increase by these actions. Include the cost to set all this up, then double (triple it if you can get away with it), and then usually you're going to charge 2% of gross revenue from additional sales generated or 20% of net revenue. There should be a minimum monthly retainer as well (like an advance) that will come out of your ongoing commission, and expectations that this will take 3 - 6 months to get to full steam.

      You don't want them to just pay for the system, you want to make sure they are using it and growing profits.

      It helps if you understand the restaurant industry and their profit margins; usually they want to charge 3x their food costs, and be netting 20 - 30% of gross sales.
      Part of my problem is, I don't know what profit margins run on, thus making it difficult to come up with what to charge. Thank you for educating me on restaurant profit margins. Al
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  • Profile picture of the author hfbadvertising
    I think a better idea is reputation management, order online, sms text and direct mail.

    If you can go in there and offer them a package solution or multiple options is better than one.

    It's all a numbers game.
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    HFB Advertising

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    • Profile picture of the author moneymax
      Originally Posted by hfbadvertising View Post

      I think a better idea is reputation management, order online, sms text and direct mail.

      If you can go in there and offer them a package solution or multiple options is better than one.

      It's all a numbers game.

      I agree, the more the better...it makes you more valuable. Thanks for taking the time to answer. Al
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