Radio Ad Gift Certs...ARRRGH!

[Boudicca]

So, when I first started my outcall business back in October of last year, I started an ad campaign through a local radio station, whereby they would advertise my business on the air in exchange for being allowed to sell gift certificates for 1 hour massages at half price. At first, it seemed like a great deal. I got a lot of people who had heard the ads. I ended up with a few gift certificate clients, but they were spread out, and they ALWAYS left a tip, so it kinda paid for the gas for me to get over there. I knew I'd see some come my way, so it didn't bother me too much.

Flash forward to this past week. My expiration date is June 30th on all the gift certificates. All of a sudden, I've got at least a half-dozen certificate holders who have either chosen to wait until now to buy a certificate, or have held onto their certificate until the last minute. They've called, and I've made a couple of extensions to the certificates' expiration date (in one case, we had a session booked and I had to reschedule due to a family emergency, and in the other, the holder in question was also a repeat client of mine), but I can't keep granting extensions to every random Joe or Jane that pops her head up at the last minute.

The thing that really cooks my chicken about this is that these people are getting upset with me! Is the thought process here one of "Oh, well, we'll just call and make the appointment for the last possible weekend. He can't possibly be booked." Um, yes, I can, and I am. Not only do I work at a day spa in addition to my private practice, I also happen to be heavily booked this week with clients, both inside and outside the spa--for reasons I have yet to fathom (why THIS week? Strange...)

So, there are a few people out there who've just wasted money on a gift certificate they will never have the chance to use--and I actually feel a little bad for them. Why, I'm not sure. I didn't cause them to lose the money--their own short-sightedness did.

For what it's worth, I don't recommend this type of advertising. It only causes headaches.

 

[jeff rockout]

Perhaps you could offer to allow them to apply the cost of the GC towards their massage. Not getting it at half price - but at least not out their money.

"While the special was only available until June 30th I will allow you to apply the X amount you paid for the GC towards a full massage. That means your total will only be ____. My schedule fills up quickly so right now my next available appointments are Blank or Blank - which works better for you?"

Angela

 

[Khushbakht]

Perhaps you could offer to allow them to apply the cost of the GC towards their massage. Not getting it at half price - but at least not out their money.

"While the special was only available until June 30th I will allow you to apply the X amount you paid for the GC towards a full massage. That means your total will only be ____. My schedule fills up quickly so right now my next available appointments are Blank or Blank - which works better for you?"

Angela

 

[Jb2]

Perhaps you could offer to allow them to apply the cost of the GC towards their massage. Not getting it at half price - but at least not out their money.

That's why I love this board ~ KUDOS, Angela! That is an excellent suggestion.

 

[Caleb]

I like Angela's idea as well.

Also keep in mind the potential long term value of these clients. If you extend the expiration for them and get them in for a session in July or August you could say,

"While this special was only available until June 30th, I'd love to have you as a client. If you could book a session before July 31st or August 31st I'd be happy to extend the offer for you."

This will make them very happy and feel special that you have extended the offer for them. Then, when some (or all) of them become regular clients you will get your money back in the long run.

Also keep in mind state gift certificate/gift card expiration laws. I don't know about Florida, but in Massachusetts we have to have an expiration of 7 years on all gift certificates/cards sold.

 

[cultura_10]

Perhaps you could offer to allow them to apply the cost of the GC towards their massage. Not getting it at half price - but at least not out their money.

"While the special was only available until June 30th I will allow you to apply the X amount you paid for the GC towards a full massage. That means your total will only be ____. My schedule fills up quickly so right now my next available appointments are Blank or Blank - which works better for you?"

Angela

 

[Trebor]

Some excellent ideas here.

I'm not aware of any laws regarding gift certificate expirations here in FL.

Change, I would have done the massages, and then sought compensation through the radio station. If there was any doubt, show them the original contract. The radio station was taking advaneforum.xxxe of your goodwill in order to continue to make money off your (then expired) gift certificates. Not only was it unethical, it would be considered a breach of contract. IANAL, but it sounds like you ought to get compensation for lost income as a result of their unauthorized sales.

I just extended one more gift cert. :x I'm too much of a softie, obviously. He had gotten the gift certificate for Father's Day, and when I told him I didn't have any openings, he didn't argue with me. He just sounded...very disappointed. I just couldn't do that to him. So, one father to another, I gave him an extension through the 10th (earliest opening).

I'm such a sucker!!! :

 

[James Zaworski]

I wanted to add - whenever I do a promo I usually make the expiration a "call to schedule by" date - not a "get your massage by" date.

So in the case of these GC's for example I would put a note that said "Call to redeem by XX/XX/XXXX" so that if something came up I wouldn't be "punishing" a client for the fact that I was busy.

THat's just how I've begun doing it the past two years due to the very issues you are describing.

 

[Flooffy Panda Bear]

If you have been paid for these certificates, due to state law, you might have to redeem it. I think somewhere we discussed the laws in FL so maybe do a search here on the board. Or google it.

Because PA has some laws, I do have to redeem them, unless it has no monetary value. (charity gifts)

I have heard these radio promo's here too that offer the half off GC. Does anyone else have any experience with it??

 

[First namebob Jacom]

I wanted to add - whenever I do a promo I usually make the expiration a "call to schedule by" date - not a "get your massage by" date.

So in the case of these GC's for example I would put a note that said "Call to redeem by XX/XX/XXXX" so that if something came up I wouldn't be "punishing" a client for the fact that I was busy.

THat's just how I've begun doing it the past two years due to the very issues you are describing.

I love this idea. It's a simple change in perception that eliminates the problem.

 

[maskedaprentice]

Bad news...


http://www.800helpfla.com/newsletter/2007/082007.html


In 2007, the Florida Legislature passed a new law, Section 501.95, Florida Statutes, that requires gift certificates and credit memos sold or issued to Florida consumers shall not have an expiration date, expiration period, or any post-sale charge or fee. Additionally, businesses are no longer required to report unredeemed gift cards to the Florida Department of Financial Services as unclaimed property if the card goes unspent.

You have to keep extending them...

 

[TimeWarp]

I always look at gift certificate holders as possible new clients. If they called before the expiration to schedule and i do not have any openings, I always allow them to set up and redeem their appointment. I do remind them if they cancel this appointment, they cannot reschedule it and the gc is void. You can also extend a $30 re-activation fee on an expired gc.

 

[Yosoccerboy]

If you have been paid for these certificates, due to state law, you might have to redeem it.

I have heard these radio promo's here too that offer the half off GC. Does anyone else have any experience with it??

Angela, this is a great idea.

My Gc's say: Advance appointments are apprecaited. We regret that we cannot guarantee same day appointments and that walk ins cannot be accomodated.

We don't have GC laws in WI but I still honor expired /expiring GC's as a goodwill gesture. I do ask the caller to make an appointment right away (not "I will call you back to set it up") and keep the appt. (no rescheduling ad nauseum)

I was approached by a local web site that does similar thing. I did NOT partake. And never will.

A friend of mine, an estehtician, works for a spa that does that. For a few months she kept complaining about the people with those "special" GC's. I'll just say that according to her they were not a joy to work with. Plus, the owner did not pay her for those facials (I did tell her to check if it was legal). She said one day she had 4 of them scheduled back to back so after working 6 hours she made NOTHING. In addition, those ppl did not tip and some of her regular paying clients heard about the promo so she lost that income as well.

Anywho, the web site lady calls. First, she misrepresented her company on the phone. The way she described it it sounded like a Community Page thingy: we help small local businesses reach their customers at no cost to the business. Okay. She came in and when she started talking it slowly started to dawn on me who it was. She said that businesses would give them GC's and the web site will sell them for AT LEAST 50% off. At that point I knew and said that I wasn't interested. My coworker who was also present was leaning towards joining but then the saleswoman started telling her that she would need to add even deeper discounts on top of the 1/2 off. For example, add 30 min for $10. I piped in and asked how we would make a living doing $10 massages all week. The woman got ticked. I also suggested that people could not combine the 1/2 off GC's with other specials. The woman got even more ticked and started attacking me using words like "penalizing the consumer". I pointed out again that it is a BUSINESS and we are not trying to penalize a consumer but make a living and not go bankrupt doing free massages. Boy was she annoyed!

My coworker went back and forth with her but ended up never doing the promo. She felt it was a scam (I agree). There was another business in the area a year or two ago doing the same type of thing but it since folded.

Personally, I would never do something like this. Yes, it does attract traffic but it will be more pain in the butt than it's worth. It will attract people willing to pay 1/2 off but chances are they will not want to come back to pay the full price.

 

[Anunu]

I wanted to add - whenever I do a promo I usually make the expiration a "call to schedule by" date - not a "get your massage by" date.

So in the case of these GC's for example I would put a note that said "Call to redeem by XX/XX/XXXX" so that if something came up I wouldn't be "punishing" a client for the fact that I was busy.

THat's just how I've begun doing it the past two years due to the very issues you are describing.

A question for you, Angela. Do you do it just for giveaways or regular GC's as well? I thought it owuld be a good idea for Xmas GC's so I don't get calls on December 21 wanting to come in tomorrow when their GC expires!

 

[Mommy of 5]

I like the "call to schedule by" idea. Maybe this can serve as a work-around for those in areas where GCs can't have expiration dates? What I mean is, maybe you can put on the gift certificate, "call to schedule by..." and then a date. It's not technically an expiration date, so you're within the law. People won't necessarily schedule more than a certain amount of time in advance, so you know they'll get redeemed within a certain time-frame. And if they do schedule out, say a couple months or more, then fine...but if they forget and no-show, then they forfeit the gift cert, so you're covered.

Think this would work?

Hugs,
~Jyoti

 

[Ocimom]

I wanted to add - whenever I do a promo I usually make the expiration a "call to schedule by" date - not a "get your massage by" date.

So in the case of these GC's for example I would put a note that said "Call to redeem by XX/XX/XXXX" so that if something came up I wouldn't be "punishing" a client for the fact that I was busy.

THat's just how I've begun doing it the past two years due to the very issues you are describing.

A question for you, Angela. Do you do it just for giveaways or regular GC's as well? I thought it owuld be a good idea for Xmas GC's so I don't get calls on December 21 wanting to come in tomorrow when their GC expires!

I've never had huge issues with GC redemptions just because most people who invite spouse's, mother's, etc just prepay their friends appointment and schedule it for them. Then the person shows up, or doesn't.

About HALF my prepaid appointments are like this. I think because it's a small town and everyone knows everyone's business. *wry grin*

I did offer a 15 minute upgrade on full body massages (minimum of 5 GC's per client) my very first year and included the coupon in hand written thank you notes I sent out at Thanksgiving. I wanted to really try to boost my client base. I had TWO clients who bought 5 GC's each and one of them turned them all into "gift baskets" (I buy $1 baskets, $1 candles and a relaxation CD, a baggie of bath salts I make myself and charge $15 extra, wrap it all up in colored celephane wrap and VIOLA! It looks VERY classy without a huge expense to me) so that made up for the 15 minutes I was giving away.

Every single GC was redeemed within 6 months except one. She had self-concious body issues and her friend finally told her she WAS getting massage and I've schedueld it for such-a-time and you BETTER show up because I'm taking you out to lunch afterwards and will pick you up AT THE MASSAGE OFFICE. **laughing**

I just write "Call to schedule before X-date" on my GC's. I've experimented with 3 months out and 6 months out and noticed a better redemption rate if I write it in 3 months out....they don't have time to loose it and forget.

Incidentally - I also ALWAYS honor a GC. I even had a lady once who came in with a GC from another massage office. She didn't realize until she was checking out and saw my business card and put it together. I redeemed it and she came regularly until she moved out of town. New client. New REGULAR client.

Angela