Full-Service Buying Office for the Promotional Products Industry

Fixed Fee Campaign

Fixed fee campaigns for marketing & promotions require a client (marketing manager) to pay a pre-determined amount for a whole promotional campaign, but use a campaign mechanic whereby the redemption rate and cost of the promotion are subject to variations.

As a marketing manager, redemption fixed fee campaigns can allow you to offer much higher value gifts to clients based on assumption that redemption rate is usually far lower than straight gifting.   If you offer a nice/expensive product and there is a big take up from end customers it can blow your marketing budget.    This is why Fixed Fee CampaignCompanies offer a method to calculate these costs and insure marketing manager against over redemption and cost overruns.

What is the role of marketing manager:

  • Fix a Budget
  • Agree on the prizes/gifts/rebate and marketing space
  • Define how much promotion will be done (Magazines, TV, Radio, On-Pack, Newspaper, POS, Internet …)
  • Decide on the starting and ending date for the promotion
  • Design your artwork
  • Launch the promotion

Role of fixed Fee Company:

  • Agree with client on fixed fee for this promotion and associated mechanics/terms.
  • Make sure that all the redemptions are fulfilled according to the terms offered to end customers.
  • Manufacture the product to be redeemed and hold sufficient stocks, if applicable.
  • Logistics and fulfillment of the orders.
  • Take full responsibility on all the associated costs.
  • Maintain adequate insurance against massive cost overruns.

What kind of products/campaigns could use a fixed fee promotion?

  • Petrol station – collect coupon every visit and customers select gifts from catalogue.
  • Collect XX tokens on cerial packets and get a set of free kitchen bowls..
  • Select a lucky customer.  Give them get a chance to score a goal/get a hole in 1 at golf etc..  If they score they win US$1 million.
  • Lucky draw for chance to win small to very big prizes.

Fixed Fee gives marketing managers scope to use a new level of creativity flow without having to worry about budget.

Hedge your bets with Fixed Fee Campaigns

Quite a few companies will help you reward customers if the result of a football match goes the right way for example.   Lets assume you want to do a promotion to support your country.  Maybe you can offer to reward customers or refund part of their purchase if your country wins the world cup in 2014.    This could be very expensive, but what if you are to hedge your bet with a local or international bookmaker.   Then you can use internationally recognized odds and manage the cost of your campaign.

What other methods have companies used to mitigate risk?   Would love to have case studies for our Promo Gift Blog.