Forums: Discussions for entrepreneurs and small business.

I`ve got an idea and figured I`d bounce it off the minds here to see if it`d work or not.

I`m thinking about writing some local businesses here and offering to get them new customers, a loyal customer base, and free advertising through a t-shirt program.  They`ll agree to let the wearer of the t-shirt get 10% off their purchase.  I`ll get somewhere between 5 and 10 businesses to agree, put all of their names on the back of a t-shirt with my logo on the front and sell them for anywhere between 10 and 20 bucks.  They`d be businesses that people frequent quite a bit, one coffee shop, one ice cream place, one local grocer, etc.

I think if I have a good selection of businesses on there people would be interested in buying the shirts.  I`d also promote it that it is supporting the local small businesses in the area, not the "big evil chains".  I would then probably go through CafePress which would mean I wouldn`t have to worry about the manufacturing of the shirts, shipping or anything.  I`d just have a website set up that goes through Cafepress and then they order their shirt.

Does anyone think the local businesses would want to participate?  It`d be free for them(except the 10% discount) but I think it`s a good idea.  I mean with 7 to 10 ice cream places here in town what will make that person choose theirs?  The fact that they get 10% and get that businesses`s name stuck in their head everytime they see it on their shirt should help build their customer base.

I`d like to hear others thoughts on this.

Thanks,

Tim

Thanks for the feedback, valid points.

I wonder if maybe instead of a t-shirt, a plastic membership card would be better?  These would be much cheaper to produce and I could charge between 5 and 10 dollars for each one.

My other question, do you think the businesses will be willing to give a 10% discount?  Will that be too much of a strain on their profit margin?  I don`t know a lot about business.  In my mind it`d be good because it gives the customer incentive to go to them instead of a competitor.  The city isn`t very big and I would try to target businesses in the center of the city where everyone visits, instead of out in the fringes where someone might not want to drive for a 10% discount.

As for selling them, maybe make a website about it and give a press release to the paper about it?  Maybe I could split the profits with the businesses too.  Say the cards can be made for $1 a piece, which is higher than it will be, but just for an example.  I`ll get some and sell them to the businesses that are in the network for $5 a card.  They can buy as many or as little as they like.  They in turn promote it and sell it from their store for $10 a card.  They get a loyal customer base and the profits of $5 a card.  I in turn get $4 a card and don`t even have to do a lot of work for it, simply sell the cards back to the businesses so that they can resell them.  Also with a plastic card I could probably fit a lot of names on the back and make a bigger network?

Thanks for the criticisms it`s helping me think it through some more.  Are these ideas better?

There was one other thing too I forgot.  Some businesses may be hesitant about going into a seemingly unending agreement where they forever have to give a discount when this card is presented.  So I thought about putting a year on it too.  Like the `07 card, then the `08 card and so forth, so each card is only good for a year.  That way the business can opt out next year if they like.  And I get to sell new cards each year!