Last week I got to meet a new friend named Pat at Panera. Have you ever been to a Panera Bread? Odds are that you have been to or at least seen a Panera location because there are over 1,800 of them now.
Panera has an incredible marketing and management team in place. This has become quite obvious due to their incredible growth and brilliant strategy. Today, I am going to share with you one of their most brilliant profit-driving techniques. If you implement this strategy, you can bring more profits to your bottom line. Those profits could be the difference between a year-end loss or a year-end profit that keeps you growing and in business. This “trick” could save your business!
Alright, now it’s time to think back over the last year or so. Do you remember the last time you went to Panera? If you were shopping in the eastern region of the United States, you received this brilliant and effective sales pitch at the Panera counter. I believe it was launched nationally, but I witnessed it first hand over and over again.
Do you know what it is yet?
The cashier at the counter took your order and then they asked you this simple and amazing question:
“Would you like to add a pastry today for a dollar?”
You may have said yes, you may have said no, but what you probably missed is that this simple trick made Panera millions of dollars, and it can make your business millions of dollars in pure profits too. I’m going to show you how.
Let’s do the math: 1800 stores, 200 customers a day, with a 30% success rate on the $1 pastry pitch. That equals $108,000 in gross revenue. Guessing extremely high, let’s say that 25% of that revenue goes to cover the labor and food costs to make the pastry. Now where left with $81,000 net profit per day.
How much did that net profit add up to for the year? Somewhere around 29 million dollars!
Let me be clear – those are made up figures. I bet you that the real figures are even five or ten times larger than that! Figuring out what the real figures are doesn’t matter. Here’s what matters:
Right now in your business you have an add on product or service that is probably pure c or at least 75% profit. You are either it giving it away for free or not utilizing it at all. Finding and using this add on sale is how you can bring your profit percentage up dramatically.
Seasoned and successful marketers often call this the “add on” sale or “back end” sale. It doesn’t matter what you call it, as long as you build systems, train your staff and implement the $1 dollar pastry trick.
Have I got the wheels in your brain turning yet? I hope so. Now it’s your job to stop procrastinating and start taking action when it comes to your ideas. Don’t wait!
If you’re ready to find those extra profits but you don’t know where to begin, we can help you take the first step. Contact us today and we’ll setup your free consultation.