Everyone wants to be a winner, and offering prizes will bring more people through the door. Prizes and promotions go especially well with a refreshing drink over a game or a chat with friends.
Related Blog: Who Pays for Grand Prizes at Sporting Events?
Some prizes are not worth making the trip to your bar, but enticing prizes can cause a buzz all over town. However, grand prizes such as cars and large HD TVs are expensive. Fortunately, you can strike a compromise between costs and running an enticing promotion with grand prizes through grand prize coverage. Here is an overview of how it works and why you should use it for your next event.
How Grand Prize Coverage Works
Grand prizes are usually expensive, as mentioned. For example, a car would cost more than the promotion would generate in profits.
Grand prize coverage enables you to offer expensive (and enticing) prizes without worrying about the unsustainable costs. It works like ordinary insurance coverage – you pay a fraction of the prize's cost into a policy instead of buying the prize out of pocket, saving you thousands of dollars. The coverage premium depends on a range of factors, including the prize's cost and the likelihood of someone winning it.
Why Should You Use Grand Prize Coverage at Your Next Bar Event?
The biggest benefit of grand prize coverage is that you can save thousands of dollars on the cost of your grand prizes. It is unsustainable to host promotions promising prizes that you cannot afford. Fortunately, coverage allows you to pay only a fraction of the prize's cost (which is ideally less than the revenue generated via the promotion).
Grand prize coverage also offers dozens of other benefits, including:
Making Your Prizes Enticing
Big prizes will attract more people's curiosity than small prizes. For example, a pizza may not be worth a trip to your bar. However, anyone would be willing to enjoy a refreshing drink at your bar if they stand to win a car.
You may not afford to give away expensive grand prizes out of pocket, as explained. However, you can give away several cars at an affordable cost through grand prize coverage.
Brand Exposure
Making your bar stand out may be difficult considering the intense competition in the industry. However, you can create a buzz all over town by throwing a big promotion with enticing grand prizes.
For example, everyone (including non-drinkers) will be curious about a bar offering a grand prize of a million dollars. This is an efficient form of promotion that results in positive brand exposure.
Increasing Attendance & Profits
Bars have taken a hit since the COVID-19 pandemic started, and many are struggling to attract enough patrons to keep their doors open. Fortunately, things are going back to normal, and bars can once again operate at a full capacity – if they can attract enough patrons. More people will visit your bar if they stand a chance to win a valuable prize, as explained, increasing attendance and revenues.
Strengthening Customer Loyalty
People go to the bar to relax and unwind over a refreshing drink. Giving your patrons the opportunity to win enticing prizes will make the moment more exciting, and the winners will have an exciting story to tell. Either way, everyone will have a good time – you will be improving your customers' experience.
Obviously, attendance will reduce when the promotion ends. However, the good user experience will keep some of your new patrons coming back, turning them into loyal and reliable customers.
Conclusion
Grand prize coverage will enable you to offer enticing prizes at affordable costs. You will also benefit through promotion and ultimately increase attendance (and profits). Get in touch today to learn more about how grand prize coverage can benefit your next bar event.
