15A – Figuring Out Buyer Behavior No. 2
15A – Figuring Out Buyer Behavior No. 2
In my first two interviews, the owners were mainly concerned
with pricing. My first interview was with Lion & Eagle English pub. They
thought it would be smart if the app did a bar of the day. Basically starting
out, I should put all the bars into a simulated raffle. Whomever wins will have
their bar name and promotion pop up immediately when the app opens. And when
the app becomes more developed, setting a certain price allowing a bar to pay a
higher fee but benefit from the additional exposure. I thought that was a
genius idea and could bring in extra revenue.
For my second interview I went to Warehouse Pub. The manager was mainly concerned with pricing, he suggested not doing a flat fee but a partnership. He recommended that I set up a QR code system. Meaning, when a customer uses the app and they go into the bar and show this QR code then I will receive a percentage of the revenue from that customer. That way smaller bars don’t have to fork up any capital, which will cause the app to explode quicker.
The last bar I went to was The Sybarite Pig, they are a very successful bar and were not worried about pricing, but more about exposure. They thought with so many bars around, they might get lost in the mix; especially since their a more upscale place. They suggested a filter feature that would allow a customer to filter out any bars lower than a set rating. This would allow places that are more upscale, but don’t offer as many promotions to benefit from this app.
After my interviews I got the impression that all the bars have the same thing in common, they want more foot traffic. As long as my product guarantees that if they purchase it, more people will be drawn, then they will be happy. Price does matter, especially to smaller bars. And quality trumps price in regards to larger establishments. I should look into other ways to bring in revenue, and provide different options. Maybe smaller bars would be drawn to the no money down options, and loosing part of their revenue. While bigger bars don’t mind spending $500 more on a Friday night to have their bar dominate the app.
For my second interview I went to Warehouse Pub. The manager was mainly concerned with pricing, he suggested not doing a flat fee but a partnership. He recommended that I set up a QR code system. Meaning, when a customer uses the app and they go into the bar and show this QR code then I will receive a percentage of the revenue from that customer. That way smaller bars don’t have to fork up any capital, which will cause the app to explode quicker.
The last bar I went to was The Sybarite Pig, they are a very successful bar and were not worried about pricing, but more about exposure. They thought with so many bars around, they might get lost in the mix; especially since their a more upscale place. They suggested a filter feature that would allow a customer to filter out any bars lower than a set rating. This would allow places that are more upscale, but don’t offer as many promotions to benefit from this app.
After my interviews I got the impression that all the bars have the same thing in common, they want more foot traffic. As long as my product guarantees that if they purchase it, more people will be drawn, then they will be happy. Price does matter, especially to smaller bars. And quality trumps price in regards to larger establishments. I should look into other ways to bring in revenue, and provide different options. Maybe smaller bars would be drawn to the no money down options, and loosing part of their revenue. While bigger bars don’t mind spending $500 more on a Friday night to have their bar dominate the app.
Kai - the warehouse pub alternative sounds interesting. Another option may be to convert the opportunity to a proof of concept type stage - with revenue sharing. In other words - a FREE trial with revenue sharing to your company if the proof of concept is successful. This, in turn, allows you to prove your concept with minimal investment on their part. In addition, when the stage is successful, you are paid the revenue share. Good luck!
ReplyDeleteI really like the idea of using QR codes. It will provide a good amount of revenue while also seeing how your app's performance is doing. The only downside would be lazy/forgetful customers who use the app but don't scan the QR code. I like the idea of the promotion raffle and allowing bars to pay more to have their bar have additional exposure as long as it is somewhat limited. It would get rather bland if the same few bars were always the first to pop up on the app.
ReplyDeleteGreat job on the post it was very detailed! I love this idea especially going to different cities with slot of them. It seems most of your interviews are on the same board as you. Hopefully everything works out and this idea come to life.
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