What is fixed fee?
At Opia Risk, we specialise in fixed-fee promotions. It’s how we manage and mitigate the risk of ambitious promotion campaigns for leading brands and agencies. But, understandably, not everyone is familiar with the idea of fixed-fee promotions.
Don’t worry. We’re here to clear things up…
The ‘ideal’ outcome
When you launch any promotion, the ideal outcome is maximum participation. Why? Because the promotion publicises your brand and secures valuable future custom.
That’s why brands and agencies put so much time, effort and money in creating and communicating them. Cashback promotions, free with purchases and instant wins are just a few of the conventional methods.
But what if too many people redeem it? Let’s say your promotion is a free £50 voucher for anyone that buys a specific TV. The more people that buy that TV and redeem the promotion, the more £50 vouchers you will fund. If you have 50,000 TVs to sell, that’s up to £2,500,000 in potential redemption costs.
Calculating expected redemption
Yes you have the sales but what about the budget. Finding extra money to fund an over redeeming promotion is tricky at best.
Despite your experience no two activities are ever the same. So what will the final cost be?
So, what are your options?
- Prepare for 100% redemption with a massive accrual – Realistically, you can’t set aside enough money to cover 100% redemption.
- Prepare for 25% redemption and hope for the best – This is never advisable. Who will foot the bill if the promotion is over-redeemed?
- Launch a mediocre promotion because you’re held back by the potential over-redemption risk – Let’s face it, nobody wants a sub-par campaign.
In many cases, businesses underestimate their campaigns. You can’t simply pull a promotion if over redemption is a threat, so what can you do?
We can help
Fixed-fee promotions with Opia Risk.
With this route, you pay a fixed fee to insure your campaign before it starts. Yes that’s a one off payment that is 100% guaranteed regardless of the final outcome.
Should your promotion prove more popular than expected, you won’t have to fork out for extra redemption costs. Instead, Opia Risk will cover all redemptions up to 100%. The cost of your promotional campaign is capped, regardless of the outcome.
The benefits of fixed-fee promotions
Opia Risk’s fixed-fee promotions provide security, certainty and confidence. Most of all, they give you the freedom to launch risk-free promotions, with a range of great benefits:
- No unexpected costs – You won’t have to pay extra if your promotion is more successful than expected.
- No damage to your brand – There’s no chance of any frustrated customers, with all redemptions guaranteed.
- No more boundaries – Create a promotional campaign that’s fine-tuned for maximum impact, with zero risk.
Your fixed-fee promotions
If you’re interested in locking down the costs on your next sales promotion, it’s time to speak to the team at Opia Risk. Contact us today to discuss fixed-fee promotions in more detail and find out how we can help your business make a bigger impact.