My friend Michael Attias runs a catering-software business that helps restaurant owners generate a significantly higher profit margin in their business by selling catering. The other day he was explaining a new done-for-you online marketing service he was about to launch that would drive new catering business to the restaurant, but that many restaurateurs would consider “pricey.”
He argued (backed up with logic and reasonable business math) that while the first order may be break-even, they could easily make that back from the repeat purchases made over time — and therein lies the hair in the proverbial butter with his argument. MOST restaurateurs don’t track sales metrics like this and don’t have a CLUE what the average client is worth, how often they repeat purchase, what their referral activity is (or isn’t). Because of that, I predict he’s going to have a TOUGH time selling this service, even if he can logically demonstrate the long-term ROI.