500 Benjamins or Bust, a last attempt to save a small business | Hacker News Reader

500 Benjamins or Bust, a last attempt to save a small business

blog.inklingmarkets.com

27 pointsnate10 comments

This concept of "if we get the quorum, then it's on, but if not, no one pays" is also known as "an assurance contract".

Read more in Wikipedia:

http://en.wikipedia.org/wiki/Assurance_contract

Groupon runs on a similar concept ( http://www.groupon.com/faq ). A business can offer a discounted rate that's only valid if a certain number of people commit to paying said discounted rate. I guess the rationale is that if you get a certain number of people in the door for the discounted rate, you'll have good odds of having enough of them buy other things that are not discounted that you can make your money back. Bar promotions are like that too, they'll have cheap beers and cheep foods to get people in the door who might also buy liquor or cocktails, or who might bring someone with them who will.

Why not make that an affinity/loyalty marketing program, call it "The Club @DoD" or whatever. Have members join this program for a lifetime $100 membership, which gives them $200 in drink vouchers out of the box good for a year (or put it on the Club Debit card, or whatever) and then once that is used up, they can continue using the card for 20% off drink purchases for life.

If some of the lushes go through that 200 dollars in credit, who cares, anything else they buy is gravy (albeit at 20% discount, but that's easily well past bar profit margins per glass. If it isn't, maybe he needs to find another line of business.

Don't limit it to the first 500 either, keep it as a permanent fixture.

That's a great idea. I think there is a future for this model. I have lots of ideas where it would be profitable and beneficial with way lower risk than through many traditional mechanisms.

If you do it, post a comment, and I will too, Nate. I need to stop going to Binney's anyways.

Done :) It's a little tricky to find. Went here http://yhst-88098672283531.stores.yahoo.net/500bepl.html Remember to choose "in store pickup" for a shipping method.

Yeah, I'm going to spend this on Bourbon anyways :) Might as well taste a few before buying something new.

Done! Supporting bourbon is good, supporting Chicago small business is better, and supporting both at the same time AND GETTING BOURBON? A moral imperative!

Am I the only one who doesn't want to see this succeed? A business that can't control its cash flow should fail.

Yeah, shortages happen. But the complete exhaustion of credit makes me think this isn't the first time they've reached the brink.

well its clear he hasn't spent anything on web design: http://www.drinksoverdearborn.com/

Great, up-front and open, long-format appeal that I bet will work very well for the owner. I am a sucker for helping small businesses and if someone like that in my country needed support, I'd pledge for sure (even though I buy all my wine at cellar doors).

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