You want to thank your customers for their business and so you decide to throw a redemption or conditional rebate contest. The decision to insure your own promotion may initially seem like the right thing to do. You plan, set aside assets, and create the conditions of the event. It may sound simple, but what if your contest becomes overly popular? With not having the proper financial structure or security, your promotion may end up costing you more than what you initially planned.
For example, a furniture store could hold a conditional rebate where they would offer free furniture for their customers (purchases made between set dates) if a sports team wins by 5 more points during their indicated game. This will be a risky situation for your fans, but more so for you! If the sports team ends up winning by 5 points, you will have to dish out up to million dollars worth in free furniture! That ends up being money that you didn’t plan on spending. Therefore, you resort to budget cuts to make up for the loss. Luckily, you don’t have to go down this path. With IPG’s conditional rebates, we will determine the estimated amount of redemption, and if redemption goes over the estimated amount, we will pay for the difference!
Ultimately, it’s every company’s goal to have a successful promotion. However, your event may leave you focusing on the potential profits and not the potential loss. IPG wants to make sure your event is a success and not a financial failure. We hope we made it clear for you to see the cons of self-insuring your own event. For more information contact one of our representatives at 888-882-5440 or email us at firstname.lastname@example.org.