Erth point now takes the abundance mindset and co-operation to the next level. Consider a local Surf Club, has 23,000 members/supporters with a hospitality/entertainment offer which includes the restaurant/bistro.
The Surf Club can be classified as an ECO* because:
- it has members/supporters,
- it provides community services (e.g., lifesaving, beach patrols, training, etc), and
- it is also a merchant, selling products and services, to its members/supporters some of who will be business owners/operators, including hospitality operators.
By working with competitor entertainment/hospitality operations, the Surf Club, it’s members/supporters and the hospitality competitors can all benefit.
Why?
- The Surf Club receives a “triple bottom line” outcome via (1) capturing a percentage of its members/supporters purchases; (2) when they frequent (or purchase takeaways/home delivered; (3) other competitor entertainment/hospitality offers in their community.
- Studies confirm “consumers” like variety. So they will also support other local entertainment/hospitality offers due to the variety of cuisine and convenience on offer.
- All hospitality operators have quiet days, (42% of Australians prefer to dine out on a Friday and 65% prefer Saturday nights). This is challenging for operators (incl. the Surf Club) due to capacity restraints these days. Additionally, weekday trading is also affected by season, weather and the significant growth in home delivery and takeaway.
- Sunday to Thursday is significantly slower for “dine-in”. Generally, entertainment/hospitality operators may close one or more of these days/nights (or limit hours) to give their team a day off. This also acknowledges that for the “slow days” some will make a small profit, some days will break even, and some days will incur a loss.
- The BDO (i.e., the Surf Club offer) and competitor entertainment/hospitality operators, can each benefit from their customers spending 7 days a week (e.g., via physical / takeaway purchases). No “one” retailer / entertainment / hospitality offer has “exclusivity” when it comes to a consumer’s purchases.
NOTE: A benefit of Erth, is that it delivers marketing opportunities for all consumers and businesses – inclusive of “special offers” that drive custom on the slower days (E.G., Sunday through Thursday).
The Surf Club would benefit as an ECO
Medium size Surf Club on the Gold Coast
Food & Beverages turnover – Nine (9) million dollars annually
Membership – 23,000
The average member/visitor spends annually – $391 (or $7.52 per week per member).
NOTE: It is statistically less than this, as a percentage of the sales is also due to non-members/tourists who visit the club
- From this, if the Surf Club gifted Erth points to all members in the club via their purchases, then the “cost per member” would be 3% of $7.52 or $0.23 per week.
- Additionally, a specialist (the Surf Club) captures a percentage of the Surf Club member/supporter spend of $334* per week from the businesses where Erth points can be earned. This includes other entertainment/hospitality in the local community and beyond.
- As a specialist, the Surf Club would receive an additional $2.00 per
a week from each of its members/supporters. - Deducting the Surf Club cost of $0.23 from the additional $2.00
revenue delivers a surplus per member/supporter of $1.77 per
week to the club. For every 1,000 members/supporters using the Erth point App weekly – the funds benefited to the Surf Club is $1,770 per week.
