Social Question

poisonedantidote's avatar

How much would you charge people for turning their business around and saving them from bankrupcy?

Asked by poisonedantidote (21539 points ) July 30th, 2012

As some of you may know I went to the UK last year. This year I returned to Spain, but was a late comer to the start of the tourist season and so could not find a job.

I decided that if I could not find work, I would go out and create work. After making a deal with a local ‘restaurant / bar / club’ in my area, I started working for them on a commission only basis as a public relations person.

We agreed that I would be paid $1 (euro) for each customer I sent to them. The first day zero customers went there, and I earned zero, but I pushed on and kept trying. The second day 6 people went there, and I earned six bucks. The third day about 20 people went there and I earned 20 bucks.

Yesterday however, due to new tactics of mine, over 200 people showed up and they had to turn some customers away. This morning when I went in to work, they were still full to almost maximum capacity.

Now, I am not interested in negotiating a new deal with them. A deal is a deal and I’m not going to start charging them more out of greed. However, I would be interested in knowing what a realistic price would be for this service, with a view of doing the same for other failing restaurants and bars in other non competing areas.

So, what would be a reasonable fee, for a “no win no pay” commission based service, that specializes in turning around failing restaurants, clubs and bars.

The restaurant I am working for now, has gone from zero to ten customers a day, up to several hundred customers a day, so it is safe to say they are happy.

I believe the reason I am having success were others have failed, is because of a couple of techniques I ‘pioneered’ so to speak, and while it is early days yet, I think I could do the same for other places on the island.

So, what is a reasonable and realistic amount to charge someone for turning their soon to be bankrupt restaurant, in to one of the busiest ones in the area?

Would such a service be worth a significant cut of the profits? or should I just be happy that I’m getting a good deal already? (at $1 a head)

Observing members: 0 Composing members: 0

6 Answers

SuperMouse's avatar

My first thought (and admittedly I am not a business person), was to take a percentage of the profits that your marketing techniques help create. You could make it a contract for a set period of time, as long as profit increases you get a cut.

wundayatta's avatar

Marketing is an important part of doing business. So is making the product, and financing the business. There’s a lot included in marketing. Some things they did, and some things you did. I am just guessing here, but I think that marketing is between a third and half of what businesses do to become successful. I couldn’t begin to say what portion of the marketing you are doing without knowing the specifics.

In the end, though, it is about negotiating. You don’t know the value of what you do, and neither do your customers. So you negotiate. If you don’t like it, you take your service to another customer, if you can find one.

I think you can also renegotiate your contract, if you want. I don’t know how long you agreed to work for this restaurant and whether you have a non-compete agreement that forbids you from working for anyone else. Assuming not, you can go elsewhere, and you can ask for more money to keep providing this level of service. You should have negotiated incentive rewards for doing a good job in the first place. But maybe you didn’t know.

Ask and see what they are willing to give you.

bkcunningham's avatar

@poisonedantidote, you are getting a dollar per person you send to the restaurant.

How do you and/or the management currently keep track of the customers who are there by your referral? I’m thinking you have devised some sort of technique that tracks this. Is that costing you money?

Also, I’m curious what percent your $1 commission is of the average cost for a customer eating/drinking there.

Have you been paid your finders’ fees without any problems?

jca's avatar

I think it would depend on a few factors such as the size of the business, # of employees, revenue, etc.

LuckyGuy's avatar

If they are making a good profit on the customers you send, consider negotiating a performance bonus when they reach a certain level of customers per day. Do not expect them to give you $ if they lose money on every customer.

poisonedantidote's avatar

@bkcunningham

At the moment, they just take note of how many pamphlets come in, or how many people mention me telling them about it. The voucher I hand out gives them a 10% discount, so they have an incentive to keep it. Yes, I do miss out on some, who never mention me or take the voucher, but what can I do about it.

They pay for the vouchers to be printed, and the average visit is a family of 4, 2 adults 2 children, spending about 30 to 50 euros.

Answer this question

Login

or

Join

to answer.
Your answer will be saved while you login or join.

Have a question? Ask Fluther!

What do you know more about?
or
Knowledge Networking @ Fluther