

500 Benjamins or Bust, a last attempt to save a small business - nate
http://blog.inklingmarkets.com/2010/02/500-benjamins-or-bust-last-attempt-to.html

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tjic
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>

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sparky
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.

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muhfuhkuh
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.

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fnid2
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.

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

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nate
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.

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

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bmr
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.

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

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prawn
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).

