I work for 2 eye doctors, they have a marketing consultant giving them ideas that they want me to implement. The first being a fund raiser, that is someone comes in for an eye exam, they will not be allowed to use their insurance but will be given $30 off the regular price which will still cost $120.00, for each person that a particular group gets to come in within 2 months. $60 will be donated to that group. My problem with this is, what would make the individual come in and not use insurance and just donate $60 to the group, the would come out cheaper. The doctor’s logic is aim toward people without insurance, but if they don’t have ins, then more than likely, no job, or can’t afford it. So with today’s economy, I don’t think the high price of $120 is a good strategy.

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Jay’s Answer: I agree with you – it’s not a compelling strategy.

I don’t know what % of their clientele have insurance, but restricting its use isn’t a wise idea. The doctors will get a $60 tax credit and result in a simple (pre-tax) net of $60 income/client. The client will pay $120 and the feeling that they’re helping their organization. Additionally, the offer is hard to explain, which makes marketing it less effective.

What else could they do? They could focus on the fact that people don’t regularly change their eye doctors, and get their payoff by the second visit. For example, they could give 50% of their net (after insurance pays) to the member’s organization. That would help the organization (and give them an additional tax credit), but still doesn’t give the individual a compelling motivation. If they could pick the name of a new client (from a bowl, after 2 months) and reward that person with a free weekend away to a nearby spa/hotel destination, then this “everyone-wins” offer might be the ticket. The nearby spa/hotel may donate their services in exchange for the PR the doctors generate.