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        This is how you do it!

        How your customer gets
        a 20% reward and your own margin increases by more then 8% per customer
        30% of consumers do not redeem rewards*

        Example campaign 1

        USE your card 4 times min €11,90 and get €11,90 reward on 5th use

        Average restaurant sales margin = 70%
        Use of the reward = 70%
        Validity of the reward = issue month + 30 days
        Average card usage per month = 3
        Desired increase in payments per month = 1
        Purchase price = € 11.90
        - Tax = € 1.46 (14%)
        Excluding tax = € 10.44
        - Gross margin 70% = € 7.31
        Raw material cost 30% = € 3.13
        + Commission of reward issuer = € 7.89
        Gross cost of the reward = € 11.02
        - The issuer buys the raw material from the restaurant = € 3.13
        = Net costs of the reward = € 7.89 x 70% = € 5.52

        The profit of the restaurant from three visits is
        3 x €7,31 = €21,92

        The profit of the restaurant from four visits is
        4 x €€7,31 = €29,23 (+33%)

        Reward cost
        0,7 x €7,89= €5,52

        Net profit
        €29,23 - €5,52 = €23,70

        Extra profit from the reward
        €23,70 - €21,92 = €1,78 / 8,13% MORE PROFIT

        If only 50% of the customers uses the reward
        €25,28 - €21,92 = €3,26 / 15,33% MORE PROFIT

        Example campaign 2

        USE your card 4 times min €7 and get 50% off on 5th use

        Average restaurant sales margin = 70%
        Use of the reward = 70%
        Validity of the reward = date of purchace + 1 day
        Average card usage per visit = 3
        Desired increase in card usage per visit = 1
        Purchase price = € 7.00
        - Tax = € 1.35 (24%)
        Excluding tax = € 5.65
        - Gross margin 70% = € 3.95
        Raw material cost 30% = € 1.69
        + Commission of reward issuer = € 3.09
        Gross cost of the reward = € 4.79
        - The reward issuer buys the raw material from the restaurant = 1.69 €
        = Net costs of the reward = € 3.09 x 70% = € 2.17

        Valvira (National Supervisory Authority for Welfare and Health) defines how you can give loyal customers benefits from purchasing alcoholic beverages. When the payment card company provides the reward, it is allowed. An example is Finnair Plus Mastercard, where a cardholder gets points from all purchases, and then, they could use those points for alcohol purchases from restaurants.

        Prohibition of compensation for the price of an alcoholic beverage (link in Finnish)

        It is prohibited to offer or accept payment from a reward calculated from the sale of alcoholic beverages or other consumer goods and services at retail and restaurants.

        The reward offered or used from using a credit card is not precluded in the case of a credit card issued by a financial institution, and the financial institution itself does not engage in significant volumes of retail or retail activities.

        *Word “credit card” has been used as a general term in the Government proposal and marketing guidelines. It is irrelevant whether it is a credit or debit card or both. Valvira email Feb 7th 2022

        The profit of the restaurant from three visits is

        3 x €3,95 = €11,85

        The profit of the restaurant from four visits is
        4 x €3,95 = €15,81 (+33%)

        The profit of the restaurant from five visits is
        4 x €3,95 + €1,13 = €16,94 (+42,86%)

        Reward cost
        0,7 x €3,09= €2,17

        Net profit
        €16,94 - €2,17 = €14,77

        Extra profit from the reward
        €14,77 - €11,85 = €2,92 / 24,59% MORE PROFIT

        If only 50% of the customers uses the reward
        €15,39 - €11,85 = €3,53 / 29,81% MORE PROFIT

        PALOFY is the only Visa/ MC/ Amex loyalty partner in Finland
        In co-operation:
        PAYMENT LOYALTY LTD
        Company number 10944461
        291 Kilburn High Road,
        First Floor, Unit 5
        Drakes Courtyard,
        London, England, NW6 7JR
        United Kingdom