Show Me the Money

Nothing markets a product or service better than the word “free”. If your business has ever given thought to a promotion designed to award free products, refund fees, or in some way attract new customers to your product or service, a weather-based promotion may be just the unique marketing approach you need. A weather campaign generates attention and positions your company as forward-thinking and customer friendly.

Weather driven promotions can be used to increase sales, enhance customer loyalty, or simply as a tool to generate positive press coverage for your company. Weather promotions can be used in a variety of retail and service oriented businesses, including:

Jewelry	Air conditioners	Recreational vehicles
Boats	Snowmobiles	Vacation destinations
Electronics	Car washes	Outdoor events/amusement parks
Golf Courses	Vacation destinations	Photography

Below is one example of how a business used a weather promotion to increase their sales:

MA jewelry store offers a weather promotion that will refund the cost of a couple’s engagement ring if it rains one inch on their wedding day. Rain is measured at the local airport between 12:00am-11:59pm the day of the couple’s wedding. To enter the promotion, couples are required to purchase their engagement ring from the jewelry store and fill out the appropriate paperwork. The promotion runs on weekends during the months of October and November, but couples can wed anytime in the following year.

The jewelry store purchases a weather risk management product to help protect them in case it does rain on the wedding day of those participating in the promotion and they need to refund the price of the engagement rings. The store is required to report their engagement ring sales and planned wedding dates at the end of each weekend to the weather risk management company during the promotional period. The total limit of coverage is computed at the end of the promotional period, so in this case, the end of November.

Summary

	No Promotion	With Promotion
Engagement Ring Sales	$75,000.00	$125,000.00
Profit Margin	0.4	0.4
Weather Hedge Premium	$0	$10,000.00
Net Income	$30,000.00	$40,000.00

So long as the promotion increases sales by an amount greater than the weather hedge premium, the retailer will generate a higher net income eliminating the risk.

All It Takes is a Phone Call

Let us help you plan your next weather related sales promotion. Weather is our business and we’ve seen the success of weather promotions first hand. We will help you design and manage all aspects of your weather promotions contract.

Contact us Today!