Cookie Reciprocity Strategy

A cookie sales business targeting car dealerships, leveraging the rule of reciprocity to help them close more sales.

The Rule of Reciprocity Strategy

  • When you do something nice for someone (even small), they almost always do something nice back
  • Often the return favor is disproportionately larger than what you gave
  • People feel compelled to "be even" after receiving something

Business Concept

  • Provide cookies to car dealerships to give out to customers when they come in
  • Pitch to dealerships: "Have you heard of the rule of reciprocity? People are much more likely to buy when they're eating a delicious cookie and feel taken care of"
  • Cost-benefit pitch: "This will cost you a dollar per cookie, but if you close even one more sale this year, that's a $35,000 return"
  • Target businesses with money who are less price-sensitive about cookie costs

Strategic Benefits for Car Dealerships

  • Creates a positive customer experience
  • Makes customers feel taken care of
  • Activates the psychological principle of reciprocity
  • Can help close more sales for a minimal investment

Business Growth Strategy

  • Focus on selling to "richer customers" who are less price sensitive
  • Target local entrepreneurs who are making enough money that they don't care if it's 80ยข, $1, or $2 per cookie
  • Sell to businesses where the owners "like the story, like you, and want to be supportive"
  • Create contracts with businesses willing to pay more
SP

Shaan Puri

Host of MFM

Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.

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Restaurateur
E-commerce