Description: There are many types of discounts that can be set up in the QSR software, including bundle discounts, target price discounts, and dynamic discounts. Each of these discounts gives you different levels of control over the discount you are providing. Learn about each of these discounts and how to utilize them below.
For additional information on creating or editing discounts and groups, visit the Discount Manager article.
Bundle Discounts
To begin, log in to the POS System and navigate to Admin > Discounts Manager, and select Discounts > Add Discounts to add a new discount into the system.
For this example, here is how the target price feature works:
- For example, the advertised special is one large one-topping, one medium cheese pizza, and a 2-liter bottle of soda for $21.99.
- To reach this price, regardless of the individual menu price of each item, use the “target price” option.
In conjunction with that feature, you can also use the “Maximum Discount” feature:
- This is used in case the customer (cardholder) would like to take advantage of this discount, but instead of one topping on the large, they want four, and they want two bottles of soda instead of one.
- With that said, the software will handle the discount and, at the same time, prevent the price from discounting any more than your desired amount.
Next, incorporate the groups created in the Discount Manager article. As described in that article, you will need one choice from each of the three groups involved. This is dictated on the right of the screen.
Now that you have created your groups and discount, you can move on to the testing. One of the great features of this software, and the reason for the groups, is that once the items are ordered and you click on discounts, you will see all discounts that the ticket is eligible for.
Let's say the customer ordered a large pizza with mushrooms, a medium cheese pizza, and a bottle of Dr. Pepper. When you click discounts at the bottom of the page, you will see this screen:
Now, if you remove the soda from the ticket and click on discounts again, you will no longer see the Family Meal Deal discount, as the requirements have not been reached. However, the eligibility requirements for the Medium one-topping special have been met, so that is still displayed.
If you click on Show all you will see the other discounts, but they will be grayed out until the required items are added to the check. That covers the bundle discounts.
Target Price Discounts
Use this type of discount when the coupon offers “This and That for $X.XX.”
Target Price is by far the most common and the most powerful discount available. When used properly, a customer can order extra toppings and you will not lose money. You could also set up example 3 below to allow the customer to upgrade to cheesy breadsticks or another appetizer if you set up the breadsticks group differently.
The Max Discount tool is a great way to combine marketing discounts with up-selling. Also, if the customer maybe doesn’t want as many toppings as the coupon offers, the system knows not to discount as much money because it is simply adjusting to the targeted price. This means you do not lose money by using a generic discount of $5.00 when the coupon lists a specific price.
By limiting the discount to specific items or groups of items, you can control how coupons are used and can monitor and adjust coupons over time and adjust to the most effective coupons for your restaurant. You can also limit how coupons are used in other ways, as described below.
Dynamic Discounts
These are mostly used when there are criteria associated with the discount. For example:
- Only applies to certain items or groups of items
- Limited to a day or days
- Limited by time
- Limited by service type
To better explain how these should be set up, the five examples listed below go into more detail on how these dynamic discounts can be created and utilized.
Example 1: Target Price is $10.99
The normal price for a Large three Topping Pizza is $13.40. So for the Maximum Discount, enter $2.41. (13.40 – 2.41 = $10.99).
The minimum check total is not useful in this example, so leave it at $0.00.
Explore other options for a discount following the five examples below.
At this point, the coupon "Large three Topping Pizza for $10.99" is functional, so click ADD at the bottom of the screen, and it will save the discount.
Example 2: Large 2 Topping Pizza & 2 Liter for $11.99
The normal price for this is $14.60. So for the Maximum Discount, enter $2.61. (14.60 – 2.61 = 11.99). Note the Groups panel to the right, requiring one item from the 14″ Large Pizza group and one item from the 2-Liters group. The 2-Liter group has four items, so as long as the user orders any one of those four items along with the large pizza, this coupon will work.
Example 3: 2 Large Cheese Pizzas, Bread Sticks, and a 2 Liter for $18.99
The normal price for this is $28.99. So for the Maximum Discount, enter $10.00. (28.99 – 18.99 = 10.00). Note the Groups panel to the right, requiring two items from the 14″ Large Pizza group, one item from the Breadsticks group, and one item from the 2-Liters group.
Example 4: 10% off your next order (Excludes Alcohol)
This is a Percentage Discount Type. You can go about this in a couple of different ways, as explained in the table above. In this example, you would use two separate discount groups, one of which would be used as an excluded group. Before further discussing the setup of this discount, however, explore the difference between setting up a percentage discount on a single item and on an entire check.
If you do not check the box for Entire Check, the system will discount only one item at 10%. This is convenient when a percentage coupon is for 10% off a pizza or something of that nature.
The only time you will see the Exclude groups panel below is when the Entire Check option is selected for a Percentage discount. If there are no exclusions from the Percentage Discount, then simply leave all the checkboxes in that panel blank.
In the case of Example 4, you are restricted to not discount Alcohol. As you can see below, all you need to do to accommodate that is click the entire check box and click the Exclude alcohol box. Of course, you also enter the percentage as a decimal. In this case, you would not use a maximum discount.
Example 5: $3 off your next order of $10 or more
This works best as an Amount Discount because it is a general coupon. In this example, you would use All Items, but you could use any group. ($2.00 off your next dessert would be a good example.)
Notice that the Maximum Discount line is not there because it is not needed and that you are using a Min Check Subtotal of $10.00 based on the coupon. This will ensure an employee does not give the discount by mistake without the customer first spending that $10.
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