Tuesday, September 18, 2012

Customer rewards: after nine car washes you get free sex!

Good morning economists. Two days ago I was reading the newspaper and I noticed an article about a Malaysian car wash business. We have all heard about customer rewards. Buy one get one free coupons or buy nine coffees and get the tenth one for free like in the case of Starbucks or Gloria Jeans. One would expect that a car wash would offer a wash for free for their returning customers.

The crafty businessman instead of opting for the obvious he instead made a deal with a massage parlor to offer free sex to the clients who paid for nine car washes. The plan was a hit for three months until the police found out. They did not appreciate the entrepreneurial  genius of the business man and arrested him and three of the clients that were "enjoying" their customer rewards at the time.

Customer rewards is a great way to attract returning customers and is a strategy employed by a large number of businesses around the world. Better stay within the parameters of the law though.

Have a rewarding day!


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