Bullfrog Power Ethical Deal – A Coupon Offer that Makes Sense

Ethical Deal is offering a limited time offer of 67% off $45 worth of Bullfrog Power.  

Here’s a coupon deal that makes a lot of sense:

Based in Vancouver, Ethical Deal is an online coupon company, kind of like GROUPON, only it offers coupons just from businesses that care for the environment, respect animals’ rights, benefit the community or promote wellness.

Bullfrog Power is Canada’s 100% green energy provider, offering homes and businesses clean, renewable energy solutions. According to their website, “by choosing Bullfrog Power’s green energy, people can reduce their environmental impact, support the development of new renewable generation in Canada and help to create a cleaner world for today and tomorrow. …  When a person chooses Bullfrog Power, Bullfrog’s generators inject 100% green electricity or 100% green natural gas onto the respective energy system to match the amount of electricity or natural gas their home or business uses.”

Why 50% off online coupons often don’t make sense

Coupon deals aren’t always good for businesses.  Often they are great for the consumer (because they get to save) and great for the coupon company (they make a profit), but not always good for the business offering the deal.

Online GROUPON-like coupons are expensive for businesses.  They have to offer their product for at least 50% off, plus they typically pay the coupon company 50% of the sale price, which means earning just 25% of full price.  If the product doesn’t have a very high mark-up to begin with, or it’s unlikely the business will generate a lot of repeat sales in the future, then it can be an expensive way to promote a business.

Coupons are effective when they (1)  introduce a new customer to a business and incentivize them to make a first purchase and (2) having made that first purchase the customer likes the business so much that they then continue to buy (and pay full price) in the future.  If most customers use the coupon and then never come back, then the business has given away a lot of (almost free) product. In some cases this might be okay for new businesses that nobody knows about, as a way of telling the world they exist.  In many cases though, it’s not always effective.

Why does this deal make sense?

Bullfrog Power’s Ethical Deal promotion makes sense for a few reasons.  First, people who buy sustainable energy do it for the long term.  What’s the point of buying three months worth of green electricity?  It might make you feel good for a little bit, but it’s not something that after you buy it you get to keep it (like buying a product).  If you’re not interested in maybe using Bullfrog Power after your coupon funds run out, you’re not likely to buy the coupon in the first place.

Second, this coupon offers a chance for people who have been thinking about maybe purchasing green energy a chance to try it out, and an incentive to try in now.

Third, an advantage of Ethical Deal over other online coupon companies is the branding that goes with Ethical Deal.  Bullfrog Power and Ethical Deal fit perfectly together.  People who subscribe to Ethical Deal are Bullfrog’s target market, so it’s a perfect promotional medium to use.

Fourth, Bullfrog’s $45 worth of green energy for just $15 is the perfect amount.  A $30 savings (or 67%) is enough to make the deal attractive.  It’s also enough to provide most homes with 3 months worth of service – which is more than enough time for people to figure out if they like having it.

In short, this is a great example of an effective online coupon promotion.

For more information, check out Ethical Deal.  (Offer expires 6 days from now, so around Sept. 17, 2012).


Note: PR Loyalty Solutions is powered by Bullfrog Power, but was in no way paid, asked or encouraged to write this blog.

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