#pondaseta

[nickgerlich]

Free Beer

When people ask me what I do, I like to kid around with them and say, “I teach people how to take other people’s money.” The crazy part is that, while I have spent my life teaching people how to market, I am also being marketed to.

That’s another way of saying I am just an average Joe.

Lately I have found myself pondering a rather large purchase I made back in early summer. Pondaseta Brewing Company had opened their Canyon location in late March, and as a special promotion, offered “Beer For Life” to anyone willing to shell out $1250 (plus tax) for the privilege.

In return, buyers got a limited edition t-shirt and pint glass, and a thick metal token that you are presumably supposed to carry with you every time you come to the brewery to redeem for your free beer. The brewery is also having custom railroad spikes chiseled with member names, to be on permanent display in the lobby.

The Men’s room might be more appropriate, though.

Naturally, being the common sewer—I mean connoisseur—of craft beer that I am, I ponied up the money. I even asked my son-in-law the wealth manager if he thought it was a good deal, and he confirmed. Actually, about two dozen of us have joined this elite club, but rather than ask to see the token each time, the brewery keeps a laminated list near the data terminal. Besides, they know us all, and as you might have guessed, I am pretty sure this is a Men’s club.

Here’s the deal on the beer, though. You only get your first beer free, so if you want more than one, you have to buy them. I knew this, and quickly got out my calculator when I heard of the offer. With beers averaging $7.50 apiece, my breakeven is 166.7 beers, which I rounded to 167, because leaving four ounces in the glass would be alcohol abuse. I am not counting the value of all that swag; no, that’s Pondaseta’s gift to me.

Although I knew several of the guys who signed up, I have come to know other men, and in fact was invited to join their Wednesday evening informal gathering of the brotherhood. I had fun. But I also found myself jokingly asking them, “I wonder how much money I have spent to get all this free beer?”

It’s a legit question, because as it turns out, the winner in this transaction is more than likely the brewery, not the customer.

Let me explain.

There is no way I am going there to have “just one,” because that would be awkward. Of course, I would leave a nice tip to the server, but I would be self-conscious of coming in only for a glass of beer. No, there would be more than one. And in many cases, there would also be food.

Furthermore, a promo like this instills intense brand loyalty. Why would I go to the Lumberyard across town when I could get my “free” beer at Pondaseta? That’s a big no. And if I am hanging out with friends or family, that means I am bringing extra customers. I am betting they fly the W every time one of us Lifers walks in. Better yet, they’ve already got our $1250, an interest-free advance on revenues.

But wait, there’s more. The program motivates members not only to be brand loyal, but to come back frequently so as to hit break-even sooner. It’s magnetic like that, and it’s hard to break away. To be honest, sometimes I feel like Norm from Cheers. Every time I walk in I am greeted with a chorus of my name.

Even if and when a member does hit that magic 167, you know they’re going to keep coming, because then that first beer really is free. It’s the self-indulgence that keeps giving.

One could argue that this is a pretty safe bet for Pondaseta, regardless of how many “free” beers a person gets. In some regards, it is like the unlimited car wash promos I have seen, along with gym club memberships. You pay a fee for an all-you-can-eat buffet of whatever it is they sell, but it is up to you to actually do it.

By now you might be thinking, “You’re a dang fool, DrG! They saw you coming, and gladly took your money.” It’s OK, though. While it is true I don’t have just one, that I don’t go to other places very often, and I return to Pondaseta frequently, my primary motive—as it is among some of the other men doing this—is to show our support for this fledgling business. The owners are two young men with families, and we want to see them succeed.

To that end, we will be back many times over, often with others in tow. And in case you’re wondering how long it would take to hit break-even, the math is simple. If you visit only once a week, that comes down to three years and 11 weeks. If you come twice a week, it drops to one year and 32 weeks. If you come three times a week, you get there after only one year and four weeks.

It’s not a race, though. It’s about enjoying a product, making and building friendships, and supporting local business. There’s no hurry, even though I know it won’t take me anywhere near three years to get into the truly free beer zone.

My son-in-law was right. This is a good deal all around, for everyone involved.

Dr “I'll Have Another” Gerlich

Audio Blog

[nickgerlich]

Taking Aim

One of the first lectures I give in every course I teach is the importance of determining your target market, and then building all of your marketing activities around it. You can have more than one target, but you should never try to be all things to all people. Make your choice(s) wisely, because once you do, it is hard to change them.

But sometimes your target market finds you.

I have seen this play out here in Canyon America, where the Pondaseta Pizza Company (owned by Pondaseta Brewery of Amarillo) and The Lumberyard Canyon opened only days apart. I have become a regular at Pondaseta because I love their beers, as well as their pizzas. And while I poked at The Lumberyard a few days ago, mentioning how I walked out, I decided to give them a second chance this last Saturday night.

Earlier that same day, Youngest Daughter and I had lunch at Pondaseta, so I was able to compare the two only hours apart. Little did I realize that in so doing I was laying the foundation for this blog.

Both places are family-friendly, and I witnessed many parents with their kiddos in tow. But that’s where the similarity ends. Pondaseta skews older, and The Lumberyard is apparently where the college kids have found their new home. Neither restaurant has made a concerted effort to reach these demos; we all just found our place on our own.

In spite of the menu being meat-heavy at The Lumberyard, I was able to customize what turned out to be an amazing veggie taco. There’s no table service, so you order as soon as you enter, then find a table. Since I was flying solo, I sat at the bar, book in hand. My ringside seat allowed me to witness WT students coming back to the bar repeatedly for more buckets of bottled beer. That was when I realized why so many students were there: Cheap beer, and lots of it.

Unfortunately, the self-serve Beer Wall was still down, and for the third day. I have no idea if they have fixed it yet, but this was to be their signature attraction. So important is this that they had only stocked a small selection of bottled beers. That’s not a good look. It would be like going to a burger joint and their grill is broken, so here are some sliders we stuck in the microwave.

Their food menu is pretty much standard pub fare, and not terribly high priced. That’s another attraction for the families as well as college students. Inside, there’s a dizzying array of colored lights, metal signs, and neon. It’s clear they took their cues from Cook’s Garage in Lubbock, the main difference being that Cook’s has many dozens of vintage neon signs, whereas The Lumberyard’s signs are primarily stock modern signs intended as decor, as well as beer signs provided by wholesalers. It takes a ton of money, though, to amass a top-tier collection of vintage signs, and if you want to see museum-quality signage, make the trip down to Lubbock.

Meanwhile over at Pondaseta, they’re busy pouring beer and making pizzas in the 100-year-old train depot they renovated during the last 21 months. It is not an understatement that the building shakes when the trains go by (which is about every 5-8 minutes). There are two bars and dining areas, and while there are several big screen TVs in the main east area, there is no sports bar feel like at The Lumberyard.

Also, there are no buckets of beer, only $8 pints. Pizzas will run $18-$25. Our lunch, which included two BYO pizzas, two beers, tax, and tip, cost me $64. My taco at The Lumberyard was $8.

There you go. Price is more than likely the filtering mechanism here, and customers figure it out pretty fast. I could make a smug geezer comment about younger folks not being very discriminating in their beer tastes, but I am betting it’s more about the money. Give it time. To quote out of context comedian Steve Martin,” I remember when I had my first beer,” and it wasn’t anything special or exotic.

At this point, you might argue that the menu and pricing at each place is implicit target marketing. You would have a point. But beyond these elements, I don’t see any other marketing activities directed to the people who have already decided where they will patronize.

I must also comment on their overall digital marketing, because…well…that’s what I teach. It is at this point that Pondaseta stands head and shoulders above The Lumberyard. Pondaseta works their Insta and Facebook accounts to the hilt, posting stories as well as static posts every day. I never have to wonder what’s going on any individual day, because they let everyone know that Monday is Trivia Night, this Thursday is a special beer release party, and that they just expanded their hours to include lunch seven days a week. Bear in mind that with the opening of the Canyon location, they are managing their socials for two places with different events, menus, and activities. That’s a lot of work.

The Lumberyard does use Facebook to create events, but I don’t see much of anything else. Occasional posts let fans know about who is appearing in their music venue, but it seems less coordinated than at Pondaseta. And when it comes to websites, once again Pondaseta has it dialed in. Both are guilty of not having 100% updated content (these things can be hard to coordinate with third-party providers), but The Lumberyard site has broken elements when viewed in Firefox and Chrome. Trust me. I checked it out in three browsers. Their site worked flawlessly only in Safari.

In the last two years I have put my undergrad Digital Marketing students on the Pondaseta Canyon location. They had to develop a year-long digital campaign. Afterward, I shared these with Pondaseta. I’m not sure if my students had any influence in their current digital efforts, but a prof can dream, right? They’re doing it exceedingly well.

I’ll return to The Lumberyard, mostly to see how that Beer Wall is coming along, and maybe for another taco. But I’ll be spending a lot more of my time at Pondaseta. I have found my people, my tribe. I can be old with others on the same path. While I don’t mind eating and imbibing among college students, I think it’s good for you to have your place as well.

And in the end, we have helped both of these new establishments determine who their target market is. Sometimes things just work out this way.

Dr “I Raise My Glass” Gerlich

Audio Blog

[thegrowlerpod]

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