Hey,
Just trying to find out who pays for discounts when using services like menulog?
I just used a $6 voucher bringing the price of a pizza down to $12 and am kinda of feeling bad if it comes out of the restaurants pockets.
Does anyone know who covers the cost?
Thanks,
I reckon its around 25% right now.
25% of the total cost of the order? That's huge!
AFAIK I'd imagine it's shared between the restaurant and menulog
I thought it was ML. But I can see the discount is on the order slip so it could be the establishment.
…kinda of feeling bad if it comes out of the restaurants pockets.
No point feeling bad since you're probably one of many who used the voucher. I'm sure the owners still make "something" from the pizza, even if it's just marketing.
If it's something that weights on your mind, do what I do and call up the restaurant directly next time. Some places have their own delivery drivers too and some will even give you a discount for it.
Thanks all! I'll make a point to ask the establishment next time I order (I was going to tonight but felt awkward) and post back here.
They're probably not allowed to disclose that information under their contract.
Highly doubt the local mom and pop kebab joint cares enough for the $10….
I always like to think its ML footing the bill.
I would feel bad to find out it was the restaurant wearing the full discount alone, but at the same time, it’s advertising.
So think of it this way A customer pays menulog $A
this $A goes to feed $B to Menulog, $C to Drivers, $D to Restaurants, $E to Visa/Mastercard/Payment Processor
So practically the discount has to come out one this these 4 equations.
$E -Visa/Mastercard/Payment Processor will not get discount
$D - can increase or decrease depending on individual restaurant only, Hence if discounted all over menulog its NOT coming from this place
$C delivery drivers - Menulog may very well cut this proportion by e.g. not putting any bonuses/promo for drivers (although they wont change their minimum delivery rate which is probably already crap).
$ B Menulog account- Most likely place to be getting hit most by discounts. But for menulog it is probably a good Debt (if Debt) because it encourages new/more customer orders.
So your answer probably 70%-90% from $B and 10%-30% from C
Nice explanation. Thoroughly enjoyed it.
No worries, thank you.
I think for the menulog wide $6 off $15 spend etc deals menulog takes the hit.
Whereas for the 10-30% off order the restaurant takes the hit but could be also menulog.
I wonder if any menulog owners use ozbargain.
Venture capitalists or shareholders (if public company). Just look at Uber.
Pretty sure menu log wears the bill. I'm just speaking from experience as a seller on other platforms.
For example, eBay had a discount of minimum 2 dollars and I sold something. The customer used the discount but I ended up getting my asking price. So eBay sent me the extra 2 dollars.
Same with a selling platform in USA. They had a %10 off sale, my sale was 10% off to the customer but I received the full selling price.
Its a great and an important line of thought to have
But I am pretty certain that restaurants only forfeit the commission % that they would anyways part with. I reckon its around 25% right now.
Otherwise, these promotional costs are all beared by Menulog.