Food Stamp Covers - Looking for best marketing channels

[StartupsRFun]

So I recently teamed up with a guy in my home town who created http://www.foodstampscovers.com/. I loved the idea, because I found a lot people who used food stamps would only shop at night or would travel across town because they were too self conscious about someone they know seeing them use food stamps (they are now known as an EBT card).

The basic idea is an EBT cover that is similar to a sticker that you place on top of the card so that it doesnt stick out and looks like a credit/debit card. So far the marketing has been almost non existent, and sales have grown organically, albeit slowly. We are wanting to change that and really ramp up our marketing and get our name out there. I see this being a product that not a lot of people would admit to buying, but would allow those on food stamps who are self conscious about using them to finally be able to shop with confidence. So Im hoping to get feedback from my fellow fastlaners on what they think of the covers, website, and any marketing suggestions/advice you may have.

In terms of the covers (they are completely legal to use BTW) our goal is to incorporate more of a credit card theme, so that while not infringing on any copyright laws, we want our end user to feel like when they use their EBT card, it is almost indistinguishable from a real credit card.

The marketing channels that we plan on targeting are:

Google adwords

Facebook

DHS offices. I talked with DHS and they would be willing to sell the covers at their offices, so that when people apply for Food Stamps, they have the option of buying one of the covers.

Affiliate marketing. Im not sure this product would be appropriate for a traditional affiliate program, but perhaps using some type of referral program. If anyone has any advice on this, would really appreciate it.

These are the channels we have mapped out so far, and will be testing and refining them over the next couple of months. Additionally we would like to get some press around the product, and need to figure out who would be good candidates to reach out to, whether its a blog, website, political candidate (will be using the suggestions @Eskil laid out in his Getting Press and Media Coverage thread). These are some free marketing channels we want to leverage, as well as looking into possible partnerships.

 

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[DeletedUser2]

wait, your going after a market that has so little money, it has to be on food stamps?

??? really????

Z

 

[StartupsRFun]

wait, your going after a market that has so little money, it has to be on food stamps?

??? really????

Z

Thats a good point. I guess I was looking at the organic sales, and figured that if only a small number (and I mean small, with 0 promotion and no marketing) of people knew about it and still bought it, that this helped validate the product enough to go out and capture a larger size of the market.

 

[DeletedUser2]

uh.... what happens when your product ends up on tv for "welfare people spend money on stupid stickers not food" ya,
thats not going to go over well, as you try to scale.


this market has instant limits to its size, and depth....

go where the money is. its easier to play there and even if you F*ck up. you still can make money....

Z

 

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[StartupsRFun]

uh.... what happens when your product ends up on tv for "welfare people spend money on stupid stickers not food" ya,
thats not going to go over well, as you try to scale.


this market has instant limits to its size, and depth....

go where the money is. its easier to play there and even if you F*ck up. you still can make money....

Z

I agree about going where the money is, and this product is being used as our funding for something much more lucrative in the senior home care business, with a lot of potential to scale. Its our Obama O's and Cap'n McCain's http://goo.gl/Z7FhpU

 

[mz2804]

I agree with zen******* - I'd pass this one as you're targeting the market that has less disposable income to begin with. Though, I like the Obama stickers. Well played!

 

[Determined2012]

you're targeting the market that has less disposable income to begin with.

The crazy part is, this market spends/consumes more than the people who actually DO have the money to spend.

 

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[StartupsRFun]

The crazy part is, this market spends/consumes more than the people who actually DO have the money to spend.

Thats true. I dont want to say this for everyone, but there is a reason many people end up on food stamps...they buy stuff they dont need, and cant afford.

 

[Yankee427]

The crazy part is, this market spends/consumes more than the people who actually DO have the money to spend.

Yeah, these types of spenders are extreme sidewalkers, but will probably spend more than I do on their phones and other "necessities" than I do in 5 years time.

 

[mz2804]

The crazy part is, this market spends/consumes more than the people who actually DO have the money to spend.

Someone's gotta run the economy. Or so I was told.

 

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[StartupsRFun]

Yeah, these types of spenders are extreme sidewalkers, but will probably spend more than I do on their phones and other "necessities" than I do in 5 years time.

Absolutely. I think the biggest thing is understanding what the market wants. Back in school we used to have to analyze peoples buying preferences and what they truly cared about. It would go like, Bob makes $1200 a month and he is unwilling to pay for a smart phone, doesnt buy designer clothes, but he only drinks expensive micro beers. So Bobs priority is having a nice beer, but doesnt care about his clothes. Kara on the hand makes $1200 a month, only drinks pabst, rides her bike everywhere, and only buys expensive designer clothes. Both these people would qualify for food stamps, and both spend their money on things that we would classify they dont need. We as business people often times dismiss these individuals because their income is so low. Its all about understanding the market.

 

[StartupsRFun]

Though, I like the Obama stickers. Well played!

Gotta cater to our audience

 

[DennisD]

Most of my extended family is on food stamps.
They spend $$$ all the time.
The only people I know that own PS4s and XBoxOnes are on foodstamps/welfare.

Theyd love this idea. They're so self conscious about that card they sometimes shop in other towns.

 

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[Kak]

Sell high end wheels that fit late model cars... Same demographic.

 

[DeletedUser2]

ok, I maybe wrong.
what the heck,

cockroaches and cereal...
why not food stamps...
Z

 

[StartupsRFun]

ok, I maybe wrong.
what the heck,

cockroaches and cereal...
why not food stamps...
Z

Ill be honest, when he first approached me with the idea I thought it was stupid, but then I started watching people while they checked out. I would go to Safeway late at night and 90% of the shoppers were around college age or a little older, and almost all of them were using food stamps. They always used the self check out and would pull the card out super fast and swipe it super fast, and boom right back in the wallet or purse. I got good at spotting this after a while, and for me it validated the need and market. I figure for 9 bucks we can give these people their confidence in shopping back.

I mean if you are using an iphone and wearing designer clothes do you really want people to see you using food stamps? It kind of strains the image you are trying to portray.

 

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[Kak]

Food stamps are way too easy to get...

 

[DrkSide]

I mean if you are using an iphone and wearing designer clothes do you really want people to see you using food stamps? It kind of strains the image you are trying to portray.

If you have an iPhone and designer clothes you don't need food stamps.

 

[StartupsRFun]

Food stamps are way too easy to get...

Im sure this happens alot, but I live in the Northwest and a few years back a couple in Seattle got in trouble because they lived in a 1.5 million dollar home and had been on food stamps for years.

If you have an iPhone and designer clothes you don't need food stamps.

Thats true you dont, but many people that are on them also have iPhones and designer clothes, its more a fact of life. Case in point, go sit in DHS for an hour and youll see everyone on a smartphone, wearing nice clothes, and women with nice purses sitting there waiting to apply for government assistance. Many Americans dont care about the morality of it. The government hands it out like candy, so they figure they are entitled to it.

 

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[Determined2012]

I've been seeing an influx of people using food stamps at Trader Joes and Whole Foods here in Chicago.

They get a TON of stares! I don't know if its because they want to eat organic/healthy, or if most people who used food stamps aren't thought of as people who care about what they eat. Either way. When you pay cash you have all chicken breast in your cart... when you have stamps you have lobster tails and wagyu in your cart! FML!!!

 

[StartupsRFun]

I've been seeing an influx of people using food stamps at Trader Joes and Whole Foods here in Chicago.

They get a TON of stares! I don't know if its because they want to eat organic/healthy, or if most people who used food stamps aren't thought of as people who care about what they eat. Either way. When you pay cash you have all chicken breast in your cart... when you have stamps you have lobster tails and wagyu in your cart! FML!!!

My sister used to work for WIC and now works as a dietitian, so she sees what a lot of these people on food stamps eat. She said many of them eat better than most people, because the food stamp program called SNAP has almost no regulation on what you can buy, minus alcohol and hot food. People can stock pile sodas, pizzas, chips, you name it. I guess a lot of people just use the card for their fun stuff, and buy the necessities with their own money. Im sure if the government cracked down on what people could buy, to just necessary foods like milk, eggs, bread, etc., then you would see a huge drop in users.

 

[KLaw]

uh.... what happens when your product ends up on tv for "welfare people spend money on stupid stickers not food" ya,
thats not going to go over well, as you try to scale.


this market has instant limits to its size, and depth....

go where the money is. its easier to play there and even if you F*ck up. you still can make money....

Z

I respectfully but totally disagree with all of the above. Who is it not going to "go over well" with? Certainly not the potential customers (welfare). It's a well known fact (maybe assumption might be a better word) that folks use handouts on wants just as much as needs.

How is this not where the money is at? How many folks get food stamps these days? Im guessing a lot.

I think you should create designer covers as well and market to all cc holders.

Good luck.

 

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[Kak]

There has been multiple times when I looked in someone's cart to see some stuff that looks really good. Then they pull out a lonestar card...

 

[StartupsRFun]

I respectfully but totally disagree with all of the above. Who is it not going to "go over well" with? Certainly not the potential customers (welfare). It's a well known fact (maybe assumption might be a better word) that folks use handouts on wants just as much as needs.

How is this not where the money is at? How many folks get food stamps these days? Im guessing a lot.

I think you should create designer covers as well and market to all cc holders.

Good luck.

Thanks, appreciate the advice. Ill look into credit cards, Im not sure if they have any type of regulation in terms of "de-facing" them, seems like that would wouldnt matter. Fashionable CC's, I like it.

 

[MitchC]

uh.... what happens when your product ends up on tv for "welfare people spend money on stupid stickers not food" ya,
thats not going to go over well, as you try to scale.

I can't really think of any better free advertising publicity than this?

Thanks, appreciate the advice. Ill look into credit cards, Im not sure if they have any type of regulation in terms of "de-facing" them, seems like that would wouldnt matter. Fashionable CC's, I like it.

Banks here offer to put your custom photo on your credit card for free, one lady I served had put a photo of her on it for security, genius!

 

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[KLaw]

True story - no embellishment at all. While I was in high school, I was a bag boy at a grocery store. This was 25+ yrs ago but I remember it like it was yesterday. On a Saturday night around 7pm, dude, wife, and 3 kids about between 1 and 8 yrs of age. They had 2 full carts of chips, steaks, pop, butter, tons of stouffers, hamburger, at least 15 frozen pizzas, etc.. You get the picture. These folks had decent clothes and a really cheerful demeanor. I loaded their groceries into a new model ford mustang convertible. They paid with food stamps at the counter. At this specific time, I didn't really think anything of it.

About 15 minutes later, dude, wife, 2 kids - maybe 2 and 5 yrs old. They had 1 cart about 3/4ths full. milk, butter, eggs, bread, ramen noodles, generic brands of laundry detergent and mac n cheese. You get the picture. These folks had working clothes on - landscaping shirt, waitress outfit. They did not look miserable but the whole family just looked worn out. I loaded their groceries into the back of an old ford pickup truck. They paid with cash.

A lot of these details I didn't notice at those specific times. It was maybe 15 minutes after I loaded the pickup truck that it hit me - there is something, absurdly wrong with what just transpired.

 

[Kak]

When I lived in waco... They used to try to sell the steaks in the parking lot for half off to turn the stamps into cash.

 

[KLaw]

I can't really think of any better free advertising publicity than this?



Banks here offer to put your custom photo on your credit card for free, one lady I served had put a photo of her on it for security, genius!

Good point. I actually have an OSU Buckeye themed debit card. But, I think I had to pay extra for that (about an extra $5 I think). I didn't know they offer totally customized cards.

 

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[KLaw]

When I lived in waco... They used to try to sell the steaks in the parking lot for half off to turn the stamps into cash.

The standard is 50% for cash. In other words, I give you 50 bucks you give me 100 in food stamps. Now, they get to buy alcohol and cigs and drugs on my F*cking money. Oh well, thats just the way it works.

 

[eqttrdr]

this market has instant limits to its size, and depth....

I couldnt disagree more..

this is the same market that spends $400 on a pair of sneakers to lick