How can the weird advertising strategy employed by the walk-in tax prep places be worth it to the owners?

March 27, 2010 7:42 PM

How do the economics of hiring minimum-wage sandwich board carriers work?

A nationwide strip mall tax preparation joint near me hires people dressed in cheap Statue of Liberty costumes to hold signs (and dance with them) at the corner of the major intersection near their location. They appear to do this at all their locations (there are quite a few here), and have the dancers going pretty much during all their open hours from February through April 15th.

Our minimum wage is $7.75, so I assume the sign holders must earn between that and $10 an hour (the weather conditions are pretty crappy) and must also cost their employers additional money for payroll taxes, worker's compensation and so forth. There's often more than one statue per corner, and the places seem to be open 10 or so hours a day. How can this possibly be worth it to the employer?

I understand that maybe for pizza places or sandwich shops, this kind of advertising might cause people to impulsively pull into the parking lot and get whatever special they were advertising, perhaps enough that it might make a positive difference in a shop's bottom line for the day. But for taxes? Do tax prep places get that kind of walk-in or walk-by business? Do people go home, grab their shoeboxes of receipts and base their tax preparation decision on who has got the best-costumed dancing statue? The owners of the tax prep places must think this works, otherwise they wouldn't do it, I guess- but why does it work?

If you have worked for one of these establishments, or been a franchisee, or know more than I do about them- how does the cost/benefit of hiring the sign holders work? Do enough people choose to bring their taxes there because of the sign-holders alone that it makes a significant difference in the bottom line? Is the theory that people just don't know any place to go for tax help, and when they decide to go someplace they'll just go to that place since they happen to know it exists because of the dancers? Or do you know details of a similar sandwich-board situation that might help me understand how this strategy functions a little better?

I apologize for how ridiculous this question sounds, but I have been wondering this for ages and I would love any insight.

posted by charmedimsure to Work & Money (13 answers total)

From what my restaurant-biz pals tell me, you don't hire a new person to wear the costume--you just use one of your existing ones (and you might pay them out of petty cash or in food or something). And you don't put them out there all day--just during rush hours.
posted by box at 7:55 PM on March 27, 2010

I've seen the same guy working a corner in a big hot statue of liberty costume morning noon and night. He looked rather homeless, and this was in oppressive San Antonio heat, so I assumed they hired "day laborers" from the Lowes across the street.

I assume they made it worth his while, I mean it was 100 degrees and he's out there working it hard in a costume. I watched his whole dance and action set while I ate lunch one day. I just assumed he was homeless and any paycheck is better than no paycheck.
posted by sanka at 8:02 PM on March 27, 2010

I have done something like this before. I was hired for a four hour shift, through a temp agency. The temp agency charged them about $15 an hour, and payed me about $7 an hour and took care of taxes and social security etc. I don't think any of these places send someone out there for a full day of sign waving.
posted by idiopath at 8:04 PM on March 27, 2010

Response by poster: To be clear- I understand why it is worth it to the sign-waver; any job is better than no job, and the people who do it usually seem to be members of marginalized sections of society- teenagers, people who appear to have led really, really hard lives, etc.

At least at the place near my house in particular, it really does seem like any time they're open during tax season- I drive by there at 10 AM, noon and 3 PM in the course of my day at work, and there's always someone slogging away, getting splashed with melt water from cars.
posted by charmedimsure at 8:24 PM on March 27, 2010

Here in South Dakota there is a program where high-school students receive 250 hours of payed work experience through the state. (This is part of a program to assist mentally or physically challenged individuals.)

I think that the state offers a program like this for mentally/physically challenged adults as well.

What I do know is that the business that sets up the work experience for the individuals with a handicap will work with our local tax place to put the sandwich board statues on the corners.
posted by 47triple2 at 8:28 PM on March 27, 2010

Best answer: Actually a lot of your questions could be asked about any advertising tactic for any product. Why are there beer ads on the radio during the morning rush hour? Who is going to pull over and hit the bar on the way to work? It is about getting the name of the place out there. Like a lot of advertising they're trying to plant the idea in your head. If you see that guy on the corner ever day and you're still trying to figure out who should do your taxes you just might go there. Those guys have a fraction of the ad budget H&R Block have so they have to work with what they have. They're probably also stuffing fliers and sending out some direct mail. I don't think anyone will go to that place because they have some affinity to the guy in the statue of liberty suit outside (and were driving around with all their receipts and paperwork). No, they go there because they need their taxes done and they're aware of the service. That guy outside in the silly costume made them aware of it. (now, many people would be turned off by this strategy thinking they probably can't do a good job with such a silly ad campaign. but people are buying a shitload of insurance from a gecko these days versus the frumpier campaigns of other guys).

Does it work? Well, they keep doing it year after year. Unlike some vehicles it would be very easy to test if it does. On a day with a the guy out front there are X walkins. Guy isn't there and we have Y. If X > Y + the cost to pay the guy in the suit, then keep doing X. For all we know they could be getting a much better ROI than H&R Block with their huge TV campaign.

90% of advertising money is wasted. The trouble is figuring out which 90% is working and which isn't.
posted by birdherder at 8:30 PM on March 27, 2010 [3 favorites]

Best answer: I used to work at one of those places (as a tax preparer) and often the costume wearers were paid cash under the table.
posted by Jacqueline at 8:33 PM on March 27, 2010

In my town, one person who would stand outside in a costume all day turned out to be a convict wanted in another state - I'd assume he was definitely paid under the table, and that was the appeal of the job. Maybe it was just a don't ask / don't tell situation.

Anyway, even before the convict thing came out, it earned the store a lot of attention. Like any advertising, only more eye-catching.
posted by Solon and Thanks at 8:59 PM on March 27, 2010

There's been folks in costume here in Fairbanks, too, even at 15 below. What a crappy job. I didn't realize it was a nation-wide thing.
posted by leahwrenn at 10:28 PM on March 27, 2010

I agree that it's about awareness. I used to drive by one of those places every day on my way to work, and if I'd needed my taxes done I probably would have went there, because I knew it was there. I wouldn't have noticed it were it not for the stupid costume dude. I know that H&R Block exists, but I didn't know where their office was, and if I don't think there's much difference between them and the statue people, then I'm not going to waste time looking up their location. Especially if it turns out to be further away.
posted by desjardins at 10:28 PM on March 27, 2010

Best answer: I'm working for that franchise as a tax preparer this season and it really is all about the visibility. Also, our "wavers" sometimes hand out coupons or silly foam visors and try to engage people by asking them whether they've done their taxes yet. When people come in to get their taxes done I have to ask them how they found out about us and probably half of our customers mention the wavers.

Both the wavers and the people who walk around putting coupons in mailboxes are paid legally - at least at the office I'm working at - and are generally students or people on disability or in transitional housing.
posted by bendy at 12:29 AM on March 28, 2010 [1 favorite]

From their career page, here is their spin on it:

Get paid to wave! And listen to music while you work. Audition to be our famous Lady Liberty and help us build our Liberty brand. Energy and enthusiasm a must! This is a part-time, seasonal position with Flexible hours. We welcome students!

They get paid $8/hr in NC, so slightly above minimum wage.
posted by smackfu at 6:51 AM on March 29, 2010

Response by poster: Thanks, everyone, both to the speculators and to those currently working at one of those joints. I feel better having a sort of answer (HALF the business from the wavers! Who knew?).
posted by charmedimsure at 11:28 PM on March 29, 2010