You get what you pay for

Have you ever bought something just because it was cheap? Did you regret the purchase after a while because you realized why it was so cheap?

I can buy a used Datsun for $140, or I can buy a used Honda for $2500.

They are both "Cars", why would I buy the Honda for $2500 when I can get a "Car" for $140???

You may come across this in your line of work. Someone selling something similar to your product/service cheap. You understand the value in your product/service, but the customer just thinks they're the same and is going to get a "great deal!" You know that your product/service is $4.00 more, but it is more of an investment.

I often come across this in my line of work. Someone willing to sell a "commercial" cheaper than my commercial on Broadcast TV.

A couple things to remember:

• The cost of a commercial has nothing to do with the cost of acquiring a new customer


• In your advertising, you are buying eyeballs, not commercials


• Invest in the media that gives the most efficient way to reach those eyeballs


• Compare your advertising on an Apples to Apples comparison


• What does it cost to reach a 1,000 of your potential customers?


• Not on how much a "spot" costs, that has nothing to do with your advertising being efficient and becoming an investment rather than another expense!


• When the politicians have one chance to win the votes of America, what media do they choose to use? BROADCAST TV.... BECAUSE IT WORKS AND IT'S EFFICIENT (sorry that was a soft sell, but the truth!)


• What is the reason why they are selling their product so "cheap?" Is that what it's worth?

Long story short, don't be fooled by the cheap price of something. Ask yourself: "Will this be an investment or am I just buying something because it looks so cheap?"

Let's talk about Bathrooms

I recently went on a long road trip to Arkansas and back. So I had a little time to think about things during my 27 hours of driving.

When I am driving, I usually plan my rest stops according to my bladder. With that being said, it is nice to stop at a gas station that has clean restrooms. And as you probably know, it is like playing roulette trying to find a gas station with clean restrooms.

With all that being said, if I were to open a franchise of gas stations, I would seriously name it "CLEAN BATHROOM GAS STATION". Yes, I know it's an odd name, but I guarantee that you understand what you will get at my gas station. You can get gas at every gas station, however at mine you will get clean bathrooms. (And most people on a road trip use the bathroom at every stop, right?) Would you go to my gas station with a guarantee of clean bathrooms, or go someplace else?

Why not differentiate from everyone else and be known for something.

Orville Redenbacher said something that has stuck with me: "Do one thing and do it better than anyone else".

Does your name let customers what you do? What you stand for? Why they should call you?

How about these names: One Hour Plumbing, $3500 autos, Fix your PC cheap, White smile Dentist, Best Price Flooring. Can you think of any others?

How do you track your advertising?

When was the last time you went to Best Buy, Walmart, or Mc Donald's and said "I am here because I saw your advertising and it got me to come in"?

I had a client who told me after a month of advertising that his sales were up dramatically. However only half of them said they were here because of the TV commercial.

Instead of tracking your success that way, you should only track your advertising by the cash register!

Think about yourself, do you enjoy filling out those questionnaires? Do you always answer the truth? Do you say, yes I saw your yellow page ad 3 years ago, then a I heard your radio commercial last June, then I drove past a billboard a few months ago, and I also saw your TV commercial last week, then went to google, and then I called you!

Think about it.... That is probably the buying cycle of a lot of your customers. Which media gets the credit for that?

I am not saying this because I don't want to be held accountable by my clients for their advertising. Today more than ever we need to be accountable for results. I am just saying take a step back and think about what is more important: your customers saying your advertising is great, or the cash register ringing????

Track your advertising by immediate and long term sales with the cash register.

Spend at the level you want to be at

Insanity: doing the same thing over and over again and expecting different results. - Albert Einstein

I meet business owners who want to grow thier business to a very high level, but are unwilling to spend at the level they want to be at. Let me give you an example:

A car dealer spends $200 on average per car, on advertising to sell it. He is selling 50 cars a month, so his total advertising budget to move 50 cars a month is: $10,000.
His goal is to sell 75 cars a month. This goal is very attainable, however the client simply wants to grow without adding more money to the budget. If you want to be selling 75 cars a month you will need to spend $15,000. ($200 per car x 75 cars).
This is the same in many businesses, decide what you are spending NOW per each new customer and look at your goals. Spend at the level that you want to grow to.

• One note on this: Often you can lower your acquisition of a new customer through better creative and being more focused with your advertising dollar

You have heard the above quote already, but it does also relate to growing your business!

Advertise in a recession????

This is an article from a former colleague of mine. His name is Joe Kidinger and shares and writes similar articles to what I discuss. I thought this was important to share:

Advertising in a Recession

There’s a car dealer on the west side of the state. Yes, I said a car dealer. Ya know, that industry that has been slammed by this downturn in the economy. They have seven lines of new vehicles as well as used. They have the typical service and body shop you would see at any other dealership. Yet this dealership is special.
It’s special because the people who run this dealership have a drive and commitment that is rare in these turbulent times. Their commitment to service is top notch. I heard it myself when the president stood up in front of his leadership team in the beginning of 2009 and said, “We’re in for a rough road. We’re going to run leaner and better than ever before. I need you all to find ways to work leaner without sacrificing service. And though we’re looking for areas to cut, advertising will not be one of them.”
You see this company made a commitment to continue to tell customers about the savings they can expect with their tire program, the service they can expect from their technicians and the overall benefits of doing business with them. It’s true, sales were very tight the first half of the year. However, after three years of being 100% consistent with their message and media coverage, the bottom line began to rise and continues today.
If you’re ever in the La Crosse/Onalaska area, stop in at Dahl Automotive. They get it when it comes to focusing on the customer and their brand. By the way, they’ve recently added Mazda to their lineup and have expanded their downtown location. Perhaps nobody told them we’re in a recession!
Joe Kiedinger
ACTION PLAN: Do you have vision and perseverance? Now is the perfect time to gain market share. Contact me and I’ll help you.

The Guru of Ads

Here is a great resource for local TV advertisers. Don Fitzgibbons gives you 14 rules to follow for success with local TV clients. WATE is lucky to have his services. Take a look at the site, it also gives you examples of good and bad local commercials: http://www.guruofads.com/guruu/select.html

Andrew Edens added you as a friend on Facebook...

You may recognize the Headline, if so you are involved in Social Media.

I NEED AND WANT YOUR HELP

I am on Facebook, I have posted videos on YouTube, I just started a Twitter account. I see how it can be beneficial to make friends and keep in contact with friends and family.

However, I don't fully comprehend how to make it work for a local business. I have read articles and done some research, however I want to hear from you! Have you used any Social Marketing Media for your business, why or why not?
I will continue to learn more and someday speak knowledgeably to my clients about how to use it to increase business. Until that time I will ask for your real world opinions and do more research.

I know there are benefits to a business if it's done correctly and enough time is devoted to it.
Thanks for taking time and letting me know your thoughts.
Just click on the comments below and leave a comment, or email me directly at aedens@wate.com Thanks for your help!