Your
Marketing Dollars
by Gary Cole
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AMOUNT YOU SHOULD SPEND
There are many different opinions on this but in my opinion you should be
spending at least ten percent but not more than thirty percent of your gross
income on advertising. Make sure you are able to manage your growth and the
money given out is reaping a positive cash flow.
CASH OUT, CASH IN
This is the most important factor in your marketing. Every single time you
get a booking you need to ask the question... "how did you find out about
us". If you spend money in multiple areas (and you should) ask and
record the results. Keep a tally of how many bookings you get from each
source. At the very least, you should be breaking even on your dollars
spent. In other words, if you spent $60 on running an ad in the local
newspaper then you should be booking $60+ in additional revenue. Keep in
mind it is not just a cash out cash in thought. If you spent $60 then you
better be bringing in more than $60 as you have used your supplies, your gas
and certainly your time and talents. If an ad is not paying off then make
some changes or drop it all together.
DIVERSIFY
There are hundreds of ways to spend your marketing dollars and all should be
considered. It can be as small as getting more of your business cards
printed out and being more generous as you hand them out and leave them
everywhere. Post them everywhere you possibly can from the public library
bulletin board to leaving some at the local restaurant. There are family
magazines in most populated areas that target families. The ever present
Yellow Pages are a common way to advertise. When investing your money you
take a higher risk when putting your money in one stock. It is better t put
your money into a mutual fund for security because they tend to invest in
multiple stocks. This way if one company fails your whole portfolio does not
tank. The same applies to your advertising. Spread your money around for the
best secure strategy.
SHORT TERM VERSUS LONG TERM
If you run a one time ad in a city publication you have invested $50 to $100
and you can measure results with minimal impact. If that ad works out and
brings you in business then run it again. Yellow Pages can be very good for
some but know going into it that you are generally making a twelve month
commitment. At $150 per month you are already committed to $1800 and you
have no real idea that you can break even quickly.
GO SMALL OR GO LARGE
You can run a small ad and pay less or run a large colorful ad and be seen
first on the page. Obviously the larger you go the more it will cost and the
more it will take for you to break even. My suggestion is to start small and
grow your ad. Keep the best balance by always continuing to monitor and
track results. Sometimes you are better in making multiple small ads rather
than one large flashy one. I tend to stay closer to the smaller ads. In the
Yellow Pages I take almost the smallest ad available.
BE CAREFUL
Make sure you know what you are getting into. A couple pitfalls are common.
For example... with Yellow Page ads there might be multiple providers in
your area. Look for your target area and find out who the primary carrier
is. If most of the phones in your target area are with AT&T then you might
want to run your ad in theirs versus the Verizon Yellow Pages. Also make
sure of the target. If you only are willing to drive thirty miles from your
home then you do not want to pay for Yellow Page spots on those areas
outside that area. Most Yellow Page ads are charged by the number of areas
or books they go in to.
WHAT TO PUT IN YOUR AD
Flash versus detail is always a challenge. You want to put enough there so
they look at your ad but enough detail for them to call you first. Once you
start to advertise you will get a lot of people shopping for price. Or they
might have lots of questions. The more information you give them the quicker
they can come to a decision. Give them too much information and they will
move on to the next ad. Ask yourself what they are looking for. I suggest a
bright photo of face painting on a child to catch their attention and then
minimum details. If your rates are very competitive I suggest you state
"Rates starting at $XX" and plug in your amount. At the very least ad your
company name, your phone number and a web site. You might also add the other
services you offer if you do more than face painting. If you have a web site
put it in your ad as they can use it to do more research about you and your
company.
LOCATION LOCATION LOCATION
This might apply to a restaurant or a retail store but it also applies to
face painting. If you advertise where your competitor does, ask about
placement. If you are in the Yellow Pages it simply will be done
alphabetically. If it is in a magazine with twenty other face painters then
you want to make sure you are on page one and not page four. A typical mom
will call four or five locations and check out prices and services and place
her booking. If you are on page four then do not expect a lot of calls.
HINT: If it is a booklet it is better to post your ad on the right page
instead of the left.
GROW
A large oak tree started from an acorn. If you want an oak tree in the front
yard you can pay over $1000 for one more mature or $19.95 for one that will
grow. It is ok to start small and start to measure results. You can build a
starter web site for $25 or you can pay a geek thousands and have a flashy
site. In the end it will be harder to break even the more you spend. I
always say start smaller with less risk and if it pays off then grow it as
you see fit.
DO NOT BE AFRAID TO USE THE AXE
As you track your results, make sure you are not afraid to pull out the axe
and cut a non-producing ad. If it is not working analyze why and then make
your decision. Sometimes you just need to revamp it and try again. On some
ads you simply will have poor results. Cut the losses and move on.
DO NOT BECOME STALE
This is a common flaw. If you advertise often, you might consider changing
out your ad every once in a while. If it is a family magazine then you can
even say on even months run this ad and on odd months that one. In November
and December run this Holiday one. You want to roll with the seasons and
appear fresh.
THINK AND BE SMART ABOUT YOUR TARGET
I've seen so many people make this mistake. Do not do it. If your target
market is to do children's parties and face painting then use the photo of a
good looking child painted with a smile on their face. You might wish to
show off the photo of a body you painted in your ad but that is not going to
bring you children's parties. You might even have a wonderful thirty minute
face on a child and your ad bomb. The reason why is the mom is thinking...
"I'm not going to hire them as I want all twelve children at my party
painted in the time of the party. Faces like that, then only two children
will be painted." In my opinion you want to post your best five or six
minute face. Do not make it too complex as it will be a turn off.
LOOK AROUND EVER CORNER
There are a thousand ways to spend your marketing dollars. Always be open to
looking at new options. Start small in new areas and grow them as you
continue to explore.
SLING IT ON THE WALL
You all have heard the saying "throw it at the wall and see what sticks".
That applies to advertising. If you have a marketing budget and have a few
extra dollars left, try out a new location. That $60 ad in a new publication
might generate you thousands of dollars of business.
DO NOT BE AFRAID TO SAY NO
As you grow you will find ad opportunities will be able to find you. Think
of your target and where you want to grow or do not want to grow. Learn from
your mistakes. As an example we had some success in doing bar mitzvahs and
bat mitzvahs in our area for thirteen year children making this religious
Jewish rite of passage. We were approached about an ad in the publication
that is mailed out in our area and we thought we should try it out. Keep in
mind that we tend to not accept bookings for Sundays as most of our workers
prefer to not work on Sunday. Well for the Jewish faith Saturday is their
Sabbath and Sunday is their play date. After running our ad we found
out that most of the bar and bat mitzvahs are held on Sunday so we targeted
events we did not want to get.
UPSIZE AND NEGOTIATE
When you find a new advertising opportunity negotiate. Tell them your
corporate advertising philosophy. Did you forget it already? Your policy is
to.... at a minimum have revenue in, to pay for advertising dollars out. If
the ad works it stays, if it does not it gets cut. Tell them this and you
will be surprised that you get a top location or they give you an upgrade in
the size of your ad for free as they know you will pull the ad if it has
poor results. Also for the first ad they might give you an introductory
rate. Ads have volume breaks. You pay one price to run your ad for one month
and a much lower rate if you run it twelve months in a row. For a first run
ad they often will let you have the trial first month at the twelve month
rate. For Yellow Page or other ads look at price points. There might be
great savings if you pay for the whole year up front versus monthly billing
cycles.
LOOK AT THE FINE PRINT
Make sure you read the contract you are about to sign. Do not commit to
anything you are not sure about. Start small and then grow. That Yellow Page
ad will want their money each month for a year.
ARE YOU SURE?
Do not run an ad if you think you are going to move, change your phone
number or the like.
MANAGE YOUR GROWTH
Once you spend money for marketing make sure you can meet up to the results.
If you post a low price then they will cram it down your throat. Do not say
$60 per hour if there are lots of variables. It might be better to say,
"prices starting at $60." If you are a solo painter then be ready to
duplicate yourself or be in four places at one time. It makes no sense to
advertise if you have not thought of how you will manage the new business.
BANG FOR THE BUCK
Make sure as you track results you look at cost versus value. Some times the
lower cost can bring you easy payoff. For example a $10 listing at
www.rubyredpaint.com/free.htm might
bring lots of people to you. Add another $5 and get a premium listing. That
is a one time fee for the posting and you can take advantage of the
144,000,000 hits the www.rubyredpaint.com
web site gets each year. Low costs to try something new. It only takes a
typical face painter fifteen minutes worth of painting to pay for that ad.
TOO GOOD TO BE TRUE
If they promise you great results for low costs then get the "promise" in
writing. Yellow Pages will tell you they send out 5,000,000 books in your
area. Then again when was the last time you looked for something in the
Yellow Pages? I throw mine away. I'll add that I still advertise there as I
know just because I toss them it does not mean that others do not use them.
ASK OTHERS
Use the discussion list for face painters what works for them. You can sign
up at www.rubyredpaint.com at the bottom of
the page. Give your companies specific details and ask what works to meet
your business model. Learn from others success and mistakes. There are lots
of pitfalls in advertising and you want your hard earned dollars to give the
best future results.
Gary Cole
Owner of Ruby Red Paints USA Inc. and Party Faces Inc. in Dallas / Fort Worth
TX