(Add to Favorites | View All Articles | Resource Directory)
|
|
|
Share Ad Expenses to Boost Profits
The challenges of the small business owner are well documented. They must battle for market share against larger competitors, run all aspects of their business, and even pay higher rates for advertising and other marketing related expenses. Small businesses generally do not qualify for volume discounts when it comes to buying advertising space or marketing materials, and thus they end up paying higher rates for the same ad space or marketing materials purchased by their corporate counterparts. In recent years, there have been some changes in the marketplace that are of benefit to small business owners. For example, Internet procurement sites have emerged offering discount rates on everyday office supplies such as toner or paper. However, the high cost of advertising has not been formally addressed. That's why many small businesses are taking matters into their own hands and joining forces in marketing "co-ops". Here's an example of how it works. Andy's Accounting Firm and Larry's Legal Firm are both small businesses operating in the business-to-business sector. Andy services small businesses with their accounting needs, and Larry is a lawyer specializing in small business issues. Andy and Larry both wish to purchase advertising space in a popular small business magazine. The rate they are quoted individually is $5000 for the back page of the magazine. Since they are not repeat advertisers, neither Andy nor Larry receives any kind of discount. So how do they save money on this advertising venture? A co-op approach on one of two fronts will cut their advertising costs significantly: Share the ad: Since they are not direct competitors, Andy and Larry could split the ad space 50/50, acting almost as if they were partners although their businesses are distinct. This drops the cost to $2500 for each business and they still receive broad exposure in their chosen publication. In fact, by putting their heads together they should be able promote their collective business expertise as "Total Solutions for Small Business". Purchase separately at a discount - There may be some occasions where a business does not wish to share its ad space. Even in these cases a co-op approach can offer a lower cost. Andy could call the publication and ask for a quote on the back page for next month. Once the price of $5000 is quoted, he then offers the publication a deal "What if I bring on another advertiser for you. Would I get a small discount?" Most publications live or die on the sales of their advertising space, and are usually willing to offer someone like Andy a 10% discount for bringing someone like Larry in to purchase an ad elsewhere in the publication. Andy and Larry split the savings and Andy ends up paying $4750 for a $5000 ad. Although the savings were smaller in this case than the shared ad example, remember that Andy now has the entire back page to himself and saves $250. Advertising is not the only example of co-ops at work. Web Designers would jump at the chance to line up two clients in one shot, and would likely offer a discount to do so. The same applies to a printing company that prints brochures or business cards. The possibilities are endless, including the size of the co-op you choose to join. When faced with a major advertising buying decision or the need for new marketing materials, find out how much you will have to pay as a small business. Then form alliances with similar small business, and negotiate a better deal for all parties involved. About The Author Will Dylan is the Author of Small Business Big Marketing and owner of www.marketingyoursmallbusiness.com. Will also offers article and news release writing services through his website. You can contact Will at askwill@marketingyoursmallbusiness.com
MORE RESOURCES: News provided by Yahoo! News and Google News Loan tap tight for small biz, especially startups - New York Daily News 'BusinessWeek' Axes 25 Staffers - Media Buyer Planner Small biz loans down in Crawford County - Bucyrus Telegraph Forum Tories pat small biz heads in open source IT procurement pledge - Register State gives online lift to small biz - Albany Business Review Small Biz Spotlight: Slide to Play (Pt. 3) - Technorati (blog) Small biz ready to hire with increased risk appetite: study - Toronto Sun Go big-time with small biz - The Newark Advocate US Admin Offls: Export Initiative to Help Small Biz Efforts - Market News International Kagen Holds Roundtable To Hear From Small Biz Owners - Sheboygan News (blog) |
|
|
|
RELATED ARTICLES
Franchise Territories for Mobile Businesses; Why Limitations In franchising an individual desirous of their own business will sign on with a franchising company and use their brand name, know how and expertise to make a living. The franchisor will generally assign an exclusive territory with limitations. Improve your odds of getting that Small Business Loan To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria. Putting PR "magic" to work for your small business Why? Because they have access to world class public relations no matter how small they are.That's one way of saying, take care of your key target audiences, Mr/Ms small business owner, and they'll take care of you. Get Approved for a Franchise Deciding to start your own franchise is just one of the first steps to getting started. Buying a franchise is a lot like dating. The Key To Success - Choose The Right Partners Do you promote yourself as offering prompt, reliable and quality service?Of course - none of us promote ourselves as anything less, and equally we strive to provide this level of service all the time.So what happens when you take your networking to the next level, and start to offer referrals, or even establish partnerships or alliances for certain activities?Whatever you do at this point creates significant impact on your business and personal reputation - potentially positive and also potentially negative. How to Effectively Design Your Business Image In many industries, image is one of the last things business owner looks at. If business is not booming, they assume there is something wrong with the sales method, as opposed to the image. A Gift Basket Home Business is an Easy Way to Wrap up Profits You want to know more about making money with your own gift basket home business. You are a creative person and want a career that you can control and find rewarding at the same time. Using Technology to Manage Customer Loyalty Don't let your customer satisfaction research initiative collect dust on a shelf. Integrate technology with research to optimize the use of customer information. Finding the PERFECT Alliance Partner Where do you look for the appropriate alliance?One of the most asked question is "Where do you find a good alliance partner?" It is actually fairly easy. You can find potential alliances by taking some time to research potential partners. Eight Ways To Improve Your Companys Cash-Flow - TODAY! Cash is the lifeblood of any business. As humans need air to breath and food to eat, your business requires customers that provides the primary substance that keeps a business in business: cash. Franchise Territories are Generally Delineated On a Map; Why? If you own a mobile service or home based franchise your exclusive territory will be delineated on a map in the attachment of your franchise agreement. You will be assigned generally a single city, county or region and another franchisee or team member of the same system will not compete with your although may be right around the corner. Serious About Writing A Business Plan... Start A Business Plan Library Tap these treasures of ideas. The best money you can spend is money invested in your business plan education. The Number of Pages in the UFOC in Franchising is Still Growing Today Today required franchise disclosure documents are over 200 pages generally. How many pages do you think the Uniform Franchise Offering Circular; UFOCs were 35 years ago for these ten-foot tall pillars of the franchising community like Kroc, Monhan and Rosenberg founded their companies? They were of course the founders of McDonalds, Domino's Pizza and Duncan Donuts. Cashing In Your Chips & Pastures New No, I'm not talking about gambling or dairy cows - although business is often referred to as a gamble, I'm referring to your exit strategy. That time when you decide to 'play no more' and go off and practise your golf swing. Pressure Washer Companies and Steam Cleaner Maintenance If you run a pressure washing business it is a must that you understand and take care of your equipment. It is your livelihood. Treat everything you do as a project Do you operate your business as a series of projects, using project management tools and skills to advance your projects from conception to completion? Or perhaps you're new to project management tools and skills and haven't considered applying them to your own business? Most of us fall somewhere in between.Running a productive and efficient business, whether for one person or for 500, is a series of projects of various sizes and complexity. Do Your Best; Hire the Rest One of the hidden perks of raising six children is the learning laboratory it provides for the parents. My wife and I have learned how important it is to teach our children to do things for themselves and become problem solvers. Mobile Detailing VS Fixed Site Detailers Mobile detailers will find themselves with lots of competition even if they do not see them around town. There are also many fixed site detailers who specialize in wholesale detailing or the retail detail or both. Mobile Detailing Environmental Concern in the Deep South Macon, GA goes after garage-gas station conversion detail/hand car washes for allowing storm drain pollution. I can remember a time when we were in the Macon GA. Small Business Survival In today's economic climate, the first priority for the small business entrepreneur is survival. A glance at newspapers, business journals, or cable news channels reveals a succession of corporations striving to stay on top of their game, and often failing, to slow the growth of outsourcing or to show real growth within their market space.
|
| home | site map | articles |
| © 2006 |