Running a storefront like I do, I require a lot of local advertising through newspapers, magazines, coupon books, direct mailing, etc.
These forms of advertising are most often ridiculous. Not in the aspect that they don't work, but the aspect of the Return On Investment. For a $250 dollar 1/4 page ad in a local 'coupon magazine'. I will maybe get 1-3 phone calls. That means if I get 1 phone inquiry it cost me $250 and if three call: $84 a piece. (These numbers are even worse if I get a phone call that is fumbled.. such as one of my employees answering and not scheduling an appointment.)
I can't go a day without hearing the phrase "well, you know how the economy is..." Especially from people who have absolutely NO clue what they are even saying.
I don't buy it for a minute that the "economy" is as poor as everyone says. Like we have discussed before, it's just America getting back to being more efficient. But... you know what... if everyone is willing to believe it, I will use it to my advantage....
I have made a new year's resolution myself. I will no longer allow these advertisers to jerk me around like they do.
You're HONESTLY telling me that a 1/4 page ad costs $250... that's the BEST price you can give me?? Now I'm sure printing charges are not too expensive, especially for these shops that do their own, or have a long term agreement locked in. Of course you have other expenses but every advertiser that comes to meet with me is usually driving up in an expensive car, a well tailored suit, and jewelry that would make Paris Hilton jealous.
From now on I will use the excuse of the economy... hell they bring it up first usually... If I don't advertise it's not the end of the world for me. So I will bite, I will scratch, I will kick and scream until they lower the price to AT LEAST 50%. If they don't want the dollars they can leave the spot empty. They get nothing with empty spots. If they can fill it with somebody else, go right ahead, I know you'll be calling and asking me again next month!
So today was my first successful first steps of how I am handling my advertising. This is a new process for me so I'm sure it will have some kinks in it.
Step 1. Get in front of the advertiser(they should be coming to you - not the other way around), make sure they know you are not the ultimate decision maker (even if you are).
Step 2. Get them to talk themselves into a discount. Usually if you say nothing they end up saying at some point "Well, you know, I'm supposed to do this but I can give you a discount on this add too". (The point is to not talk. Hard for me to do! Ha ha)
Step 3. Ask: "Is this my best price?"
If they say yes, move on to step 4.
If they say no, repeat step 3 until they say yes.
If they side step the question and start talking about how many people are going to see your ad and how valuable it is, ask again.
Step 4. Ask what other discounts are availible.
Step 5. Once they settle on a price, ask them for a bigger sized ad for the same price. OR the same size ad you have for the price of an ad smaller (PLUS the discounts).
Step 6. Ask what the PIF discount is.
Step 7. Ask for another 20% off the finalized rate.
Step 8. Let them know you have to clear it through management or your superiors, business partner, whatever.
Step 9. Write out a check for the amount finalized on minus the 20%. The check is written, it's a solid firm offer, no more haggling. Say "This is the check my business partner wrote. Can you do it for this much?" Then their answer is either yes or no. If yes, great. If no, WALK AWAY. Two things have happened. You have found their limit for the future AND you still might get them to bite after you walk away. They won't normally decline money if the check is written and being handed to them.
I did this today and it worked great. Got a 4k somethin yellow page ad for 2,300. Not bad...
Hopefully you guys feel the same way. Make sure you get your money's worth. I know I've been overpaying for advertising for a long time. Too long.
:smx2:
These forms of advertising are most often ridiculous. Not in the aspect that they don't work, but the aspect of the Return On Investment. For a $250 dollar 1/4 page ad in a local 'coupon magazine'. I will maybe get 1-3 phone calls. That means if I get 1 phone inquiry it cost me $250 and if three call: $84 a piece. (These numbers are even worse if I get a phone call that is fumbled.. such as one of my employees answering and not scheduling an appointment.)
I can't go a day without hearing the phrase "well, you know how the economy is..." Especially from people who have absolutely NO clue what they are even saying.
I don't buy it for a minute that the "economy" is as poor as everyone says. Like we have discussed before, it's just America getting back to being more efficient. But... you know what... if everyone is willing to believe it, I will use it to my advantage....
I have made a new year's resolution myself. I will no longer allow these advertisers to jerk me around like they do.
You're HONESTLY telling me that a 1/4 page ad costs $250... that's the BEST price you can give me?? Now I'm sure printing charges are not too expensive, especially for these shops that do their own, or have a long term agreement locked in. Of course you have other expenses but every advertiser that comes to meet with me is usually driving up in an expensive car, a well tailored suit, and jewelry that would make Paris Hilton jealous.
From now on I will use the excuse of the economy... hell they bring it up first usually... If I don't advertise it's not the end of the world for me. So I will bite, I will scratch, I will kick and scream until they lower the price to AT LEAST 50%. If they don't want the dollars they can leave the spot empty. They get nothing with empty spots. If they can fill it with somebody else, go right ahead, I know you'll be calling and asking me again next month!
So today was my first successful first steps of how I am handling my advertising. This is a new process for me so I'm sure it will have some kinks in it.
Step 1. Get in front of the advertiser(they should be coming to you - not the other way around), make sure they know you are not the ultimate decision maker (even if you are).
Step 2. Get them to talk themselves into a discount. Usually if you say nothing they end up saying at some point "Well, you know, I'm supposed to do this but I can give you a discount on this add too". (The point is to not talk. Hard for me to do! Ha ha)
Step 3. Ask: "Is this my best price?"
If they say yes, move on to step 4.
If they say no, repeat step 3 until they say yes.
If they side step the question and start talking about how many people are going to see your ad and how valuable it is, ask again.
Step 4. Ask what other discounts are availible.
Step 5. Once they settle on a price, ask them for a bigger sized ad for the same price. OR the same size ad you have for the price of an ad smaller (PLUS the discounts).
Step 6. Ask what the PIF discount is.
Step 7. Ask for another 20% off the finalized rate.
Step 8. Let them know you have to clear it through management or your superiors, business partner, whatever.
Step 9. Write out a check for the amount finalized on minus the 20%. The check is written, it's a solid firm offer, no more haggling. Say "This is the check my business partner wrote. Can you do it for this much?" Then their answer is either yes or no. If yes, great. If no, WALK AWAY. Two things have happened. You have found their limit for the future AND you still might get them to bite after you walk away. They won't normally decline money if the check is written and being handed to them.
I did this today and it worked great. Got a 4k somethin yellow page ad for 2,300. Not bad...
Hopefully you guys feel the same way. Make sure you get your money's worth. I know I've been overpaying for advertising for a long time. Too long.
:smx2:
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