Co_Op Advertising

Discussion in 'Business Operations' started by thomaslawn, Dec 28, 2006.

  1. thomaslawn

    thomaslawn LawnSite Member
    Posts: 88

    We are in the process of figuring out our advertising budget for 2007, and we came up with the following idea. In certain zip codes there are roughly 500 new home sales per month. There are already "welcoming services" established in our city but they do not offer the following unique idea.

    We will deliver a black Roldex card book containing 72-96 business cards from local businesses to each new address. Each card book is very profesional looking and is something I believe a new home owner would look through and keep around. (As compared to most of the junk you get in the mail.)

    We would deliver these books every month and charge the participating businesses 15 cents for a spot in the book. That is 15 cents per address delivered. Our business card would be placed in the front cover of course.
    The book would also be accompanied by a letter which has all of the names and numbers of the participating businesses. What do you think? Any comments would be greatly appreciated. Thanks.
     
  2. metro36

    metro36 LawnSite Silver Member
    Posts: 2,412

    We got something like that from the homeowners association when we moved in to our condo. We never really used it though.
     
  3. Allure

    Allure LawnSite Senior Member
    Posts: 426

    how much does the rolodex cost?

    would you be limiting it to one plumber, one lawn service etc per book? If so, do you think there are 72-96 unique business types in the area? If not, how will you convince people to advertise along side their competitors when they could easily target those homes themselves with door hangers etc.

    at 72 cards per book, it would only generate $10.80 per book in fees. that has to offset the cost of the book as well as the time to assemble it, delivery etc..

    How much does it cost to acquire a mailing list of new home sales?

    Would they be delivered by hand or mailed? If by hand, how long will it take? if mailed, how much will it cost?

    15 cents sounds incredibly low to me to cover all of the costs.

    just throwing some questions out there.
     
  4. thomaslawn

    thomaslawn LawnSite Member
    Posts: 88

    Thank you for the feedback, sorry for the delayed response we were out of town for the weekend.

    Allure, to answer a few of your questions: You bring up some great points, .15 cents per copy is too low. The minimum should most likely be .25 per book.

    The 96 card Rolodex is $6.93
    This equals $24.00 per book
    Subtract the cost of the book, mailing and mailing list cost and I figure on a net profit of rouhly $5-7.00 per book.

    It would be very difficult to sell unless I allow only one "profession" in each book. I am in a very large marketplace, however it will be challenging to find 95 different professionals to fill the book.

    My main question is, do you believe there is a strong enough value proposition for a perspective advertiser to make this work?

    Thanks again for your input, it's greatly appreciated. Happy New Year.
     
  5. Team-Green L&L

    Team-Green L&L LawnSite Bronze Member
    Posts: 1,776

    I have been thinking about this for days now. I would have to say, if you presented the idea well to me, I would pay .25 a book for placement. The book should be easy to navigate, have sections defined by needs, and I would consider sending them to places WITHOUT HOA's. The HOA's will be doing something similar and yours will be less creditable because of their new-found relationship with their community.
     
  6. thomaslawn

    thomaslawn LawnSite Member
    Posts: 88

    Thanks for your input Andrew, I was just in Cincinnati over the weekend. We took the kids to the Children's Museum at Union Terminal.

    The Rolodex would be accompanied by a "Table of Contents" sheet which would list the advertisers and their page numbers in the book. The Rolodex is very professional looking and I believe it is something the homeowner would keep around.

    Thanks again!
     
  7. Team-Green L&L

    Team-Green L&L LawnSite Bronze Member
    Posts: 1,776

    You may want to consider catagorize the book in "subject" form for easier navigation. If I have a broken window in my new home, I will pick up a Yellow Pages before I do a White Pages. Format is detrimental.
     

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