new form of advertising

Discussion in 'Business Operations' started by JKOOPERS, Nov 15, 2005.

  1. JKOOPERS

    JKOOPERS LawnSite Bronze Member
    Posts: 1,259

    i just got a call about advertising on the carts at local grocery stores. has any tried this before and if so how well did it work . the store easily gets from 15000 - 20000 costumers per week .
     
  2. stevesmowing

    stevesmowing LawnSite Senior Member
    Posts: 847

    thats a very interesting idea. I like it. It is not only easy for you but the people shopping there are all from the same town most likely. I know in my town about everyone goes to one store. How much do they charge for it?

    Here is an idea I had. In the spring sign people up on a contract with a $50 or more cancellation fee. However tell people when they sign up they get a $50 bill. Just add $1-2 on to the rate per cut for the year. I know it sounds kind of crazy but do you think it would work? I think the biggest thing is making sure you are covered legal wise and don't get people to sign up and then cancel without them paying their cancellation fee.
     
  3. JKOOPERS

    JKOOPERS LawnSite Bronze Member
    Posts: 1,259

    the good thing is that there would be 2 ads on on the cart . one on the kid seat 6 1/2 " x 8 1/2 " and one on the front of the cart 8 1/2 x 11 " . the cost is anywhere from $150 - $500 per month depending on size.
     
  4. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    As a rule, if the advertisement requires that a commissioned sales person sell it, it is not a good investment.

    At least, thats how its worked for my business.

    Later,
    Books Worst Enemy
     
  5. JKOOPERS

    JKOOPERS LawnSite Bronze Member
    Posts: 1,259

    actually i spoke with the guy that owns the company . i told him i would with him tomorrow sot see what he has to offer .
     
  6. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    $150 per month is too much, in my opinion. $500 per month is insane...you'll never recover that.

    Remember, in our industry, the advertising will only bring new customers 8 months out of 12. For four and half months, with paid advertising like this, you are paying for absolutely nothing.

    Wish our industry could demand these kinds of terms from our customers, but we all know that is a pipe dream.

    We spent about $22K this year in advertising. Some of it, with 20/20 hindsight, was smart. Some of it was dumb. So next year we will only spend the money on the smart methods.

    Last year's customer acquisition cost was right at $127 per customer. We're hoping that number can come down to the $75 range for '06. A lot of the reason the number is so high is because we are paying for yellow pages and online advertising that generates nothing for 4.5 months per year. We also had a crew leader that was stealing walk up business all year and we never realized it until the season was over. Hopefully, that won't keep happening with the replacement. We will be monitoring the success of those year round advertisements very closely next spring. So far, the pay for 12 month advertisements are not looking good for renewal.

    Later,
    Books Worst Enemy
     
  7. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    Do yourself a favor and don't meet with the sales person. It is a pressure situation. Once you sit down with the sales person, you will feel pressure to buy. If you don't buy, you will feel like an ass.

    You are an easy target for this sales person if you are new in business. Take my advice, call the sales person and tell him you can't make it tomorrow because you are probably not going to buy. You can always decide to buy it later.

    I get cold called by sales people selling advertising or web development at least two times every week.

    My new mantra with cold calling sales people is this: "I have proven advertising methods that I know work. I had to pay to try those advertisements out and not all of them worked. The word for that is gambling. If you want me to try your advertising, here is the deal: You give me the ad for free and if it works and the price is right, I'll buy it. I promise I won't **** you (and I say that) if it works because I would love to have more sources of advertising that work. It's just that until I know it works, it is nothing more than a gambe and I don't gamble with my business.

    Later,
    DFW Area Landscaper
     
  8. Need a Little Trim

    Need a Little Trim LawnSite Member
    Posts: 137

    I would try the cart idea before I opted to do the yellow page ad. I know here in Louisiana it seems like more business is generated by making people see it. If they have to let their fingers do the walking laziness sets in and then nothing comes of it. However, that is my experience here.
     
  9. JKOOPERS

    JKOOPERS LawnSite Bronze Member
    Posts: 1,259

    he said i would only have to pay for 6 months .
     
  10. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    How many of you every looked at a cart ad. Not me.
     

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