Already Spent More On Advertising Then All Of Last Year!

ruskent

I'm sitting here ordering up 15k business cards and i just realized i already spent more money in the last 5 weeks on advertising and i got nothing to show for it!!!!!

I got a **** load of envlopes and letter head, a 5000 name mailing list, and 2 home show booths booked and paid for.

All this money spent and no jobs yet!

Oh yea, i guess i got to do something with all this stuff!

I am looking foward to a good year.

Matt

dougchips

I have a home show starting Friday-Sunday of this week and another one in a month. I have spent the past month planning and building a display and completing a "to do" list from hell. I love how they can collect your money months before the show, they must make a mint on the interest before they have to pay their bills.

ultimatetouch

Sounds like your headed for a big year. When are you going to start unloading? I am tripleing my advertising and marketing budget this year.

__________________
Ultimatetouch
Illinois Remodeling Company, Kitchen Remodeling Chicago, Room Additions Illinois

dirt diggler

im kinda lettin it ride myself this year ...

Humble Abode

Good luck with the campaign!

But I have to ask, WTH do you need 15,000 business cards for?

__________________
Just because some of us can read and write and do a little math, that doesn't mean we deserve to conquer the Universe. Kurt Vonnegut, (1922 - 2007) from the Novel 'Hocus Pocus'
The NAPP
Milwaukee Painting Contractor

dirt diggler

i was gonna say the same thing man ... do you need 15K all at once??


that's about $2,500 worth of cards (if you were using the same printery i do ...)

Humble Abode

I go through about 500 in a year and believe me I hand them out a lot...

I've never done a home show but I can't even see you being able to give out that many there. Most home shows in Milwaukee only see about 1000-2000 people go through on a given day.

__________________
Just because some of us can read and write and do a little math, that doesn't mean we deserve to conquer the Universe. Kurt Vonnegut, (1922 - 2007) from the Novel 'Hocus Pocus'
The NAPP
Milwaukee Painting Contractor

ruskent

I paid 299 + shipping for the cards from gotprints.com

I need 10k for mailings, then i need some for the home shows. You can only buy in 5k increrments once you get past a certain number.

On the letter head i only needed 7500, but it made more financially sense to go for the 10k.

I am am anxious to start the mailings. I mailed out a test run of 275 letters to new homeowners on monday. All signed by me, .39 cent stamp, to a really great mailing list. Not 1 call yet. Maybe the mail got slow, i do not know. I just wanted to do a little test to make sure it wasn't too earily.

When i do the small highly targeted mailings myself i can pull 4%. Basically because the list is hand sorted by me. So i should get 10-11 calls from that.

If the calls don't come by next week i will keep mailing 250 a week till it hits. Then i will drop 5k letters over the course of 2 weeks. Then wait 3 weeks and hit with peice #2.

Matt

Humble Abode

I see. Are you stuffing envelopes yourself for the whole 5k mailing? If so you are one seriously dedicated dude!

I wouldn't let that small mailing discourage you, it sounds like you know what your doing, but this time of year I would think that a small mailing would get worse results than a huge targeted campaign.

Good luck man, it sounds like your on the right track.

__________________
Just because some of us can read and write and do a little math, that doesn't mean we deserve to conquer the Universe. Kurt Vonnegut, (1922 - 2007) from the Novel 'Hocus Pocus'
The NAPP
Milwaukee Painting Contractor

ruskent

Hell no i am not stuffing 5k envlopes myself! LOL I can't do more then 300 without passing out!

I'm friends with a guy who owns a mailing company and he takes good care of me. Thats the only reason why i can afford to do so many mailings.

I just do small batches from time to time myself.

I'm trying to find some magazines to advertise in to suppliment my mailings, but all the good ones seem to be way out of my price range!

i

Woz the Painter

dirt, maybe he wants a card for every expected post you will make this year...

ruskent

LOL yea thats it!

sosafax

I do not think it is proper to list my website here, but I am a retired painter with a small business that puts together common sense and proven marketing plans for contractors. I know if you search buildsales you would find some good info. I put exactly what we do so any contractor could duplicate, but fortunately most find our work affordable etc. Hope this helps. I can tell you from over 27 years experience in the paint biz, there are certainly better ways to get more customers than mailers, flyers, trade shows etc.
Thanks
Tim Brummett

ruskent

Tim i'd like you to go more into detail on those 'better ways'. I belive you need to do more then just mail letters, put flyers out etc. Its a combination of things that makes successful businessness. I do mailings, home shows, news papers ads, door hangers, and soon the Yellow pages and some magazines.

Now when ever i get the job. I mail the 20 closes neighbors a letter that says i will be workingin their neighbor hood blah blah blah. Then i will hit all those houses up with a door hanger that says "We are working on a project in your neighbor hood." Then if the homeowner writes me a referal letter, i'll mail it to everyone of those 20 houses.

I never did anything like this before, so i am curious to see how it will work.

dirt diggler

somethin i haven't tried yet ...

always intended to ... just forgot all about it

(writing it down this time)

sosafax

I got to know about the marketing side of the biz while working for a paint company as their sales and marketing manager. Learned a lot from contractors about what was successful. Now I have a biz working with contractors on marketing. I don't want to take advantage of the forum, but you can call me with questions. 509-499-3191.
Basically I have found that working with inexpensive local radio, local internet ads, and a nice but affordable website works consistently to attract customers and raise awareness in your local area.
Thanks
Tim Brummett
Old Painter

dougchips

Moderator edit in 10 , 9, 8 , 7 ,6 ,5 ,4 ,3 ,2 ,1
Sosafax, turn on your PM option and people can contact you that way.

Grumpy

I am adding one salesman meaning I will have to increase my marketing to provide enough leads to keep all my salesmen busy. However this is by design, and I know about how many leads I will get for my dollars spent. Furthermore, I know how many sales I will get from those leads, and I know how much our average sale was last year so I have a pretty good idea of how much I am going to earn this year.

On a side note I do not consider letterhead and envelopes to be advertising, but rather office supplies. Business cards though I do consider letter head, and I am curous how long you think 15,000 cards will last. I think you are going to have those cards for quite a few years.

Dont expect much return from your maling until you mail to the same people 3 times and then expect 1% to be your average response. That means for your mailing you might get 3 people to call you after you send out 3 times.

Correct me if I am wrong and I do not mean to insult if I am wrong... It seems like you are new to business. By your own admission you already spent more in two months than all of last year. If so I want to encourage you to control your expenses. It's easy to spend your entire budget real quick and have nothing to show for it. That's not a spot you want to be in!

You can see in the first paragraph of my post where I explain that I know my numbers. This is based on historical data. MY historical data for MY business model. Everyones numbers will be different, BUT I truly believe that business all boils down to KNOWING YOUR NUMBERS.

if you don't know your numbers you can make educated guesses, but theya re still guesses. And if you are going to guess PLEASE guess on the conservative side. Before I knew MY numbers I made decisions based on the numbers of the former company where I used to work. This mistake almost cost me my business in my 2nd year. However since I have learned my numbers, and more importantly paid qualified accountants to tell me my numbers, things have turned around. You can NOT make decisions if you don't know your numbers!

ruskent

Grumpy- Yea i didn't spend much money last year in marketing, but i didn't make much either. I never really had a marketing plan until this year.

The business cards will go quick. One will go in each letter. That kills 10k right there.

My printer only lets you order in 5k increrments after 2500. So i ordered 15k. They will all go this year.

I have my spending under control. I save alot of money buying 10k letter head at one time vs 5k a time.

I am good friends with a guy that owns a mailing company. He does his services for free. It just cost me postage and stationary.

I have done my research on direct mail and know all about response rates and frequencies. I have recived as much as 4.2% response on a mailing once.

Last year i did just 1 mailing of 2500. Ran me $950 dollars. Recived almost 65k in work. That ain't bad.

Matt

ruskent

I'm planning on doing 5 mailings of 5k by the end of june. Do i think i will get 1% response? No. I'm estimating i will get around 200-250 calls when it is all said and done. Maybe less. You got to remember i am selling expensive jobs.

Now i might sell a couple big jobs and after 2 mailings and not have to do the additional mailings. But i am planning WORSE POSBIBLITY now. Hell right now i have enough bids out there to keep me busy for 2 months atleast if i closed half of them.



Matt