FYI: Cost-Effective Co-op Advertising

Patty

Here's a little FYI for those of you that want to advertise but might not have big budgets. It's a way to afford a bit more "reach" in the market, yet at the same time, reduce your advertising costs.

I have just met with two business owners in my area who would like to advertise with me but do not feel they can individually afford to pay for the 20 zones they want to purchase. (This is for my REAL job at Valpak! ) What I suggested to them went over in a big way and, in hindsight, I thought I would pass this on to you. (My boss might not be too thrilled, but I think after realizing that it is the viable way for the clients involved, he'll approve the concept.) What I suggested they do is to share a three-panel ad with both of them advertising on one-piece, split-billing the cost and doubling the amount of zones they buy into. Since they each were considering to buy 10 zones anyway, now they can double their "reach" in the market hitting 200,000 households instead of 100,000, and share the cost with each other. This might be the way to go for a lot of you guys out there no matter what media you choose. It could be done in direct mail, newspapers, flyers, etc... It takes co-operative advertising to a whole new dimension and saves you money, as well! (Gosh, am I smart, or what?
I never cease to amaze myself! ......Humble & modest, too! )

AHS

Patty,
Does cost for mailings differ from state to state? I was curious if you could tell me roughly how much it cost to mail per zone. The co-op advertising is a good idea if you can team up with the right type of business. It would be interesting to find out how affective it is.

Patty

Hi AHS,

Yes, costs do differ from state-to-state. And, price will also vary depending on what size product you choose (single, double, or triple panel, for instance), also whether you require one-sided or two-sided piece, what king of paperstock you choose (glossy or "regular" paper which we call valuepaper), and also 1, 2 or 4 color ink. We also offer you the option to provide your own inset piece, but it must "fit" the envelope and must be printed by you and must reach Florida by a certain deadline (a lot of perameters to adhere to). And, last not but least, the amount of zones you buy into will come into play as well. You want to reach 10,000 households or 44 million! Ok, so how to price this "off the cuff"....hmmm...I would basically say that you could definitely pay $0.05 or less per household on a single-panel piece (3-1/2 x 8-1/4) glossy, 2-sided, 4-color....and be safe in saying this. Price would go up with any large size piece and would go down with multiple zones (NTA's) that you bought into. I have clients that pay as little as .03 cents a household with the same product BUT they buy into 50-90 zones a month. You do the math! It might sound expensive when you multiple cost of zone X 50 zones, but that includes EVERYTHING from rep service/consultation, demographic information availability, graphic design, all artwork, photo source library, printing, enveloping and postage. So, for under a nickel, you can't really beat it! Plus, woman LOVE direct mail, for the most part, and usually are the decision-maker when it comes to most purchasing decisions and they are OUR market.

As for my co-oping with another business, it really works well with someone you know well, and already have some type of partnership with such as a business you work hand-in-hand with and already practice referral with. That was the case, at hand, that I was dealing with. Understand, that this is not really sanctioned or well-received by most direct-mail companies basically because they feel they are losing money. But, in my case, a three-panel flyer concept will keep everyone happy and my boss (who loves me! ) will let it fly. All parties involved reach a happy solution to meet their needs. And, we all know that, that's what all good deals are made of!

Hope this answers your question, AHS! Glad to help!

AHS

I'm thinking about trying val-pak. I already have plans for a few direct mailing's this year (postcards)& would have to use some of that money to give val-pak a test run. Hmmm...is it worth it? I like that you can hit each household for .5 cents. Postcards are closer to 35 cents when factoring in printing cost but, my mailing list will be more targeted than val-pak's would be. I would love to hear some input from others that have tried val-pak

Sal616

nice idea. .05 is a little high for me, i do about 30 zones with valpak and pay just under .03 a house. I do like them betetr than money mailer, even though money mailer is at 2 1/2 cents.

Patty

Yess, Sal, you are getting the optimal deal Valpak will offer...."the 3 cent a household deal" ! And, buying into 30 NTA's (zones) you should not only be getting it for 3 cents, but you rep should be BUYING YOU LUNCH EVERY MONTH!!!!! I'M YELLING THIS, SAL!

So, all you guys that want Sal's deal.....scoop up all your pennies....and hundred dollar bills, as well, and you, too, can step up to the big leagues and get into a household for a mere 3 cents a month.


THAT'S 9 LARGE FOR THOSE OF YOU THAT DON'T HAVE A CALCULATOR HANDY!

Hey, Sal, tell me honestly, what your average quarterly ROI?

Patty

Something just dawned on me. Some of you who have not done direct mail advertising might be sitting in your chair thinking, "hmmmm....why is it cheaper when I buy more zones?" "It shouldn't make a difference."

Well, I'll explain why it's cheaper.

When you buy into multiple zones, there is less work involved because the rate is based on ONE piece of artwork for the rep to do, for accounting to input, for the graphic arts group to layout, etc...

We literally can discount the rate for volume zone buys and pass the savings on to you. Compare that order to 30 INDIVIDUAL orders. That's a lot of ARTWORK to do...and a lot of labor time, all the way around.

Hope that clears things up.