Does the Expression “Cheap is Expensive” Make Sense When Advertising a New or Small Business?
April 23, 2008
Most business people are under the misconception that to advertise their products and services needs to cost them a fortune. I am a firm believer that does not have to be the case. Over my years in business I have been faced with same problems most startup or existing business people have to deal with, when considering advertising their products or services. My main objective was always to try and reduce my advertising expenses to almost nothing, but still get the same results as someone else spending thousands. Simply by using a bit of ingenuity, I figured out ways to save big dollars on advertising my endeavors. Here is an example of just one of the ways I accomplished it in a coffee business: In the mid to late eighties I created my own brand of coffee. The selling points were it had no fillers or chicory, but a pure smooth blend of the world?s finest coffee beans. I knew that once someone who was a coffee lover had tried it, they would desire it again and again. The product was a tad more expensive then the usual coffee, because of the quality. The challenge was how to promote without spending a fortune. I realized that trying to go into the retail grocery stores would be too costly. So I did some research on the office coffee business. Most companies who had a coffee service had yearly contracts that forced them to purchase not only their coffee, but all the fixings. To add insult to injury they were also obliged to make minimal monthly purchases if they needed product or not. In return they received a coffee maker to use until the duration of the contract. I saw a wonderful opportunity to get into the office coffee business. My company?s platform would be as follows: No contracts, no minimal monthly purchase, they could get their fixing cheaper locally, and my coffee pouch was set for 12 rich cups, not the usual 10. As a special introduction offer by just purchasing three boxes, they would receive a 12 cup coffee maker free. The coffee was priced at $79.00/box, or .79 cents a pot with shipping included. The cool part is that my advertising and promotion was just long distance and coffee makers. This was built into the price. My cost per box with my logo on each package was $29.00. After awhile I built up a great business with happy clients giving me regular orders. You could have the best product, service, or business going, without exposure nobody will even know you exist. In my opinion, I definitely believe when advertising a new or small business, cheap is not expensive!! The trick is finding a ways to advertise without it costing an arm and leg. If you are looking for inexpensive ways to advertise, or need a how too guide, check us out our advertising section at Startup business doctor. Arnold Nadler is the founder and CEO of The Startup Business Doctor, a highly successful collection of effective how too guides, business education courses, consulting, low cost advertising, and free expert tips on the website, can assist anyone build a thriving and profitable business from the ground up. For more information, visit us at Startupbusinessdoctor.com
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