The challenges of the small business owner are well documented. They must battle for market share against larger competitors, run all aspects of their business, and even pay higher rates for advertising and other marketing related expenses. Small businesses generally do not qualify for volume discounts when it comes to buying advertising space or marketing materials, and thus they end up paying higher rates for the same ad space or marketing materials purchased by their corporate counterparts.
In recent years, there have been some changes in the marketplace that are of benefit to small business owners. For example, Internet procurement sites have emerged offering discount rates on everyday office supplies such as toner or paper. However, the high cost of advertising has not been formally addressed. That's why many small businesses are taking matters into their own hands and joining forces in marketing "co-ops".
Here's an example of how it works. Andy's Accounting Firm and Larry's Legal Firm are both small businesses operating in the business-to-business sector. Andy services small businesses with their accounting needs, and Larry is a lawyer specializing in small business issues. Andy and Larry both wish to purchase advertising space in a popular small business magazine. The rate they are quoted individually is $5000 for the back page of the magazine. Since they are not repeat advertisers, neither Andy nor Larry receives any kind of discount. So how do they save money on this advertising venture? A co-op approach on one of two fronts will cut their advertising costs significantly:
Share the ad: Since they are not direct competitors, Andy and Larry could split the ad space 50/50, acting almost as if they were partners although their businesses are distinct. This drops the cost to $2500 for each business and they still receive broad exposure in their chosen publication. In fact, by putting their heads together they should be able promote their collective business expertise as "Total Solutions for Small Business".
Purchase separately at a discount ? There may be some occasions where a business does not wish to share its ad space. Even in these cases a co-op approach can offer a lower cost. Andy could call the publication and ask for a quote on the back page for next month. Once the price of $5000 is quoted, he then offers the publication a deal "What if I bring on another advertiser for you. Would I get a small discount?" Most publications live or die on the sales of their advertising space, and are usually willing to offer someone like Andy a 10% discount for bringing someone like Larry in to purchase an ad elsewhere in the publication. Andy and Larry split the savings and Andy ends up paying $4750 for a $5000 ad. Although the savings were smaller in this case than the shared ad example, remember that Andy now has the entire back page to himself and saves $250.
Advertising is not the only example of co-ops at work. Web Designers would jump at the chance to line up two clients in one shot, and would likely offer a discount to do so. The same applies to a printing company that prints brochures or business cards. The possibilities are endless, including the size of the co-op you choose to join.
When faced with a major advertising buying decision or the need for new marketing materials, find out how much you will have to pay as a small business. Then form alliances with similar small business, and negotiate a better deal for all parties involved.
About The Author
Will Dylan is the Author of Small Business Big Marketing and owner of www.marketingyoursmallbusiness.com. Will also offers article and news release writing services through his website. You can contact Will at www.marketingyoursmallbusiness.com
shuttle from Midway Glen Ellyn ..Now that you have invested your time, energy and money... Read More
Too often in business we get trapped into reviewing our... Read More
Running a business on the net these days can be... Read More
When small businesses fail, the wreckage is often assigned to... Read More
How far away is the person you need to meet?We... Read More
Do You Really Need a Toll-Free Number for Your Business?... Read More
When pressure washing heavy equipment each piece of equipment has... Read More
As a business owner, you already know how important it... Read More
How to identify future solutions and opportunities?Your power page, if... Read More
During the California Recall Election, I was very interested. Without... Read More
Is it right for you?If you decide to advertise your... Read More
Franchising Directory Sites-Paid Advertising, Lead Generation for FranchisingFranchising Directory Sites... Read More
Car wash businesses are unique to other businesses. In fact... Read More
Pity parties are nothing new. In fact, we do it... Read More
In a quest for customers and to keep those customers,... Read More
Business consulting opportunities might be just what your are looking... Read More
A suggestion box is a really good idea for your... Read More
Some of the very qualities that attract people to the... Read More
As small business owners we're in business to make money... Read More
Self-cleaning glass has been talked about a lot, with such... Read More
Starting the blind cleaning business is one of the best... Read More
Yes, that IS security when nobody can downsize you because... Read More
Let me get right to the point. The single most... Read More
Becoming a contractor or sub-contractor for the U.S. government can... Read More
When the recent Games of the XXVIII Olympiad came to... Read More
shuttle from O'Hare North Chicago ..Paul Leonard's BirthdayCards2Go.com paid greeting card service offers convenience when... Read More
Writing a business plan is a fundamental step to ensuring... Read More
Back when I owned an inventory-based business, one of my... Read More
Nothing can drive a business down faster than customers who... Read More
I started working with another new client last week. He... Read More
If you own a small business, you should know that... Read More
There are many factors to be considered when you are... Read More
There were only an estimated 1800 active franchisors in this... Read More
What unspoken message are you sending your clients and customers?... Read More
So it's time to invest some finances into advertising your... Read More
Increase your profit potential by identifying ? and avoiding ?... Read More
You see it often in large shopping complexes. Customers seem... Read More
Why does consistency in the message have an effect on... Read More
The air in my client's office nearly crackled with her... Read More
Hi, Charles...here, Your Cap and t-shirt guy From Texas. How... Read More
Many small business startups fail within the first 2 years... Read More
Tammy, a skilled and gifted horticulturist, called me to discuss... Read More
Part of the power plan is making sure you have... Read More
You've come up with the best idea since sliced bread,... Read More
As a franchisor I am always asked by new and... Read More
Most small businesses incorporated in 2005 will fail by the... Read More
I only have to point to the 555 plus failed... Read More
It is most fascinating to study how entrepreneurs spot opportunity... Read More
Over regulation of small business is so intense it is... Read More
In a perfect world, starting a small business would be... Read More
Small Business |