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 askwill@marketingyoursmallbusiness.com
Are the promoters and consultants destroying the market for Reverse... Read More
Have you ever wondered what the difference is between a... Read More
Before you read any further in this article, I'd like... Read More
In today's fast paced marketplace it is easy to neglect... Read More
It seems so long ago that I started my first... Read More
In many industries, image is one of the last things... Read More
The Franchise Group at the Federal Trade Commission in all... Read More
It is not surprising that some people may perceive Six... Read More
Everyone wants to succeed in life. Most people want to... Read More
Data. Most people think it is a term relegated to... Read More
You'd like to go into business for yourself, and believe... Read More
There is much competition in the mobile auto detailing business.... Read More
IntroductionIt is widely recognised that Email and the Internet is... Read More
Many investors and business ethics professionals are calling for more... Read More
You see it often in large shopping complexes. Customers seem... Read More
Do you have a Business Plan? Congratulations, but you are... Read More
How do you sponsor an event and get personal introductions... Read More
There were only an estimated 1800 active franchisors in this... Read More
Pardon my enthusiasm, but a large part of your small... Read More
If you really want to earn more money with your... Read More
When you feel like you're always busy working on your... Read More
Mobile detailers will find themselves with lots of competition even... Read More
Starting the blind cleaning business is one of the best... Read More
Small business success is very similar to learning to walk,... Read More
Setting priorities in your business? Your first job is to... Read More
Send handwritten notes. That applies whether you're a guy or... Read More
Some of the greatest words of wisdom for any man... Read More
In your small business debt collection laws will eventually become... Read More
The stock market is still on a wild roller coaster... Read More
I have a confession to make. My name is Caroline... Read More
Q: Is the online world the best place to sell... Read More
On June 8, 2004, the world witnessed what no one... Read More
One way to determine your companies mission statement is based... Read More
The way you manage your money is one of the... Read More
What does buying a fat pig have to do with... Read More
One of the hidden perks of raising six children is... Read More
Never underestimate the power of perception! Perception plays a major... Read More
Passion. Passion alone can make your business successful. As an... Read More
In a quest for customers and to keep those customers,... Read More
"Inch by inch, row by row...that's the way my garden... Read More
Business owners rarely go into business to deal with the... Read More
Why should you always maintain a good report with a... Read More
Many of our nations 400,000 franchisees run their businesses out... Read More
One overlooked individual in the process of taking a company... Read More
All legitimate home business entrepreneurs insist and announce loud and... Read More
As a franchisor I am always asked by new and... Read More
Why give freebies?We have all seen freebies at trade shows... Read More
Summer is a time for the outdoors, for that well-deserved... Read More
If an organization lacks a mission statement, it is worthwhile... Read More
This morning, I went to take a short walk outside.... Read More
At one point or another, almost every business runs short... Read More
Anyone who is serious about washing aircraft as a full... Read More
If you are in the pressure washing business and are... Read More
Unfortunately for all buyers, each selling organization and their individual... Read More
Incorporation in Nevada has become an attractive option for savvy... Read More
If you run a pressure washing business it is a... Read More
It is not surprising that some people may perceive Six... Read More
No matter how small your small business is, it is... Read More
Who is responsible for maintaining the business relationship?Nurturing a business... Read More
Administrative and clerical tasks are the bane of every industry.... Read More
If you are thinking of turning your current into a... Read More
1. Know Where You're Going ? Coach Herb Brooks had... Read More
Consistency is a huge word when operating your business. I... Read More
The single most important activity you can do in your... Read More
You see it often in large shopping complexes. Customers seem... Read More
We have all seen the mobile washing units cruising our... Read More
Small Business |