Is this really worth it?

[Addicted2Bling]

A local radio station around here wants to promote my business for $100 a week. This includes 10 weekend advertisments a day, a free detail contest giveaway (5 days a week) which includes 10-15 live mentions where they actually talk about the business. This radio station has been here for about 20 years now, they play rock and classic rock, which I figure the older crowd might be more into, older people mostly men who own businesses. The free 5 details a week scares me, and the $100 a week scares me even more, but I know if it all works out then this is going to be a good oppertunity for my business to expand dramaticly. I`m scared nervous and excited all at the same time, anyone care to share any thoughts about this? Has anyone ever done this?

[Setec Astronomy]

Can`t you back it down to less free details a week? Are you consistently busy now? What will you do if this exposure doubles your business? Or triples it? Can you handle that/what is your plan?

[Addicted2Bling]

I am not very busy right now, I`m pulling maybe 5 details a week. I only have 15 clients that get their cars done every 2 weeks. I have a part time job. This is a huge step that`s either going to make or break me

[Erock]

I think you have every right to be concerned...but the questions you need to ask yourself are..who can i trust to be my partner when my business blows up ?and ...am i prepared to be slammed...if you can answer those two questions with confidence the only other question is ...can i afford NOT to do this..cause thats real advertisement and it WILL work.

[mrclean81]

Man let me tell you this. I listen to the radio at least 8 hours a day at work, all evening in the garage, and every time Im in my car or truck. Thats at least 10 hours a day, and Im only one person. I hear every commercial at least 20 times a day and it crosses my mind all the time that I should be running commercials on there. TV ads would be golden but in this day and age, honestly how many people are glued to local TV when so many have cable or dish...but everyone listens to the radio. I may be alone here but I think its a great idea.

[redlegacygt]

i would not do it for the 5 free details. Do you know what their normal price for advertising would be for the days your getting? Basically, you`d have to make sure the amount of advertising your getting is worth the 5 free details. If its not, then back off, maybe do 1 or 2 free details at first.

Always remember they need you more than you need them. Dont be afraid to bargain with them.

[Concours.John]

This could be great. I can say I opened my doors with huge discounts. I was, and still slammed because of Ohio`s lately rain season. It however has screwed the profit margin. I hate to say it but discounting your work gets you busy but may book you out of market value customers.
Just my current opinion. I mostly do collection cars which is steady. I`ve added drivers outside of this and drivers are what im talking about; if this helps any.

[redlegacygt]

This could be great. I can say I opened my doors with huge discounts. I was, and still slammed because of Ohio`s lately rain season. It however has screwed the profit margin. I hate to say it but discounting your work gets you busy but may book you out of market value customers.
Just my current opinion. I mostly do collection cars which is steady. I`ve added drivers outside of this and drivers are what im talking about; if this helps any.

exactly. You have to be careful especially if your doing this part time. You cant take in 5 free details a week that would take away paying customers. You`d need to strike a balance where for every free detail, you get 2 new paying details, or one full blown highest package detail... Do you see where im coming from?

haha i have a tendency to confuse people sometimes when explaining this stuff ( i work making tv commercials, not so much selling them)

[Addicted2Bling]

^^It`s already paid off, I got 3 djs wanting their cars done and I haven`t even started yet

[Nth Degree]

Free details can be a problem. First, what defines a detail? What does the garage queen owner expect and what does the soccer mom expect? If you charge an average of $150/detail, this advertising is costing you $850/week. (5 details X $150 + $100 for the radio ads.) If you are doing 5 free details/week, when are you doing details for profit? Are the details you are doing for free good enough to draw referrals? Could you handle the business if it grew to 25+ details/week?

I don`t mean to rain on your parade. We all want to make more $, but it is important to realize what you can and can`t handle.

I have struggled for years. A few months ago I did a detail for the right customer. I blew him away with the results. Through his referrals I am very busy and loving it. It cost me nothing but my patience and the same quality work I always do.

Your costs aren`t just what you spend out of pocket, but also your lost billable hours.

[Erock]

Another thought for you: My wife manages a high end car dealership. She spends a load of money and free perks for a reputable local radio station. I can tell you from experience its the most effective advertisement for your business. Even the free details your giving away are still worth it because those people will come back and spend money and bring friends to you as well....its an investment not a giveaway. This is big picture stuff!!

[Mr. Gloss]

And how long are you planning to run the FREE detail campaign?

Let`s say 35 weeks. At $850 per week, you`re giving away $29,750.00.

Divide that by a 40 hour work week, and you`re giving away $14 per hour (2,080 hours) per year.

[Addicted2Bling]

Another thought for you: My wife manages a high end car dealership. She spends a load of money and free perks for a reputable local radio station. I can tell you from experience its the most effective advertisement for your business. Even the free details your giving away are still worth it because those people will come back and spend money and bring friends to you as well....its an investment not a giveaway. This is big picture stuff!!

That`s exactly what I`m thinking

[Nth Degree]

...those people will come back and spend money and bring friends to you as well....its an investment not a giveaway.

Some of those people will come back and/or result in referrals, but coupons/discounts/freebies often attract people who will only return when the offer is extended again.

Yes, it is an investment. I view it the same way when I spend an extra hour on a vehicle doing the little extras that weren`t paid for. But you must have an expected return on your investment. Let`s say you run the ad for 10 weeks at the cost of $8,500. If it draws you 200 new paying customers at an average price of $150 over the course of 1 year you would gross $30,000. That makes your advertising cost 28%. That is an incredibly high percentage and a gross profit of only $21,500 minus actual costs.

Would you hand over $8,500 for advertising on the hope of getting 200 customers?

[Garry Dean]

Is this a contractual agreement?