Category Archives: Marketing

Marketing articles composed by Circle 3

Feb 27

FREE! This Four Letter Word Can Make You A Lot Of Money

Posted on by

FREE! This Four Letter Word Can Make You A Lot Of Money…
No Matter What Business You’re In.

Inbound and outbound marketing.
FREEWe’re going to talk about a marketing technique: How to use the word FREE to generate increased sales and profits. I always hesitate to talk about specific techniques because there are always people out there that try to use the techniques without first gaining the understanding of why it works in the first place. So please read this article with an open mind and remember: I’m trying to paint with broad strokes so you can understand the general concept and then draw specific applications to your business later.

Now let’s talk about FREE. In case you didn’t know, FREE just happens to be the most powerful word in marketing and advertising. No other word draws as much attention. No other word can generate as much action. On the other hand, no word is as overused and under-potentialized as the word FREE. Often customers become jaded when they find out that the wonderful FREE (whatever) is really worthless, nonexistent, based on unrealistic conditions, cheesy, stupid or just plain NOT FREE after all.

We’re going to attempt to find ways to use FREE and make a favorable impression with our prospects and customers…and make them want to do more FULL PRICE business with us. After all, any idiot can give stuff away for free or at a discounted price. It takes a skilled marketing practitioner, however, to properly use FREE and still make a full profit.

FREE Isn’t Just For Cheesy Businesses. It’s For Everyone.

To prove to you that FREE isn’t just for a cheesy, retail oriented business, let’s start with examples straight from the 1996 Exclusively Dallas magazine. If you’re not familiar, Exclusively Dallas is a publication distributed only to the richest of all Dallasites and it contains a bio of the most prestigious companies in the area. It’s sort of like a yellow pages for rich people. We’ve got two current clients that are in that publication: a high-end carpet & rug showroom and a cardiologist group. They’re both using the power of FREE to make more money. Here’s how:

The cardiology group makes money by performing procedures on patients referred from other less specialized physicians. The key then is to have as many physicians as possible referring patients to their group. We found out the office manager of the referring physicians often makes the decision on where to send their patients for cardiology. How do we influence the office manager to choose our client over all the competitors? And how does FREE fit into all of this?

First of all, we have a video that does a nice job of explaining the selling advantages of our client. How about sending a FREE DVD to all the office managers of all the doctor’s offices…that might be a good free offer. Only problem is, it won’t work. Almost none of the office managers have a DVD player at the office and they sure as heck ain’t taking that thing home to waste their valuable personal time. FREE-ologists, press on.

A better way is to take the FREE offer to a much higher level…a level that inspires action. Here’s what we did. We took the same free video that would have very little impact if mailed by itself…then we bought gift cards from both Redbox and Boston Market. Then we sent the DVD and gift cards to each of the office managers with a simple, short letter:

Dear Office Manager,

I know that you get solicitations all the time from all types of doctors, pharmaceutical companies, and medical supply vendors. I, too, am trying to gain your interest in doing business with our company. But instead of wasting your time with the usual office visit and literature, I’ve arranged for you to spend a relaxing evening at your home. Please accept these coupons for two FREE BlueRay movies and $15 worth of FREE food. When you get a chance to use these coupons, all I ask is that you do me one small favor: either between movies or after the kids have gone to sleep, please pop this short 9 minute DVD in and see what we’re all about. Thanks for your time!

What do you think is the chance of that DVD getting watched? Just about 100%. What kind of impact does it have on the prospect? Highly favorable. This approach sure makes follow-up easier, too. Instead of the usual follow-up call “We sent you a DVD, did you watch it yet?” they now say “Have you had a chance to use those FREE gift cards yet?” Whether they have or haven’t, the reaction is always favorable. This approach directly leads to more business.

Now, the upscale carpet and rug showroom. Since they rely on interior designers for a large percentage of their business, they wanted to find a way to make themselves “a better deal” for designers. They also wanted to find a way to compete for retail customers with the do-it-yourself carpet places like Home Depot. The FREE strategies for both situations (designers & retail buyers) are good examples of how to maximize FREE-ness without losing profitability.

For the retail buyers, we came up with a program that gives them FREE carpet cleaning for a year with the purchase of carpet or rugs. Wait a second! How can you give away free carpet cleaning and not go broke, you might ask. Simple. We made an arrangement with a carpet cleaning company that already spends a ton of money on advertising in Val-Pak, the yellow pages, and other expensive media. Their advertising cost to acquire a new customer, we found, was actually pretty high.

So we made a deal with them to give us a discount equal to (actually greater than) the amount they spent on advertising. This was roughly half of the sales price. When the customer buys carpeting, we give them vouchers good for two free carpet cleanings (a year’s worth) that are dated and signed. When they actually redeem the coupons, the carpet cleaning company then bills our client half the face value.

Since their average standard job runs about $120 (special treatments are extra and not included), the out of pocket cost is about $120. But it’s actually less since not all of the customers will take them up on two cleanings. Now look at the math: if a customer buys 200 yards of carpet for $18/yard, that is a $3,600 job. There’s plenty of room in there to cover the measly $120 cost of the program. And by just offering FREE carpet cleaning in the first place, they’re bound to bring in more sales. You tell me – if the price for XYZ brand carpet is exactly the same at two different places, but one store says they’ll clean it for you for a year, where are you going to buy?

Now, the FREE offer for the designers: in addition to offering them FREE carpet cleaning that they can pass on to their end users, our client has also created the “Designer Club.” Membership in this club entitles the designer to a myriad of FREE benefits, including FREE office space (including FREE use of copiers, phones, computer, WiFi, Fax, etc.), FREE use of the conference room and showroom, FREE drinks, coffee, and snacks at any time, an additional 50% discount not available to non-members, FREE credit union and insurance plan enrollment, MASSIVE DISCOUNTS on travel, couriers, dining, rental cars, health club memberships, and about 17 other things. The designers are also enrolled in an incentive program that allows them to earn points for purchases they can cash in for expensive prizes.

What does it cost a designer to join this “Designer Club?” About $200 a year. But, if they hurry, they can get one of 100 Charter Memberships for FREE…if they meet certain requirements. This program will cost very little to implement, but will have massive rewards for our client. There is no other showroom that even offers one of the FREE benefits.

Think about ways you can integrate FREE into the way you do business and into your advertising. It’s the best risk lowering strategy there is, and it’s bound to bring you more business; more than enough to offset whatever it costs to administer the FREE stuff.

The Only Thing We Left Off Our Done-For-You Marketing Program…
Is The Ridiculous Price!

Our Done-For-You Marketing Program is a great solution for small and medium-sized businesses. Full Branding, Blogging and SEO services available.  Learn More!

Oct 23

Good Marketing Not Only Makes You The Best Choice… It Makes You The ONLY Choice

Posted on by

There’s A Whole New Consumer Paradigm Out There. Are You Ready For It?

And it doesn’t matter if you’re selling retail, wholesale, business-to-business, or whatever. The new paradigm has been created by increased competition, which has caused confusion in the marketplace, which has caused consumers to distrust most of what you say in your sales & marketing efforts. And it’s not that they don’t trust you, either. It’s just that they don’t give any credence to what you say. I mean, really, do YOU care if they’re the largest residential roofer?

Another client of ours is a $40mm home product manufacturer (go figure, they’re right here in Commerce, California!). They’ve been getting killed by all kinds of smaller manufacturers and foreign competition that are willing to sell inferior quality products at drastically lower prices. The owner of the company told me that they were pulling their hair out trying to compete…. that their marketing pieces weren’t effective any more now that the cheapo guys were selling against them.

It’s A Communication Problem… And An Easy One To Solve.

One look at his marketing materials revealed that the problem wasn’t the competitors, it was his marketing materials. They had spent over $45,000 to send out a direct-mail letter that said absolutely NOTHING! Sure, it had words… but the words said nothing. There were no offers. There was nothing that would make anyone want to buy anything. How can you expect to win when you’re not giving anybody a reason to buy?

To prove our point; the first thing we did was to put the next batch of letters on hold, and we totally rewrote the letter.  Only this time we included a headline on the envelope.  The difference was startling.  The previous letters generated an average of 98 calls each… all from their buddies telling them how great the letters looked. Our re-write letter went out to the same 100,000 prospects. I’ll bet you can’t guess what kind of results we got just by rewriting the letter. That’s right… no less than 1,268 + people called in off the letter within the first week.

Checkout Our Power Profit Program Training And We’ll Show You The Details.

Don’t get the wrong point from this story. The training program is not about how to write letters -or even billboards. It’s about how to set your business so far ahead of your competitors in your prospect’s minds that they realize they would be receiving less than the best by choosing a company other than yours. We teach you how to innovate what you do–and then effectively communicate those things–to a point where your prospects and customers draw that conclusion.

Let me give you another example:

We had a handyman contractor come to our seminar about 9 months later. The owner was relatively new to the industry.  His frustration was the inability to attract higher end, more lucrative multi-family residential dwellings. They’d trapped all the single-family home business they could stand, but now they wanted to apartments. Ask yourself this question: What’s the biggest frustration you have with a contractor? The answer can be summed up in one word: confidence (lack of it). But how can you say in an advertisement or over the phone that “We’re honest; you can trust us, and we won’t overcharge you or slide in some hidden fees.” Nobody will believe that. They would expect you to say that.

Separate…. Then Eliminate!

We helped him create marketing materials not based on self-touting bull… but rather a standard that should be used to evaluate any contractor you might consider hiring. It detailed all the things you need to know about contractors in order to have confidence in them. It listed things like, what insurance they should have and how to call the BBB and check on contractors; how to find out up front if they’re baiting you on the price. Every concern you could think of was covered. We created a website and a full color direct-response print, email and social media campaign.

While he was waiting for the new materials to be finished, he took our one-page ad and mailed it out along with his usual direct-mail campaign. Guess what?  He got an unbelievable 9% increased response to his direct-mail. The crowning moment was when one homeowner told him, word-for-word, “I would be an idiot to use any other contractor.”  Conclusion drawn!

Come one of our seminars and we’ll show you the letter. The market program rolled out; and believe me there was a lot of really ‘ticked-off’ contractors.

How To Legally, Ethically, and Morally DOMINATE and CONTROL Your Market.

Maybe it’s just a shift in focus. A MERCEDES dealership we work with finally realized they needed to quit selling the merits of MERCEDES and start selling the merits of buying the car from THEM. Maybe you just need a better way to stay in contact with all of your prospects -or just plain contact them… period!  I don’t know what your situation is right now. Chances are… this program can help you get where you’re trying to go, faster.

So please check it out!  I think you will enjoy the program.