Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Share Ad Expenses to Boost Profits > NetSparsh - Viral Content you Love & Share

Share Ad Expenses to Boost Profits

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

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Forbes

Amazon Launches A Site Just For Small Businesses...And Other Small Business Tech News This Week
Forbes
Here are five things in technology that happened this past week and how they affect your business. Did you miss them? 1 — Amazon launches a small business shop. This week, Amazon launched Amazon Storefronts—a new section of its site that only lists ...


Community news: Austin Energy hosts small business open house Tuesday
MyStatesman.com
Small business open house Tuesday. Austin Energy will host an open house for small business owners from 1:30 to 4 p.m. Tuesday at Austin Energy's Town Lake Center, 721 Barton Springs Road. The free open house will allow business owners to exchange ...


Small business workshops offered in October
Lewiston Morning Tribune
The Idaho Small Business Development Center at Lewis-Clark State College is offering nine workshops in October. “Google Optimization,” to help business owners understand how to make their ventures be found on internet searches — 5:30 to 8 p.m., Oct. 4 ...


Eureka Times Standard

North Coast Procurement Expo: Small business guidance and support
Eureka Times Standard
Humboldt State University and the North Coast Small Business Development Center network are hosting the North Coast Procurement Expo in Eureka on Oct. 3 and Oct. 4. Business owners in the area are encouraged to attend and meet purchasers from the ...


The Guardian

The US Census Bureau says there are 32m small businesses. They're wrong
The Guardian
Not only that, but according to a report from the Census Bureau's Adam Grundy, the 76.2% of businesses that had no employees accounted for just 4% of sales of all small businesses. So who are these non-employers? They're “self-employed individuals ...


Pensacola News Journal

Three structural building blocks every small business needs |Studer
Pensacola News Journal
A couple of weeks ago, I focused this column on how important it is for a small business to put in key structural elements early on. My point was that while small business owners tend to shy away from doing this for a variety of reasons — often, due ...


Montana Standard

Digital done right: How small Montana businesses are creating a big online presence
Montana Standard
Not only has the business received an Outstanding Media Award from the Montana Urban and Community Forestry Association, its Facebook page caught the interest of Facebook itself and was used as a success story when the social media company came ...

and more »

Loans to small business encouraged
Columbia Daily Tribune
Officials from the U.S. Department of Agriculture and the U.S. Small Business Administration visited Kirksville Friday to encourage local bankers to participate in the departments' lending programs. The group included SBA Regional Administrator for ...


American Banker

CFPB faces legal minefield in crafting rule on small-business loan data
American Banker
On the one hand, the CFPB wants more data as it conducts fair-lending exams of small-business lenders to assess redlining risks. Yet the Equal Credit Opportunity Act's prohibition on collecting race and gender information from small businesses has made ...

and more »

Forbes

Freelancers Help Small Businesses Grow: Two Successes To Learn From
Forbes
But, small businesses depend on freelancers too. Here's what LinkedIn had to say: “The stats don't lie: 70% of small businesses have hired a freelancer in the past ... and 81% of these businesses plan to hire freelancers in the future. Reviewing ...

Google News

3 Ways To Make Certain Your Business Fails

Most small businesses incorporated in 2005 will fail by the... Read More

Eight Key Steps to Selling Your Business and Cashing In

This year, some 700,000 American businesses will be sold. Most... Read More

The 5 Habits of Highly Successful Small-Business Owners

Have you ever wondered what the difference is between a... Read More

The Step Zero Effect

The key to organizational focus and helping those who need... Read More

Why are Reverse Mergers Often the Victims of Short Sellers?

There is a great deal of abuse going on in... Read More

Combating Over Regulation of Small Business

Many small businesses do quite well due to the blood,... Read More

Pressure Washing and Hospital Accounts

Most pressure washing companies never look into some of the... Read More

Solving the Late Paying Customer Blues

Nothing can drive a business down faster than customers who... Read More

Arranging Your Fundraiser

When deciding to host a fundraiser for your company or... Read More

How to become a Career Coach for Profit

A career coach could be simply defined your job seeking... Read More

Do You Really Need a Toll-Free Number for Your Business?

Do You Really Need a Toll-Free Number for Your Business?... Read More

Five Quick Ways to Speed Up Cash Flow

At one point or another, almost every business runs short... Read More

How to Promote Yourself to Small Business Riches

You've heard it before; we're living in an information age.... Read More

Small Business Franchise Opportunities

Many businesses offer small business franchise opportunities. There are many... Read More

Are You Using a Chess or Checkers Small Business Marketing Strategy?

Until the day I learned to play chess I loved... Read More

Effectively Completing the Operations Plan Section of Your Business Plan

The Operations Plan is a critical component of any business... Read More

Local Search and Internet Yellow Pages - A Whole NewVocabulary for Small Businesss

Buyers want both online and local information about where to... Read More

How to Start a Paper Shredding Business

Paper Shredding Business Opportunities are blossoming up everywhere because in... Read More

Mobile Truck Washing, Case Study

Most folks in the pressure washing business are happier to... Read More

Make Your Business More Profitable

More sales and more profit. Isn't that what you want... Read More

Making a Donation to Bring MORE Business

How a donation is different from a sponsorship and what... Read More

What Your Small Business Can Learn From The Doctor

Most doctors never distinguish the difference between customers and patients.... Read More

Build Credibility with Expertise

As an Investment Representative you've worked hard to build trust... Read More

Franchising Industry Burdened in Over Regulation

There were only an estimated 1800 active franchisors in this... Read More

How to Sponsor an Event for Fun and PROFIT

How do you sponsor an event and get personal introductions... Read More