So, you've just heard a great presentation from an advertising sales rep. Before you sign on the dotted line, a great idea is to call some of the advertisers that are in the publication at random, and tell them that you are thinking about advertising with this publication. Ask how it is working for them, and if they are seeing results. Ask how long they have been with that company, and if the customer service is good, and if the publication is reliable.
Be sure though that YOU are the one that chooses who to call (not who the advertising company suggests), because you want an unbiased opinion. Many times I have left a copy of Chapel Hill News & Views with a potential advertiser and said "Feel free to call any of the businesses that have ads in here and ask them how it is working for them". Since we usually have around 300 ads, more often than not the person I am speaking with personally knows one of our advertisers. This series of calls could save you from making a mistake with your hard earned advertising dollars. Be sure to call at least four or five businesses so you can get a good sample. If they all say it works well, you can feel pretty comfortable advertising with this company.
It's also a good idea to ask some of your friends that own businesses where they would recommend you advertising. They will give you an unbiased opinion. Keep in mind though that some advertising will work well for one kind of business, but not as well for another.
Saturday, February 20, 2010
Targeting your advertising
If you were going to spend $200 for advertising, which one of these is a better deal?
A 1/8 page ad in a newspaper with 100,000 circulation
10 radio commercials on a station with 300,000 listeners
A 1/8 page in a magazine with 38,000 circulation
A page for a year, on a website that gets 20,000 hits a month
Printing and distributing 3,000 flyers
Just looking at the numbers, you might be inclined to say the radio station, because they have 300,000 listeners. However, this may or may not be the case at all. For example, let's say that your business sells hearing aids (which generally targets an older customer), and is located in Douglas County, and the radio station is a Hip-Hop station in downtown Atlanta. Most of the listeners are not going to be a prospect for your business. And maybe the newspaper with 100,000 circulation is distributed throughout the entire metro area, and only 5,000 are distributed near your business, and it's a paper not many people read. If the 3,000 flyers were going to be distributed in newsletters in retirement communities, this would be a much better way to spend your money.
The point is, with this very limited information, any one of these 5 possibilities could be the best place to advertise your business. You have to go beyond the numbers and find out who is actually going to see your advertising.
Generally radio advertising is not that effective at targeting a geographic area, because the signal covers a wide range. So, if a station covers the entire metro area and has 300,000 listeners, there may only be a very small percentage that are in the geographic area around your business that you need to reach. This is especially true if you have a business like a beauty salon which tends to draw most of their customers from within 5 miles or so of their business. Most of the money you would be spending in this instance is being paid to reach people who are probably not going to drive to your business because there are tons of similar businesses that are in their own neighborhood. In the case of radio advertising, 10 commercials may not be enough either because someone that you are trying to reach has to actually be listening to that station, and paying attention, at the very time your ad is aired. Let me be clear that the purpose of the above example is not meant to bash radio advertising, which can be a good way to advertise for some businesses when used effectively.
The most ideal form of advertising is going to be one that reaches a lot of people that are near your business. When you speak with a company that is selling advertising, look past the number of copies or listeners and ask how many of these are in your target area. Also, be sure that the type of thing that you are advertising in is they type of publication that your target market will be interested in reading or listening to (in the case of a radio station). If it is a publication, can you see people actually reading it? Is it something that will be read once and thrown away, or does it have a shelf life? The important thing is that your goal is to try to reach the maximum number of potential customers with your ad.
A 1/8 page ad in a newspaper with 100,000 circulation
10 radio commercials on a station with 300,000 listeners
A 1/8 page in a magazine with 38,000 circulation
A page for a year, on a website that gets 20,000 hits a month
Printing and distributing 3,000 flyers
Just looking at the numbers, you might be inclined to say the radio station, because they have 300,000 listeners. However, this may or may not be the case at all. For example, let's say that your business sells hearing aids (which generally targets an older customer), and is located in Douglas County, and the radio station is a Hip-Hop station in downtown Atlanta. Most of the listeners are not going to be a prospect for your business. And maybe the newspaper with 100,000 circulation is distributed throughout the entire metro area, and only 5,000 are distributed near your business, and it's a paper not many people read. If the 3,000 flyers were going to be distributed in newsletters in retirement communities, this would be a much better way to spend your money.
The point is, with this very limited information, any one of these 5 possibilities could be the best place to advertise your business. You have to go beyond the numbers and find out who is actually going to see your advertising.
Generally radio advertising is not that effective at targeting a geographic area, because the signal covers a wide range. So, if a station covers the entire metro area and has 300,000 listeners, there may only be a very small percentage that are in the geographic area around your business that you need to reach. This is especially true if you have a business like a beauty salon which tends to draw most of their customers from within 5 miles or so of their business. Most of the money you would be spending in this instance is being paid to reach people who are probably not going to drive to your business because there are tons of similar businesses that are in their own neighborhood. In the case of radio advertising, 10 commercials may not be enough either because someone that you are trying to reach has to actually be listening to that station, and paying attention, at the very time your ad is aired. Let me be clear that the purpose of the above example is not meant to bash radio advertising, which can be a good way to advertise for some businesses when used effectively.
The most ideal form of advertising is going to be one that reaches a lot of people that are near your business. When you speak with a company that is selling advertising, look past the number of copies or listeners and ask how many of these are in your target area. Also, be sure that the type of thing that you are advertising in is they type of publication that your target market will be interested in reading or listening to (in the case of a radio station). If it is a publication, can you see people actually reading it? Is it something that will be read once and thrown away, or does it have a shelf life? The important thing is that your goal is to try to reach the maximum number of potential customers with your ad.
Sleazy Advertising Sales Techniques
Did you know that Chapel Hill News & Views is going out of business? As the magazine's publisher, I didn't know this either, until several of our customers asked us about it. Apparently, a sales rep from another publication in a neighboring county had been telling our customers that we were getting ready to go out of business.
Obviously, this is not true, and there was no way that this person could have gotten this idea, other than just by making it up. I guess he was thinking this technique was going to help him get some of our customers to advertise with them, instead of us.
I called the person that said these things and basically told him that if I continued to hear this type of talk, that this is slander since it has absolutely no basis in fact and was said for the purpose of damaging our company, and that there would be definite repercussions if this continued. I am not usually one to threaten someone, but this was obviously an instance where this was warranted.
This same person has somewhat of a history of this type of sleazy sales technique. Over 10 years ago, I owned a business which delivered packets of flyers and coupons to homes all over the western metro area. One of my customers told me he received a letter out of the blue from this same person. The letter basically said "How do you know that the flyers are actually being delivered? Advertise with us because we mail our publication and we can provide mailing receipts." Again, we had a great track record with our service, but this was meant to put doubt into the advertiser's mind, even though it had absolutely no basis in fact.
There are a few things I would like to point out to sum up what can be learned by this blog.
In at least one of the cases where he was telling people we were about to go belly up, the customer he was saying this to said that he would never advertise with someone like that because he has had a great experience with our company, and he suspected that this might be a lie.
I believe that it is unnecessary to "badmouth" your competition, if you have a good product or service. In this case, our magazine has proven to be a great place to advertise, and we really go out of our way with customer service, and this is why we have over 300 advertisers a month. We have a very spotless reputation. We have an A+ rating with the Better Business Bureau, were named Small Business of the Year by the Douglas County Chamber of Commerce, and work closely with a number of the leading entities in Douglas County, such as the government and the board of education. We go out of our way to keep our reputation strong. Saying bad things about a competitor can really make you look bad, because there is a reasonable chance that the person that you are saying it to could be friends with the owner of the other company, or at the very least have a positive opinion of them, and this could cause them to have a very negative opinion of you. If what you are saying is untrue, and designed to hurt the other business it could also open you up to some very serious legal issues, once it gets back to the target of your smear campaign.
On top of everything else, it is just wrong, in my opinion. I believe that it is important to try to conduct yourself and your business where you are beyond reproach. I like to be able to sleep at night. There is enough business out there for legitimate companies to do well, if they provide a good product and treat their customers well.
Sometimes I will hear one of my customers talk about another publication in a negative way, or relate a bad experience they have had. In this case, I try to say something like, "that's a shame that this happened" and then change the subject. I don't want to be one to say things that are bad about other companies. In the case where someone asks what is different about our magazine as opposed to another, I try to focus on what we do, not what the other company does not do.
So, if you hear a salesman start to say bad things about a competitor, let this be a red flag, because they obviously feel that their product is not good enough to purchase on its own merits. And definitely don't believe everything that you hear, because it may not be true. Also, if you hear something that you do not know is true, please don't repeat it to others. You may damage someone's reputation that should not be damaged.
Obviously, this is not true, and there was no way that this person could have gotten this idea, other than just by making it up. I guess he was thinking this technique was going to help him get some of our customers to advertise with them, instead of us.
I called the person that said these things and basically told him that if I continued to hear this type of talk, that this is slander since it has absolutely no basis in fact and was said for the purpose of damaging our company, and that there would be definite repercussions if this continued. I am not usually one to threaten someone, but this was obviously an instance where this was warranted.
This same person has somewhat of a history of this type of sleazy sales technique. Over 10 years ago, I owned a business which delivered packets of flyers and coupons to homes all over the western metro area. One of my customers told me he received a letter out of the blue from this same person. The letter basically said "How do you know that the flyers are actually being delivered? Advertise with us because we mail our publication and we can provide mailing receipts." Again, we had a great track record with our service, but this was meant to put doubt into the advertiser's mind, even though it had absolutely no basis in fact.
There are a few things I would like to point out to sum up what can be learned by this blog.
In at least one of the cases where he was telling people we were about to go belly up, the customer he was saying this to said that he would never advertise with someone like that because he has had a great experience with our company, and he suspected that this might be a lie.
I believe that it is unnecessary to "badmouth" your competition, if you have a good product or service. In this case, our magazine has proven to be a great place to advertise, and we really go out of our way with customer service, and this is why we have over 300 advertisers a month. We have a very spotless reputation. We have an A+ rating with the Better Business Bureau, were named Small Business of the Year by the Douglas County Chamber of Commerce, and work closely with a number of the leading entities in Douglas County, such as the government and the board of education. We go out of our way to keep our reputation strong. Saying bad things about a competitor can really make you look bad, because there is a reasonable chance that the person that you are saying it to could be friends with the owner of the other company, or at the very least have a positive opinion of them, and this could cause them to have a very negative opinion of you. If what you are saying is untrue, and designed to hurt the other business it could also open you up to some very serious legal issues, once it gets back to the target of your smear campaign.
On top of everything else, it is just wrong, in my opinion. I believe that it is important to try to conduct yourself and your business where you are beyond reproach. I like to be able to sleep at night. There is enough business out there for legitimate companies to do well, if they provide a good product and treat their customers well.
Sometimes I will hear one of my customers talk about another publication in a negative way, or relate a bad experience they have had. In this case, I try to say something like, "that's a shame that this happened" and then change the subject. I don't want to be one to say things that are bad about other companies. In the case where someone asks what is different about our magazine as opposed to another, I try to focus on what we do, not what the other company does not do.
So, if you hear a salesman start to say bad things about a competitor, let this be a red flag, because they obviously feel that their product is not good enough to purchase on its own merits. And definitely don't believe everything that you hear, because it may not be true. Also, if you hear something that you do not know is true, please don't repeat it to others. You may damage someone's reputation that should not be damaged.
Another Cost Cutting Idea
I really like T-Mobile! We have 5 phones with them, for our company. If you have one or more cell phones, it may be very worthwhile to ask them if they can lower your rate. What I like about T-Mobile is that I didn't even have to ask. With this company, and this is probably true with some others, I found that if I needed to replace one of the phones I could often get this done for free by extending one of the contracts.
At the beginning of 2009, my cell phone bill was generally around $300 per month, give or take a few dollars. In the fall, one of our phones broke, so I called to work a deal for a new phone. At the end of the call, the T-Mobile representative asked if I would like her to take a look at our bill and see if see if she could save any money. I agreed, and she was able to lower the cost to about $260 a month, just by switching me to a new plan they had for long-time customers. The plan was actually better than the previous plan, so it was a no-brainer, as it provided added minutes and features, AND saved us $40 a month.
About a month later, I called again because there is one area where my signal is weak, and I wanted to see if they could look into it. At the end of the call, the rep said that he would like to take a look at my plan to see if he could save me some money. I didn't expect much, since I had just been through this with them, but I concurred. To my amazement, he was able to lower my monthly bill by a large amount - last month it was $177.08. Even better, this new plan, which they had just unveiled, did not have a contract! This plan has 3 phones with unlimited minutes and free long distance, plus two phones with 200 minutes (which is all those phones really need). And it includes free text messaging for all phones, which my previous plan did not have.
So, over the course of the last year, we are now saving $120 a month (40%) on our cell phone service. If you have a cell phone with T-Mobile, or another company, it is definitely worthwhile to call and ask them to take a look at your calling patterns to see if the could do the same for you.
As a side note, T-Mobile has also given me extra minutes a couple of times during months when I went over my allotted minutes. This was done after the fact, when I called in to ask them about the surprise high cost of a bill. I have tremendous loyalty to them for how they have treated me, and wholeheartedly recommend them whenever the subject of cell phones comes up.
So - there are two things that can be learned from this blog:
1. Check your cell phone provider to see if you too can save a ton of money on your bill.
2. By going the extra mile for your customer, you can create a ton of customer loyalty and goodwill towards your company. I would not even consider switching now, because I truly appreciate all that they have done for me.
At the beginning of 2009, my cell phone bill was generally around $300 per month, give or take a few dollars. In the fall, one of our phones broke, so I called to work a deal for a new phone. At the end of the call, the T-Mobile representative asked if I would like her to take a look at our bill and see if see if she could save any money. I agreed, and she was able to lower the cost to about $260 a month, just by switching me to a new plan they had for long-time customers. The plan was actually better than the previous plan, so it was a no-brainer, as it provided added minutes and features, AND saved us $40 a month.
About a month later, I called again because there is one area where my signal is weak, and I wanted to see if they could look into it. At the end of the call, the rep said that he would like to take a look at my plan to see if he could save me some money. I didn't expect much, since I had just been through this with them, but I concurred. To my amazement, he was able to lower my monthly bill by a large amount - last month it was $177.08. Even better, this new plan, which they had just unveiled, did not have a contract! This plan has 3 phones with unlimited minutes and free long distance, plus two phones with 200 minutes (which is all those phones really need). And it includes free text messaging for all phones, which my previous plan did not have.
So, over the course of the last year, we are now saving $120 a month (40%) on our cell phone service. If you have a cell phone with T-Mobile, or another company, it is definitely worthwhile to call and ask them to take a look at your calling patterns to see if the could do the same for you.
As a side note, T-Mobile has also given me extra minutes a couple of times during months when I went over my allotted minutes. This was done after the fact, when I called in to ask them about the surprise high cost of a bill. I have tremendous loyalty to them for how they have treated me, and wholeheartedly recommend them whenever the subject of cell phones comes up.
So - there are two things that can be learned from this blog:
1. Check your cell phone provider to see if you too can save a ton of money on your bill.
2. By going the extra mile for your customer, you can create a ton of customer loyalty and goodwill towards your company. I would not even consider switching now, because I truly appreciate all that they have done for me.
Friday, February 12, 2010
A few Sales Tips
I have a bit of a different outlook on sales than many of the books I have read, and many of the salespeople I have seen in action. These ideas work best if you are in a business where you have potential customers that you see over and over.
I have found in 25 years of sales that the key to my success has been in building relationships with people. As I call on people I always go in with a smile on my face and a good attitude. Having a positive outlook is so important. If you go into a business with confidence (not arrogance) and enthusiasm, it is somewhat contagious and your enthusiasm will begin to give your potential customer enthusiasm for you and the product you are presenting.
Sales can be really exciting when things are going well, and really depressing if you are having a bad day. It is so important to keep a positive outlook, even when people don’t buy from you. No matter what, always thank the customer for his time and be courteous, and keep building that relationship. If they say no this time, it could very well be because of circumstances that are such that even if you were the best salesman in the world you could not overcome. So, just go on to the next one, realizing that the “no” you just got means you’re one step closer to the next sale. There have been people that I have called on seven or eight times over a two or three year period that had told me no each time, only to surprise me one day by saying yes.
Never assume someone is not going to buy from you. I can remember several times in my career in advertising making cold calls, where I’ll be going through a shopping center, and I’ll see a business and say to myself that this one would be a waste of time, but then I’ll change my mind while walking back to my car and go in and actually make a sale.
One of the principles of successful selling is to “assume the sale”. This means basically that the question is not whether or not they are going to buy your product or service, but rather what type are they going to buy, how do they want to pay for it and what information do they need to give you to finish the transaction.
On the other hand, a sure way to have a bad day is to go into a business thinking to yourself that you are NOT going to make a sale. It is critical to keep a positive mental attitude. Years ago I was doing a little 1 time publication showing how old businesses were in Douglas County. The ads were $39 each, and I was selling 3 or 4 a day. I was getting kind of frustrated, and one night I decided to read a book called “The Greatest Salesman in the World” by Og Mandino. It’s kind of a cheesy book, but it is full of good principles, and it really got me fired up. The next day I went out and sold 13 ads. It’s pretty short - takes about 2 hours to read. I'd recommend it to anyone in sales.
One of my prime objectives really is to help the business owner. Even if they do not buy an ad from me, I still try to provide them with helpful information. The more helpful you can be to a potential customer, the more he or she will want to become your customer.
I have found in 25 years of sales that the key to my success has been in building relationships with people. As I call on people I always go in with a smile on my face and a good attitude. Having a positive outlook is so important. If you go into a business with confidence (not arrogance) and enthusiasm, it is somewhat contagious and your enthusiasm will begin to give your potential customer enthusiasm for you and the product you are presenting.
Sales can be really exciting when things are going well, and really depressing if you are having a bad day. It is so important to keep a positive outlook, even when people don’t buy from you. No matter what, always thank the customer for his time and be courteous, and keep building that relationship. If they say no this time, it could very well be because of circumstances that are such that even if you were the best salesman in the world you could not overcome. So, just go on to the next one, realizing that the “no” you just got means you’re one step closer to the next sale. There have been people that I have called on seven or eight times over a two or three year period that had told me no each time, only to surprise me one day by saying yes.
Never assume someone is not going to buy from you. I can remember several times in my career in advertising making cold calls, where I’ll be going through a shopping center, and I’ll see a business and say to myself that this one would be a waste of time, but then I’ll change my mind while walking back to my car and go in and actually make a sale.
One of the principles of successful selling is to “assume the sale”. This means basically that the question is not whether or not they are going to buy your product or service, but rather what type are they going to buy, how do they want to pay for it and what information do they need to give you to finish the transaction.
On the other hand, a sure way to have a bad day is to go into a business thinking to yourself that you are NOT going to make a sale. It is critical to keep a positive mental attitude. Years ago I was doing a little 1 time publication showing how old businesses were in Douglas County. The ads were $39 each, and I was selling 3 or 4 a day. I was getting kind of frustrated, and one night I decided to read a book called “The Greatest Salesman in the World” by Og Mandino. It’s kind of a cheesy book, but it is full of good principles, and it really got me fired up. The next day I went out and sold 13 ads. It’s pretty short - takes about 2 hours to read. I'd recommend it to anyone in sales.
One of my prime objectives really is to help the business owner. Even if they do not buy an ad from me, I still try to provide them with helpful information. The more helpful you can be to a potential customer, the more he or she will want to become your customer.
Thursday, February 11, 2010
What is the difference between Circulation and Readership
Advertising Tips - Circulation vs. Readership
By Tim Collins - Publisher - Chapel Hill News & Views. Tim Collins has been in the advertising business since 1983. In addition to publishing Chapel Hill News & Views, he has also published a yellow pages, a newspaper, sold radio advertising, operated a flyer business, and had numerous other ventures in the advertising field.
One of the most important concepts to understand when choosing a print media to advertise your business is to understand the difference between circulation and readership. Most publications tout their circulation, but there are a few that will instead use readership as a way to attempt to persuade businesses to advertise with them.
What is the difference? Circulation is the actual number of copies printed and distributed. It is an exact number that can be verified easily. Readership is a much less easily defined number, and one that can be misleading. For example, when searching the Internet to find out what the average number of readers per copy of a publication was nationally, I came across one website (Circulation Verification Council) that said the national average for readers per edition was 1.75*. Another site for a magazine called the Monitor claimed their study showed a readership of 2.25. A third site operated by McPheters and Company claimed that paid circulation magazines generally had a readership of 4 or less per copy, but that magazines left in a public place could have a readership as high as 50 readers per copy. So, just based on the wide ranging estimates within the industry concerning readership, a publication which focuses solely on readership should have a very detailed survey to back up their claims. If the publication is new, this would truly be impossible.
Using the figures above, if I was someone with little scruples, I could say Chapel Hill News & Views has a readership of 520,000 even though our circulation is really 38,000. I could get this figure by multiplying 50 readers per copy for each of the 8,000 copies we leave in public places, such as doctors offices, then add 4 times each of the 30,000 copies we deliver to homes. Obviously this is quite an inflated figure, since the population of Douglas County is just above 100,000.
Readership is impossible to calculate for a particular publication, unless that publication has actually invested in a survey about their publication with a large enough sample size to be statistically accurate. The survey should be conducted by a reputable company not connected to that publication.
Readership will vary tremendously depending on the type of publication. For example, if I distributed 40,000 copies of a magazine devoted to the manufacturing of steel beams to homes in Douglas County, one can imagine that the readership would be pathetically low. It would be a stretch, to say the least, that 4 people per household would even open the magazine, let alone read more than a few sentences of it.
Therefore, the first question to ask an advertising salesman who is quoting readership instead of circulation is to ask "How many copies of the magazine or newspaper are actually printed and delivered?" It will probably be somewhere between one half and one fourth of the readership figure they are quoting, if they answer truthfully. There is probably a good reason (from their perspective) that they are not open about the number of copies they actually produce and distribute. I would also advise in a case like this that it would be a good idea to get some type of statement, for example something from the printer or a postal receipt(if it is mailed) to verify that what they are telling you is truthful.
SOURCES:
*http://www.cvcaudit.com/about/newsletter/article.asp?aid=11
** http://mcpheters.com/news/copy.htm
By Tim Collins - Publisher - Chapel Hill News & Views. Tim Collins has been in the advertising business since 1983. In addition to publishing Chapel Hill News & Views, he has also published a yellow pages, a newspaper, sold radio advertising, operated a flyer business, and had numerous other ventures in the advertising field.
One of the most important concepts to understand when choosing a print media to advertise your business is to understand the difference between circulation and readership. Most publications tout their circulation, but there are a few that will instead use readership as a way to attempt to persuade businesses to advertise with them.
What is the difference? Circulation is the actual number of copies printed and distributed. It is an exact number that can be verified easily. Readership is a much less easily defined number, and one that can be misleading. For example, when searching the Internet to find out what the average number of readers per copy of a publication was nationally, I came across one website (Circulation Verification Council) that said the national average for readers per edition was 1.75*. Another site for a magazine called the Monitor claimed their study showed a readership of 2.25. A third site operated by McPheters and Company claimed that paid circulation magazines generally had a readership of 4 or less per copy, but that magazines left in a public place could have a readership as high as 50 readers per copy. So, just based on the wide ranging estimates within the industry concerning readership, a publication which focuses solely on readership should have a very detailed survey to back up their claims. If the publication is new, this would truly be impossible.
Using the figures above, if I was someone with little scruples, I could say Chapel Hill News & Views has a readership of 520,000 even though our circulation is really 38,000. I could get this figure by multiplying 50 readers per copy for each of the 8,000 copies we leave in public places, such as doctors offices, then add 4 times each of the 30,000 copies we deliver to homes. Obviously this is quite an inflated figure, since the population of Douglas County is just above 100,000.
Readership is impossible to calculate for a particular publication, unless that publication has actually invested in a survey about their publication with a large enough sample size to be statistically accurate. The survey should be conducted by a reputable company not connected to that publication.
Readership will vary tremendously depending on the type of publication. For example, if I distributed 40,000 copies of a magazine devoted to the manufacturing of steel beams to homes in Douglas County, one can imagine that the readership would be pathetically low. It would be a stretch, to say the least, that 4 people per household would even open the magazine, let alone read more than a few sentences of it.
Therefore, the first question to ask an advertising salesman who is quoting readership instead of circulation is to ask "How many copies of the magazine or newspaper are actually printed and delivered?" It will probably be somewhere between one half and one fourth of the readership figure they are quoting, if they answer truthfully. There is probably a good reason (from their perspective) that they are not open about the number of copies they actually produce and distribute. I would also advise in a case like this that it would be a good idea to get some type of statement, for example something from the printer or a postal receipt(if it is mailed) to verify that what they are telling you is truthful.
SOURCES:
*http://www.cvcaudit.com/about/newsletter/article.asp?aid=11
** http://mcpheters.com/news/copy.htm
Business Tip: Be sure your suppliers have not become uncompetitive
Here is something I learned recently. I had a great relationship with the company that printed our magazines. I had been getting my printing done with this company for about 6 years, and was very satisfied with the customer service and quality. When I first switched to this company, they also offered the best price as well. In the first couple of years following my switch to this company, several other printers quoted our publication, and my printer was always lower in price. After a while, when a printer would call to ask if they could give me a quote, I began to tell them that I was very happy where I was, and that I was not planning on switching.
Last summer, I was looking over the costs for printing Villa Rica News & Views, and I noticed that the cost of printing the last issue was over $1,000 more than the cost of printing the same size magazine 6 months ago. Since the page counts were different each issue, it was always somewhat difficult to detect fluctuations in printing prices, but in this case it was for the exact same number of pages and quantity and the cost had increased by that much. I sent the printer a rather unfriendly email :) telling him that I would have appreciated knowing if my price was increasing. My rep said he would look into it, and as it turned out, they had made a mistake in punching in some of the numbers. So, Lesson One in this blog would be to always go over your expenses with a fine tooth comb. Companies can make mistakes, and this one would have cost me over $1,000.
Lesson Two would be to be certain that when you bill a customer it is accurate. Had they not made the mistake, I would still be with this company.
However, this is only part one of this story. I am a firm believer that God has had his hand on this business from day one, and what follows I really attribute to His workings. It turned out that the day after I discovered the price difference, and day before my printer told me about the error, a printer in another state called and asked if he could give me a quote on my magazines. At this point, I was still not very happy about what I thought had been a large increase in my printing cost. I told the rep that I would be willing to take a look at what they had to offer. This company was one of the ones that had quoted the magazines early on, so I was not expecting much. I also told him that I wanted the price they would charge on a regular basis, not a special discount to get me in the door. He called back the next day and gave me the prices, and my jaw dropped. I really thought he had made some kind of mistake, because the price was several thousand dollars less than what I was paying every month. I actually went over the figures with him, just to be sure. At that point I was really interested. The company flew me up to their plant and gave me a tour, and I was very impressed. Just out of curiosity, I decided to check prices of other printers in the Southeast to see how they compared to my current printer, and the one with the great price. It turned out that out of the 5 printers I called, EVERY one of them had a substantially lower price than what I was paying.
In talking with the different printers, I found that it was not so much that the current printer I had been using all of these years was gouging me. Instead, over the course of the time that I had been with my printer the magazine had grown from 10,000 circulation to 38,000 circulation, and the page count from 64 pages to 112 or more a month. I had really outgrown the range in which my current printer was competitive. There were several reasons for this. My current printer ran 8 pages at a time, and about 30,000 sheets per hour. The new printer ran 16 pages at a time, and 50,000 sheets an hour, so combined they were running about 3 times the speed. The current printer's equipment was about 30 years old, and required more people to run the press than the one year old, state of the art press at the new printer. There was only about 15% as much wasted paper between pres runs at the new printer. The technology of the newer press resulted in about 70% less down-time between sets of pages. The new printer is in a small town, and has low overhead, whereas my current printer was in Atlanta.
This whole experience was a Godsend, because during this recession, sales had declined somewhat, like just about everyone else. Also, paper costs had risen, especially during the time of high fuel costs. We do not like to raise ad rates unless we can give the customer something more for their money, so our bottom line had been declining. The lower printing prices have enabled us to maintain our profits to the point where we will not have to raise rates, and have even allowed us to add a little more content to the magazines, which do not generate income.
The Moral of this story: Even if you are very happy with your current suppliers, you should get quotes from other vendors at least every year or two. You will either save money, or at the very least be comfortable in knowing that you are getting the most for your money!
Last summer, I was looking over the costs for printing Villa Rica News & Views, and I noticed that the cost of printing the last issue was over $1,000 more than the cost of printing the same size magazine 6 months ago. Since the page counts were different each issue, it was always somewhat difficult to detect fluctuations in printing prices, but in this case it was for the exact same number of pages and quantity and the cost had increased by that much. I sent the printer a rather unfriendly email :) telling him that I would have appreciated knowing if my price was increasing. My rep said he would look into it, and as it turned out, they had made a mistake in punching in some of the numbers. So, Lesson One in this blog would be to always go over your expenses with a fine tooth comb. Companies can make mistakes, and this one would have cost me over $1,000.
Lesson Two would be to be certain that when you bill a customer it is accurate. Had they not made the mistake, I would still be with this company.
However, this is only part one of this story. I am a firm believer that God has had his hand on this business from day one, and what follows I really attribute to His workings. It turned out that the day after I discovered the price difference, and day before my printer told me about the error, a printer in another state called and asked if he could give me a quote on my magazines. At this point, I was still not very happy about what I thought had been a large increase in my printing cost. I told the rep that I would be willing to take a look at what they had to offer. This company was one of the ones that had quoted the magazines early on, so I was not expecting much. I also told him that I wanted the price they would charge on a regular basis, not a special discount to get me in the door. He called back the next day and gave me the prices, and my jaw dropped. I really thought he had made some kind of mistake, because the price was several thousand dollars less than what I was paying every month. I actually went over the figures with him, just to be sure. At that point I was really interested. The company flew me up to their plant and gave me a tour, and I was very impressed. Just out of curiosity, I decided to check prices of other printers in the Southeast to see how they compared to my current printer, and the one with the great price. It turned out that out of the 5 printers I called, EVERY one of them had a substantially lower price than what I was paying.
In talking with the different printers, I found that it was not so much that the current printer I had been using all of these years was gouging me. Instead, over the course of the time that I had been with my printer the magazine had grown from 10,000 circulation to 38,000 circulation, and the page count from 64 pages to 112 or more a month. I had really outgrown the range in which my current printer was competitive. There were several reasons for this. My current printer ran 8 pages at a time, and about 30,000 sheets per hour. The new printer ran 16 pages at a time, and 50,000 sheets an hour, so combined they were running about 3 times the speed. The current printer's equipment was about 30 years old, and required more people to run the press than the one year old, state of the art press at the new printer. There was only about 15% as much wasted paper between pres runs at the new printer. The technology of the newer press resulted in about 70% less down-time between sets of pages. The new printer is in a small town, and has low overhead, whereas my current printer was in Atlanta.
This whole experience was a Godsend, because during this recession, sales had declined somewhat, like just about everyone else. Also, paper costs had risen, especially during the time of high fuel costs. We do not like to raise ad rates unless we can give the customer something more for their money, so our bottom line had been declining. The lower printing prices have enabled us to maintain our profits to the point where we will not have to raise rates, and have even allowed us to add a little more content to the magazines, which do not generate income.
The Moral of this story: Even if you are very happy with your current suppliers, you should get quotes from other vendors at least every year or two. You will either save money, or at the very least be comfortable in knowing that you are getting the most for your money!
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