I was just looking back at our advertising for this year. Totals are not in yet. I'm guesing total cost of $8K. The invoices totals for new customers from advertising is not too much more then the cost of advertising. Subtract material and labor and it was a money looser for us. That does not account for the tire kicker calls.
I also noticed that customers from advertising did not generate too much for repeat bisiness. I like to think we do our best to make the customer happy. We do have other many refurals and repeat business. It just seemed like the customers that called us used us then forgot us. Maybe next time they needed someone they just started over in the phone book.
I would agree that it takes a while before some people change to a new book.
It also seems like the more you your in the phone book the more sales calls you get. I think some places call everyone in each book. If your in a few books it seems like they call you several times.
One year I tracked an ad with a different number. For maybe $180 a month I would get 10 calls. I would guess most of those were sales calls because most were not more then 1 minuite on the phone bill.
Depending on what directory, area and which year we had 1/2, 1/3 page, bisiness card size, bold lettering, other sections.
What our problems are:
1. There are at least 3 publishers and some publishers have 6 or more different books in just 1 county. So 1 ad in all the books in 1 county can ad up fast.
2. Lots of big competition with companies 50 or more years old. They are well known and have deep pockets.
3. There are 100's of EC listed in the books here. Although many don't have an ad.
4. We don't have a person in the office answering the phone. Many times a call is forwarded to my cell phone. I noticed the forwarding can take longer then 30 seconds before the customer hears a ring. Some may just give up. Other times my phone does not ring and goes to voice mail. But the worst is when I answer and the phne signal cuts out. On a job site it can be very hard to talk on a phone well. I also find when I sitting down at a desk I can talk to the customer much better. We can hear each other, I can write things down, I have a calender and appointment book in front of me. I am more relaxed and can think betterin the office on the phone.
5. Our ads may need to be done by some sort of ad designer.
6. We don't allways have the time or people to take on jobs right away.
To sove these problems:
I could hire an office person or electrician an I sit in the office.
Shell out the big money for 1 page ads.
Pay to have the ads designed.
That could ad up to to a lot - 100K?.
It is just dificult to comit big cash when your not making big money now.
I guess what I'm saying is the ad is just 1/2 of it. A company that invests so much in advertising should also invest in the right people to answer the phone in the office.
I would think your rates should go up to cover the ads & personal so you can make back the hundreds a day your OH went up. Or you would operate at a loss and hope the increased calls will even things out.
Just my opinion. But you might want to listen to the ones that are doing better.
Tom
