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The space
shuttle lumbers off the launch pad loaded with 2.7 million pounds of fuel.
Ten seconds into the flight it clears the launch tower at 100 miles per
hour. Oh, one other point of interest - in the ten seconds it takes to get
its massive 4.5 million pounds off the ground, it consumes over one
million pounds of
fuel! That's right, it
guzzles almost half its entire fuel supply – just to get off the pad. Just
to clear the tower. Just to get...moving. So, what's the space shuttle got
to do with a marketing budget? It has a lot to do with it. Say you
have a $5,000 marketing budget set aside (wishful thinking?). You will
gain far more bang for your buck by spending most of it
IMMEDIATELY! I'm talking right now. Here's why. If you piddle
around and spend a little "here and a little there," you may never get
your business off the ground as it sits there without enough thrust to
catch anyone's attention. The rent, wages and bills go on
month after month. The only thing that generates the money to pay them is
cash-in-hand customers. These are customers that must be stolen from your
competitors with (you guessed it) marketing dollars.
Here, let's
look at Pizzeria X…

The light blue bars show sales results
obtained by spending $1,000 a month on marketing for six months. The dark
bars show the results of quick-starting your marketing with $5,000 in the
first month – then spending just $1,000 a month after
that. The difference is astounding. Front loading your
marketing in month number one will put you $60,000 ahead in gross sales in
just six months because you have acquired six months worth of customers in
the very first month by spending the necessary cash. Okay,
what "kind" of marketing? This question seems to perplex many business
owners. Not quite sure where to put the money, they eventually throw it
into an "all or nothing" campaign. Sometimes it works – often it's
disastrous. And when marketing fails to produce, I've seen owners become
convinced it's a waste of money. If you've just opened, or
just have dismal sales and need to get the ball rolling, you're going to
need to burn some fuel (money). The more you spend, the more customers you
will attract.
But let me add a note
of caution… Pounding out door hangers or junk
mail with low-ball offers will bring you a quick shot of business. But, it
brings you the wrong business. You do nothing but attract coupon clippers.
Of course, coupon clippers are on a constant quest for the lowest price.
So what seemed like wild, euphoric sales in the beginning quickly
dissipates as your dose of coupons fades. Now, you find
yourself in the same boat as a heroin addict. Satisfaction only comes from
a constant "fix." In a nutshell, you have stepped aboard a
nightmarish marketing carousel that is spinning out of control. If you
stop, you can't pay the bills. If you stay, you position yourself forever
as a "low-end" pizza place eking out a meager living. Chances are you'll
make more money with a paper route. With pizza being a very
mature industry, there are very few (if any) markets left where you can
just open your doors and start counting the money. Indeed, every single
customer you gain will be at the expense of your competitors. Those
customers don't come easy. It's time to put some money on the
table.
$5,000 Quick-Fix Marketing
Strategy Okay, here goes…
1. Letters. This is exactly
how I took my own pizza business from $3,000 a week to $1.6 million a
year. I sent actual "letters" to my trade area. The letter explained why
we were different than the fast-food pizza guys. The letter also made an
offer to give us a try. But there was NO discounting. I offered a free
salad, two liter and cheese-bread when they ordered any large pizza (at
full price). Yes, letters cost more than flyers and door
hangers. In fact, they'll run you about fifty cents each with postage and
a menu. But they'll pull about five times as many orders. Best of all,
this approach does not bring out the coupon clipper
crowd. Pick 5,000 homes (or addresses) in your trade area.
Mail 1,250 letters per week.
2. Thank you
cards. Picture for a moment: you've just
received a letter from a local pizzeria. This letter explains the
difference between them, and the fast-food pizza shops. The letter goes on
to make a very compelling offer of a free salad, free 2-liter, and free
cheese bread. Okay, you say, "I'll give them a shot." And you place an
order. Thirty minutes later, a sharp-dressed delivery driver
is at your door with a hot pizza. You pay, and just as the driver hands
you the change, he reaches into his pocket and pulls out a small envelope.
He says, "The owner asked me to give this to you." As you
take the envelope, you notice it has YOUR name handwritten on it. When you
open it says, "Dear Sheryl, Thank you for your order. Please use this for
a free order of cheese sticks with your next order, Kim."
Mmmm…a thank you card from the owner. Nobody else does this.
Cost? Twenty cents each. Cheap. Plus, it makes a huge "personal"
impression. The "owner" took the time to write a personal "thank
you." Thank you cards are really a "bounce-back" or
box-topper in disguise.
3. Door Hangers.
Okay, as you mail letters to each of the
1,250 homes in your area, you'll want to follow up with door hangers. This
is kind of a dragnet to snag the people who didn't respond to your letter.
Your door hangers need to have the same offer as the letter. Three free
items. Plus you can include one or two other offers. Now, let me make this
clear: you are going to door hang the same exact houses you mailed the
letters to – two weeks after the letters hit. And you're going to door
hang these homes twice in a ten day period. Why? Because your
greatest and quickest results come from hitting the same area repeatedly.
You must make several "impressions" on the same people, not just one
impression on everybody. You'll be amazed at the breathtaking increase
you'll get by doing this.
4.
Postcards. Finally, at the end of this first
month you'll start sending postcards to your newfound customers. Just
because they ordered once doesn't mean you "own" them. It just means you
got the first date. Postcards are the cheapest investment you will ever
make to keep your customers from wandering off. You can mail a customer
one postcard every month of the year for about five bucks. After all the
effort and expense you've invested to gain customers, postcards are your
marketing "drip system" that keeps them loyal. Postcard offers don't have
to have steep discounts either. They're just a reminder or incentive to
re-order. One of the best pulling postcard offers I used was free wings
with the order of a large pizza (food-cost – less than
$1.50). Out of your $5,000 marketing budget - you should
still have around $1,000 sitting in the war chest (wait a minute weren't
we spending all $5,000?) At this point (assuming you didn't go over
budget) you'll want to start testing Money Mailer or Val-Pak to that same
5,000 home area. One thousand dollars ought to more than cover
it.
3-2-1… Ignition... We Have
Lift Off!
Now look what you've accomplished
in just 30 days:
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You have mailed a letter to "Mom"
explaining why your pizzeria is different, and better than the fast-food
places.
-
You've sent Mom a personalized "thank
you" card.
-
Then you send Mom a postcard with
another offer for the family.
-
You've followed up with door
hangers.
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On top of that, you have created enough
"buzz" with all this contact that when your Val-Pak or Money Mailer
shows up in their mailbox they have actually heard of you.
That will boost response by over 100
percent. Let's go back to the space shuttle for a moment.
Once it has momentum, it takes less and less fuel to go faster and faster.
The bottom line is you need to burn some fuel quickly if you want your
business to get off the ground. Then you can gradually cut
back. This is how the big players launch their pizzerias.
They spend furiously in the beginning to saturate their customer base.
Then they cut back – but always spend enough to protect their
turf. If you're just getting started – and you've spent all
your money on pizza equipment, remodeling and paying off crooked building
inspectors, you'd better check the limit on that credit card. This is no
time to be shy with the marketing dollars. If you'd like to
get your PhD in killer pizza marketing and see how I took my pizza
business from $3,000 a week to $1.6 million a year, visit my website
www.profitwithpizza.com right now
and discover the tricks I used to clobber the big national chains.
– PMQ
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