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I can get 4% returns on direct mail.. want to know how?

65K views 172 replies 56 participants last post by  Paint medics 
#1 ·
Another article from my blog/forum.. written with my industry but it should apply to painters as well.

How To Systematically Dominate a Market: Part 1

I see so many companies that offer excellent service and superior workmanship floundering at lead generation. The biggest issue is not applying what they already know to their marketing agenda. Let me explain:

Most of us can tackle a job in our chosen field from A-Z with relative ease. We know what comes off the truck, where to begin and where to end. We can predict accurately the results of our efforts. When it comes to advertising there is so much rhetoric and empty promise that many of us get stuck spending money on low performance, single run campaigns that generate nothing. We end up frustrated and bad mouthing that particular form of advertising. Where are we going wrong? We are not following the same type of systematic approach.

The Rule of Repetition
Everyone has heard about this and, if you watch TV for a few hours every week, you have witnessed it in action. Yet, we will stubbornly deny this rule exists. We'll run two postcard campaigns (or maybe just one) and when we get two calls from a thousand names.. postcards go out the window. Everyone buys on trust.. no matter what the purchase. Repetition creates this trust.

But Repetition is EXPENSIVE !!
Not if you do it right. The key is what I call "small target domination".

What is Small Target Domination and Where Do I Begin?
Compile Your Target List
1) The first thing I do is establish the geographic area I want to target. It may be one zip code, or it may be a few. Drive to that area. Is it rich with contractor activity? Is it a keep-up-with-the-Joneses neighborhood? Take notes on what you see. Write down street names. More on why you do that in a moment.
2) Return home and begin to compile a mailing list. That does not mean you mail to the entire zip code. The zip codes are your starting point. You are looking to get the list narrowed between 500-1500 prospects depending on your budget. You can use a service like infousa.com to start narrowing your criteria. Criteria I use..
a) Ownership of the home for five years plus. These people have recovered from the inital purchase and are ready to start spending money on upgrades or curb appeal.
b) Household income at least twice that of the state average.
c) The value of the home itself. Odds are, if you have gone to the right neighborhoods in step-1 you will have a general idea of the home pricing there. I disclude houses over $2,000,000 as the homeowners are hard to reach. The majority of my customer's properties range from $350,000 to $1,000,000. It also goes without saying that you want to narrow only to homeowners and disclude renters.
d) Carrier routes: The reason I write down street names is so that I can determine the carier routes. I may only want to target half of a zip code. You can use the 'zip plus four' system as well.
3) Once you have your list of residences research the area. What newspaper do these people read? I'm talking about small geographic distribution/local papers. What do these people like to do for liesure? What is the dominant religion for the area? What schools do they send their children to? What restaurants and eateries do they frequent?

Now What?
Get Your Name Out There
My goal is to begin branding. That is a bad word to many experts with respect to small companies. Perhaps it is in the semantics of the definition. Let's call it 'trust building". As I stated in this thread, trust building is achieved via repetition. The more they see your name, the more credible you become. These are the steps I recommend.

1) Introduce yourself. Send out a letter of introduction. The key is to get people to open it. There are a couple of methods I use.
a) I send a standard letter envelope and include a magnet or drink coaster. (more on the drink coaster in another thread). When people feel something inside an envelope, they open it. Make sure the envelope is addressed to the homeonwer, not "occupant" or "resident". I have spent money on custom envelopes with "Special Offer Inside" and it produced no greater return. Spend your money on what's inside. The letter itself should be informative and have a friendly, personalized tone. Your goal with this intro is not neccessarily to sell your service. Its a "Hi, how are you, we're here if you need us letter". You can include a seperate coupon (print it on glossy stock) call to action if you want but it drives up cost and again, I did not see added return when I did that. The return on this first mailer will be nil to .25 percent. (by the end of the campaign, you should expect 3-5% returns)
b) As an alternate, send out an introduction greeting card. This envelope size is the most opened. I'm not going to get into what you say on the card, bit it is a great method for direct mail. I utilize it now as the second mailing in my campaign.

2) Now is the time to set up your support advertising. Remember when we compiled the lifestyle information about our target area? You use that now to determine where you will run ads.
a) Get listed in the contractor section of their local paper. If your budget is higher, place an ad in the paper somewhere.
b) Advertise in their church bulletin. This one is huge. There is a psychological advantage that occurs when people see your ads here.
c) Go to their local eateries. If there is a bulletin board, put a flyer up there. Talk to the owner. Many shops sell advertising on their takeout menus. I have gotten into leaving drink coasters with local upscale pubs. I had a call last month from a young girl that took one of my coasters home and called me. She didn't need service but her mother just had construction done and her house was filthy from the dust. That job paid for my next 8000 coasters.
d) Golfing is big in my demographic. These people are perfect. Disposable income and they don't DIY on the weekends when they can be out on the course. I have gotten to be friends with the guy that runs the clubhouse at a private course near my house. I leave flyers there and this spring I am co-sponsoring an outing. You'd laugh if I told you how inexpensive this exposure is.
 
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#53 ·
Plain painter your lady painter freind sounds like she could could benefit from bb souch as this one and others, have you told her about the BB???

I have several freinds that sound like your lady freind, and no matter what i say they wont even check out the BB. O well thats why i was wondering.

thanks
dave mac
 
#54 ·
Dave,

That's okay.. Them not being here leaves less guys trying to take home the lion's share of the cash. We will all continue to share and refine our businesses and techniques. If there weren't people like Dan's lady friend, nobody would have a lesser model to which they could compare excellence.
 
#55 ·
This woman I know - even though she is a contractor is still in 'mommy' mode. Perhaps when her kids grow up more - she can focus more on business. But for now - she uses that 'mommy' angle especially when pursuing housewives as clients. And it has worked for her - but there is a ceiling, in terms of pay, that goes with it. So I guess everyone has their 'time' when they are ready to make the next steps in the evolution of their business.
 
#56 ·
Dave Mac, to answer your question more definitively. I believe the answer to your question has something to do with lucidity. Throughout my life, I have had conversations with people and told them things. And later on, they have asked me - why did I not tell them of so and so. Well the truth was, they weren't listening. Sure we were having a conversation - but their concentration is elsewhere. With your friends and mine - they pick up bits and morsels of what we say - but it doesn't sink in sometimes for many months. They're too busy thinking about the kids with flus, driving the kiddies to doctor appointments - meeting up with past clients - and the general mindset that they will reproduce the same actions they have been doing for the last 4 years to drum up business. I think for the most part - they are in disbelief that we could even afford a 20k budget and then gross 6 figure salary. But after a while - it sinks in. Once they really see how consistently we meet our goals - then their attitudes start changing, and begin asking questions and bringing up old conversations.

Heck, it took me a while - but I got to the point in life that I was real mad at life - and something had to change - that this life just couldn't be this absurd and people so cheap. So I humbled myself and started 'listening'.
 
#57 ·
Dave Mac, to answer your question more definitively. I believe the answer to your question has something to do with lucidity. Throughout my life, I have had conversations with people and told them things. And later on, they have asked me - why did I not tell them of so and so. Well the truth was, they weren't listening. Sure we were having a conversation - but their concentration is elsewhere. With your friends and mine - they pick up bits and morsels of what we say - but it doesn't sink in sometimes for many months. They're too busy thinking about the kids with flus, driving the kiddies to doctor appointments - meeting up with past clients - and the general mindset that they will reproduce the same actions they have been doing for the last 4 years to drum up business. I think for the most part - they are in disbelief that we could even afford a 20k budget and then gross 6 figure salary. But after a while - it sinks in. Once they really see how consistently we meet our goals - then their attitudes start changing, and begin asking questions and bringing up old conversations.

Heck, it took me a while - but I got to the point in life that I was real mad at life - and something had to change - that this life just couldn't be this absurd and people so cheap. So I humbled myself and started 'listening'.


plainpainter, is that you? :thumbup:
 
#60 ·
Hey everybody I know I'm new to this site, but I'd like to propose a new "rule". First let me start by saying that this thread is a great one, the info that PP has shared, I can allready tell, is going to help me out a lot. But the reason for my post is to say I HATE message boards and blogs..... except this one. This forum is an awesome resource for painters and small biz owners of all kinds, and it is straight to the point, you share info, and gain knowledge. Most other message boards and blogs out there are just a forum for a bunch of idiots to talk smack. Please, Please you guys lets not destroy this site. Thanks to the intelligent and useful info guys like PressurePros, Vermontpainter, Brian, NEPS.US, HomeGuardPaints, etc have provided this site is great, but when guys like bushdude come on the talk a bunch of stupid smack it kills the site, I just spent 20 minutes reading smack directed at someone who is not even worth the time. So anyway, I think we should make a new rule..... When someone like BushDude comes on and wastes our time and gets off topic (and its not funny or inciteful) lets just reply with a "No Thanks Bushdude" and then move on with the original discussion. How does that sound? Thanks everybody!
 
#61 ·
Don't read unless you feel up for some math...

Dear Pressure Pros and others,

I have been working on our company's marketing plan(unique selling propositions, budgets, systems, etc, etc) and I wanted to start by saying thank you for this thread again. Very helpful, THANK YOU and a great reminder that:

1. It is more important to be alot to a few people: "Small Market Domination"
2. Repetition is key and having a marketing MIX is so important.

Now here is my question:

I believe that we could get up to 3-5% returns on Direct mail.

But on a new campaign, what percentage of your budget would you spend on support advertising VS the cost of the actual direct mail campaigns?

For example,

Say my monthly budget is $7500 for marketing and I am trying to generate 125 NEW customer inquiries(not referrals, repeat, etc).

125 inquires at a 4% return, would require I send out 3125 pieces.

However, you said that nil to .25% for the first and maybe second mailing, so lets say I send out 3125 x three times, hoping that the 3rd run hits that 4% return. That is 3 x 3125 pieces or 9,375 pieces.

Assuming 9,375 pieces at 40 cents a piece(designed, sorted, printed, mailed) = $3,750.00

In this example, I am left with $3,750 for support advertising, or on a monthly basis, 3750/7500 = 50% of my overall marketing budget.

I know this is a relatively simplistic example, but just trying to get a feel for a range to expect or shoot for in terms of the cost of the mail campaign as compared to the support advertising needed to support the mailing.

I know this is entirely subjective and depends on the quality of your list, relevance and quality of your support advertising, quality of your ad copy and presentation, presence in the neighborhoods with vehicles/lawn signs, overall company image, etc, etc, etc.

I am just looking for some discussion on this if anyone would like to share.

Thank you,

Ethan


P.S.


We are running at roughly .003% on our door hanger/flyering/direct mail attempts. We have tried other mediums to support advertise like TV, Trade Shows, etc. but I believe that we have gone after too large of markets and would benefit from focusing on smaller markets as you suggest.
 
#62 ·
Ethen we are doing 10,000 flyers every month, we have about 30,000 homes we target, and hit them about 4 times a year, the returns are getting very poor and are getting even poorer ever month. Im really going to be working hard on a total new market plan, News paper inserts, proximity mailings, new homeowners, church bullintins.

I would love to here what type of avenues you are exploring.


thanks
dave mac
 
#81 ·
2009 Web Marketing = VIDEO...See a Painter's new site now.

Hi Paint Talk,
It has been a while. As I mentioned before, I am a service provider, so I visit and comment with respect as well I appreciate the welcome and new friends I have made.

We just finished a WEB DESIGN and ONLINE VIDEO project for BLS Painting.

The web design link is the beginning of an online video series about what works in today's Internet market space.

Clearly online high quality video is going up everywhere...so you need to ask yourself if it is right for you.

To be candid...the answer should be ABSOLUTELY! The average customer/prospect spends twice as much time online and the viewing of online video is on target to pass TV commercial viewing.

It is surely time to open a can of online video paint sooner than later.

We are busy...providing excellent services for you,
Mayo
http://www.Proposalware.com
http://www.TexasSmallBizTV.com
http://www.communireach.com
 
#88 ·
I see you're point. I just don't think you can sell a service to people who don't know you exist. And I hope the neighbors see the signs and then ask the neighbor if they were happy with the service.

See I believe people are lazy by nature. Not a good or bad thing, but if I give you an easy way and a hard way to do something, you will pick the easy way.

I want to make it easy for them to find my business or ask about it.

Right or wrong? Who knows? Just my humble opinion.
 
#89 ·
L/C--

Your most recent post here on this thread makes good sense. I like the way you make your points.

I'd like to throw this out to the audience:

Let's define:

High Class or High End Painting

And the steps to the bottom--Mid Level-Middle Class Painting

Low End

Defining the terms and customer bases seems very appropriate to the topic of marketing. I don't think the same strategies work well for all customer bases.

And--The point that rings super true for me is: Customers and painters seem to want "like with like". I suspect high end customers want a more conservative, anonymous interaction--no yard signs, hangers-spotless whites, booties, etc.

Let's kick it around a bit.

JTP
 
#90 ·
I've worked for folks that made in excess of 400k a year - that I wouldn't consider 'high class'. I'd consider them upper middle class - and their home was big - but it was still on a cul-de-sac with neighbors - and little kids running all over the place - they weren't averse to having a sign in their lawn. A lawn sign is one of the best ways to get your name out there - we all talk about this elusive group of 'high class' people and about what they want and don't want. Personally I'll keep sticking my little sign in to the ground until the day the butler tells me not to - then I'll know I am working for 'high class' folks.
 
#93 ·
Good statement. :thumbsup:

Just because you're doing high end work doesn't mean that you're going to make more money than the guy down the road painting the electricity pylons. Those guys make some serious money! There's profit to be made in all aspects of the trade so if it's there, go look for it and grab it before somebody else does.
 
#100 ·
Nothing spells desperation more than yard signs on public property. I see Certa Pro and College Painting signs on highways, main roads, intersections, next to street signs, ect. It is the weakest and lowest form of advertising a company can do. I used to place a yard sign in front of every house we worked on until I noticed a trend. Every landscaper, painter and other tradesmen started popping signs everywhere. It is over kill. Future clients can see my vehicles in front of the job for 9 hours every day while we are working on it. They can obtain my information then.
 
#101 ·
We use them selectively and only with permission. Sometimes even for reasons other than marketing. Often, the houses we work at have very long driveways and no mailboxes. It is sometimes necessary to mark them for our own employees to find them if they are coming on different days from other jobs. Also, for supply deliveries. Mostly, for exposure, and always with approval. Our signs are tasteful, clean and well kept. People do notice them.

In our area, many of the best companies are doing it now, when they never would have even 2 years ago. What I do have a problem with is a company (not even always the college ones) from a town 100 miles away coming through and blanketing intersections and telephone poles with cheap signs. That makes the whole idea of signs look bad.

I dont disagree with the tasteful use of signs. I was disagreeing with some of Plain's stance on them.
 
#104 ·
A lot of the neiborhoods we work in do not allow them. I have a place in my contract that has a box that is checked , if we are going to use one. I have some great clients, and some will tell me not to put them in, Find by me. My sighns have a info box as well, so the walkers can actually get a giant post card, this works good.
 
#106 ·
I gotta laugh sometimes about how serious we all are. Yeah, I know making a living is serious business. But this thread is making me laugh now.

I can tell you a couple of funny stories about appearances and how they can make or break you. I'll save you all the long winded stories.

There is a market for eccentric painters too you know! The kind driving old beaters with ladders tied on top. When the eccentric painter drives into the cul de sac--the two very professional painting vans on either side look side ways and start laughing at the beat up guy and his beat up 82 wagon with the wood side panels.

Moral of the story--the old beater gets the job done, packs up--and moves down the block to the next cul de sac where two other painting contractor vans are parked in the drive for 9 hours. The two crews from the different painting companies begin to laugh at the old beater and the guy who steps out.

End of Story.

JTP:rolleyes:
 
#108 ·
There is a market for eccentric painters too you know!
JTP:rolleyes:

That is true. I have known a couple that did high end work.

They always did an excellent job, efficiently, and the customers trusted them.

It's not impossible to win people over with a beat up car, it's just one more vector for people to misunderstand you or misinterpret you, and question your worh as a tradesman.
 
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