Which would be better to spend it on?
Place is in Clovis Ca next to Fresno. The population around the store is about 55k in about 2 miles and 400k around 5 miles.
The store is a 2200sqft sit down and delivery. Opened for 6 months without a lot of customers stopping by.
There are about 12 fm radio stations in the area
Would a $500 be better spent on a radio spot that gives about 50- 30 second spots be good?
Putting the $500 into Door Knockers and Magnets to be hung on the doors with in 1 mile of the store?
Does anyone have anything better?
You want to do what’s going to give you the biggest bang for your buck. Sometimes, it’s trial and error. But, think of it this way, if you doorhang and do magnets, you know people will see them. If you do radio, they may or may not hear it.
I did a radio sponsorship one night, didn’t get anything. I did doorhangers in my area and couldn’t keep up the same night.
99.9% of the time direct mail is the best way to spend money advertising. Do a route that is close to your shop and see what results you get. Read this post. it is a good one:
I was always under the assumption that direct mail is the least effective bringing only a 1-2% return…
Yeah, butif you structure your offer properly a 1.5% response rate will bring in a 150% ROI.
I’ve found direct mail to be, hands down, the most effective form of advertising there is.
Do them both. Radio and door hanging have track records of decent ROIs. If a bank had a sale on $1 bills for 95 cents each how many would you buy? I would take as many as they had. Marketing is the same thing here. You are looking at it as a $500 hit on your P&L while in reality it is the opposite. Marketing is not an expense.
You look new to marketing, so a great habit to begin now is to religiously track your ROI. Many people will just make up numbers, (60% of all percentages are made up). With proper tracking you will know what every $ spent on marketing will make. You will know if spending $20 to attract a new customer is a good deal (it is), and you will be better able to increase sales significantly by improving your marketing skills.
Again, marketing is not an expense unless you do it poorly.
If you are in a large radio market, radio will not be a good investment unless you have multiple locations within the market so your cost per impression is reasonable…If you are in a small market, radio is usually expensive based on your cost per impression…Find a copy of “The Secret Formula of the Wizard of Ads” and do some reading…Radio requires a consistent and long term investment…At times it can work, however, I think for most it is a long shot and requires a lot of due diligence before you shell out any money…And remember, radio ad folks are paid on commission and once time has passed the inventory they are selling is worthless so they will put a lot of pressure on you if they are not completely sold out…And these days, most radio (or tv time) is not sold out…