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View Full Version : Sticker ad on newspaper?


Steve
11-05-2007, 12:16 PM
Have you seen much of this type of advertising? I thought it worked out pretty well and stood out.

This gutter cleaning service gets their stickers attached to the newspaper right at the peak of fall when the leaves are coming down. It is located on the front page at the top right.

Maybe if you are looking to market such a service, this marketing idea could be helpful. You could also do this to advertise your fall lawn care leaf cleanup services.

Steve
11-05-2007, 12:20 PM
Check out their trucks nice and bright orange. They really stand out don't they?

Steve
11-05-2007, 12:21 PM
They actually make seamless gutters right from the back of their truck here.

landonkade
11-05-2007, 02:03 PM
Quote[/b] (Team Gopher @ Nov. 05 2007,12:16)]Have you seen much of this type of advertising? I thought it worked out pretty well and stood out.

This gutter cleaning service gets their stickers attached to the newspaper right at the peak of fall when the leaves are coming down. It is located on the front page at the top right.

Maybe if you are looking to market such a service, this marketing idea could be helpful. You could also do this to advertise your fall lawn care leaf cleanup services.
seems like a really good idea, right in the people face when they pick it up. Also eye catching being orange and the trucks. If the papers are on a stand in stores and i seen a bright orange sticker, i would be "what is that" and check it out,lol. I'll see if my local newspaper can do something like that for the fall cleanups or something.

bright nasty colors stand out the most i think,lol

Angelik99
11-05-2007, 06:13 PM
haha looks like they just slapped it on there, I think they must have...

Angelik99
11-05-2007, 06:16 PM
I love the trucks though...but that's what I should do, get a logo somehow and throw it on a sticker and just throw it everywhere!! Then blame it on teenagers, LOL!! Hand them out at events, etc. Everyone always loves a free sticker...dunno why....must be stuck in our head from childhood.

pmblair
11-06-2007, 12:29 AM
I'll tell you what... I worked for a newspaper for a while here... normal advertising rates are NOT cheap... I can only imagine that this type of advertising is VERY costly.....

...of course, I could be wrong...

landonkade
11-06-2007, 02:19 AM
Quote[/b] (pmblair @ Nov. 06 2007,12:29)]I'll tell you what... I worked for a newspaper for a while here... normal advertising rates are NOT cheap... I can only imagine that this type of advertising is VERY costly.....

...of course, I could be wrong...
yeah its $150 a month for a 1 by 2 ad in the service directory here

Steve
11-06-2007, 02:55 AM
I think the paper actually sells this service. Phone books are doing it more and more now too. I have gotten plenty of phone books delivered with stickers on the front covers. Sometimes the stickers are actually magnets, that are slightly glued onto the book!

pmblair
11-06-2007, 07:47 AM
Quote[/b] ]yeah its $150 a month for a 1 by 2 ad in the service directory here

Wow... $150 for a month... how many issues does that go out in over the course of a month?

Quote[/b] ]I think the paper actually sells this service. Phone books are doing it more and more now too. I have gotten plenty of phone books delivered with stickers on the front covers. Sometimes the stickers are actually magnets, that are slightly glued onto the book!

I've seen those, too... and I LOVE that idea... but I KNOW the phonebook is expensive... isn't it?

landonkade
11-06-2007, 12:37 PM
Quote[/b] (pmblair @ Nov. 06 2007,7:47)]Quote[/b] ]yeah its $150 a month for a 1 by 2 ad in the service directory here

Wow... $150 for a month... how many issues does that go out in over the course of a month?

Quote[/b] ]I think the paper actually sells this service. Phone books are doing it more and more now too. I have gotten plenty of phone books delivered with stickers on the front covers. Sometimes the stickers are actually magnets, that are slightly glued onto the book!

I've seen those, too... and I LOVE that idea... but I KNOW the phonebook is expensive... *isn't it?
i think several thousand or so, the population here is around 65,000 people

StartALawnCareBusiness
11-14-2007, 02:57 PM
I spoke with my newspaper advertising rep this morning to get the low down on these stickers.

They are called "Tap-Ons"

Newspapers do the printing of the stickers and they also adhere them to the front page during production.

All you have to supply is the artwork in a .jpg image.

This advertising is sold in 25,000 unit increments. 25,000 is a minimum. After that, you can buy 50,000 units and 100,000 units.

A 1 color layout costs $73.27 per thousand at the 25,000 unit level.
A 2 color layout costs $96.05 per thousand.
A full color layout costs $125.54 per thousand.

So, if you want to place a full color advertisement on 25,000 newspapers, it will cost:

$125.54 x 25 = 3138.50

Price drops occur at each 25,000 unit level. At 50,000 units the price for a full color sticker is:

$112.17 x 50 = $5608.50

Two color works out to:

$86.45 x 50 = $4322.50

A bit of analysis:

Two color at 50K will cost 8.6 cents each.

When you look at what it costs to effectively reach customers, $.086 is really not a high price to pay. The vast majority of people who read newspapers look at the front page to skim the headlines.

If the average leaf job brings in $150 you will have to get and do 29 leaf jobs just to pay for the advertisement.

I can see where this type advertising would be worthwhile if you had several crews and you could handle a sudden influx of customers.

However, I think most lawn care companies would have a tough time swallowing a one-time 4 grand advertising outlay.

Keith

Steve
11-14-2007, 03:09 PM
Very excellent analytical points.

You really have to figure how long would you have to work to pay this off but more importantly what kind of response are you going to get? If you can't handle the response relatively quickly, I am sure the potential customers will jump to another service provider.

Keith as you sit there thinking about this, how many crews would you need to make this worth while?

Any ballpark ideas?

StartALawnCareBusiness
11-14-2007, 07:37 PM
Quote[/b] ]how many crews would you need to make this worth while?


I'll take a stab at this. *My guess is that 3 to 5 crews would warrant an advertising campaign to this scope. *My logic is below.

Let's look at it from the viewpoint of a larger company running unsupervised crews. *I will calculate profit on a per job basis then expand from there.

Normally, charges are less per man hour for a crew working unsupervised than working by yourself as a business owner. *$35 per man hour is a reasonable rate for crew workers. *At this rate, a $150 leaf job will take 4:18 (4.29) manhours.

Paying $9/hour to your workers is reasonable. *Adding taxes, workman's comp, benefits, etc. increases that figure by 40%. *So labor cost is $12.60 / hour. *4.29 hours x $12.60 means this job costs the company $54.05 in labor alone.

There are tons of other fixed and variable costs too. *Employee downtime, travel time, estimating costs, equipment maintenance, gasoline, insurance, AR Costs, building and equipment depreciation, other overhead costs. *What these costs are will be dependent on company size. *Let's say fixed and variable costs run an average of $150 / crew / day. *If a crew can do 5 of these jobs per day, f&v costs average out to $30 for this one job.

So, what is the cost (not including advertising) of this job?

$54.05 + $30 = $84.05

Price of job minus costs mean that the company makes (150 - 84.05) a profit of $65.95 for this job.

If the Tap-On stickers cost $4322.50, the company must do 66 jobs just to pay for the advertisement. *At 5 jobs per crew per day, it will take 13 crew days to pay for the advertisement. *

Steve, you're a better marketing guy than I am. *What do you think the conversion rate is on an ad like this? *1%? *If the conversion rate is 1%, the business owner will get 500 jobs from a 50,000 unit purchase.

500 jobs at 5 jobs / crew per day is 100 crew days. *If you have 5 crews, you can get caught up in 20 days. *I think 5 crews is a good number to have in order to be able to handle the sudden influx of customers.

What is a company's profit on 500 jobs? *500 x 65.95 is $32,975. *That is a profit to the company of $1648.75 / day which works out to an annualized profit of $428,675 on a 260 day work year.

Even this doesn't tell the entire story. *A company should be able to convert at least 40% of these customers into long term lawn care customers. *Think about this from a customer acquisition cost basis. *The lawn care company gets 200 long term customers with an acquisition cost that has already been paid for by a successful advertising campaign.

$430,000 per year, net? *Not too shabby!!!

Would love to hear more thoughts on this.

Keith

Steve
11-14-2007, 08:08 PM
Quote[/b] ]At this rate, a $150 leaf job will take 4:18 (4.29) manhours.
Can I ask how you came up with the $150?

Quote[/b] ]At 5 jobs per crew per day
And this?

Quote[/b] ]If you have 5 crews, you can get caught up in 20 days.
What would you say the window of opportunity is for fall leaf cleanups? How long will a potential customer wait for an lco to show up before they call someone else?

StartALawnCareBusiness
11-14-2007, 08:23 PM
Quote[/b] ]Can I ask how you came up with the $150? * *What would you say the window of opportunity is for fall leaf cleanups? How long will a potential customer wait for an lco to show up before they call someone else?


Mainly this is just from experience. *$150 is a medium price for a one time leaf clean up. *This definately is subjective. *As for how long customers will wait...some customers will call for one time leaf clean up but I've found most customers will call you early in the season and have continuing maintenance.

Quote[/b] ]At 5 jobs per crew per day

Are 11 hour days unreasonable? *http://www.gophergraphics.com/forum/iB_html/non-cgi/emoticons/tounge.gif


oooooo....big lightning storm brewing...better turn my computer off for now.

StartALawnCareBusiness
11-14-2007, 10:04 PM
whewww...crazy storm.


Steve, what are your thoughts on the conversion rate? That's the largest variable in this whole theory.


Keith

Steve
11-15-2007, 05:35 AM
These are some real great thoughts here!

Quote[/b] ]Steve, what are your thoughts on the conversion rate? That's the largest variable in this whole theory.

Well I know quite often we like to talk about 1% to 2% conversion rates but I think if we really studied the average conversion rate from the average lawn care operator. I am thinking the figure would be more like .5% and that actually could be high.

However in this situation, it's possible it could be higher because I am thinking most of the people who get the paper would most likely be home owners. These homeowners have lawns and all will have leaves. The timing was right with the ad so it is possible you could get the 1% to 2%.

I think the ultimate lesson here is, don't try this unless you have at least 5 crews. I wouldn't be surprised if this business had 20+. They have been in business for over 40 years.