Before giving up the idea of promoting your business or shelling out big bucks to a big firm, consider hiring yourself. Who better to represent your business?Also readThe Principles of Estimating
No consumer leaves the house in the morning angling to slide the family sedan into a ditch or hoping to ram his or her SUV into the back of a minivan. Unlike restaurants that lure customers with new delectables or stores that drum up business with sales extravaganzas, you are in the unenviable position of selling your business to potential customers when they don’t need you. Yes, your insurance company relationships and direct repair program (DRP) arrangements are important. They stand to provide a steady stream of customers who might decide to bring their business to you permanently. But ask yourself this: Do you want to put all of your proverbial eggs in one basket and depend on third parties to bring customers to you, or do you want to be the one in control of your business—the one who’s breaking records instead of breaking even? If you choose the latter, you need to do two things.First, forge an aggressive commitment to a comprehensive marketing campaign. Some businesses are fortunate enough to be able to hire marketing professionals. But assuming you’re going to handle this in-house for at least the time being, you’ll need to remember this: You must be committed. You’ll become your own worst enemy if you start to dish out thousands of dollars in the name of haphazard and incomplete efforts. Second, develop a message powerful enough to cut through the thousands of other advertising images the average consumer is subjected to every day. This message must be compelling enough to convince those same consumers to remember you when they are in need of your services. Starting Point
Before you begin laying out the cash for your new marketing strategy, take a close look at your business. What distinguishes you from your competitors? What is the one thing you want potential customers to remember about you? What are you most proud of? The idea here is to carve a niche for yourself—give yourself a competitive edge.This differentiator can be virtually anything. Maybe your staff is the most skilled and experienced in your area. Perhaps you have the nicest, newest facility or a facility decked out with a classic car or luau theme. Don’t hesitate to promote the fact that your family-owned collision repair business has been around longer than any others or that you are the only repairer in town who shuns DRPs. The opposite could also work: Maybe you work with every major insurer. However, it may be difficult to separate yourself from your business and look at it from a consumer’s perspective. If you’re unsure of your thoughts, don’t hesitate to ask your employees or your customers for input. While your employees understand your business, they may also be able to see it from enough of an outside viewpoint to offer a fresh perspective. Your customers don’t know your business as intimately as you do, but they can tell you why they became your customers in the first place—and why they keep coming back. Customer feedback forms, for example, can provide some insight into how your customers heard about your facility. Once you identify your niche, you need to put it into words. But not just any words. You need to tell your story in less than 30 seconds, including who you are and what your business can do for your customers. This is called your unique selling proposition. It can also be referred to as your “sound bite” or “elevator speech.” Think of it this way: If you meet a fellow business owner in an elevator, how would you introduce yourself? “Hi, my name is Joe Smith, and I own a body shop.” or “Hello, I’m Joe Smith of Smith’s Collision Works, where we’ll take care of you from crash to finish.” Which introduction do you think the other person is more likely to remember?If you run into a creative block in this area or you want a professional’s opinion of your work, don’t be afraid to seek the help of a professional firm, if only for this project. It isn’t a bad idea to have an agency in mind, anyway, for those more complex projects that you prefer to or need to outsource. Looking to save some money? Seek out a free-lance artist, designer or writer, or even a college student who’s going to be thrilled to put his or her new-found knowledge to work.If you have a well-known slogan or an “elevator speech” that you are satisfied with or that you believe is too well known to change, go with it. Just review it and make sure it’s conveying the message and the image you want. Your strategy now is to use your slogan, elevator speech, logo, and other marketing tools with consistency. Hammer it home with every opportunity. The more potential customers see your logo, the more often they are going to think about you and the more likely they are to remember you when they need to. Whether you’re creating a new slogan or revamping an old one, remember to make it as professional as possible. A great slogan scribbled haphazardly on a piece of paper could do more harm than good. Don’t be afraid to spend a little bit of money for professional signage, business cards, letterhead, envelopes and all other company materials. It’s all part of your image, your reputation, the niche you’re carving for yourself in the community, and professionalism is key to the success of this.The Planning Process
Rarely will a successful entrepreneur open a business without a plan of how much money to invest and just how to recoup that money. Developing your marketing plan is no different. You need to decide up front how much you’re going to spend—plan on spending a minimum of 3 percent to 5 percent of your total sales—and how you’re going to spend it. Depending on what you’re currently spending, even 3 percent may sound like a lot. But there is a lot of truth to the saying, “You have to spend money to make money.”Let’s first review your existing expenditures. How much are you spending on Yellow Pages advertising each year? Do you advertise in the local newspaper or on a local radio station? If so, how much does that cost? Include everything from the baseball team sponsorship to the donations you make to local organizations. Calculate the total per year as well as the cost per piece. For example, if you mail out 2,500 postcards per week to a mailing list of potential customers, determine the total annual cost of the mailing list, the printing and the postage for that campaign. To calculate the price per piece, divide that total by 130,000 (2,500 per week x 52 weeks). To measure the effectiveness of your efforts, you should be tracking the number of customers that come to you from each one and how much those customers are worth in sales revenue. Your shop management software should have such a capability. If you have been tracking this, now is an ideal time to review the success of each initiative. Take a hard look at what you’re spending, what you’re gaining and what alternatives you have.Have you been pouring $3,000 a month into radio advertising while only reaping an average of $500 in business from it? You don’t need an MBA to know this isn’t a wise way to spend your hard-earned money. Would it be more effective to try a different station, a different time, cable TV or the newspaper? Or would you rather take the lead on a few charity projects that will gain you gobs of free publicity in the newspaper? Once you’ve put in writing how much you’ve historically spent on advertising and marketing and which of those efforts you’re going to continue, you’ll know how much is left in your allotted budget. If there is nothing left, ask yourself if you are under-budgeting, or are you already promoting your business in a number of ways? If you’re looking to expand the scope of your efforts, pay attention to the more creative part of this process.The Brainstorm
Anything you can do to attract attention to your business falls into a marketing, advertising or public relations category. Don’t think for a second that an ad in the Yellow Pages is your only option. While you probably won’t find yourself buying a spot during the Super Bowl, you are limited only by your creativity. Here are some ideas to help get you started. Some of these may be ideal for your particular niche. Others may be just a springboard to bigger and better ideas. Radio, TV and newspapers help spread the word for thousands of businesses every day. Carefully evaluate the pros and cons of each of these, given your particular business. For example, small businesses today have the opportunity to buy cable TV advertising in local “zones,” making this a more affordable option than in years past. If you already have a presence in one of these media or if you plan to start advertising this way, be prepared to stick with it for at least several months. You can’t take out an ad in the daily paper twice in three months or even every day for one month and expect to see results. Success here is based on repetition. If you prefer to reach potential customers via the U.S. Postal Service, you have a number of options, including direct mail, coupon clippers and a variety of new resident welcome packages. If you are a premium provider whose target customers are owners of luxury vehicles, advertising in a coupon- or discount-based mass mailer probably isn’t an ideal match. A personalized, professional direct mail piece might be a better option. For this type of clientele, you could also consider talk radio, a classical radio station, National Public Radio or a regional magazine targeted to the more luxurious lifestyle.People buy from people they like, know and trust. If you are not visible in your community, you’re missing out on several golden opportunities. The Chamber of Commerce and the many networking groups that exist (inside and outside the Chamber) are ideal places to share your story with other business owners. But paying your annual dues isn’t enough. You have to get involved. Attend as many networking breakfasts, lunch groups and business after-hours parties as possible. Don’t hesitate to involve your facility manager and other key employees. This will help you to reach more groups and attend more events. Here’s one advantage to joining these groups: While the membership is quite often made up of multiple financial advisers, insurance agents, realtors, etc. you are quite likely to be the only collision repairer in the group—making you and your business all the more memorable.On this same note, don’t overlook an opportunity to become involved in any worthwhile organization. Any time you meet and get to know new people is an opportunity for them to learn about your business, even if it is indirectly. Does your community have an annual summer festival? Does your daughter’s softball team need a volunteer? Don’t forget about organizations like the American Cancer Society or the Muscular Dystrophy Association. One other possibility is to start your own club or organization. Are you a classic car buff? Do you have any interest in helping to organize a summer cruise night (or nights) in your community? Take advantage of sponsorship opportunities. If you’re not already sponsoring a Little League or soccer team, don’t underestimate the value of getting your name in front of the parents and kids that take part in these sports for three to four months at a time. There are also plenty of opportunities to contribute to different organizations fund-raising events and silent auctions or to help sponsor their special events. These groups appreciate their sponsors and go out of their way to ensure that you get your money’s worth. While it’s hard to measure the benefit of this type of investment, suffice it to say that it goes a long way toward building the feeling of good will in your community. Remember, people do business with people they like, know and trust. Take care of your existing customer base. It’s far easier to generate repeat business from existing customers than to attract a new customer. So it makes sense to take all reasonable measures to retain the customers you have. You can build on their loyalty in a number of ways: send out a company newsletter (fill it with news they can use, rather than fluff pieces about your business), thank you cards or even Christmas cards. It’s difficult to establish a frequent customer rewards program—unless you have customers who are accident prone—but consider what measures you can employ to keep them coming back and to reward them for their loyalty. Is a party in order? Or perhaps a rewards program for referrals is the way to go. Generate as many public relations opportunities as possible. Which do you think carries more weight with potential customers: an ad in the newspaper or an article about your business donating a vehicle to the local children’s hospital? If you picked the latter, you’re well on your way to understanding the value of free publicity. If your business does something newsworthy, let the local media know about it. The media love charity work and groups, interesting contests, human-interest angles, children and animals. Read and analyze your newspaper to see what types of stories they run and what they find newsworthy. Look for soft news opportunities in the different features sections (“Neighbor,” “People,” “Suburban News”) as well as in the business section. The newspapers are also good about including information on how to submit news. But be forewarned: You have to be timely. You can’t call a reporter or editor up the day before an event and expect coverage. They are extremely busy and appreciate advance notice—try a minimum of one week. For more in-depth information on honing your public relations skills, read up at www.101publicrelations.com and www.publicityinsider.com. Again, your promotional possibilities are endless. Often, you needn’t look beyond the obvious. Don’t be afraid to take part in the Memorial Day parade or to set up a booth at Oktoberfest. Opt for a billboard along a major stretch of road—accompanied by a wrecked vehicle. Whatever measures you decide to employ, be sure to adhere to the most basic piece of marketing advice: Be consistent. Be consistent. Be consistent. Too many business owners advertise when business is slow and slack off when the cars are coming in faster than they are leaving. Promoting your business consistently year-round will help fill the shop when you need it. If you’re fortunate enough to consistently be beyond capacity, perhaps it’s time to consider expanding the business or focusing on more profitable jobs.
No consumer leaves the house in the morning angling to slide the family sedan into a ditch or hoping to ram his or her SUV into the back of a minivan. Unlike restaurants that lure customers with new delectables or stores that drum up business with sales extravaganzas, you are in the unenviable position of selling your business to potential customers when they don’t need you. Yes, your insurance company relationships and direct repair program (DRP) arrangements are important. They stand to provide a steady stream of customers who might decide to bring their business to you permanently. But ask yourself this: Do you want to put all of your proverbial eggs in one basket and depend on third parties to bring customers to you, or do you want to be the one in control of your business—the one who’s breaking records instead of breaking even? If you choose the latter, you need to do two things.First, forge an aggressive commitment to a comprehensive marketing campaign. Some businesses are fortunate enough to be able to hire marketing professionals. But assuming you’re going to handle this in-house for at least the time being, you’ll need to remember this: You must be committed. You’ll become your own worst enemy if you start to dish out thousands of dollars in the name of haphazard and incomplete efforts. Second, develop a message powerful enough to cut through the thousands of other advertising images the average consumer is subjected to every day. This message must be compelling enough to convince those same consumers to remember you when they are in need of your services. Starting Point
Before you begin laying out the cash for your new marketing strategy, take a close look at your business. What distinguishes you from your competitors? What is the one thing you want potential customers to remember about you? What are you most proud of? The idea here is to carve a niche for yourself—give yourself a competitive edge.This differentiator can be virtually anything. Maybe your staff is the most skilled and experienced in your area. Perhaps you have the nicest, newest facility or a facility decked out with a classic car or luau theme. Don’t hesitate to promote the fact that your family-owned collision repair business has been around longer than any others or that you are the only repairer in town who shuns DRPs. The opposite could also work: Maybe you work with every major insurer. However, it may be difficult to separate yourself from your business and look at it from a consumer’s perspective. If you’re unsure of your thoughts, don’t hesitate to ask your employees or your customers for input. While your employees understand your business, they may also be able to see it from enough of an outside viewpoint to offer a fresh perspective. Your customers don’t know your business as intimately as you do, but they can tell you why they became your customers in the first place—and why they keep coming back. Customer feedback forms, for example, can provide some insight into how your customers heard about your facility. Once you identify your niche, you need to put it into words. But not just any words. You need to tell your story in less than 30 seconds, including who you are and what your business can do for your customers. This is called your unique selling proposition. It can also be referred to as your “sound bite” or “elevator speech.” Think of it this way: If you meet a fellow business owner in an elevator, how would you introduce yourself? “Hi, my name is Joe Smith, and I own a body shop.” or “Hello, I’m Joe Smith of Smith’s Collision Works, where we’ll take care of you from crash to finish.” Which introduction do you think the other person is more likely to remember?If you run into a creative block in this area or you want a professional’s opinion of your work, don’t be afraid to seek the help of a professional firm, if only for this project. It isn’t a bad idea to have an agency in mind, anyway, for those more complex projects that you prefer to or need to outsource. Looking to save some money? Seek out a free-lance artist, designer or writer, or even a college student who’s going to be thrilled to put his or her new-found knowledge to work.If you have a well-known slogan or an “elevator speech” that you are satisfied with or that you believe is too well known to change, go with it. Just review it and make sure it’s conveying the message and the image you want. Your strategy now is to use your slogan, elevator speech, logo, and other marketing tools with consistency. Hammer it home with every opportunity. The more potential customers see your logo, the more often they are going to think about you and the more likely they are to remember you when they need to. Whether you’re creating a new slogan or revamping an old one, remember to make it as professional as possible. A great slogan scribbled haphazardly on a piece of paper could do more harm than good. Don’t be afraid to spend a little bit of money for professional signage, business cards, letterhead, envelopes and all other company materials. It’s all part of your image, your reputation, the niche you’re carving for yourself in the community, and professionalism is key to the success of this.The Planning Process
Rarely will a successful entrepreneur open a business without a plan of how much money to invest and just how to recoup that money. Developing your marketing plan is no different. You need to decide up front how much you’re going to spend—plan on spending a minimum of 3 percent to 5 percent of your total sales—and how you’re going to spend it. Depending on what you’re currently spending, even 3 percent may sound like a lot. But there is a lot of truth to the saying, “You have to spend money to make money.”Let’s first review your existing expenditures. How much are you spending on Yellow Pages advertising each year? Do you advertise in the local newspaper or on a local radio station? If so, how much does that cost? Include everything from the baseball team sponsorship to the donations you make to local organizations. Calculate the total per year as well as the cost per piece. For example, if you mail out 2,500 postcards per week to a mailing list of potential customers, determine the total annual cost of the mailing list, the printing and the postage for that campaign. To calculate the price per piece, divide that total by 130,000 (2,500 per week x 52 weeks). To measure the effectiveness of your efforts, you should be tracking the number of customers that come to you from each one and how much those customers are worth in sales revenue. Your shop management software should have such a capability. If you have been tracking this, now is an ideal time to review the success of each initiative. Take a hard look at what you’re spending, what you’re gaining and what alternatives you have.Have you been pouring $3,000 a month into radio advertising while only reaping an average of $500 in business from it? You don’t need an MBA to know this isn’t a wise way to spend your hard-earned money. Would it be more effective to try a different station, a different time, cable TV or the newspaper? Or would you rather take the lead on a few charity projects that will gain you gobs of free publicity in the newspaper? Once you’ve put in writing how much you’ve historically spent on advertising and marketing and which of those efforts you’re going to continue, you’ll know how much is left in your allotted budget. If there is nothing left, ask yourself if you are under-budgeting, or are you already promoting your business in a number of ways? If you’re looking to expand the scope of your efforts, pay attention to the more creative part of this process.The Brainstorm
Anything you can do to attract attention to your business falls into a marketing, advertising or public relations category. Don’t think for a second that an ad in the Yellow Pages is your only option. While you probably won’t find yourself buying a spot during the Super Bowl, you are limited only by your creativity. Here are some ideas to help get you started. Some of these may be ideal for your particular niche. Others may be just a springboard to bigger and better ideas. Radio, TV and newspapers help spread the word for thousands of businesses every day. Carefully evaluate the pros and cons of each of these, given your particular business. For example, small businesses today have the opportunity to buy cable TV advertising in local “zones,” making this a more affordable option than in years past. If you already have a presence in one of these media or if you plan to start advertising this way, be prepared to stick with it for at least several months. You can’t take out an ad in the daily paper twice in three months or even every day for one month and expect to see results. Success here is based on repetition. If you prefer to reach potential customers via the U.S. Postal Service, you have a number of options, including direct mail, coupon clippers and a variety of new resident welcome packages. If you are a premium provider whose target customers are owners of luxury vehicles, advertising in a coupon- or discount-based mass mailer probably isn’t an ideal match. A personalized, professional direct mail piece might be a better option. For this type of clientele, you could also consider talk radio, a classical radio station, National Public Radio or a regional magazine targeted to the more luxurious lifestyle.People buy from people they like, know and trust. If you are not visible in your community, you’re missing out on several golden opportunities. The Chamber of Commerce and the many networking groups that exist (inside and outside the Chamber) are ideal places to share your story with other business owners. But paying your annual dues isn’t enough. You have to get involved. Attend as many networking breakfasts, lunch groups and business after-hours parties as possible. Don’t hesitate to involve your facility manager and other key employees. This will help you to reach more groups and attend more events. Here’s one advantage to joining these groups: While the membership is quite often made up of multiple financial advisers, insurance agents, realtors, etc. you are quite likely to be the only collision repairer in the group—making you and your business all the more memorable.On this same note, don’t overlook an opportunity to become involved in any worthwhile organization. Any time you meet and get to know new people is an opportunity for them to learn about your business, even if it is indirectly. Does your community have an annual summer festival? Does your daughter’s softball team need a volunteer? Don’t forget about organizations like the American Cancer Society or the Muscular Dystrophy Association. One other possibility is to start your own club or organization. Are you a classic car buff? Do you have any interest in helping to organize a summer cruise night (or nights) in your community? Take advantage of sponsorship opportunities. If you’re not already sponsoring a Little League or soccer team, don’t underestimate the value of getting your name in front of the parents and kids that take part in these sports for three to four months at a time. There are also plenty of opportunities to contribute to different organizations fund-raising events and silent auctions or to help sponsor their special events. These groups appreciate their sponsors and go out of their way to ensure that you get your money’s worth. While it’s hard to measure the benefit of this type of investment, suffice it to say that it goes a long way toward building the feeling of good will in your community. Remember, people do business with people they like, know and trust. Take care of your existing customer base. It’s far easier to generate repeat business from existing customers than to attract a new customer. So it makes sense to take all reasonable measures to retain the customers you have. You can build on their loyalty in a number of ways: send out a company newsletter (fill it with news they can use, rather than fluff pieces about your business), thank you cards or even Christmas cards. It’s difficult to establish a frequent customer rewards program—unless you have customers who are accident prone—but consider what measures you can employ to keep them coming back and to reward them for their loyalty. Is a party in order? Or perhaps a rewards program for referrals is the way to go. Generate as many public relations opportunities as possible. Which do you think carries more weight with potential customers: an ad in the newspaper or an article about your business donating a vehicle to the local children’s hospital? If you picked the latter, you’re well on your way to understanding the value of free publicity. If your business does something newsworthy, let the local media know about it. The media love charity work and groups, interesting contests, human-interest angles, children and animals. Read and analyze your newspaper to see what types of stories they run and what they find newsworthy. Look for soft news opportunities in the different features sections (“Neighbor,” “People,” “Suburban News”) as well as in the business section. The newspapers are also good about including information on how to submit news. But be forewarned: You have to be timely. You can’t call a reporter or editor up the day before an event and expect coverage. They are extremely busy and appreciate advance notice—try a minimum of one week. For more in-depth information on honing your public relations skills, read up at www.101publicrelations.com and www.publicityinsider.com. Again, your promotional possibilities are endless. Often, you needn’t look beyond the obvious. Don’t be afraid to take part in the Memorial Day parade or to set up a booth at Oktoberfest. Opt for a billboard along a major stretch of road—accompanied by a wrecked vehicle. Whatever measures you decide to employ, be sure to adhere to the most basic piece of marketing advice: Be consistent. Be consistent. Be consistent. Too many business owners advertise when business is slow and slack off when the cars are coming in faster than they are leaving. Promoting your business consistently year-round will help fill the shop when you need it. If you’re fortunate enough to consistently be beyond capacity, perhaps it’s time to consider expanding the business or focusing on more profitable jobs.
