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How
much does it cost
to get a customer in your door?
by
Randall Tomaras
Please
not that this article was researched 3 years ago. We have updated it a
little, but the costs mentioned in various forms of advertising have probably
gone up.
Too
much, I heard someone say. Marketing is
expensive and it's probably the single most reason photographers fail.
Having the latest in equipment or software, creating lighting and posing
technique, or learning new computer software seems to be more of the
passion then selling people on coming in. But if you don't get them
coming in, you have no money to do your passion Let's
look at your options to getting people in the door.
Word
of Mouth:
Cheap!!! It's
your reward for doing a good job. If the customer likes your quality and
service they will tell 1 to 2 others. If they don't they will tell 50 others.
So many of us hide behind this and we think customers are loyal. The real
test is this: If you can double your number of customers every year without
any advertising, you have good word of mouth and loyal customers. I was
so confident of my photography compared to my competitors I tried that one
year. HUGE mistake. Marketing and lousy photography will beat great photography
and no marketing EVERY TIME. You have to advertise some how. Everyone
told me it was word of mouth, but in reality it was my advertising that
reminded them of me.
Return
customers:
I was telling one group of photographers that your best customers
are your past customers. High school seniors, get jobs, get married and
have kids and the cycle starts again when the kids are seniors. If they
bought from you once they will buy from you again, if you did a good job.
One of the wedding photographers jumped up and said; "The second time
they get married they don't order nearly as much." Then a high school
senior photographer snapped; "At least your clients will get married
again I can never get them to graduate from high school twice." Point
well taken in some fields of specialized photography, but they may have
brothers or sisters. Or if you do seniors, but you don't do weddings, strike
up a deal with the wedding photographer for $100 referrals. Display his
or her work, so people will ask. Get creative, work together if you are
specialized.
Direct
Mail:
Traditionally this is the best for photographers,
especially if you can get a good mailing list that is targeted. The top
photographers will tell you that you have to mail at least five times to
be effective. So let's take a look at the costs:
Multiple mailing list and labels $1,000
1st Printed piece 3,000 copies full color $1,000
Next four printed pieces, some b&w, average $600 = $2,400
Postage for 5 bulk mailings of 3,000 @. .14 each = $2,100
Labor to put the mailing together including labels and presort $500
That's a total of $7,000 or $ .428 a piece.
Out of the 3,000 what percent will become customers.
5% would be very outstanding. With that many mailings 1.5 to 3 is good.
So let's look at what this cost you even if you got 9%.
9% = 270 customers at a cost of $25.92 each
5% = 150 customers at a cost of $46.66 each
4% = 120 customers at a cost of $58.33 each
3% = ..90 customers at a cost of $77.77 each
2% = 60 customers at a cost of $116.66 each
1% = 30 customers at a cost of $233.33 each
Yellow
pages:
First of all they charge you twice as much
to have a business phone as a regular phone. Those of us who have teenage
daughters know its crazy for a company to charge you twice as much for half
as much use. Then they sell you monthly ad space that you are locked into
for a year if you want to keep the phone number everyone knows. This ranges
anywhere from $45 a month for bold face to $1,500 a month for a full page.
That's $540 to $18,000 a year. Personally,
I was on the border of two counties and also two different phone companies'
territories, so if I really want to cover myself I had to advertise in four
phone books. Every year I tracked where my clients came from. Not only did
I know how much they spent, but I had a rating system as to how I liked
them as a customer. Come on, we all have that occasional customer, where
you say; "Why am I doing this?" If they depressed me, I'm not
going to invite them back. Life is too short. Over 90% of my "pain
in the butt" customers come from the yellow pages. I call them "terrorist
shoppers" who make it a full time career to cause pain to merchants.
They are also the first to stand me up. I think they
set up an appointments with everyone they call and go to the cheapest price
in the end and forget calling the others back. In
the meantime, I have made myself unemployed for a hour and a half while
they went to Sears and had their snapshot taken with big fuzzy bunnies in
less than 3 minutes. And I was told it was supposed to be a classic portrait
with style that they could use for job resumes. I could hire a telemarketer
to call everyone just as they were putting food in their mouths and have
1000 times better luck than the yellow pages.
Radio
and Television:
Both of these mediums sell ad space based on cost per 1,000
of listeners (radio) or viewers (TV). A market in Los Angeles is going to
be much more expensive than Dry Gulch, OK. I have a friend who sells radio
advertising and he has the rates for both radio and television. His advise
was don't do radio and tv advertising for photography. In the very small
town radio stations you might pay $1,500 a month to make a dent in the market.
$3,000 for medium towns and $6,000 a month for top twenty markets. That
rings the cash register at
$18,000 to $72,000 a year. That's just to be a small player in the radio.
Television is usually double to triple that ($36,000 to $216,000),
but you won't find it in the smaller towns. In fact most smaller towns listen
to radio stations from the bigger cities.
Newspaper
and Magazine:
Again newspapers and magazines charge like
most advertisers by a cost per thousand. If the circulation is 10 million
the cost will be different than one thousand. A
3 inch ad in the Seattle Times runs around $500. And that's for one day.
If you tried only 4 days a month, that would be $24,000 a year. Magazines
for a specific market are actually a lot better buy. Photographers will
actually look at ads for products in photography magazines. And they may
even keep them around for a while and look at them more than once. So wedding
photographers would have better returns with wedding magazines.
Displays:
We are starting to get affordable if it's free, but the returns
are spotty and unpredictable. At best, you can call it recognition advertising.
It lets the customer know you are around. Most of the time, there is no
incentive for people to react to a display. Handouts have a way of disappearing
unless you have the display manned in which case you'll pay monthly from
$1,344 to $2,016 in labor ($16,128
to $24,192 a year) depending on how many hours the display is manned
(8 to 12). If the display spot has very heavy
traffic, you can almost guarantee that the owners will be wise to it.
Our local mall charges $1,700 a month ($20,400 a year)
for a 4x4 kiosk, but you might be able to get
a restaurant wall for free.
Trade
Shows:
Trade shows and conventions if they are
targeted right aren't a bad method for photographers. A good display,
the booth space, and the labor to run it will cost you around
$2,000 to $5,000 for the a three
day period. If you give away a dated coupon you might pull in 30 to
40 customers. That works out to $67 to $125 per customer.
Search
engine traffic:
They say that 74 % of all web traffic comes from three
search engines: Yahoo, MSN, and Google. The internet search engines
used to be free. If you were a tech whiz you could with a lot of effort
be on the first page of a search engine. In fact, a lot people who knew
how to do this started companies and made millions by getting clients
high in "placement" on the various search engines. So much
so, that the search engines and directories decided to charge people
for "placement," since they discovered ad banners weren't
very effective. So if someone offers to put you high on the search engines
for a reasonable amount of money - don't do it. Now days you bid on
key words and phrases, if you are the highest bidder you are number
one. You don't need a third party to charge you more to do this. In
photography, key words like photographer or senior pictures or stock
photography go for any where from .15 cents to one dollar for everybody
who hits your site. That's just for looking. So if 10,000
people world wide hit your site that month from that search engine its
going to cost you $1,500 to $10,000. Now
since the people are looking to buy (other than other photographers
snooping), you get a better return.
People are using the internet more and more as a resource to find products
and stores. As a photographer you may know that there are nearly 55
million photographer pages for consumers to look at. Internet
traffic is quality business because if they contact you they are serious
buyers and already approve of your work. The whole key is getting your
URL recognized either by advertising or through internet placement.
Choosing the right key phrase is vital in internet placement. Note
I said phrase, it is very well proven that 84-96% of the search engine
users type in a phrase not a word. Photographers may type in the word
photographer in a search engine. Knowing the right phrases is vital.
That's why when we get everything up we will have over 10,000 pages
all geared to a different phrase that stats show the customer uses.
The Internet is the future.
So
what's the alternative to high cost advertising?
Do you simply wait for people to come
to you. No, you form associations
with others to reduce your costs. Instead of your fellow photographer
being your enemy, you work together on educating the public about
good photography. Be smarter than the problem. Don't have advertising
people divide and separate you for big bucks, when you can "group
insure"
and be much more cost effective. The biggest market today for photogaphers
is the Internet. Key phrases and words
used to find a photographer were typed into various search engines
over half a billion times last year. That doubled from the previous
year. Americans are going to the Internet in record numbers to check
out the work of various photographers before they call for an appointment.
If your name does not come up on the first 3 pages of a search engine,
you better have a great advertising program for your URL. The
easest way to get on the first page is to buy your way there. It would
cost from 15 cents to one dollar for key words in photography. That
means anytime someone finds you through that particular search engine
on the internet, it costs you 15 cents to $1 per person. This would
not be cost effective for the average photographer.
However,
the average photographer can compete with the
big boys and girls by being a member of Best USA Photographers.
Everyone pays a little for their access to the big market. Best
USA photographers works so well
because most customers stick relatively local. Customers pick their
state and style of photography they are looking for. The free e-information
available helps the client understand the photography shoot. They
appreciate the advice and tips. The e-book or pamphlet actually
makes you friends before you meet.
All
this
can only be done by working together.
SO
WHAT DOES A MEMBERSHIP COST
CLICK HERE |
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