Hands up if you spend a lot of time or money on marketing 🙋♀️
If you don’t have a big marketing slush fund you are probably spending what feels like a lifetime on social media marketing! 👵 Some days it flows and other days it’s a chore 😣
I’m a business owner just like you and I know that we tend to spend a lot of time, headspace, energy AND yes, 💰 money on crafting our marketing message and putting it out there to the world 🌍
If we are going to put so much time, energy and money into marketing, then let’s make sure we don’t vear off in the wrong direction under pressure.
Here’s a little story about Kate….
Kate (pretend person) runs a gym called Muscles 4U 💪 (pretend gym).
Kate knows the importance of marketing and having been in business for 2 years now. She’s managed to increase her marketing spend up to $10,000 per year.
When she started her business she pulled together something that resembled a marketing strategy. She was doing all the sensible business things, that sensible business people should do.
As for how Kate runs her business, she has always prided herself on her personal service offering. Personal programs, 1:1 personal training as well as group programs 👭 Kate has recently completed formal education in Dietetics. She is looking forward to rounding out her service offering with a full lifestyle offering including dietary advice. 🍎
Kate has a great reputation 😊 She has a lot of regular clients who pay her good money for her personal advice and training.
Two years into operating her very successful gym, a new gym opened down the road called Muscles R US. 😮
She is not surprised, (but quietly devasted inside😭) that some of her long-term clients are cutting back their hours with her and visiting the new gym. She keeps a brave face and continues to see her clients even though the time they are spending with her (not to mention the money they are spending with her) is dropping off!
Suddenly, cashflow is on Kates radar. She’s worried.
🤔 Worried if her clients will ever come back.
🤔 How can she encourage them to keep coming back?
🤔 Maybe she should change her marketing and look for more clients?
🤔 She could increase her marketing, find an extra $2k or $3k to throw at marketing?
🤔 Maybe she can reduce her prices?
🤔 Or open longer hours, make herself more available?
The questions are endless and she’s not sleeping very well 😩
Kate is struggling to see the forest for the trees and needs some guidance!
Time for Kate to take a step back, refocus and remind herself of what she offers and what she is known for in the marketplace.
✅ She is known for providing a Quality gym with Quality personal training and Quality programs that get results.
✅ She is known for providing top class personalized Service.
❎ She is NOT known for being a 24/7 walk-in walk-out, help yourself, train yourself, style gym.
❎ She is NOT known for being inexpensive.
Under the pressure of cashflow or the pressure of day to day business life, it’s hard to know which way to go.
BUT it’s natural to feel pulled in these three ways… These are your ‘Not-To-Do’ list
1️⃣ Pump up the marketing effort and spend;
2️⃣ Reduce Pricing; or
3️⃣ Throw in extra services for free.
1. Pump up the marketing effort and spend:
Pros: The right marketing may increase new leads.
Cons: More money and more time on marketing.
Alternatively Think: Is your existing marketing making you a buck? Is it generating new leads? Is it getting you the right leads? Can you ‘redeploy’ ineffective marketing dollars?
2. Reduce Pricing:
Pros: Your clients will be very happy!
Cons: Difficult to turn it around and reset your pricing when business picks up. You’ll be working just as hard as before, but for less money.
Alternatively Think: If you are reducing your pricing, consider removing services.
3. Throw in extra services for free:
Pros: Existing clients return or generate new leads.
Cons: You’ll be working harder and for longer hours. Hard to remove these free services and hard to charge for these services down the track – after all, we’ve trained them to believe they should be for free!
Alternatively Think: Can I provide extra services that are missing in the market? Do my ideal clients really value that extra service? Will they pay for it? OR Can I offer a low input, but high perceived value free service or product for free?
How you decide to compete in your marketplace needs to be something you are clear on. Bending under pressure and reaching for the ‘not-to-do list’ can see your business head down a slippery path that is hard to climb back up again.
It’s not to say Kate couldn’t change her entire strategy and pivot. She could lower her prices but she should also remove access to her for 1:1 services or something similar.
Your Takeaway… Quality, Service or Price: You can compete in the marketplace on 2 of these but not all three.
