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Billboards Vs. Mailings
Posted By: hml_180* on 10/11/2006 6:38 PM (CST) 250 Points
My husband and I own a small company that's less than a year old. We are a motorcycle shop- customs, repair, service, painting, etc.

We have a very limited ad budget and are pondering some options. The main two are direct mailing OR a billboard.

The billboard is double what we would spend on mailings per year, but it is directly across the highway from the road our shop is on. We were thinking of putting a big arrow and something to the effect of "motorcycle shop, next right."

Any advice or ideas about ROI between the two? (We are utilizing a few other methods of advertising: local paper, shows, rallies, vehicle magnets, etc. But this would be our "big" expense as far as advertising.)

Thanks in advance!
RMS

Posted by: Peter (henna gaijin) Accepted Answer
10/11/2006 6:45 PM (CST)
Well, a lot depends on how much of your clientele would be drop in/drive by.

I have been working with a high end bicycle retailer in California from when it started. It was determined that the niche for them would be aimed at the serious mountain bike enthusiast (not entry level at all). Given this, we determined the location and signage was not that important. The chance of missing a serious enthusiast who may drive by was offset by getting a lower cost per square foot for the building.

If the shop wanted to also cater to entry level, then having a shop on a busy street with other retailers would be useful.

This relates to your sign in the same way. If you think that potential customers may be driving by, then the sign could be good. Particularly if whatever signs you have on the building are not that good. But if there are not many, then spending on mailings aimed at your potential clients would be better.

I don't know your shop, besides what you wrote, so I may be off - but my gut says do the mailing.
 
Posted by: Eric Accepted Answer
10/11/2006 6:50 PM (CST)
I agree with Peter. The sign would build awareness of your location, but only if people see it. How many of your customers already know where you are located? The money spent on the sign is wasted on them.

A targeted mailing to your customer base would probably pay better dividends. Also, you can buy mailing lists based on certain criteria (age, income, psychographics, etc) that may help you zero in on those who will be more profitable to your business.

Direct mail can work very well if you do it right, and make the right offer in it. Seek out the help of a professional in this field, and you should have some success.

Good luck.

Eric
 
Posted by: CLICROI Accepted Answer
10/11/2006 7:09 PM (CST)
You should also consider a search engine local marketing campaign.

You can have a contact form in your web site and offer visitors a special deal if they sign up (provide name, and email address, etc).

You can add a tracking code to your SEM campaign to determine which campaign is working better.

I am sure that you will be very happy with the results.
 
Posted by: HDuong Accepted Answer
10/11/2006 7:11 PM (CST)
I agree with Peter and Eric. You should put your money in Direct Mail and not on the billboard. Seems like you've done a great deal of advertising for your shop and with a very good mix.

But lets imagine for a moment you aren't strapped for cash and can spend any amount you want for advertising... the billboard ad will not prove an instant ROI but may be an interesting long term branding strategy. Something to think about is "How big is your referral business?" (ex. Regular customer or new customer find out about your shop from a local paper, they visit and have a long lasting impression. When they refer your store to a friend they will say, "Visit the Shop with that Huge sign over it that says, 'Motorcycle Shop, Next Right!'"

If you are itching to find out ROI- be prepared to wait about 3-6 months to justify the above possibility.

All the best,

Henri
[URL deleted by staff]
 
Posted by: hml_180* Author Response
10/11/2006 7:13 PM (CST)
Additional information....

We don't have an established customer base right now.

We've been working on larger, custom projects for a limited number of clients. We are really trying to increase our customer volume and do more small things: service bikes, repairs- things we can have in and out in a few days and make more money off of. We think (we are guessing) that having a sign off the highway would increase the # of potential walk-in customers that are seeking these services.

We also KNOW that the highway is heavily traveled by bikes. We are surrounded by country roads with scenic views and we see numerous bikes on the road on a daily basis, especially weekends.

We have spoken with a few companies about direct mailing address lists for known bike owners within a certain radius. This would be the route we choose if we decide to do the mailings.

Thanks!
 
Posted by: W.M.M.A. Accepted Answer
10/11/2006 7:32 PM (CST)
As former owner of Full Throttle Magazine, may I recommend that if you're a shop and not a dealership, a billboard will do very little for you.

DO NOT DO THE BOARD.

Work in coordination with your local biker publications, rent their list. Attend events, get a newsletter and get people to sign up for it, and offer free tune-up drawing each month...or oil change...something.

I'd like to talk you through this, and would welcome a call or email...click on my name to get my info.

Let's talk.
Randall
 
Posted by: Frank Hurtte Accepted Answer
10/11/2006 9:34 PM (CST)
I agree with Randall...
Rarely will somebody be driving their bike down a busy highway and think, gosh, I guess I will stop in for a new chain...

As an alternative to the sign... you might want to consider renting a tethered sign (aka helium balloon) they attract attention for a short time and are very in expensive. (and in some place they are illegal.. so check first).
 
Posted by: nitto_gtehnik* Accepted Answer
10/11/2006 9:41 PM (CST)
In marketing, you can do two kind of strategy. Below the line, which is through direct mailing. Above the line, which is through billboard. If you dont have consumer database, your direct mailing will wasting your time. If you feel that you have a good brand, billboard will be effecttive only for max 7 second,people will see it.
Other suggestion, if you have budget in marketing, you can try to make an event. You can make event, the best custom motorcycle, the best painting, etc. It would be more beneficial and you will get better ROI. People will come to participate, and people will know, that you have a company. This will build good awareness and good branding for your company.

Good luck,

Nitto
 
Posted by: W.M.M.A. Accepted Answer
10/12/2006 6:31 AM (CST)
Getting your scooter fixed is based upon referral and trust. If you've been around, you will be trusted...if you've done a friend;s bike, you will be trusted...if you support each of the club's charities by hosting a poker run, or charity event...they will trust you.

This Biker Trust is the best method to build your business.

Randall
WMMA
 
Posted by: kannanveeraiah Accepted Answer
10/12/2006 7:05 AM (CST)
Dear,

Signages / guides posts are definitely needed to guide your clients to your workshop / garage.

Billboard is definitely not the right solution.

Vehicles are very personal and dear to the owners. Usually people trust based on their own experience. For the first time people may search out the local yellow pages, speak to friends, neighbours, collegues etc for their recommendation.

Apart from placing yourself in an yellow pages, you could arrange to distribute Pocket size Printed Card at popular parking places. Even you can arrange to stick it to or pin it decently to their vehicle if the owner's are not in the vicinity. On one side of the card you can have the Calendar (starting from say, !st Oct, 2006 to 30th Sep, 2007); on the other side of the card have your Logo and address. Also list out the main services that you provide. This way certainly you would reach to the very people who need your services.

Further retaining and developing clients base depends upon how personalised and efficient (quality) services you provide. If you have money don't waste it on expensive advertisments or billboards; instead invest it on hiring friendly and efficient mechanics and on providing very quality services. In a few months you would find the effect.

Best Wishes,

kannan
 
Posted by: hml_180* Author Response
10/12/2006 5:23 PM (CST)
Thank you all for your input.... I greatly appreciate it!!
 


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