Question

Topic: Other

Advice On High Dollar Sale To Large Company.

Posted by Anonymous on 9/9/2008 at 6:46 PM ET 500 Points
Hi everyone, I own an auto shop where we do high end restoration work, and customize cars from the ground up. I want to expand this business and build highly customized vintage VW beetles for companies (large corporations) while also providing the service of displaying these vehicles on an extensive (primarily east coast) tour. I plan to use large car shows as promotional events to display these cars along with the products that our clients want to promote. These shows range in attendance from 20,000 to 130,000. A complete package will include a custom built, custom painted, high quality show car, a custom enclosed trailer wrapped in computer generated graphics (like a rolling, two sided billboard), a custom trade show display, magazine coverage (custom car mags), storage at our facility, and space on a tour of the largest outdoor car shows in the eastern U.S. I am new to sales and marketing and need information on how to sell a product and service like this. At a price of $375,000 for a one year contract, I don't know how to contact the right people in the large companies that would have an interest in this. Any information on who to contact, how to contact them, how to present this to them, what information they may want from me, what problems I may have to overcome, etc., would be greatly appreciated. Keep in mind I am only shooting for two sales per year! Thank you in advance...I am sure I will have more questions to fallow! Thanks, Ron.
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RESPONSES

  • Posted by Peter (henna gaijin) on 9/9/2008 at 8:49 PM Accepted
    A customer is going to want to know what the benefit will be for them, as compared to the costs. You have some of that (the number of impressions they can get - basically how large the shows are, how many shows there are, etc.).

    Some comments:
    - The customer would have to be one that car show attendees are part of their target audience.

    - Obviously, the customer would also have to be one who is willing to have VWs used (so you wouldn't likely be able to sign up a car dealer that only sells Toyota).

    - $375k for a one year contract is a very large amount for most companies. This would likely have to be just part of their overall marketing budget, so you will need to be looking at very large companies (I would guess $1billion plus in sales).
  • Posted on 9/10/2008 at 12:14 AM Author
    Peter, thanks for the quick response...Yeah, the company size would be huge...I would think this would be for the "Pepsi" or "Nike" type company, but I would like to know how small of a company I can realistically target. You are probably right in thinking $1Billion plus in sales. I figure the cost per impression at around 37 cents which may sound high at first, but that doesn't take into account the impressions from the trailer or the fact that they would own the car and equipment. Also, this is a quality impression...we can bring their brand to a large audience in a way they can relate to and leave a lasting impression.I see your point about the use of VWs but to clarify, there is nothing left on the car that says "Volkswagon" or "VW". All emblems and nameplates are shaved and we incorporate our clients emblems, colors, and even their products into the car itself. The VW Beetle is a recognizable car, but other than that, there is no association with Volkswagon the company. Also, a two year contract would bring down the CPM considerably since the car build is already paid for.
  • Posted by Jay Hamilton-Roth on 9/10/2008 at 10:23 AM Accepted
    From a business perspective, what's the difference in cost between buying your package vs. sponsoring the various car shows directly? By sponsoring directly, the business gets impressions at the show, plus mentions on media "channels" (website, press releases, etc.).

    Also, what's the difference between a business sponsoring a trailer (and not the car itself) - getting it wrapped for display? This would likewise get the impressions, but w/o the expense of the car itself.
  • Posted on 9/10/2008 at 2:35 PM Author
    Hi Jay, good question...I do not know how much the sponsers pay to advertise at the shows. I will have to look into this...I do know the shows attract big sponsers (sony, monster energy drink, etc.). I am sure the price is less than ours, but what we have is what the people came to the show to see...wild cars. People crowd around our cars for long periods of time as opposed to a banner in the background. We also will have an area of our booth where people can view or try our clients products in person (in most cases). Also, I may have made it sound like the trailer was part of the display...The trailer is strictly for transporting the car and display unit. Any impressions from the trailer would be on the road to the shows. Plus a trailer is not very interesting to look at...much like the sponsers banners.
  • Posted on 9/11/2008 at 12:44 AM Author
    Tim, thank you for this response!!! So far, this sounds like the perfect solution for me. I will start researching brand agencies and check out the publications you mentioned. Thanks for the direction!
  • Posted by christine-speedy on 9/15/2008 at 9:16 AM Accepted
    An interesting question- how did you arrive at the price? You should know what the sponsor prices are at the events before you set your own prices. You should also know other advertising costs and lots of other information. So in effect, you've set the price and expect people to accommodate, rather than determine the value and then set the price. It's a classic mistake that can make or break a new company.

    What's the purpose of an ad, sponsorship, or other marketing?
    Branding, deferred response or immediate response? What can be achieved with your deal?

    Who's the audience at the shows? What are their demographics and psychographics? Where do they live? Do they travel to the shows or come from within a 150 mile radius? What are their purchasing habits. If you approach this as a potential sponsor, you'll get all the information you need. This information is needed to get an idea of products that would be a good match for you.

    Who is sponsoring the events? Why do you think they are sponsors? What were their objectives? Are some of those sponsors companies you can convert with a better proposition?

    What types of companies need to connect with the audience identified above? List the companies in those segments. Who are their ad agencies?

    Sponsorship and advertising budgets are different in big companies. After reviewing everything, decide which is the right target for you.
    I like your concept and I think it can work, but you've got research to do. My gut feeling is this is a sponsorship or marketing partnership budget item, not an advertising/media buy. It's an important distinction because advertising means find the ad agency, whereas marketing means find the internal person in charge of those special marketing budgets.

    The cool car has to be weighed against NASCAR and related sports dollar value. If you are reaching some of the same market, and I don't know if you are, you may be able to pick up racing sponsors who are cutting back. For example, "Sears has decided to drop its Craftsman sponsorship of the NASCAR Truck series when its contract expires following the 2008 season. Craftsman is looking to stay in the sport in some form or fashion, however, says Scott Howard, manager of marketing partnerships and activation for Sears (via the Kansas City Star)."

    references: salesgenie.com- search for companies by industry. ie if you've identified the perfect company, with sales genie you can duplicate the company with many criteria settings from size to location and more.

    www.sportsbusinessjournal.com
    www.adweek.com
    www.advertisingindustrynewswire.com
    www.mediapost.com

    https://www.teammarketing.com/store/index.html?i=1 2008 Sports Sponsor FactBook- great reference book with contact info. It is mainly about sports sponsorship, but it is current and usually very helpful to find other people in a big organization
  • Posted on 9/15/2008 at 7:22 PM Author
    Hi, great input and comments. The price is based on cost-plus...not much plus though to get a sale under my belt... I have done similar tours with cars of ours but will be adding some events. I know what the build costs will be and put that together with the tour costs. I am able to partner with a trade show display builder that I have worked with in the past. We have a very efficient shop and crew and nothing will be sub contracted, so the price can not be lowered but it also can't be beat. If the price is too high then this just won't work regardless of what the other sponsers are paying. I agree that this will be a tough one to sell. Your comments are giving me a good feel for the info I need to gather and the problems that need to be addressed. Tracking may be dificult and inaccurate on this too I would think. I like the idea to go after the NASCAR "pull-outs"...also the ad/brand agencies I have researched so far seem to be more geared around TV/Print. Maybe the "Key Insider" is the way to go. I always like my chances in a one-on-one!!! Thanks for the links and thank you all for the time you are spending on this!!!
  • Posted on 9/17/2008 at 2:04 PM Author
    Thanks everyone for the help...my question has been open for awhile and I have had great responses, so I am closing this question. You can all have my points!
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