Advertisement Ideas: Spending Your Money Wisely!!!
On of the things I have noticed from entrepreneurs while working in The Sports Apparel and Memorabilia Industry is how ineffectively they tend to spend money. I have seen this happen in many businesses as the entrepreneur will buy items that he or she likes thinking they will sell and they do not leaving them with what I call dead merchandise. I witnessed one entrepreneur buy a Dolphins Pool Table and then tell employees he didn’t have funds for items that customers were requesting. I thought wow here you have a pool table that is going to be hard to sell when you could have bought items that were being sought after and turned then into cash flow quickly and turned a profit that would have been frequent and consistent. I witnessed one entrepreneur who refused to put up a website with his memorabilia and then stopped paying rent and as a result was forced to dissolve his business and settle with the landlord and then change names and relocate. This same owner still doesn’t have a website and guess what isn’t making the sales as he should be. I have always said the definition of insanity is doing the same thing over and over and expecting different results.
Sports Authority was at one time a thriving business who recently went bankrupt and closed all there stores as they incurred a $1 Billion Dollar Debt. This happened because they didn’t change their business model and didn’t adapt to the changing market place. They continued to open new stores when stores where under performing. They didn’t adapt to the competition coming into the market place and thus were losing customers. They spent money on massive direct mail campaigns and other forms of mass advertising that was to broad in scope when they should have done niche marketing. Again when running a business you must spend your money wisely.
I recently witnessed a business owner spend money on team banners and plaques because he was able to get them at a close out. Though these plaques and flags are reasonably priced at $4.99 each retail they are not something that the consumer is seeking so selective selling is needed by the employees. This is where it is important to see where you are spending your money and to make sure you are spending your money wisely. If you pay $.80 for a plaque and mark it up to $4.99 that is a nice margin when it sells but the time it takes to move the plaque is lengthy when you could have spent $40 on a throwback jersey marked it up to $79,99 and sold it quicker than the plaque. When buying products for a retail store you must look for what will move the fastest and what the consumer is seeking. A big mistake that have witnessed from entrepreneurs is that they will buy what they like and overload the store with that merchandise instead of seeing what the consumer is buying. For example you may love The LA Lakers but the consumer is looking for Chicago Bulls merchandise. When spending your money wisely you must take your likes and your ego out of the picture.
When making advertising choices look at what has been and continues to be effective. If trade shows haven’t worked but direct targeted Facebook Advertising has the go with Facebook Advertising. If a general direct mail campaign hasn’t worked but a targeted ad in sports publication s has worked keep running ads in the sports magazines. The key is to spend money wisely so you reach your desired target audience.
Another mistake I have witnessed is entrepreneurs buying a closeout thinking they could profit because the lot had a few good items in it. Instead of buying the closeout and picking up someone else’s trash get the most modern up to date items that the consumer is seeking.
Take a good look at where you are spending your money and how wisely it is being spent. Ask yourself how your expenditures will help you to exceed your revenue goals.
Advertisement Ideas: Tips To Spend Your Money Wisely!!!
1: Detach what you like or dislike from the merchandise buying
2: Know the demographics and spending habits of your customers
3: Carry what is being sought
4: Advertise in publications and on platforms that reach your desired audience
5: Make sure that you are always prepared to change with the trends
6: Hire people who will ensure that great customer service is being delivered
7: Look at all expenditures and see which are returning a profit and those that aren’t.
8: Make sure all discount promotions have a perceived value
9: Create a unique selling proposition by asking yourself what you want to be known for?
10: Accept input from those who are working in the store as they see the day to day operations.
Don’t forget that it is important to spend your money wisely when it comes to merchandise and marketing.
