Business in General Archives - Page 16 of 25 by Mark Murnahan

Cigar Prices Rising With Bad SEO and Social Media Marketing

Cigar prices are rising because of social media marketing and seo? I must be joking, right? No, not at all, my friends. Cigars are just one of many categories of consumer products suffering higher prices and lowered standards due to inefficient use of marketing resources. I am using cigars as an extreme example, but you can see it in many industries beyond cigars, too. While you read this, consider how it may fit into your industry as well. You may wonder how in the logic of Murnahan poor marketing decisions can make prices rise, but I will explain.

Online Cigar Stores Are Inefficient

I received a call from an online cigar store owner yesterday after he came to my website while searching for a cigar-related term. It may seem strange, because I am not in the cigar business. I am a marketing guy who just happens to like cigars. It is crazy that I have more people coming to my website searching for cigars than a lot of the companies who actually sell cigars. Then again, I get a lot of car dealers and surgical supply companies here, too.

I liked this guy who called me, and we had a great chat. We talked about his industry challenges, and how it seems that one of the biggest of them is that all the online cigar stores are battling for the best cigar prices. They fight with the cigar makers for the best prices, and then they fight to gain customers with low prices. After all, that is how you sell stuff, right? If you give them free shipping, a free cigar cutter, and lower your prices to the point all the profit is gone, it should be good for business. It seems that as an industry, online cigar stores have this impression that if they slash prices it will make them more appealing and somehow by the grace of cigar smokers it will help more people find them. They will magically find them and buy cheap cigars that leave little or no profit for the cigar store owner. I see this in a lot of different fields, where people make the mistake of giving away all their profit by trying to compete in a price battle rather than using marketing strategy to win the value war.

Oh, but wait! Don’t businesses need profit? This price battle starts to seem like a bad idea once all the profit is gone and competitors keep dropping prices, doesn’t it? After all, unless you actually have the capability to be the biggest cigar company online, you had better start figuring out how to be the best cigar company online first. Wouldn’t it make more sense to try and keep the customer churn rate low and provide better value? Doesn’t social media help to do that by building brand awareness and brand value? Oh yes, it does, but sometimes values like that can elude an entire industry … that is, until somebody steps up and pulls the rug from under them.

Online Cigar Stores Place Price Over Value

Many cigar stores will have a big inventory of cigars that sat on a shelf in a warehouse for a long time, so they offer them at a huge discount. They run a big special on that brand. They are not so concerned with quality as much as they are concerned with moving the product. This happens in many industries, such as consumer electronics, automobiles, real estate, food, clothing, and many more. Moving more product often comes with an urgency. Get it out the door so you can buy more inventory … whatever it takes. So what happens is while the frantic overstocked cigar store is playing this game of catch-up, somebody is selling the new inventory of cigars that actually yield a profit. They often tend to forget that there is also somebody out there who is making a profit. They may even be selling more of the same thing, but selling it for more money because they have proven value, and because more people know and trust their brand.

The reactive seller is an industry follower and not a leader. They are doing business as a reaction instead of a cause. They have not done what it takes to build brand-loyalty, and to develop stable and sustainable marketing numbers. They keep making the mistakes, but they do not learn from them. What they do learn from the mistakes are the wrong lessons, based on the wrong sets of numbers. They watch what everybody else is doing and try to emulate it instead of innovating. They dig their own grave this way, and often call a guy like me once the only question left is “can I afford this?” They end up with such terrible results of chasing their tail that when they actually realize a problem, they are too late to implement a solution. They are not proactive. When they are equipped to make good decisions that will sell more cigars, they do not see a need, and when they see a need, they are no longer equipped.

Online Cigar Stores Know Cigars, Not Marketing

In every business, there is a need for marketing. Better, smarter, faster, more effective marketing is what makes companies successful. Marketing is what puts their products into consumers’ hands. It is what sells cigars, and everything else … even which emergency room people go to when they are hurt or sick. Without a proper market reach, companies fail. The best market reach for companies is online. It is where people are, and you can reach them a whole lot better here than you can with a 30 second television spot; a newspaper advertisement; a Yellow Pages telephone book clip; and whether you like it or not, better than you can reach them with word of mouth alone.

Marketing on the Internet is not based on luck. You do not just put a website out there and hope for the best. Hoping people will find you and buy from your online cigar store is like hoping it will rain Nub cigars. I hope it will rain Nub cigars, too, but I am not going to my bank to deposit them just yet. The fact is that in order to create more business, it requires marketing talent, marketing creativity, and a lot of work.

I should add that the gentleman who telephoned me yesterday found me because of an article I wrote on February 2, 2009 titled “Nub Cigars by Oliva Cigar Company Fall Short” and it discussed the shortcomings of cigar marketing. It has created a lot of traffic to my blog and a few phone calls as a result of cigar related terms such as the list below and this extended list of the top 200 cigar search terms that people used to find my one little blog post. Note that only two of these searches included the words “cheap”, “cost”, or “price”.

It is a sad but funny fact that the biggest concern the caller had is how much it will cost to get the results he wants. At the same time, he did not really even know what results he wanted, or what potential he has. He just knows that he wants to sell more cigars online, and he wants to achieve his unestablished goals cheaper than anybody else. The better questions are in the cost of not doing what it takes to create more business. How many more cigars can you sell if more people know your cigar store exists and have a reason to buy from you instead of the other guys? How much is it worth to have more people coming to you instead of somebody else when they search for things like these:

nub cigars
short cigars
nub cigars for sale
best short cigars
nubs cigars
nub cigars online
oliva nub cigars
buy nub cigars
cigars nub
company produces cigars
difference between nub cigars
marketing cigars
oliva cigars nub
where to buy nub cigars
who makes nub cigars
nub cigars retailer
“short cigars”
#cigars
a website with guys and cigars?
best 4 short cigars”
cheap nub cigars
cigars
cigars “social media consultant”
… more cigar search terms

In the case of my caller, he wanted me to create a plan for him and get back to him with some figures. I know he may not understand this, but without a target, I don’t even load my gun. I need to know what I am aiming at before I just start shooting out proposals. What I sell is not an item on a shelf, but rather the smoke that comes from my brain … not my cigar.

How Does SEO and Social Media Affect Cigar Prices?

There are actually two ways that cigar prices are affected by social media and SEO. First, let us consider what happens when a company is inefficient. They could sell more cigars if they used their marketing dollars more productively. Being productive means doing things that create more sales, generate more profit, and lower their cost with the cigar manufacturer. The second way that cigar prices go up due to social media and SEO is that a cigar store that markets their brand well and generates a loyal customer base can stop fighting price battles and start winning at providing the value that customers are actually asking for. Most of the time when people say they want “cheap cigars”, what they really want is to get their money’s worth … whatever the cost.

I only plan to do business with one online cigar store, and it will not be “cheap”. I don’t offer cheap marketing, because I know the difference of Marketing Cost vs. Marketing Value. As it is, I may have to say “no” to a good number more of them before a light bulb goes on for one of them and they decide to be the next cigar tycoon.

The Lazy Internet Culture: A Culture of Internet Marketing

Do You Understand Global? — Do You Understand Globalization?

The Internet has created a lot of change in culture around the world. It is not true for everybody, but on a large scale, globalization and greater awareness of the world is a reality. People learned more about the other side of this planet in the past decade than in all those thousands of years prior to the Internet. We have embraced other cultures that we were not previously aware of, and we have blended into a larger culture … the Internet culture. The Internet truly has been instrumental in creating the more global society we know today.

I am an American. I live within about an hour drive from the geographical center of the continental United States. I am about as far away from another country as you can be while within the USA boundaries. At the same time, I would estimate that I have more experience in dealings outside of the USA than 99.9 percent of United States citizens. Much of that is due to the Internet, but not entirely. I have traveled extensively, and I have spent time in many other countries. I have done business in countries all around the world, and learned a lot of interesting things about many cultures. I guess you may call me “worldly” based on my experiences, but I have learned more about people and cultures by using the Internet than in my travels. I should perhaps also add that it has provided me with a unique view on Americans and American Work Ethic vs. Globalization.

The Lazy Internet Culture and Internet Marketing

It seems that the Internet has a downside. Actually, the Internet has a few downsides, but I want to address a particular one. I want to address the culture of laziness that the Internet has made widely available. It is a lazy culture of believing that the Internet will fix everything, and that it is a simple place to earn a living. After all, who wouldn’t love to sit back and watch money flow in all night and day for doing nothing, and risking nothing? That is how the Internet is viewed by a frighteningly large number of people.

This really is a problem, and it really does have an affect on your business future! It has an affect on how people view their jobs, and it creates a laziness with a backlash that we cannot even quantify as of yet.

A Story of Our Internet Culture

I received a call a couple days ago that sincerely troubled me. I actually get a lot of calls like this, but I will share this particular one with you. The woman on the other end of the line asked me “how much does a website cost?” I have been answering this question for over a decade, but the absurdity is getting worse. The woman wanted to know what it would cost her to get what she wants. I needed more information, because after all, websites are not created equally … not even close. An ecommerce website with seven digits of monthly traffic will not cost the same as a novice site invisible to Google by the kid who just took his first high school computing class. If you really want to know how much a successful website will cost, without any clue about how it will succeed, my easy answer is “fifty-two squillion dollars and thirty four cents” (plus a fresh pot of coffee and a carton of cigarettes). Read “How Much does a Website Cost?” if you want a more defined look at the variables involved.

I asked her what kind of website she needs, what she will be offering, and what her goals are. She told me that she wanted to sell travel, and she wanted to earn between $1,000-$2,000 per month. Please note that I don’t market for hobbies … I market for businesses. This was clearly not a client that I would accept, but I wanted to help her with some guidance anyway. She seemed really earnest in wanting to do something, but she was extremely confused. So, we talked for a bit. I did not charge her a penny.

I came to discover that she did not yet have a service to offer. She was looking into an opportunity to sell a travel service. The company she had been considering offered a package for $399 with a website and everything she would require to make the money she needed and wanted. She was actually coming to me for comparison shopping. She thought maybe I could offer something for less than $399 that would earn her $1,000-$2000 per month. (Note: I do not deal in hundreds.) She really felt interested in the opportunity the company offered. I did not want to hurt her hopes, but I was just dying to know how she thought she would stand out beyond 672 million other results in a Google search for travel, with a budget under $400. I wanted to know her angle. I also really had to know whether she had heard of Travelocity, Expedia, Orbitz, Priceline, Hotels.com, or the others. I wanted to hear how she planned to get her piece of that market without any sense of a marketing budget, and without any travel industry experience. Don’t judge me just yet. I was nice about each of my questions … I was sincerely nice.

All of the sudden, the topic changed. When I asked about how she would target her audience for selling travel, she was at a loss. I guess she got a bit scared when she realized it would be kind of hard to earn a living selling travel to her friends and family. Then she wanted to know about marketing her line of perfume. No, not just perfume, but wedding perfume. Wow, this was a big shift from travel. She wants to market a very targeted perfume, specifically for a Christian woman on her wedding day. Really, she had a good case for it, too. The story was complete with things a nun had taught her as a young lady. She is ready for targeted marketing. Well, except for the fact that the target is like shooting a pea with a spitball at 100 kilometers.

Please see my point here. I hear a lot of stories about the next fantastic idea every day. Sometimes it is a new idea, and sometimes it is a person who just wants a piece of an existing market. Many times, it is just somebody looking for a way to get out of a job or to increase their lot in life, without any focus whatsoever. In nearly every instance, it is a person or corporation who thinks they have what it takes to be a success. They think this right up to the point of going broke trying to prove it. Sometimes they get lucky and find somebody who will tell them the truth before they waste a bunch of time and money. It is the lucky ones who find somebody to be honest and let them know it will not be as easy as the advertisement they just read about the Internet being their new savior.

I am usually pretty abrupt about things like this by giving an Internet marketing reality check. I felt really kind toward this woman. I guess I just needed to know more about her hopes, and I wanted to try my best to understand the mentality of people and what they respond to. I wanted to have a feel for people again … real people … like the ones struggling with hopes that they secretly believe are foolish but really want to hold onto. I wanted to feel somebody’s hopes, without just immediately crushing them with the truth. I wanted to let her down softly and not just be the everyday brutally honest Murnahan.

Three Lazy Internet Marketing Categories

I want to offer my views of three very sad categories of people I find in my career in Internet marketing. These three lazy categories of people that the Internet culture has created are as follows:

Type One: They heard the Internet is a great place to earn more money. This is a common message delivered by people trying to rip somebody off. It is so common that I would categorize it as the most destructive factor of the Internet. The majority of Internet users falling into this trap do not understand business, marketing, or even conceptualize earning a lot of money. They just know that they hear a whole lot of talk about making a ton of money, and websites … and there was something else. All they really heard was “money” and “website”. The rest was just filed off as something they did not need to know. They deeply believe that there actually is a quick and easy road to riches, and they just have to keep looking under every rock until they find it. There is a big belief that “somebody is getting rich the easy way, and it may as well be me.” What these sad folks will never grasp is that if anybody is getting rich easy, it is the one who sold you that delusion. The truth is that they are usually not worth the paper they are printed on.
Type Two: They already tried to use the Internet for a business, and it failed. This usually happens when somebody fails to implement due diligence. They did everything they heard would work, and they still failed miserably. Their business did not grow, and they lost every penny they spent. This is a sad category to me, because it is the kind I may have actually been able to help if they came to me earlier. There really is a huge marketplace on the Internet. Success is attainable if you have a business with a really good Internet marketing plan. If you are in this category, I wish you the best. If you ever want to try to do it better than before, I will be delighted to visit with you about a solid marketing plan with real numbers.
Type Three: They keep hearing about the Internet and are curious, but they are paralyzed by fears. They do not want to make the wrong decisions, so they make no decisions at all. They do what is comfortable, and they are afraid to push the marketing go button.

How Can I Call Internet Marketing Culture Lazy?

People who have followed my blog or my career for a while realize that I have been very successful in my line of work. Many also realize that I took it on the chin for the small guys about two years ago. I took some big losses in 2009 by standing up for people like this. It caused a loss to my annual income of more than an average twenty Americans earn per year, and postponed a planned 2012 retirement. That happened when huge corporate suppliers and clients alike started laying people off and ceasing services that I sold to my clients. I was a stand-up guy when they needed a stand-up guy. I feel mostly good about my decisions, and never regret holding integrity above profits.

I have always had a bit larger view of the Internet than average, because I provide the services that a lot of Internet service providers sell to their customers. I was not a bastard when I perhaps should have been a bastard the most. When I talked to the woman in the conversation above, I wanted to get back to understanding these people who have hopes without common sense getting in the way. After all, I created a massively successful Internet business back in 2000 with that same positive spirit. Fortunately, I also owned a 13 year old marketing company at the time.

There has been a lot of change in the world since I started my wholesale Internet services company. It was not easy then, and it is even harder to get a good foothold now. The opportunity is greater than ever, but it is incredibly irresponsible to start a new business with no budget, no marketing plan, and nothing but a huge set of blinders on to keep you from seeing anything but a carrot of hope in the distance. Success does not work that way.

What will make you different? I have an idea! Try some marketing talent. If you don’t have marketing talent, you better have money to hire it out.

A Positive Note About Internet Marketing Laziness

I want to leave you with a positive thought about the laziness and easy-money attitudes about Internet marketing. I have been in this industry long enough to see a lot, and I have had a lot of success at it. I have also worked very hard for it. If it helps you to feel any better at all, I will show you three little kids who will never in my lifetime be allowed to think the Internet is an easy place to earn money. These are my children, and I love them too much to destroy them with such nonsense.

You Know it is Bad For Business, So Stop It!

In business, there are a lot of bad habits that can stunt your growth. You do not have to look for a pitfall, because they are looking for you. There are many distractions to get in the way of doing the marketing you should be doing, and doing better. So, what is holding you back? Is fear and insecurity holding your marketing back? Are bad habits holding your marketing back? Are you missing profit by putting off better marketing until tomorrow? Are you guilty of knowing that something is bad for you, or just not good for you, but you keep doing it anyway? If you look carefully, you may just find that you are not so different from everybody else. Most people find it hard to push the marketing go button, but I found some other obstacles you may not have considered.

I recently visited with a treasured friend, Mike Burgess of Spinnaker Web Design, and we discussed people, their habits, their psychology, and how most of them are not well-suited for business. They may be good at what they do, but business decisions, and particularly marketing decisions, are not most peoples’ strong point.

Mike has been my close friend for a long time. We have great conversations, because we each provide our unique view of industry issues. In addition to being a web developer, Mike is also a Kansas State Legislator. The people who do that job on a state level work hard and are not in it for the money. They have to put up with a lot of rhetoric from constituents. This makes Mike a good balance for me as a friend. I take no crap at all, and he takes crap and turns it into a breakfast omelet. I will share a couple of things we discovered.

It is Bad for You, But You Keep Doing It

I told Mike that I was confused about people. I told him that although I am seeking one new marketing client, that I am getting all kinds of crazy callers wanting to grow huge profit for their business, but they have it all wrong. They think they can achieve massive success without any sacrifice. It is as if they hope for the equivalent of buying a McDonald’s restaurant for a single month’s worth of McDonald’s restaurant revenues. I mean, if you want to generate a million dollars of revenue, you don’t do it with a few thousand dollars. Bill Gates, John Davidson Rockefeller, and Warren Buffet cannot do it, so why do other people think they can? I remind them that there is no pink pony ride to success, and that there are certain laws of Internet marketing that can never be broken.

Mike had some interesting observations.

People Do What is Comfortable

Mike pointed out that most people will do what is comfortable, even when they know better. They understand that the extra cheeseburger and fries is not good for their diet, but they keep doing it. He pointed out that although I have heard about the risks of smoking, I still smoke. He pointed out that people have done business the same way for a long time, and breaking those old habits is really hard for them. They cannot see or touch the idea of doing more business online. It is intangible to them, just like lung cancer to a smoker or a cheeseburger is to an obese person with heart disease. They know that what they are doing is bad for them, but they keep doing it because it is comfortable, and because change is not comfortable.

Go and visit a grade school lunchroom sometime and see how many kids are eating their vegetables. I have three kids and I love the school lunchroom. I call it my favorite restaurant. People learn things young. Being around kids reminds me of this, and how important it is to break bad habits as quickly as possible. If you are doing the equivalent of “smoking cigarettes” and “eating cheeseburgers”, it is time to ask yourself why you continue to do what you know is unhealthy for your business. I will tell you the way Bob Newhart said in his popular comedy skit, “stop it!“ Just Stop It!

People Do Not Pay Attention

As I talked with Mike, we reminisced about stupid things we have witnessed on the Internet over the years. I was reminded of a particular sample of my company’s website design and search engine optimization services. The sample website was so appealing that we started having a flood of calls for the product. It was a designer bedding site, and people were calling to purchase designer bedding. We are an Internet services company … we don’t sell designer bedding! The number they were calling was only displayed at the very top of each page, or when a user would try to place an order. It was placed conspicuously in a notice stating clearly that the site was only a sample of our website design, search engine optimization, and ecommerce services, and that we do not sell bedding. It was in bright red and bold letters. We could not have made it any more clear, but people kept calling about that bedding for many years to come.

The point in this is that while marketing a product or service, you have to do the thinking for them. It is funny, but we also get a whole lot of similar calls for Ethicon surgical sutures and car dealerships.

Most People Don’t Know Their Shortcomings

Knowing your shortcomings is a good start to being more productive in business, but it is only a start. I know mine, and I am doing something about it. I will share it with you, but I want you to consider yours at the same time.

I stink at sales. Actually, I take that back. I am amazing at giving factual data of how I will increase a company’s profits, and I am even good at expressing the emotional benefits of what I do. I am so good at it that I should never, ever, in my lifetime, be allowed into a boardroom. I am that guy who will give it to them straight and without any apology. I say it how it is. I do not hold back. If I see incompetence, I am not shy to express it. People do not always like the truth. They like a soft-handed salesy approach that pats them on the bum and makes them feel all cozy and warm, like a baby in mother’s arms. That is not a service I provide. As I have often said, “I am not your mother!” When people don’t “get it” I am not a guy who will keep working on a sale. It is because I am pretty (ok, obsessively) selective about the clients I will work with. I mean, they are getting the big dollars out of the deal, so when they don’t “get it” I know that we are not a good match. OK, I said I am not a salesman … so get off my back about it! It is my shortcoming, and so I always seek sales reps who can explain what I do without wanting to choke somebody. There is not enough Valium to prevent a choking when somebody has a glazed over look after I give a presentation. I am making them money. They just have to pay me for it first, because it is far too easy for them to try and steal from me (like the story about Suture Express).

If you find that your shortcoming is in your marketing and you understand that exposure to thousands more targeted visitors to your website and better marketing talent will help, then ring me up. If you are looking for a pink pony ride to success or some fine designer bedding, then you were not paying attention. In that case, Call Mike!

Produce More Website Content … But Why? SEO?

“You should produce more website content.” This is a pretty common message that many search engine optimizers will tell you. They say that “if you produce more content, you will have more website traffic.” Are they lying to you? No, but there is another piece that is missing. I am going to give you that piece, and it will not cost you a cent. I will give you the good and bad sides of creating more content on your website, along with some encouragement that it is not as difficult at you may imagine, so pay attention.

You want more website traffic. Don’t try to deny it. I want more website traffic, too. Website traffic makes me happy. It makes me feel vindicated for all my hard work. It makes me money … (insert sound byte of screeching tires here). Incorrect! More website traffic actually does not pay me a penny. It actually comes with a cost. Maybe this is why I am telling you the truth. I may just lie to you if I earned a dollar every time you click another page, but I do not. Go ahead and look around to see that I do not have a bunch of cost-per-exposure advertisements or cost-per-action links to “buy now” or “register here” on my blog. I have a couple of my own books listed to the left, but I am not force-feeding that to you. They are not my big money-maker. So, you may ask, “what is the catch, and why do you want to share this with me?” There must be something dirty in this plan, right? No, in fact, I actually do not want to sell you anything at all. I will explain, but first, I want you to understand some facts about producing more website content. I will explain why more website content is important, and also why it is not important.

Benefits Producing More Website Content

If you produce more written content on your website, there will be more things for Google and other search engines to add to their databases. This means that as long as you do everything else just right, you will have a higher chance of being listed when somebody performs a search. Do not underestimate the importance of this fact. Consider why Wikipedia is found so often when you search for something. Wikipedia has a lot of useful website content … things you want to know.

I recently illustrated the huge differences in website traffic based on adding new website content as compared to the reach of social media. I suggest reading “Twitter is Useful but Blogging is Better” and also a piece titled “10 Really good Reasons to Blog“. Your website really is the epicenter of your business efforts online, so you should treat it that way. If you are in business and want more business, you should really be producing more website content … but here comes the hard part.

Producing More Website Content Does Not Matter

Website content is important. It is important enough that more website content, alone, is not what really matters. Your competitors are producing more website content, too. The race is on, and now it will require marketing talent to win. Doing it right is what matters. Giving people information they want and need, becoming a market authority, and being ready with a solution for the reader’s need matters more. Volume of website content will get people there, but having something truly spectacular for them is what makes them a customer.

There is a balance to be found between more website content and great website content. Some content will get traffic and public attention, but people will only look further if it grabs them and pulls them in. The people who visit my blog because they searched for “best hookers” (and they do) are not buying what I sell, but it is a pretty darn popular piece of blogging content. The people who happen upon that piece because I referenced it, like I did here, are why I wrote it. There is also a lot of value in reaching the audience just outside of your focus using “lateral keywords“. This means keywords in a lateral and sometimes unexpected market.

Producing Website Content Gets Easier

Producing website content gets easier with practice, and it can really create a snowball effect. Just consider this: I set out to write a book about Twitter in 2009. I was just out to write one book, but all of the sudden it got easier and I wrote two more within three months. I also blogged enough to wear my fingers smooth.

You do not need a degree in literature to produce successful website content. I can prove this statement. The website content that I have produced over the last decade is viewed by hundreds of thousands of people per month. It has also earned me millions of dollars. I left school at 15 years of age and I am the CEO of a wholesale Internet company. I didn’t have the time or education to write more website content either. I am glad that I did, and it provided inspiration for the book “Living in the Storm“.

You can do this, and it really does make a difference. When you cannot, there are also a lot of website content producers available to hire out the work or to augment your efforts. There is also a search engine optimizer on every corner. These fields grow with each round of layoffs at companies that didn’t produce more website content in time to beat the competition.

When Twitter, Facebook, LinkedIn, and all the other tools you have tried just aren’t working like you hoped, it is likely that you simply didn’t produce enough quality content that people were looking for. Think about it like planting a tree. If you want shade, the best time to plant it is ten years ago. You cannot go back and plant it earlier, so the next best time is now.

Why I Do Not Want to Sell You Anything

I wrote earlier that I do not want to sell you anything at all. That deserves an explanation, because I really do not mean to seem rude or impersonal. The truth is that I am actually looking at the guy over your shoulder. I want your competitor. I want the one who is out to crush your business because they understand the importance of not only producing more website content, but also producing the content that will smash the competition. That is how I earn a living for my family. So, if you call me on the phone or message me, be sure that you tell me you are out to cause a marketing massacre for that other company who read this blog article (yes, they are reading it, too).

Marketing Cost vs. Marketing Value

If you make your price the first priority in a cost to value comparison, you may want to reconsider. Cost is a fast way to get a lot of public attention, but it can also provide a negative net return. Showing a low cost has a solid place in some markets, but consider evaluating the cost and value propositions you present to your market. If you are building upon only an audience of “glancing prospects”, you may miss your best customers in the process. What I call glancing prospects are the ones who are out for cost, and that is the primary factor in their decision making. They glance in your direction and give little consideration to anything but how much it will cost. You may like these customers if you are content to offer the lowest cost, but they are also often not return customers or loyal to your brand. It is not just because you didn’t provide value, but because value is not what they were seeking. Thus, they never realized your value.

There are different kinds of buyers in any market, and there are still many who consider value over price. Even while shopping for identical products, many people will consider the value of buying it from somebody they trust or find other benefits from. It takes more effort to find value-shoppers than to find price-shoppers, but they are worth every bit of it. They will be back, and they will tell their friends.

I will use my industry as an example, but it is important to consider this in any industry. I sell marketing. In my case, value is all that really matters. Return on investment (ROI) is what makes sense to my clients. What they spend is not what matters but rather what they will receive for their money … which is more money. Profit is what my clients want, and they will do what it takes to get it. At the same time, I also attract a lot of “glancing prospects” and “lookers” without any intention of seeking value. Do you want to guess which one I consider important? That’s right … I want the ones who want the ROI and look closer to understand the value of my services.

Cheap Marketing and Low Value

Business people are cost-conscious, and more now than ever. Ironically, this often leads them to mistakes that sabotage their business efforts. As a reaction to their fears, companies will often drop their prices and subsequently drop their value. Marketing is the easiest cost to cut, but also the fastest way to reduce profit and go out of business. I watch companies all the time that neglect the value of their marketing, and try to use a cost proposition in place of a value proposition. It is a short-term cashflow bandage that becomes their undoing.

You can call me crazy, but I am smart enough to get dressed before going to the grocery store. In fact, I can be pretty downright bright, on a good day. I guess I am not smart enough to see the “wisdom” in some people’s reasoning of comparing cost above value. Some will try to weigh the cost with value, but often use completely flawed metrics for comparison. I see people all the time who do not understand how dangerous bargain hunting can be when it comes to their marketing, or with other purchases.

How Valuable is Marketing?

Marketing is what makes companies money. Marketing is how customers find companies and companies find customers. Marketing, in some manner or another, is the only way a company will earn a profit. Marketing should not have a net cost, but rather a profit gain. Marketing should be viewed as an investment, and not an expense. Seeking the lowest cost for something so value-driven seems like the absolute absence of logic. Looking for value, on the other hand, is brilliant.

Do People Really Seek Cheap Marketing?

Yes, a lot of people ask questions about the cost of marketing and rates for marketing-related services. At least that is what my website visitor logs show me. Perhaps you see the same in your industry. I am including a list of cost-related things people searched for and found my blog. Some of them are pretty amusing. People even found my blog searching to find how much it costs to join Facebook.

One of the first things a person in my field often hears is “how much will it cost?” I weed these out fast, because when cost is the question and value is secondary, usually the person asking fits into one of two categories as follows:

They do not have enough money to afford quality marketing. If they do not have the money to do things right, they will never be pleased … ever. It is the same kind of client who tries to tell the consultant what to do rather than accept the consultation they pay to receive.
They ask about cost because it is the question they know best. They assume that a lower investment comes with a lower risk, but this is really not the case. This assumption places the value equation completely backward. Without value, the cost of marketing does not matter. It is not worth it at any cost, and can often have disastrous results.

Similarly, in your line of work, you will likely find that if your prospective customers recognize the value of what you offer, they will often find a way to deal with the cost.

Marketing Value and Cost Consideration: Do You Buy Price Tags?

I have never bought a price tag, but I have purchased a lot of things with price tags on them. Sure, some people buy price tags … literal price tags. What I mean is whether you look at an item and decide that you want it and then look at the price tag, or do you look at the price tag to decide whether you want it. Think about your customers and how they may address this same question. Value-seeking customers will decide whether they want or need something, acknowledge that they want or need it, and then look at the price tag. Cost-seeking customers will look at the price tag and if the price is “right” decide whether it was something they were even interested in buying. They love to look, but they hate to part with money more than they enjoy what they receive in return. NOTE: For this customer, the “right” price is highly subjective to poor interpretation.

Cost, Rates, and Value: Lookers Are Everywhere!

Glancing prospects are very easy to lure. I can drag them in by the truckload. Just have a look at these recent searches people performed to land here at my blog, and then consider how many of these I will likely do business with. Don’t get me wrong, because I like when people ask about cost. It is a buying sign and tells me they are in the market. The fact remains that when somebody asks me about cost before understanding value, I normally tell them kindly that they are simply not ready for what I offer. What I offer is profit!

There are enough people asking about cost, but it is funny to find that a comparatively few people ask questions of value. Those are the people I want, and I hope you can see the value in this, too!

Note that my list of “What Cheap People Search For” is based on actual terms people typed into a search engine and clicked on my blog. I couldn’t make this up if I tried. You may not be as amused as I am, but somebody actually wanted to know “how much does a sheep cost” … really, a sheep. Darn, I don’t sell sheep. You can bet that if I did sell sheep, they wouldn’t be cheap sheep.