Sunday, December 07, 2008

Wizard Wisdom

Craig Arthur sends this email each week:


Dear Scott,

Arrogance and self-awareness seldom go hand in hand.” - M, Casino Royal

If you are not careful, your business success can breed arrogance. You no longer listen to the advice of others. You become all knowing. You feel... ten foot tall and bullet proof. Arrogance can blind you to the truth. Arrogance in business, is a dangerous path to walk.

Have you looked in the mirror and checked your arrogance level lately? Better yet, do you have a trusted adviser who has the freedom to slap you around occasionally and tell you the truth? No! Well you should.

In this issue:

Sending out a Flyer? 2 Factors You Must Understand

How to Survive a Family Business

Ever thought of attending a class at Wizard Academy? Listen here to some recent students.

Sending out a Flyer? 2 Factors You Must Understand

Product Purchase Cycle & Impact Quotient

"There is one marketing truth you must understand: People buy when they are ready to buy, not when you are ready to sell." - Clate Mask, Infusionsoft

You must understand this truth when you send out your message to potential customers.

If your product or service has a purchase cycle of 1 year and every single person in your town will buy that product, on any given week only .0192% of your market potential will need what you sell.

So if you send out a flyer, does that mean you can expect .0192% of the people in your town to react and buy from you?

No. Of that .0192%...

  • many customers will be loyal to another business.
  • many customers will be transactional and look for the lowest price.
  • some customers are your current loyal customers (they will buy anyway).
  • some customers will be new to the market... so you have a chance.
  • some customers are ready to switch due to poor service or a bad experience.
  • some customers will remember a bad experience with your business.
  • for some customers your location will be inconvenient.
  • some customers may delay the purchase altogether due to the economic climate.
  • the bulk of that .0192% will not even see or read your message. They will simply throw your flyer away without reading.
  • and remember.... you are not advertising in a vacuum. Your direct competitors are probably sending out a similar message at the same time. Your offer or service if seen and read by potential customers will be compared with all other options in the market.
  • the list goes on and on.

So just because you have product to sell or vacancies for your service does not mean people will buy.

One thing that can raise the response rate of your flyer is to raise the Impact Quotient of your message or offer.

A typical Blah Blah Blah flyer... is a who we are, where we are, and what we have to offer, and it will receive the lowest level of response. A flyer with a totally free offer would be expected to receive the highest rate of response. High impact, high return. Low impact, low return.

So you have sent out your flyer. Now what? When will you send it again? Next week another .0192% of your market potential will be in the market for your product or service, are you going to talk to them?

Another problem with flyers... there is little residual value. If you wish to win the hearts and minds of potential customers way before they have a need for your product or service, flyers are not the highest and best use of your ad budget.

Am I saying not to send out flyers? No. In many cases due to budget restrictions or size of market, flyers may be one of your only options. And if you sell a low cost product that has a weekly or fortnightly product purchase cycle flyers can be a great part of your media plan.

Remember .0192% is for a product or service purchased yearly.

A 4yr product purchase cycle = .0048% in the market on any given week.

A 10yr product purchase cycle = .00192% in the market on any given week.

The lower the Impact Quotient... the lower the response.

The longer the Product Purchase Cycle... the lower the response.

Understand Product Purchase Cycle and Impact Quotient when using flyers and advertising... if you don't you will be perpetually disappointed with the results.

Every Person in a Business is Important...

“Making honey takes a lot of bees doing a lot of small jobs. But let me tell you something about a small job. If you do it really well, it makes a big difference. More than we realized. To us, to everyone….” Barry B. Benson, Bee Movie

How to Survive a Family Business

By Roy H Williams

(Edited from original)

If you run your business like a family, you're headed for disaster. The only thing that could possibly be worse would be to run your family like a business.

Business values and family values are fundamentally opposite.

Healthy families are built on unconditional acceptance and absolute equality. "No matter what you do, or don't do, your Mother and I will always love you. And we will always love your brothers and your sisters just as we love you."

You can't have favorites in a healthy family.

But unconditional acceptance and absolute equality have no place in a business. Healthy businesses are built on performance-based acceptance. And families are ruined by it.

Are you starting to get the picture?

Can you work productively and successfully with members of your family? Sure you can, just as long as you remember never to talk about home in the workplace, or the workplace at home. To do otherwise can only end badly. And know that while family values will rule in the home, business values will rule in the workplace.

Understanding that simple premise, you only need to ask, "Am I at work or am I at home?"

Previous stories, just in case you missed them:

A Bigger Threat to Your Business Than Recession

4 Methods to Sharpen Your Marketing Message

Becoming Credible

What is Your Message Worth?

A Closing Thought
“Why is it that people who can’t take advice always insist on giving it?” - James Bond, Casino Royale
See you next week.

Craig Arthur
Wizard of Ads

PS. Need help to attract more customers and grow your business?

Australia Call (07) 4728 4866 or email

North America

Call 308-254-2732 or email

Call 440-610-9746 or email

We will never try and sell you. You may punch us in the arm really, really hard if we do.

Call or email to book a FREE alignment meeting. No obligation. No pressure. It is at this meeting we both decide if there is a fit between our 2 companies. It is only then can we explore your options. We will never try to sell you. Call (07) 4728 4866.

Wizard Partners Australia. Call Us: (07) 4728 4866

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