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Advertising Campaign: Working with Printing Quotes to Keep a Healthy Cash Flow
By: Owenskie
Understanding the numbers involved in your print campaign can go a long way in ensuring a healthy cash flow and a profitable business. Knowing how printing quotes are arrived at will help you maximize your printing budget, while knowing about consumer behavior can help you prepare for the long haul.
When you want the optimal return on investment, you can direct your effort in either minimizing your cost or maximizing the generated profits. In advertising though, when you are dealing with an unpredictable numbers game, the best place to start is with what you can predict: the printing prices. If you look at the price system of printing companies, you will observe that the bigger your volume the lower the cost of each piece. In most cases, marginal increases of a few dollars can double the printing volume. This perceived discount however can be compounded with other related costs that can easily eat up your marketing budget.
• Shipping Cost:
Unless you decide to pick your prints from the printing company yourself, you will have to shoulder the shipping cost for your prints. Although the actual cost of printing is relatively cheap, the shipping cost can add substantial costs. One way to minimize shipping cost is to plan your marketing materials well in advance. Overnight and priority shipping cost more than the regular shipping process that takes a longer time to deliver. When you plan in advance, you can cut down on these additional costs.
• Storage Cost:
Your store or your office is likely to be located in a commercial area where space is precious and expensive. If you go crazy on your bulk orders and order far more than you immediately need, you may have to spend on storage services. You may be spending more on storing your marketing materials than you would have liked.
• Distribution Cost:
Unless you intend to give away thousands of your flyers from your store counter alone, you will likely to incur distribution cost. Whether you choose to have your marketing materials mailed directly to your clients or handed out individually, this will entail cost.
While many display areas allow you to display your posters and marketing materials for free, many of the high traffic areas will ask you for a monthly fee for the display space. Direct-mail marketing is generally inexpensive but can easily double your marketing costs as well.
• Frequency of Advertising
Apart from scale, frequency is also an important factor in looking at the effectiveness of your campaign. Some studies show that a customer needs to see your advertisement an average of seven times to optimize its impact. Starting with a bigger scale on the onset of your advertising means you have to continue on at the same scale.
Printing quotes is a good measure of the costs your advertisements will incur when it comes to printing, but in addition there are other related expenses. When you want to maintain a positive cash flow, start with a small printing project and work your way up to a bigger campaign. You can simply use the profits from a previous campaign to bank roll your next projects.
Article Source: http://www.noviceinvesting.com/Article
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