Successful Promotion Starts With Market Research
Q Approximately a year and a half ago we started a company called PC Tattoos that provides products to decorate computers and periphery. We were able to get into 16 Fry’s Electronics stores, but there has been a lack of promotion and we are buried in the incredible array of Fry’s merchandise. We have had some inquiries in the promotional products arena, but none has turned into an order. From all indications, we have a very viable product, but we are lacking the proper promotion and distribution. What do you suggest?
--Jim Stavis, Agoura Hills
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A. First, give yourself some credit for what you’ve accomplished so far. Next, I’d recommend that you stop, take a step back, regroup and put together a well-researched marketing plan. It doesn’t sound like you’ve done enough research on your markets or your customers’ purchasing patterns. Once you’ve researched your markets, find out who the personal contacts are in those markets and what they are looking for when they buy. Price is usually a factor, but what else?
When it comes to the promotional products arena, it doesn’t sound like you have identified this as a market to pursue aggressively. Is it a worthwhile market? Just because you didn’t immediately receive orders doesn’t mean it’s not a viable market. If you determine that it is worth pursuing, put together a target list and pursue promotional agencies and merchandisers. A good business library will have the Directory of Directories and you can look under promotion, merchandising, etc. to get contacts. Another source is the Publicist Guild directories. And of course, you can do in-depth research on the Internet.
The same suggestions can be made for partnering with a computer company. Again, there’s no magic, just a lot of legwork. Put together a target list of companies and find out who decides what promotional products the firm uses in its marketing. Then start the marketing program to get their attention.
Creating some “buzz” could help move product off the shelf. Have you developed a targeted list of media outlets that might cover a fun product like yours? I suggest sending out news releases with product samples, then follow up with your media contacts.
--Sharon Berman, principal,
Berbay Corp., marketing strategy
and implementation, Tarzana
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Q. I’m looking for a reasonably priced consultant to update my Web site. My budget is $500, but I’m open to suggestions. Where do I find someone?
--Dave Zuckerman,
https://www.protolytes.com,
Playa del Rey
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A. Technology consultants are popping up everywhere. I know a lot of people who have left big firms because they want to work one-on-one with clients on specific projects. Of course, they can be very expensive, and the old adage applies: You get what you pay for. Hourly rates between $200 and $300 are not uncommon. The average price for a good consultant is around $100 an hour, and the minimum amount of time a consultant will work with a client is around 20 hours. This amount of time allows the consultant to learn about the client and figure out what needs to be done.
When it comes to choosing a technology consultant, small-business owners need to first figure out what they want the consultant to do, then search for someone with a focus in that specialty. If it is design work you need, a consultant will help you find a good design shop. This could take anywhere from 20 to 40 hours’ worth of work. If the business owner wants e-commerce, then I suggest he go to an online store-building site, such as Yahoo Store (https://store.yahoo.com).
If you only plan to spend $500 on your Web site, you’re likely to end up with a high school student, and in the long run you’ll only be a little bit ahead of where you are now in your business. If you want someone to really redesign your site, you’re looking at around $2,000 to $5,000. It may sound expensive, but as I tell all of my clients, their Web site will be the most looked-at piece of collateral they will ever own. Take the time to create a site you can be proud of. It has to look good, because all of the competition’s sites look good.
--Michael Weiss, chief executive,
Imagistic Media Studios Inc.,
Venice
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Q. Is there a source on the Internet for the number of mergers and acquisitions that are done year-to-date and by whom?
--J.C. Strauss, Villa Park
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A. There are several sources for information on business deals. After the first of the year, you should be able to find aggregate numbers on 1999 mergers and acquisitions on the Web site of Merger Stat (www.mergerstat .com), a Los Angeles-based division of investment bank Houlihan Lokey Howard & Zukin.
If you need more detailed information, the company also sells a directory of business deals, the 1999 Transaction Roster, and a year-end compilation of mergers and acquisition statistics, The Merger Stat Review. You can reach the company for more information on their products at (800) 455-8871 or by e-mail at: mergerstat@hlhz.com.
Another place to find ongoing coverage of middle-market deals ($10 million to $250 million) is the Corporate Acquisitions Newsletter, a weekly publication that lists deals and trends. You can subscribe for $425 annually and get the newsletter by regular mail or e-mail. For more information, contact the newsletter at (415) 435-2175 or e-mail senior editor Zack Miller at miller@archgroup.org.
--Colin Gabriel,
mergers and acquisitions expert
and author of “How to Sell Your
Business and Get What You Want!”
If you have a question about how to start or operate a small business, mail it to Karen E. Klein, Los Angeles Times, 1333 S. Mayflower Ave., Suite 100, Monrovia, CA 91016, or e-mail it to kklein6349@aol.com. Include your name, address and telephone number. This column is designed to answer questions of general interest. It should not be construed as legal advice.
