5 Affordable Marketing Tips That Will Increase Business

A small business owner's first impulse when money is tight might be to cut funding for marketing.

But that's not a good idea.

Without marketing, a company would have to rely entirely on referrals for new business. So, marketing isn't exactly a superfluous expense. But there are ways of marketing on the cheap.

Here are five ways to bring in new business without sacrificing the rest of your savings.

Go Out and Meet People

David Wogsland, CEO of Eden Prairie, Minn.-based Enhanced Home Systems, thinks the best form of affordable marketing is "personal contact."

"It's still the same old thing," he says. "Go meet somebody, and shake their hand. There can be no shortage of personal contact."

The market conditions of the last year or so have mandated an "all hands on deck" approach to business for Enhanced Home Systems. "It's necessity time," says Wogsland.

That means contacting past customers and seeing if he can make upgrades to their systems. To do so, Wogsland says Enhanced Home Systems is "working to personalize" its communications. "I mean personal contact," he asserts. "Phone calls."

Wogsland suggests offering a free 30-minute evaluation of clients' home systems as a way of getting into the home.

"I imagine that, if we can get out to a customer's house, it could be worth the 30-minute stop — maybe a TV and a remote." He adds, "And maybe, while you're there, you can get them to add some security."

Work with the Chamber of Commerce

Tim Palladino, a self-professed "neo tradesman" with Maven Audio Visual in Dutchess County, N.Y., has found success working with his local Chamber of Commerce. He says the networking alone pays for his Chamber dues.

"I personally pay the Chamber $325 a year," he says. "They offer free courses on how to network. Every time we launch a new service or technology, they include us in their newsletter. There are 1,700 [Dutchess County] Chamber members, and the newsletter is sent out to 2,000 people. It creates a good buzz."

The Chamber of Commerce is a good source because "you know the members have money," Palladino adds. "I've met most of them [the Chamber members]. You get to put an image to your work."

Internet Marketing

Enhanced Home Systems is personalizing its Internet communications. "We haven't really launched it all completely yet, but we've already seen our customers starting to call us," Wogland says.

The e-mail effort will coincide with some improvements to the company's Web site. "We need to start expanding it to make it more interactive for people."

Nick Vecchioli, co-owner of Canandaigua, N.Y.-based Image Audio, Electronics and Home Theater, has enjoyed success employing Web-based communications, including the free online services of MerchantCircle.

Vecchioli uses his free MerchantCircle account for e-mail marketing templates.

MerchantCircle, a networking site, provides Vecchioli with e-mail marketing templates and profiles of potential business partners."It's effective," he says. "The last time I sent a coupon out, I got three e-mails. They're not big projects, but we do get a response."

Vecchioli says he also sends "e-mail bombs" to his client list once a month. "We get monthly specials from our vendors," he says. "So, that's when we'll bomb."

Palladino says Maven Audio Visual is considering e-mail marketing and e-newsletters. "It's a matter of hitting the lead," he says. "If we get that one guy and then we get his friend, he'll pass our name around — business will be perpetual."

If Maven Audio Visual launches a full-on e-mail campaign, Palladino says he'll once again rely on his local Chamber of Commerce. "They'll sell us a list of e-mail addresses of the members," he says. "Then, we may buy e-mail blasting software."

Approach the Local Media

Few efforts will provide the exposure that local media channels can.

Greg Matusky, president of Gregory FCA Communications, a media relations firm based in Ardmore, Penn, says there is a "real insatiable demand by the media to cover the home technology industry."

"When you see opportunities to build relationships with those [media] individuals, offer them story ideas," Matusky suggests. "If you have a media member in your store, you say, 'Here is a story you should cover, and I can tell you all about it.'"

Matusky insists integrators should not be shy about approaching the local media. "Explain to them what's important to viewers and readers," he says. "They're not put off by that." In fact, Matusky says members of the media are easier to "sell" than consumers.

"Those in the media have airtime to fill, pages to fill in the next day or the next week," he says. "The media is going to do lifestyle stories. They might as well be doing them about you."

Use Some Old-School Methods

Wogsland is not above employing "old fashioned" marketing. Door hangers, yard signs, etc. — they are all effective ways of generating leads, he says.

"We can learn from the guys who sell driveways and roofing," Wogsland says. "When a roofing company is working in an area, they blanket the surrounding four blocks."

When Enhanced Home Systems is working on a project, it puts its signs in the yard. "Make sure you mail [promos] or put a door hanger that says, 'We're working in the area,'" Wogsland says.

Wogsland says Enhanced Home Systems is working tirelessly to improve its processes in every aspect of business, including stepping up efforts to "qualify" clients and determine how much to spend prior to the sales pitch.

The company is also looking at its system designs as a profit center. "Architects, lawyers, dentists … no one gives their knowledge away for free," Wogsland says. "Even a landscaper charges for his designs, but a custom guy doesn't."

Wogsland sees marketing materials as being analogous to military artillery. "You can't just win a war with air power," he says. "You can't just have one element going out there."