Posted by: Troy White
February 13, 2009
Issue #438

Giving Away Steak Dinners
– And Raking in the Profits

NOTE: Something VERY important and timely happened this past week around this article.  I was meeting with Kory Basaraba, who penned this letter, along with someone who works at the furnace company, who ran the campaigns.  When the subject of this letter came up, I was disgusted to find out the owner of the company STOPPED using the letter. 

After getting incredible returns like they were with this letter, the owner decided it wasn’t worth the effort to keep running the campaign.  To him, it was a lot of work, and expense (steak dinner certificates), and he honestly believed that it wasn’t worth the expense!

Sad … but far too common to skip over.  I see mistakes like this being made way too often. 

Let me ask you this: where else can you invest $1 and get back $6 within a month or two?  To me, I would not stop investing that dollar until it stopped returning a profit.  But many people look at the $1 they have to invest, and forget all about the $6 they get back.  To them, they consider the $1 a cost … and go back to doing things their old ways (like spending $1500 a month on Yellow Page ads that return 5 phone calls and 1 or 2 sales … an actual number I know is accurate for their business).

We all say "I would NEVER do something like that!" … But I am willing to bet you have.  Now is the perfect time to go back over what worked best for you in the past couple years … and run it again.  I have a promotion I have run every President’s Day (which falls on Family Day in Canada), for the past 3 years. Each year it works as well as the previous year … and you can bet I am running it again next Monday!

This entrepreneur’s reaction is not all that uncommon … and I urge you to look back over your past promotions to find out which ones worked best … then question yourself on why you haven’t run it again.  And if you haven’t run it recently … now is the perfect time!

Don’t worry about the $1 you have to invest… worry about how many times you can invest that dollar … because you are almost guaranteed to get repeatable results as the last time you ran it.  When the campaigns stop returning a profit, ONLY THEN, do you stop running them.

It’s very easy to get caught up in all the new things you would like to try in your marketing … but never forget about where your real money comes from … systems that are proven to work!

Fellow Business-Builder,

Today, it happened.

In Calgary where I live there is a shameful shortage of well-written marketing material. Business owners are scared of actually doing something that gets results - and there’s a miniscule number of people who actually understand the direct response business. (Sad for a city of a million people! - but also a good opportunity for helping them learn.)

Imagine my surprise when I opened the perfect direct mail envelope (white #10 - return address without a name – looks very much like personal mail) … and it came from a furnace company!

Headline: "Troy, Are You Thinking About Replacing Your
Furnace?"

(Hint: why can’t you replace the furnace with your business and send out the same headline to your prospects? Also note, my name was in the headline – a very good way to improve your response. Just click the picture above for a PDF version of the ad!)

Subhead: I’ll buy you dinner at the Keg Just for Letting Me Give You A Quote - But Only If You’re One Of The Next 20 People To Call …

BRILLIANT!

A furnace company using direct response … wonderful to see.

So, what does Troy do?

Phones the owner of the company of course! :o)  And he is happy to share his results so far …

1,500 mailed - 25 bookings - already!

So, let’s assume they get 50% of the bookings as signed contracts - 13 sales - the average furnace would bring in (I would guess) $1,000 profit.

If my math is correct - $13,000 profit on a mailing that cost $1,500 MAX … and the results will not be final for a few more days … AND … if they do it right, they will send out the exact same letter to the same list and will see approx 50% response of the first mailing.

Then they do it again - and again - until it no longer makes them a profit.

Based on their initial response - I would expect them to get 25 furnace installs (or more) - at $1k each = $25,000 from a mailing that costs them $4,000 in the end.

How many times would you invest $4,000
to see a return of $25,000?

As many as possible, I would hope.

So if this works for a furnace company - it WILL work for you. No excuses will be accepted.

And if it will work for your company - what are you waiting for?

Another example of simple strategies
 that work in small business environments …

Success from Italian sausage …

Not long ago, I met up with a fellow marketer for a brainstorming session at a place called Spolumbo’s. They are famous on a local scale for the quality of their spicy (and non-spicy) sausages and meats.

They have done a TON of things right over the years.

Straight from their site (www.spolumbos.com): It’s a story of three first generation Italian-Canadian boys who grew up in traditional Italian families. With the family spirit of old-fashioned Italian tradition, the boys’ hand-cranked their families’ small food grinders, helping to make home-made Italian foods, like sausage and fresh crushed tomatoes for sauce.

These guys are masters at marketing their business.  Now think about this - it’s an Italian deli - not exactly something original.

But they own the majority of the market in the city of a million people.

How?

1) They use their celebrity status (all played in the CFL -the Canadian version of the NFL).  Their old jerseys, photos, cups, etc. are posted in the deli for all to see.

(If you have anything that resembles fame - use it! If anyone in your family does - ask them if they would be your spokesperson.)

2) They educate people on how their business works – how they make the meats - how the business does what it does. They have a virtual tour at their website showing you everything.

(Remember the story of Schlitz beer?  When they educated people about what goes INTO their beer - the time, labor and love - they went from 15th in the market to 1st! Everyone else did the SAME thing - but they were the only ones to educate people on it.)

3) They use videos of their deli (the multimedia approach) - to attract the visual types.  They even have a video there of Mamma cooking over the stove.

(They did not worry about expensive camera crews and wasting a TON of money on high end product - it’s a hand held video camera! And it works.  Don’t over complicate things – people could typically care less how much you spent on your video and audio production - all they want is the real content.)

4) They give away their recipes! They don’t pretend they invented Italian sausage … they just make some of the best out there - and they share what they know. They are very open with the ingredients and the nutritional information of all their products.

(Do you share all that you know about your business and industry? You should.  People appreciate knowledge they don’t have - so show them you know what in the heck you do for a living.)

5) They have wholesale AND retail covered. You can buy online via the case lot - or come in and get yourself lunch or dinner.  You can buy their sausages through many other food-related businesses here in town as well - so they use alliances and JV’s to expand their reach to blanket the local market.

(Are you giving people numerous ways to order from you? Are you using other peoples’ client lists to sell your products or services? You should!)

6) They love giving to charity - and the media loves covering them. You will see these three guys at all the big sporting events - cooking up a storm on some big arse barbecues.  They give a TON of food, toys, and help away to the charities that need the help.

And the media LOVES them. You see them everywhere - in the papers, on the radio, on television … they are everywhere. (Is there anything at all you can do or give away to a local charity? What are you waiting for? Help out those that need the help! And make sure the local media knows about it- phone them, fax them, write them.)

THEY MISSED THIS THOUGH:

On their website, they do not capture e-mails.  They should. Think about the specials they could send out via e-mail to get people in on their slow days of the week - even have specials for people to come in on their slow hours of the day.

(Capture your customers contact information! Then do something with it … market to them … get them buying more often … in more quantity.)

Some very powerful lessons to be had in my last visit to Spolumbo’s - I hope you take notice and try a few new things in your business.

If it worked for them, it will work for you … no matter WHAT your business is. That is not an excuse. "But … myyyyy business is different" - no it isn’t! You deal with people and people buy your product or service if you do what you promise.

Your business is not different at all. It is all about people and giving them more than what you promise – and making sure they even know you exist.

Take heed in Mamma’s recipes - they contain the wisdom of wealth creation.

To your success,

Troy White
Editor, Small Business Mastery
Supplement to THE TOTAL PACKAGE

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A Final Note:

If you have specific subjects you would like addressed, or have any comments on what you have seen here, please submit a comment below and I will see how I can help.

"Don’t wait. The time will never be just right.”

–Napoleon Hill

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25 Comments »

1. Comment by Kevin — June 13, 2008 @ 11:07 am

   Hi Troy,
   Great article! Hey, is there any way I could get a copy of that furnace letter? Perhaps you could post it in the forum as a PDF. I would love to add it to my swipe file.
   -Kevin

2. Comment by Lori Bray — June 13, 2008 @ 12:31 pm

   Loved the article!  Great ideas.  Thanks for sending.
   ~Lori~

3. Comment by Glen Kohlenberg — June 13, 2008 @ 12:51 pm

   Thanks Troy and some fantastic advise! Everyone seems to always make a big deal over little things. But the big thing is just have them do it. Take the first step then the next and keep on moving. Thanks

4. Comment by Chick J — June 13, 2008 @ 1:47 pm

   Troy!  You gave me a heart attack.  Every Tuesday I am waiting for your superb column.  Only Clayton is better.  But when you didn’t show up in mailbox.  I was afraid you went into hiding, or worse took a vow to stop writing.

   But you are back, so the world is good again.

   Chick J

5. Comment by Max — June 13, 2008 @ 3:21 pm

   Dear Troy,

   Thank you for such a great example of smart marketing.

   Any possibility to get a photo or a scan of the full DM letter mailed by the furnace guys?

   Thanks in advance

6. Comment by CHUKS UWAECHIA — June 13, 2008 @ 3:48 pm

   Hi Troy,

   Brilliant article. If I was to pay for consulatancy I would be paying £5,000 per session. Good insights into how to use copy.Please give us more. Clayton and the contributors to this web portal make this the best website to read about copy. If I was to sum up your ideas and content its definitely worth over £100 million.

   As they say "Wisdom is the principal thing" therefore get Wisdom.

   Thanks again guys.

   Chuks Uwaechia
   Ceo Winstondale.co.uk
   Luxury Pen Retailer
   chuks@winstondale.co.uk

7. Comment by Kory Basaraba — June 13, 2008 @ 5:14 pm

   Geez Troy - I’m blushing 6 shades of purple now.

   Your post brings back some good memories

   Guys, nothing makes me happier than seeing my buddy Troy (who is the hardest working marketer I know) sharing his wisdom here on this forum.

   I’m totally embarrassed and awestruck at having one of my letters presented to such an esteemed audience, but if it helps anyone out -  I’m happy to send you a PDF of the letter.

   Just email me at kory @ highperformancemarketing.com and I’ll send you a copy.

   Go Troy!

8. Comment by Jim — June 14, 2008 @ 5:17 am

   Tony,

   I’m "korn-fused."

   The headline asks a  question that can be answered with a quick "No."
   My understanding is asking a question that can be answered this way should be avoided.

   I live in Florida, I don’t even own a furnace, but I would guess they last 10, 15 years like my air conditioner.

   The only time I’d think about replacing my AC is if it quit working.

   So, if I got a dm piece with the headline "Are you thinking about replacing your air conditioner?" - - if I’m not sitting in a tub of ice trying to stay cool  ’cause my AC quit, my answer would be an immediate "No."

9. Comment by Troy White — June 16, 2008 @ 12:47 am

   Thanks again for the comments!  I have moved my column from Tues to Fri now - I am not going anywhere - too many great examples to share.  As always, if you know of anyone who has a great story, or if you want a specific subject discussed, let me know. 

   As for the furnace letter - Kory is the man that wrote this beauty - email him direct for the full version (his email is above). 

   Cheers, Troy

10. Comment by Troy White — June 16, 2008 @ 12:53 am

    Jim, As per your comment: this is a little different.  Furnaces used to last aroung 50 years - the same age as the neighborhood I live in.  With thousands of houses around us all in the state where it is time to start thinking about replacing a furnace (new furnaces are MUCH cheaper to run than the old ones, which shares one reason why the person might be thinking of replacing it).   So it is a very wise decision to mail neighborhoods who are all thinking about their furnaces and the probability of them conking out or costing a fortune to run during the winters here. A certain percentage of people will be seriously considering looking at a new one way before they quit. No one wants their furnace to die when it is minus 30 outside!

11. Comment by CHUKS UWAECHIA — June 16, 2008 @ 3:04 pm

    Hi Troy,

    I need to ask you some questions about selling luxury products to clients. Who should I target to sell luxury pens worth £500-£10,000, Is it best to sell via mail order or internet?

    Have you got a copy for a luxury pen retailer in your rolodex?

    I appereciate your input?

    chuks uwaechia
    ceo winston dale
    chuks@winstondale.co.uk
    http://www.winstondale.co.uk

12. Comment by Troy White — June 17, 2008 @ 10:49 am

    Hi Chuks,  Great to hear from you.  I don’t actually have any past ads for a high end pen like that, sorry.

    But, some ideas for you:

    * talk to some list brokers out of the US. This would be a list you could easily find - people who have bought/invested in pens like this before.
    * I would also test lists that are watch investors - similar type of buyer. 
    * leverage some PR here.   Maybe come up with the worlds most expensive pen and send out some press releases to the top online media sites.  If creating one is not feasible - have a contest around one.  Help us create the worlds most expensive pen type of approach.
    * test some banner ads on websites that target the affluent

    Your question of internet vs direct mail - both will work to get to this market.  They typically do much of their research online then phone and order offline (or mail in). 

    I love the saying… "If you have more money than time - use direct mail (through list brokers).  If you have more time than money - use the internet."

    Hope that gives you a few ideas. 

13. Comment by Prasaad Gadkari — June 18, 2008 @ 4:56 am

    Dear Friend,

    My name is Prasaad Gadkari and I have authored a book on eMarketing. I am from India and now working in Dubai. I offer consultation service and would like to know if this method of marketing would work for me in Dubai.

    The header would go like this (you can steal it hee hee):

    I will buy you lunch at FirePower - Dubai Marina
    and also help you to:
    FIRE YOUR MARKETING DEPARTMENT AND KICK OUT THE EXPORT MANAGERS…..

    Sure you would! If you learn how to double your business every six months….blah blah…

    Please comment on my email.

    Prasaad Gadkari
    http://www.prasadgdkari.com

14. Comment by Bernie — February 13, 2009 @ 1:06 pm

    Solid article. Love the Italian Deli story.

    Classic marketing and relationship building.

    Bernie

    PS: I agree that they need to capture emails.

15. Comment by JANICE TRUPPE — February 13, 2009 @ 2:06 pm

    I ENJOYED THE DELI STORY AS WELL.
    I HAVE BOOK STORES THAT I’M TRYING MARKET
    SO LOOKING FOR IDEAS EVERYWHERE,FOUND SOME GOOD IDEAS FROM THESE ARTICLES, BUT AS YET NOTHING WORKING FOR ME YET.
    WE SELL COMICS, FIGURES, GAMES AND USED BOOKS.EVERYONE WHO COMES IN OUR STORES LOVES THEM THE TRICK IS TO GET MORE IN AND MORE OFTEN
    THANKS FOR A GREAT ARTICLE
    JAN

16. Comment by Note Taking Nerd #2 — February 13, 2009 @ 2:16 pm

    Hi chuks Uwaechia,

    If you’re looking for a great list of places to find affluent buyers go pick up Dan Kennedy’s “No B.S. Marketing To the Affluent” book.

    The book is a wealth of information about how to sell to and where to find people who are least affected by the economic conditions we face today.

    Another kick ass product you might want to look up is Yanik Silver’s “How To Sell High Priced Premium Products and Services.”

    I own both of these resources and can attest to their awesomeness. Check ‘em out.

    Note Taking Nerd #2

17. Comment by Zelimir — February 13, 2009 @ 5:15 pm

    Hi Troy, why are the Oscars already closed? I was looking forward to voting for you, but the system wouldn`t let me, closed so early?

18. Comment by Solomon — February 15, 2009 @ 11:37 pm

    Hi Troy,

    Great article! You’ve opened up my mind to look into some of the points to use in my approach.
    Thanks
    Solomon

19. Comment by Troy White — February 17, 2009 @ 2:55 am

    Thanks everyone for the great comments! Sorry the voting was closed… it all happened in a very short period of time. I will let you know what happens.

    Troy

20. Comment by Patrick U. — February 17, 2009 @ 10:02 am

    Hey Kory Basaraba,

    Just to let you know that I’ve just sent you a mail. I really need to have the PDF file sent to me.

    In case you miss my mail, here it is again: pubuane AT yahoo.co.uk

    Thanks Troy as usual for the kind and very RICH contents.
    Good bless you!

21. Comment by Kory — February 18, 2009 @ 2:16 am

    Hi Patrick,

    I sent a link to download the PDF to your email.

    Plus, looks like Troy has made the entire PDF available in his post - just click on the picture of the letter to grab the whole thing.

    Thanks,
    Kory

22. Comment by БAKИHEЦ — May 27, 2009 @ 12:06 am

    Спасибо, пост действительно толково написан и по делу, есть что почерпнуть.

23. Comment by твoйтaтapин — June 19, 2009 @ 4:10 am

    Точно Хорошую информацию трудно добыть. (А сделать с ней что-нибудь – ещё труднее)

24. Comment by гoлЬeтти — June 21, 2009 @ 7:48 am

    Уважаемые, а можно оставлять комментарии непосредственно по теме, а не разную глупость типа Плюс 1 и т.д.

25. Comment by Геннадий — June 22, 2009 @ 12:00 pm

    Да уж… Тут как в пословице: А ларчик просто открывался.:)