How Can Small Retailers Maintain a High Profile Without Spending Big Bucks?
Co-op advertising is the ultimate win-win situation.The retailer wins because he receives much-needed support from the manufacturer in terms of dollars, creative materials and a set platform to follow.The manufacturer wins because it receives valuable local exposure for its products — the type of “close to home” advertising that drives people into stores and generates direct sales.These local, retailer-oriented advertisements are a vital link in any manufacturer’s overall marketing plan; consequently, manufacturers are happy to cover a good portion or even all of a retailer’s qualifying advertising expenses.
You’d think with all this going for it, shooting sports retailers would rarely miss a co-op advertising opportunity and would always work closely with their top manufacturers to maximize every benefit.Actually, the opposite can be true.Many manufacturers report that their co-op advertising resources are greatly underutilized.Not using co-op advertising dollars and programs available to you is like leaving money on the table!And we all know that in today’s competitive business environment, no shooting sports retailer can afford to do this.
Here are some tips to help you increase your advertising exposure while reducing advertising costs through effective use of co-op programs:
Try it, You'll Like It. One of the first steps for some retailers is overcoming the “fear factor” of co-op advertising.Many retailers have never done it or have had negative experiences with complicated rules and processes.Your wholesaler can be a powerful ally in this area, particularly if you’re new to co-op advertising.You’ll find that once you understand the qualifications, program rules and necessary verification steps, it becomes much less scary.Discuss your options with him/her as they pertain to product lines you carry.Remember that manufacturers want you to give you every co-op advertising dollar you qualify for.They don’t want to leave any money on the table, either.Why?Because investing in good co-op advertising is proven to boost their bottom line — and yours.
Play by the Rules. All manufacturer co-op programs include eligibility requirements and guidelines.How much co-op reimbursement you qualify for can be based on stocking a quantity of product, past sales history, square footage in your store dedicated to their brand, etc.Reimbursement from the manufacturer for qualifying ads may come in the form of money or credited product from the manufacturer.There is usually a set “cap” based on a percentage of sales (or other benchmark).“Over the years, we’ve found co-op advertising to be quite mutually beneficial in partnering with both retailers and distributors who meet our sales performance requirements to qualify,” said Myles Freeman Jr., Co-owner and Vice President of Sales for Wiley X Eyewear, an industry leader in tactical and hunting glasses.“Just remember that there are usually specific guidelines about how the individual manufacturer’s product and company logo can be used, what products can be advertised, types of media and how to apply for reimbursement.In any case, knowing the rules and following them to the letter can help retailers avoid any unpleasant surprises.
Advertise Smart. The best co-op advertising dollars are ones spent wisely. Focus your co-op efforts on hot selling products/brands and plan ahead for seasonal considerations — ammo during the build-up to deer season; cleaning products and accessories during the off season; optics, knives, collectibles and other hunting gifts during the holidays, etc.Research your local media to choose those outlets that will reach the greatest number of your customers, be it newspaper, local magazines, radio, or even television.
Comparison Shop. How much and what types of co-op advertising support a manufacturer offers should be almost as important as the products and terms they offer.Because co-op programs are like frequent flyer miles in some ways — the more business you do with one company, the more you stand to get — it makes sense to stock your store and work with complimentary brands that back you, the dealer, with the most support.The SHOT show is a great opportunity to speak with manufacturers and distributors to discuss the types of programs offered and figure out what works best for your location, your products and your style of business
Think Outside the Box. When evaluating manufacturer co-op advertising programs and opportunities, see if the manufacturer offers support for advertising vehicles outside the “traditional” media. If the Internet is a huge part of your business, find out if the manufacturer offers web advertising co-op funds. Manufacturers may offer financial support and helpful tools for holding in-store product seminars, special promotions, open houses, direct mail programs and other “outside the box” advertising channels that can bring customers into your store and increase sales.
Smart co-op advertising tailored to the needs of your business is a key to growth. It takes a little effort and planning to do it right, but doesn’t everything worthwhile? Now, go get em!
By Bruce Bear
Bear Enthusiast Marketing Group is a leading marketing, advertising and public relations agency serving the shooting, hunting and outdoor industries. Visit www.bearemg.com.
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