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Henry Ford understood how important advertising is to the ultimate success of a business. So, it is not unusual that buying commercials on Portland radio will move down the list behind making payroll, maintaining delivery vehicles, and paying insurance premiums.
It is called cooperative advertising or co-op for short. According to Inc. Many manufacturers have a set amount of cooperative advertising funds available per year, distributed as opportunities for collaboration arise. Small businesses love co-op because it can cut advertising expenses ificantly.
Manufacturers like it because it extends the marketing of their products. Generally, the amount of co-op dollars available to a Maine small business owner is based on the amount of wholesale transactions with a given manufacturer or distributor.
Free money. If the pet store owner takes advantage of all the co-op generated from all of her vendors, then that amount could be ificantly higher.
To ensure Maine small business owners maximize their co-op opportunities the website Practicle Commerce provides the following advice:. To get the most out of co-op advertising, have each ad approved before you place it. Suppliers frequently have co-op requirements that you must meet in order to receive your co-op reimbursement.
Mention it just twice and Wrangler might not reimburse you. However, if you had sent that same spot to Wrangler in advance and the company approved it, you would be sure to get paid.
Bottom line, get every co-op ad approved before it is placed. It is a little extra work, but it ensures that your co-op claim will not be rejected. It is common for product suppliers to offer stock to retailers.
These are pre-made web banners, printor even scripts for commercials. While these can be easier to place, they may not represent your brand or even fit your customers. If there is no difference in the co-op reimbursement rate, consider using these manufacturer-supplied to inspire your own custom versions.
Be certain to get your custom approved before you place them, as recommended in tip one above. One of the best ways to maximize co-op is to have an advertising product you can sell directly to a supplier.
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As an example, a multi-channel retailer in the northwest U. The show is focused on gardening, and the retailer has hired a certified master gardener to host it. Each episode includes six, one-minute commercials.
All of the commercials are for products the retailer sells. The co-op collected more than covers the expense of buying radio time, producing the radio show and podcast, and paying the host a very Free advertising maine wage. When you have a special project or promotion, you can ask for over-and-above money for business development.
Typically, you would need a history of using all available co-op for a particular supplier before you can ask for over and above money.
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But, that caveat aside, suppliers will often pay for promotions for a good retailer. A supplier might pay for a custom graphic on your truck.
Or if you wanted to have a booth at a popular trade show that is not part of your normal advertising, a supplier might pay for it with over-and-above money. Entrepreneur Magazine, adds these additional tips to take full advantage of co-op funds. Manufacturers like it because it extends the marketing of their products Generally, the amount of co-op dollars available to a Maine small Free advertising maine owner is based on the amount of wholesale transactions with a given manufacturer or distributor.
Bonus Plan: Added participation or accruals are based on specific manufacturer promotions or new product introductions.