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The Pitfall of Cutting Back on Advertising


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Welcome to our latest newsletter! Today, we're diving into the importance of consistent advertising and effective marketing strategies for your hauling business. Just like having a reliable fleet of trucks ensures timely service deliveries, maintaining a strong advertising presence is key to scaling your business efficiently.


The Pitfall of Cutting Back on Advertising

Brian Scudamore of 1-800-GOT-JUNK, in his book "BYOB: Build Your Own Business, Be Your Own Boss," early on in his career was once told, "Cash is tight, so I'll cut back on my advertising." While this seems like a good idea initially, reducing advertising expenses can lead to long-term setbacks. Advertising campaigns are slow to gain momentum, and you might not immediately notice the loss of traction. However, once you stop advertising, your competitors can easily overtake you.


When your competitors cut back on their advertising, it creates an opportunity for you to leapfrog over them. Understanding the difference between making money, having cash in the bank, and growing the value of your business is crucial. Even if your accountant says you're not making money, remember that investing in advertising helps grow your business's value.


Each profitable sale justifies further investment in advertising. This continuous cycle allows you to keep the sales funnel moving and your business growing.


Applying This in Your Business

Knowing that each job generates more revenue than it costs gives you the confidence to reinvest in advertising. For instance, if each junk removal job leaves you with a profit, you can use part of that profit to run more ads, creating a positive feedback loop.


Imagine your junk removal service generates $200 in revenue per job, with $50 in profit after expenses. Spending $20 on advertising to secure each job means you're left with a $30 profit per job. You can reinvest this profit into more ads, ensuring a steady growth of your business. By measuring what works and replicating successful strategies, you can scale effectively.


The Dual Approach to Direct and Brand Marketing

Marketing for small businesses often requires balancing direct and brand marketing strategies. However, for small businesses with limited resources, focusing more on direct marketing efforts can be particularly beneficial.


Actionable Advice for Small Businesses: Focus on Direct Marketing


Direct Marketing: Measure Everything

Direct marketing focuses on immediate results and requires precise measurement. Calculate costs associated with gaining attention, clicks, and conversions. This data helps refine strategies to ensure each dollar spent contributes directly to business goals. Here’s how to get started:


  1. Set Clear Objectives: Define what you want to achieve with each campaign. Are you aiming for immediate bookings, email sign-ups, or increased website traffic?  

  2. Utilize Digital Platforms: Platforms like Google Ads and Facebook Ads allow for precise targeting and detailed performance tracking. Use these tools to reach potential customers who are actively looking for your services.  

  3. Track Key Metrics: Focus on metrics such as cost-per-click (CPC), conversion rates, and return on investment (ROI). This will help you understand which ads are performing well and where to adjust your strategy.  

  4. A/B Testing: Continuously test different ad copies, images, and targeting strategies to see what works best. A/B testing helps optimize your ads for better performance.  

  5. Retargeting: Use retargeting campaigns to reach people who have previously interacted with your website or ads. This increases the likelihood of conversions since these individuals have already shown interest in your services.


Practical Steps for Implementing Direct Marketing


Direct Marketing:

  • Measure Everything: Track metrics like CPC and conversion rates.

  • Focus on Immediate Action: Create targeted ads with clear calls to action.


Brand Marketing:

  • Be Patient: Understand that results may take time.

  • Maintain Consistency: Ensure your brand message is consistent across all platforms.

  • Engage with Your Audience: Connect culturally and make your brand part of their daily lives.


In Closing

Understanding when to use direct marketing versus brand marketing can significantly impact your business's success. Direct marketing provides immediate results and measurable actions, while brand marketing builds long-term relationships and trust. By integrating both approaches and knowing when to prioritize one over the other, you can drive growth and sustainability in your hauling business.


Incorporate these strategies into your marketing plan to create a balanced, effective approach that meets both your short-term needs and long-term goals. 



Got ideas or stories of your own? We'd love to hear from you! Reply and or share your insights with us in the Haulers Forum. Together, let's inspire and guide each other toward building businesses that aren't just successful today but poised for future success.

Justin Hubbard

Justin Hubbard

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