How Underinvestment in Marketing is Costing Your Business Over $100,000 a Year
Introduction
In a recent Q&A webinar, one of the members of the Painting Business Pro community, Matt, brought forward a common issue many business owners face - the struggle to find marketing strategies that actually work. Matt was only doing about three estimates per week, resulting in sales of $6,300, and he was well aware that this was leaving potential profit on the table. Upon examining his marketing efforts, it became evident that Matt was making a critical mistake that was hindering the growth and profitability of his business.
About Painting Business Pro
Before delving into the specifics of Matt's issue, it's important to highlight the source where this valuable advice and insights are coming from. Painting Business Pro is a coaching platform founded by Eric Barto, aimed at helping painting contractors build and scale their businesses from zero to multi-million dollar ventures. With a focus on creating freedom in their lives through successful business operations, Painting Business Pro boasts a wealth of knowledge and experience in the industry. Additionally, Eric Barto also runs National Painting Group, a company that partners with and acquires painting businesses, showcasing a track record of success in the field.
The Mistake: Underinvestment in Marketing
One of the primary mistakes Matt was making, which is a common pitfall for many business owners, was the underinvestment in marketing strategies. Matt had not committed to investing in SEO, a long-term strategy with a delayed payoff, and had not fully explored and tested avenues such as Facebook ads and lead services. This underinvestment in marketing was directly impacting the number of estimates he was able to secure, subsequently limiting his sales and profitability potential.
The Problem: Adding Three More Estimates Per Week
The problem Matt was trying to solve was adding three more estimates per week, which translated to a potential increase of $6,300 per week in sales. Considering a 50% profit margin for his work and a 10% investment in marketing to procure these additional estimates, solving this problem could result in an additional $2,520 per week in gross profit for his business. Over the span of a year, this seemingly small problem could add over $100,000 in profit to Matt's business.
The Biggest Mistake: Underinvestment in Marketing
The primary issue at hand is the underinvestment in marketing. Many business owners fall into the trap of testing various marketing avenues, experiencing initial disappointment with the results, and then prematurely discontinuing those efforts. The mistake lies in the failure to comprehend the long-term value of marketing and the willingness to invest adequately to achieve significant returns.
The Real Skill of Marketing
Marketing, as Eric Barto emphasizes, is a skill that business owners must learn to master. It requires perseverance, a willingness to fail, and the ability to continually iterate and optimize strategies. Rather than viewing failed marketing attempts as monetary losses, they should be seen as learning experiences that contribute to the overall growth and profitability of the business.
Conclusion
In conclusion, the critical mistake of underinvestment in marketing is a prevalent issue that impedes the growth and profitability of businesses across various industries. By understanding the true value of marketing, being willing to invest adequately, and approaching marketing as a skill to be honed, business owners can unlock significant potential for their ventures. The insights shared by Eric Barto serve as a reminder to reassess marketing strategies and to adopt a long-term, iterative mindset when it comes to driving business growth through effective marketing. By avoiding the pitfall of underinvestment, businesses can realize substantial returns and propel themselves to new heights of success.