Business Idea - Seeking input from other business owners...

[VitreousSoul]

Hello everyone let me first say thank you for taking the time to read this post and reply. I greatly appreciate it.


I have built a business plan that, I believe, fills a very unique niche' in the business world. In the plan I have calculated a way to produce large quantities of physical views for a company via printed advertisements. Please read below for the information on how it works. What I am looking for is:
Would you, as a business owner, use the services rendered under the terms and conditions listed below? Why or Why not?
Does this pricing seem reasonable to you?


Required one year contract
Advertisement would gain you (based on research) anywhere from 30,000 - 100,000 + physical views (meaning people physically see the advertisement) a month
Cost would be anywhere from 1000 - 1500 USD pending certain characteristics and pricing plan per month (This price range includes all taxes, fees, etc)

Incentives
Each addition year agreed upon at the time of contract would result in 100 USD off monthly cost up to 300 USD (For a 4 year contract)
Each addition plan purchased would recieve 20% off. (In addition to the USD off per the above incentive)
Each valued customer networked to us by client who signs a contract would result in 100 USD off



Thank you for your time and input it is most greatly welcomed

VS

[MyITGuy]

What are the sizes of the ads that your providing? You mention that this is printed media, what is your delivery method?

I'd say I would be unlikely to sign up for this service.

1st - I don't like commitments on advertising. If something isn't working I'd prefer to refocus my marketing methods rather than having to finish out an annual commitment...plus I change up the advertising methods "just because"...this way the demographic I'm targeting doesn't get accustomed to my ads and start skipping over them.
2nd - Your pricing seems high...I've been working with a local agency that is very well established that can get me into 60K households on a bi-weekly basis for 500-800/mo IIRC

[VitreousSoul]

MyIT,

First thank you for taking the time, to respond. And pointing out my number one delima; I, like you don't, like the idea of a contractual basis. However the only way to retain a cost effect product is to ensure at least a solid years gain (I may be able to shorten it to six months, I would have to reconfigure to be sure).

Second, "skipping over them" I too understand and have actually geared the project to try and avoid this instance as much as possible, more so than the standard mediums. However let's both be honest it doesn't matter how many times you "refresh" your advertising campaign the human condition causes people to eventually overlook it. I believe I may have found a way to cause that condition to stall a little longer. I'll be it I understand that it is still a theory but one I intend to prove

Finally, your agency is doing you well I will admit that. Per your statement you hold a very interesting point, one to which I will have to recalculate my figures on as I understand your point in terms of cost of impressions.


I appreciate your input greatly,
Thank you
VS

[SteveM]

I , myself, would need a lot more information before definitively passing judgement, but my first impression is "no" - I wouldn't spend $1,000 - $1,500 per month on print ads. I'm also another business owner not liking ad commitments - if it's not working for me, I'll dump it like a hot potato. Like MyIT asked, what's your delivery method? What makes your advertising special? What kind of proven conversion rate is in it for me?

I can spend $185 per month with the local newspaper and get in front of 100K people twice a week. I can spend $150 per month and be on the back of 10,000 grocery store register receipts per day. Those are for customers that are in my neighborhood, and could potentially be customers of my gas station and car washes.

If you advertising includes physically escorting new customers into my store and helping them sign checks, I'd certainly think about it!

I'd need a lot more information.

[merlot105]

I would certainly need tons more information to make an informed decision. My problem with this idea is that a physical view might not be entirely trackable. How do you know if someone really saw the ad. For instance, if this is a billboard over a major highway, there's no way to say that the drivers are looking at it. If this was something sent in the mail, again, there's no definitive way to say that the mail was read. Same thing for an advertisement in a magazine, newspaper, or any other place like a mall and so forth.