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- Written on: June 5th, 2009
Those who read my posts regularly know that I believe that a recession is the best time to attempt to expand your business.
Durring a recession your competition:
* Will be reluctant to match your moves
* Will cut back on service to increase the bottom line
* Avoid investing in people and equipment
How Do You Expand Your Business When Your Customers are Spending Less?
The answer is pretty straight forward – you get more customers. You take them from your competitors.
While your competitors are cutting like mad, you reach out and entice disgruntled customers into your fold.
To do this you have to increase your marketing budget, and radio auctions are a nifty tool to convert your unsold inventory or service certificates into needed advertising dollars!
How Do Radio Auctions Work?
Typically, radio stations sell air time for money. In a tough economic climate,advertisers cut back, so stations have to get more cretive to hit their sales goals.
For example, lets say you own a website design company. You might provide a $1,000 gift certificate to the radio station to auction on the air. You would receive $1,000 in trade to spend on commercials, et. in exchange for your certificate.
The station would then auction the certificate on-air to its listeners who call in to make their bids. The certificates often sell for less than their value, so the callers feel like they are getting a good deal.
You get the free commercials (not to mention a 5-minute plug during the auction its self), the customer gets a great value, and the station gets money. Everyone is happy.