Why Traditional Co-op Doesn’t Work
Manufacturer’s co-op programs are mostly ineffective in the kitchen and bath industry. You place some newspaper ads or circulars, perhaps a radio or TV spot, and mostly end up with a lot of wasted dollars, (or worse yet, a pile of swag) at the end of the year.
Some of you may know that co-op programs need to be accrued on the manufacturer’s books. At the end of the year most manufacturers write off as much as 65% of their co-op funds. That means millions of dollars could be freed to help your marketing efforts.
Is It the Program or Is It the Execution
We don’t think that the manufacturer co-op concept is broken, but for smaller dealers its execution certainly is. Face it, home centers know how to take advantage of these programs using traditional marketing spends. Dealers can’t afford these mega advertising budgets.
Unless you have gobs of money, newspapers, radio and TV and even direct mail are hit or miss. By the time your ad hits, the consumer you’re targeting has already made their basic choices including brand. For them, it’s now about price, and that’s a battle that no one wins. In other words, you’re too late in the buying cycle.
Enter the Greenhouse
To ensure a steady stream of new leads, you need to be out ahead of your market. Your target consumer is contemplating their purchase months before they pull the trigger on a large purchase.
You should be talking about your dealership (your brand), not a manufacturer’s cabinet brand. Remember, manufacturers want to sell their product and really don’t care which channel, or dealer for that matter, gets the sale. But you do.
To grow leads with Greenhouse Marketing, you need to create pull for your brand. Social media, blogs, and a more dynamic website are what create that pull. And, what follows brand pull are leads…
How They Can Work Together
Use your co-op dollars to market to the Greenhouse. Manufacturers don’t play effectively in this space yet. By using co-op dollars, both your brand and your manufacturers brand can benefit. You’ll be ahead of all other dealers in the market, casting a wider net than even the home centers.
Open a conversation about Greenhouse Marketing with your manufacturer. They’ll be glad that someone has figured it out.
If there’s one thing manufacturers would love to improve, it’s your marketing efforts!