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LEAFLET DISTRIBUTION
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Underselling

Underselling occurs when either you or your client undervalues your business.

There are deals that you can do like any business such as a discount if so many leaflets are supplied, figure these into your costs, work out your bottom line (the minimum you can go to while still making a profit) and never get into a price war with people who insist that they can get it cheaper elsewhere.

You need to keep the mindset that:

Your business offers the best service

These are the prices that provide that service

If a client wants an inferior service, then let them look elsewhere

For some reason, certain clients believe the leaflet delivery is the bottom of the barrel, run by slave labour, therefore they are doing you the favour by giving you money. Again check the business forums where people say things like "I wouldn't pay more than £25 per 1000". Is it the clients fault they have this mindset about this industry? Not really, this business, has a reputation for people "dumping", delivering to every other house on a street and generally not fulfilling the clients requirements.

I wonder how many of those business people would walk for 8 hours for £25

It is up to you to change this mindset of your clients. Simply put, offer a fair price for a good service.

How much for cash? Main offenders, Takeaways wanting menus delivered. A normal three fold menu can weigh six times the weight of a leaflet and they want discount for cash? By all means, offer a discount if they want x amount delivered every month but never fall for this, it stinks of tax evasion and by accepting this, you are telling the client that you are willing to take "back handers" especially true of those potential clients who say no invoice is necessary.

How many businesses do you think you could receive goods or services from and get discount for cash? If they did give you discount, what impression would they give you? Cowboys or Professionals?

Get the business, invoice the client, receive the payment, do the job.

I can get it done cheaper elsewhere.

You will hear this often and every town has some entrepreneur topping up their income support or pension with a few hours of delivering for far less than the minimum wage.

Question:

Can you see where he/she have delivered to?

Are they insured?

Are back checks carried out?

Do they collect your leaflets?

Do they invoice you?

Are they being paid over the minimum wage?

How many leaflets will he be getting delivered?

How long do their deliveries take?

Which area do you have your leaflets delivered to?

Do you know how many homes are actually in that area?

Now I am not saying to tirade the client with these questions but they are all valid points.

If they have no insurance, then what happens should the deliverer scratch a car with his bag as they are going down the driveway? If they are being paid directly by the client without a contract (read cash in hand) then who will end up paying?

At the end of the day, it is the clients choice (and risk) but a couple of sayings here are appropriate:

Pay peanuts and you get monkeys

You get what you pay for

Its your business, put value on your time. Do you collect the leaflets, do you monitor your team, do back checks, make calls, answer emails, do quotes, map specific area for clients individual needs, meet clients, do the office work, marketing/ networking etc etc

Next Page: Targeting Clients
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SG Marketing Technology
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Heswall
Wirral
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