Manufacturers offer over $50 Billion dollars a year to local retailers to use for advertising. Over one third of available funding goes unused. What happens with the unused co-op? Nothing! The funds simply expire. What are your stations to do to tap into those available funds? Start the Co-Op conversation with your prospects today.
Brands, brands, brands. We are surrounded by them everyday. Did you know that there are thousands of manufacturers who offer co-op funding for your local and regional prospects to use for advertising on your radio stations?
Radio Co-Opportunities abound but it is first and foremost co-op is not something you sell, rather a resource to help you close sales that are larger dollar volume or run with more frequency. Sell them on the concept of radio advertising, them sell them on your stations and why they will get results for them, then sell them on YOU and lastly follow up with closing using brands and co-op funding. Keep in mind that we don’t locate accrued funds for a retailer to help them offset the cost of what you were already going to propose to them, we are going to double the proposal in either dollar volume or frequency of spots, knowing that after manufacturer reimbursement the retailer will still have the same bottom line as we were originally proposing.
This opens up an entirely new and exciting world for overcoming price objections. I am visiting with prospects every week and can tell you that one thing is true, there is no market in the United States where all the co-op is being used and no market where even the best clients are using all of their available co-op. Generally retailers are using the “easy” co-op from manufacturers how have communicated well with them, giving them updated accruals and preapproved materials however, that is the exception to the rule. We are able to uncover unused funds in almost every case.
Let’s explore the basics, how do you engage a prospect in the co-op conversation?
So how do you engage your prospect in the conversation? Easy, lets start with three leading questions that will engage the prospect into the co-op conversation with you. One, What are your top three brands? Why ask this? Simple, as co-op funding is based off paid invoices with each manufacturer brand–that is where the most money is! Two, Do you buy direct? Co-Op follows the chain of the sale, if there is a distributor in the chain of sale you will need to contact them for funding information. Three, if they do buy direct, who do you contact when you place orders? Then simply put call with your phone on speaker and inquire with the client present.
If they do not purchase direct, then you need to get the distributor sales contact information and follow up with them in the same manner. If your prospect is willing to take a minute to make the manufacturer calls with you, then you have them. This is a sure buying sign. When you get the manufacturer or distributor contact on the line, simply say, “I am here with Jon Smith of Smith Hardware with Jon on the phone with me … can you tell us what Jon’s current co-op accrual is? Account number? Sure … (Jon gives account number)” and then the co-administrator will give you the current accrued balance. Before you hang up, ask the administrator for any current scripts and have them forwarded to Jon’s e mail. You have done it! You have successfully tapped into the billions of dollars a year that is available in your area for radio co-op.
–Tim Marceau Cooperative [Media] Solutions
The Co-Op Coach
www.theco-opcoach.com
