3 Ways Edgar Allan Poe Can Supercharge Your Marketing

Marketing is the lifeline of your business and you need a dynamic marketing program for your business to grow. As a business advisor, the constant complaint I get from clients is that they just can’t afford the marketing they need.

To help your marketing be more effective and get a higher return on investment, I’d like you to remember Edgar Allan Poe with my little parody of The Raven:

“Once upon a midnight dreary, while I pondered weak and weary,

Over so many ways to help my business grow.

Marketing ideas I was creating, but my budget’s so berating,

Media exposures are begetting expenses as my constant foe.

Finding ways to spread my story with finances low

Big ideas, so little money, then I discovered POE.”

Edgar Allan Poe is one of my favorite authors, but POE is also an acronym for the 3 categories of media marketing. Though a common practice in large enterprises, POE is often overlooked by smaller businesses. The term media marketing is most often thought of in the context of mass media but, in reality, media marketing is simply communicating your story, whether to a mass market or to one individual. Recognizing and understanding the many forms of media and utilizing each category of POE will increase the overall effectiveness of your marketing.

• Paid media marketing. OK, this one is obvious; it’s when you pay third party marketing companies to get your message out through media such as print, TV, radio, and online advertising. No other type of media can guarantee the immediacy and scale of paid media. Paid media is usually what we think of as mass media marketing but it also includes trade shows, sponsorships, organization memberships, and sales expenses. The pros of paid marketing is that you have control of the content and the target audience. You can start and stop it when you wish. The cons are the high expenses and the fact that advertising is not as effective as it was once was. You are paying for everything, and smaller companies with tight budgets find it difficult to get effective results for the costs incurred.

• Owned media marketing is when you leverage a channel you create and control. From a digital standpoint, this is your company website, email announcements or newsletters, LinkedIn, blog, twitter, YouTube channel, and your Facebook page. Each allows you to project your brand and personality as you chose and when you chose.

Don’t overlook the importance of emails. Though thought of as “old tech” by many, a surprising new survey by the global management consulting firm McKinsey & Company states that email is nearly 40 times more of an effective way to acquire customers than all that tweeting and posting and “liking” you’re doing on social media Facebook and Twitter combined.

But owned media marketing is not just in the digital world, it can also be your hard assets such as your bricks and mortar facility, your delivery trucks as well as your employees’ uniforms, as each of these helps create an image and brand that promotes your business. A simple example of owned media is my local tree service company who has their phone number in 3 foot numbers on the sides of their large trucks. Their trucks are now mobile billboards that can be seen from 100 feet away. They enjoyed more than a 100% increase in calls after they did this.

• Earned media marketing has been around forever. It’s an old PR term that essentially means getting your brand message noticed for free rather than having to pay for it through advertising. Public relations (PR) and word-of-mouth are examples of earned media marketing. With Earned, the press and the public share your content, speak about your brand via social media or word-of-mouth, and otherwise discuss your brand. In other words, the mentions are “earned,” meaning they are voluntarily given by others, such as testimonials.

There’s an old adage in marketing: “When we say something about ourselves, people tend to disbelieve it but when others say something about us, people tend to believe it.” Positive earned media is a result of brand behavior. Many consumers don’t trust advertising, but they do trust peer recommendations. This is why earned media is so important to your success. One positive testimonial can have more value than an expensive advertisement.

When you have done something so well or interesting that people want to use their own media to tell others about it, you’re earning media. More importantly, earning media is about engaging with consumers on their terms and gaining trust based on genuine understanding of what interests them. Building relationships through strong networking is also earned marketing. Build your networks by joining groups, attend events, do public speaking, write articles or an eBook, and meet people one-on-one.

Here’s an example of how one small business combines paid, owned and earned marketing to expand their exposure using POE: The small family-owned business where I take my cars for service does a great job of combining all three areas of POE. They spend money on a professional direct mail piece that goes out regularly to area homes and businesses (paid). They have a user-friendly website where you can set an appointment and get tips on caring for your car (owned) and they send regular emails with service tips and specials (owned). They have an attractive clean facility with a family-friendly waiting area (owned).

Great customer service is one of the best forms of owned/earned marketing, and they do a terrific job of following up every service job with a personal phone call and a thank you letter (owned). This sets them apart and gains them valuable testimonials (earned), some of which are posted on their website (owned).

No marketing is free. Remember there’s a cost to each category of marketing – time, money or both. Many small business owners underestimate the cost of their precious time invested in the marketing they do in-house. Owned and earned marketing takes effort and creativity to develop and leverage at any scale but it’s worth it. If you want your content to spread through social media and for social discussions to spring up around your products or services, you have to put effort into developing your social media channels. You must build your social media profiles, engage with customers and create interesting content. You must also do it consistently, week in and week out. Paying attention to your Twitter account once every 5 months will not accomplish much.

Everything you do is marketing. Regardless of the size of your business or budget, the strength of POE comes from the constant realization and reminder that nearly everything you do in your business creates a form of media marketing that falls into one or combined categories of POE. From an expensive TV ad to how you answer your phone, you are creating your brand that will affect the growth and success of your business.

Hiring An Auction Company

Estimating your assets value:

Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.

Compensation and Expenses:

Is the company you are considering working for you or against you? The agreement you decide may determine this.

A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.

In a straight commission structure, the company is paid an agreed upon percentage of the total sale.

In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.

In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.

In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.

What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.

Auction Expenses:

In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.

All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.

Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.

Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.

Buyer’s Premium:

What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.

The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.

It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.

Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.

Pre-Sales:

We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.

As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.

Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.

A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.

It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.

When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.

Differences in the Types of Auctions That Take Place Around the World

Auctions are those events where properties or goods are sold to the highest bidder. Auctions are mostly public events, where bidders make a series of bids and purchase a particular item for a high price. During auctions, bidders decide the price of an item rather than the seller. It depends on bidders to decide the amount they would want to pay for a specific item. During an auction, a bid is a proof of a legal binding. Bidders agree to pay the amount that they have bid. In a high profile auction, bidders may have to pay a deposit in escrow accounts or give a proof that they can pay for those items.

Types of Auctions:

Different types of auctions take place around the world. Below mentioned are some types of auctions:

1. English auction:
This is a basic type of auction. In this type, people can see the item and then start bidding. Bidders slowly raise the value of their bid until everyone gives up. The highest bidder is the winner. An auctioneer manages an auction, keeps records of the on going bid and decides the winner. Sometimes, the seller will quote a minimum amount for an item to the auctioneer, below which the auctioneer cannot sell that item.

2. Dutch auction:
In this type, the auctioneer sets a particular price and then gradually lowers the price. People in public will start bidding and later decide which prices are suitable for the item. A seller may use this type of auction to sell large quantities of same products to the public. For instance, a seller may want to sell a large amount of hay and will thus, decide to sell this hay to people for the same amount, once a reasonable price is decided.

3. Silent auction:
In this type, the bidders in public will present their bids in a sealed format. These sealed bids open at the same time and bidder with the highest bid wins. There could be a modification in this type of auction. The bidders are allotted a specific period to bid. They can roam in a room displaying the items, and write their bids on an associated sheet of paper. The bidders are allowed to see bids of other bidders and can choose a higher price for an item. At the end of the allotted time, bidder with the highest bid is the winner.

Examples of Auctions:

Auctions can be of two types either public or private. Sellers may trade any kind of items in both types of auctions. Some areas where auctions take place are:

1. Antique auction: An antique auction consists of a trade opportunity as well as provides entertainment.

2. Collectable auction: In a collectable auction, the seller may put up collectables like coins, vintage cars, luxury, stamps, real estate, and luxury for sale.

3. Wine auction: In wine auction, bidders can bid for rare wine, which may not be available in retail wine shops.

4. Horse auction: Bidders can bid for young horses of the best breed.

5. Livestock auction: In livestock auction, bidders can buy pigs, sheep, cattle, and other livestock.

The other examples of auctions may not be public. These auctions are for bidders from corporate levels. Some examples of private auctions are:

1. Timber auction
2. Spectrum auction
3. Electricity auction
4. Debit auction
5. Environmental auction
6. Auto auction
7. Electronic market auction
8. Sales of business auction

Bidders in an auction need to examine the items displayed and decide an appropriate price for an item. Thus, auctions help buyers in getting the best deals and in gaining better profits for sellers.