Sample Leasing Model for Your Biz Card Dispenser Advertising Business
I’ve spoken about this in the past, but it has come up again through an email I got from a biz card dispenser operator. The nature of the email I received was referring to ways to get more customers, and how to leverage the dispensers as best as possible.
So… yes you can make money with your biz card dispenser without having to fill them yourself. How?
Well it comes back to this… if you go into a potential location who ‘rejects’ your proposal to locate your dispenser in their establishment for whatever reason, then you can reply to their objection with an offer of a different kind based on leasing the display to them and they fill it up and make the majority of the profits for themselves. You could say something like this…
“Mr/Mrs business owner, I understand that you’re not overly excited about locating this biz card dispenser in your shop, but what if you knew you were going to make an additional $100+ p/week from having it here to help pay your overheads? Would that be of interest to you?” (Of course this offer will be of interest to 99% of the people). You can then go on and ‘run the numbers’ with them…and say “Mr/Mrs business owner, each of these business card advertising spaces rent out for $1 p/day, which is profit of $xxx p/week, and the top section of the display rents out for $2 p/day… so that’s a total profit of $xxx p/week. So what I’m prepared to do is lease the display to you for a fixed amount per week and you can offer the advertising space to your customers as they walk in, and in addition, you can have two next to each other as it grows with popularity … don’t you think this could be simple passive income for you and your business?”
The above ‘script’ is just an outline on what you could test, but keep in mind that all you’re doing is not taking no for an answer after your first offer, and offering another alternative for them to consider. Also, don’t be afraid to outline the revenue potential to them, because that’s exactly what’s going to get them excited!
So how much could you charge them to lease a biz card display from you?
The first thing you might think here is “But once they see the idea they might go onto the internet and buy a display for themselves”, and you would certainly be correct in your thinking. My thoughts about this matter are quite simple, because I’ve learn’t over time that most people are either ‘all talk no action’ (and generally broke), or they simply ‘won’t get around to it’. It’s all a numbers game and the numbers always seem to work out the same. From every 10 people you make this proposal to, only 1 will go around you… so what about the other 9? Well some of them will take you up on it… but you must package it a little also. You might include a script for them to say to their customers, and give them ideas along the way as you learn them yourself.
In terms of a dollar figure to lease it to them for, well that’s what you’ll need to negotiate with them… and it’s going to be based on the amount you paid for your dispensers Vs pay back time you’re looking for. Keep in mind also with this calculation that you’re not having to do much work, so you might not get a large amount of money, but something is better then nothing when you’ve still got other displays that aren’t located!
To put a $$$ figure on the lease price as an example, you might calculate that each display makes $15p/day x 30 days = $450. So how about you propose that you get 20%p/month for supplying the display and they get 80%?
So what else might you need to allow for?
Security and safety of the display. Just like any other leased product, a ‘damage/theft’ deposit could be in order…and maybe atleast 50% (or all) of your actual costs as a deposit could be your aim. This deposit is refundable as long as your display is returned in perfect ‘re-useable’ condition. So at the end of the day you really minimize your risk by getting a deposit.
Think of this whole leasing concept like this… you are essentially selling them a business to run within their business without increasing the overheads of their current business. Maybe read that again last sentence again.. it’s almost a tounge twister the way I just wrote it, but it’s a very powerful way to pitch it to the potential client in terms of an ‘opening line’ to hook their attention.
See what you can do with this idea should it arise… but more then anything, it’s another tool in your sales toolbox that you can use if this scenario arises.
Let us know here online if you’ve either tried this or would like to add to it. We’d love to hear it!
Dean
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