Recap: Secrets of Saving Marketing Money

Recap of J.C. Levinson's Guerrilla Marketing as it applies to SBH Labs.

Like with the previous chapter, most insights offered by Levinson are fifteen years outdated. However, there is still value to be found.

The first advice is to remember the difference between minimizing costs and minimizing potential profits. When you decide to save money on something that cheapens your bottom line, did you really save money or just waste money? As Levinson puts it, "Saving is nice, but it's secondary to profit."

SBH Labs co-founder mentioned a story about this relating to manufacturing. The company was always on the pathway to being Fulfilled by Amazon, or FBA. David bought a simple palette jack before any concrete plans were made to achieve FBA status. To save money, he chose the cheaper option, Months later when the company was ready to send its first FBA shipment, the palette was useless. He ended up having to buy the more expensive option he first looked at but dismissed because of the price. He was out of money on the first palette jack, time for having to reschedule the FBA pickup, and resources that went into buying the more expensive option.

Levinson also made an important comment. Something I, too, am often guilty about. It is sticking with one marketing campaign until it loses its "pulling power." We are too quick to decide we're bored of a campaign, how the website looks, or the aesthetic of our social media page. We spend time and money revamping everything when it's not necessary. Levinson notes that "it takes a long time for the public to get tired of a marketing campaign." We suffer from familiarity bias. Because we are constantly looking at the fruits of our labor, and analyzing them, we get tired of them way faster than our target audience. Changing your marketing campaigns prematurely is a waste of time and money!

The best piece of advice from Levinson in this chapter is:

"The best way to save money marketing is to stick with your marketing program."

References:
Levinson, J. C., Levinson, J., & Levinson, A. (2007). Guerrilla marketing: Easy and inexpensive strategies for making big profits from your small business. Boston, MA: Houghton Mifflin.