Pricing: Pick a Strategy and Tweak As You Grow

From sponsorship packages to specialty services and ticket costs, pricing is a topic that you could talk about all day long. It’s one of the most common questions I get. The thing is, you’d almost never be right or wrong. That’s what makes it hard. If you’re wondering how to price things when you’re just starting out, you have two choices: high prices or low prices. If that seems too straightforward to you, you’re a smart cookie and that’s why I like you. But you’ll still have to pick a strategy and build off that. Here’s a quick overview of the pros and cons of each one: Low Pricing Means: You’ll have to get to your ‘number’ by volume, but your tickets, or sponsorship packages, might be easier and faster to sell. However, you’ll have to work with more customers to get your number, and that requires juggling – not a bad thing, but also not everyone’s strong suit. Lower investments require less commitment and perceived risk from your customer. But with less commitment comes, well, less commitment. You’ll likely have higher turnover. You’re associated with lesser value, and you’ll be able to provide less value. That’s not to say that you’re less valuable, but you may not be able to afford to provide a completely satisfying service for your customer. High Pricing Means: It generally takes longer to nurture a higher-paying customer or sponsor than it does a lower-paying one. They need more information, more trust and more value. On the other hand, higher-paying customers tend to be more loyal and committed – they generally stay with you...

Consistency Wins Championships (and Other Fun Things. Like Money.)

“Bad marketing done consistently will beat good marketing done inconsistently.” – I’m not sure who said it, or even where I first read it, but I like it. A lot. It’s a good reminder to me that just showing up consistently is more than most people will do. On every level of racing, there are champions. Championships are designed to name and reward the best performer over the course of a season. How many times, though, have you seen or heard someone gripe about a champion who didn’t win that many races? That’s why championships can be so controversial, and why NASCAR in particular has struggled with how to determine a champion over the last decade. We all know that consistency is the key to winning championships, even if that means you rarely, if ever, see the top of the podium. In racing, I get that. But for me, this ‘consistent bad marketing’ principle can be frustrating. And eye-opening. Because while I’m toiling away, whittling every sentence to perfection, other people are showing up more often. See, I’m a perfectionist. A lot of times, this is a great thing. My clients especially love it. But some times it slows me down, waiting to release things or submit a piece of work until every little detail is perfect. (By the way, I’m not trying to say that others are doing bad marketing and I’m doing good – often, we’re just different. In fact, that’s DirtyMouth in a nutshell. The reason that I created my business and started publishing (free!) content here is that in many ways, I don’t think we do...

The Proposal (a.k.a The Sponsorship Clincher).

I’m often asked: how do I get (more) sponsors? The answer is pretty simple: get on your local message board and bash all the other drivers using an anonymous screen name. Their sponsors will come running. Duh. Kidding. But seriously, this is obviously one of the most common questions I get. And the answer is really simple on paper: connect with a like-minded company, craft a win-win opportunity, agree on the terms and, most importantly, execute. But we all know that there’s a ton of work that goes into the in-between of a marketing partnership. Most of us can identify the right companies, find the decision maker and draw up a marketing plan. Then comes the sales pitch. And the proposal. And the sweating. We’ve all been there – you bust your butt to get in the door and have the opportunity to pitch the perfect company for your race team. You’re fist-pumping with excitement and then it hits you – you now have to produce that clinch-worthy proposal. That irresistible piece of marketing material. The one they can’t put down. It’s the proposal that perfectly reflects you and your racing program, and the success that you’ll have together. And your confidence begins to falter. I’ve been there myself. In my career, I’ve submitted, evaluated, reviewed and approved (or denied) hundreds, maybe even thousands, of proposals. I’ve seen it all – from hand-drawn submissions to tricked-out seven-figure deal materials. And I know the kind of work it takes to produce a piece that’s both beautifully eye-catching and undeniably effective. If you want a real shot at working with a...

Sponsorship is a Dirty Word (But You Still Have to Use It.)

A few weeks ago, an article that I wrote received criticism on LinkedIn because it used the word sponsorship in the title. I understood the commenter’s point of view – some people hear sponsorship and think ‘free money’ – and I actually do prefer the term ‘marketing partnership’. But I had to laugh when other commenters questioned him and his responses included the word ‘sponsorship’ instead of ‘marketing partnerships’ over and over again. Let me be clear: I don’t think he’s a hypocrite. It’s just difficult to strike the word from our vocabulary. Our brains are wired to recognize familiar patterns. For example, if the other cars on the racetrack begin to slow, your brain knows to make your eyes look for the caution light even before you think about it. ‘Sponsorship’ is how we in racing, and in many sports, refer to our marketing programs. So, it’s really hard to talk about sponsorship programs without using the word sponsorship. Our brains can recognize it, even if it doesn’t best describe what we do. To a potential marketing partner, the word ‘sponsorship’ immediately conjures up an exchange of value. And that’s where things can go right or wrong. If they’ve had a bad experience in the past, they might have a negative response to the term. It has positive associations for some, and negative associations for others. But here’s why I disagree with striking the word ‘sponsorship’ altogether: If someone has a strong, negative association with the word sponsorship, you’re not going to change their minds by using a different term in place of it. In fact, only using...

I quit my job (and I liked it.) What I learned about racing and work.

(Did you get my Katy Perry reference there? That song has been in my head all morning and now it’s probably in yours, too. You’re welcome.) Four years ago this week, I left my last ‘corporate’ job at a downtown advertising agency. In some ways, that seems just as scary today as it was then. But it was also exciting and exhilarating, also the same as it is now. I took a risk, and it paid off. I didn’t have a showstopper exit that I can wax on about. It was like most – I delayed the decision until I couldn’t ignore the voice in my head that said I was ready to take the leap. I put in my notice, wavered, agreed to help the company transition my accounts, and was woken by 4am phone calls from my boss asking me to reconsider. We, the company and I, held on to our safety nets for a long time. But at some point, not quitting became riskier than leaving my cushy salary and benefits, the security of a corporate ladder and a solid paycheck. And that’s when I pulled the plug. Many ‘success’ stories we hear go like this: I had a vision, I quit, I worked hard and I got a big break or built a company and now I’m a success. In racing, you often hear: I got my first go-kart, won a bunch of races, moved up to sprint cars, got a ride and now I’m a success. But it’s what’s in between the lines, the time that you stayed at the corporate job after you...

Matching your audience to a sponsor’s target (with real, live numbers!).

One of the most common pieces of advice you’ll hear is that you should be targeting potential sponsors or marketing partners whose target demographics match with the audience you reach. In essence, the company should want to reach the people who are interested in you. Your audience should be their target. When we think about the people who are interested in you, most of us instantly think about fans as that demographic. And that’s a great place to start. But there are other people who pay attention to what you say, from your other/current marketing partners, manufacturers and retail shops that you work with, other racers you mentor or share shop space with, and media outlets. For example, you might be featured often in a magazine or newspaper that the potential marketing partner would also like to be referenced in. Another example? The company you’re looking to work with may also want to do business with a current sponsor. In an ideal marketing relationship, you’re the linchpin between the company and who they want to work with. When you’re brainstorming companies to connect with, or, hopefully, you may already be connected with, for your sponsorship program, knowing who your audience is can be a great first step to matching it up. So how do you form the picture of your audience? You probably already have a decent feeling for who you’re reaching. But here are a few tips for how to paint a solid picture: Think about what kind of people surround your car on an average night. Are they young or old, male or female, blue collar or...