Posted in Mindset, Planning

How cutting back on advertising can be the death of your business

When I just started fixing computers I worked as an employee to get some experience. The lab I worked for was called D.D. computers and it was the biggest lab in Holon (the city I lived in at the time). One of the reasons the lab was so big was that the owner placed a 2-page ad in the papers every week. That ad cost him quite a bit of money about $2,500 a week! I know most of you are thinking that $10,000 a month is a lot, but it all depends on how much money you’re making from the advertising.

He ran that ad for five years straight, at that point we had so much work we couldn’t keep up. I remember one time there was a virus spread out through the ICQ network that crashed 400 computers and they all came in at the same time. We were 4 technicians tasked with fixing 100 computers each, and new orders were coming in every day. The owner decided that we have so much work that he can feel free to stop the advertising.

Our biggest competitor took advantage of that and put a similar advertising the same day. Goes to show you how loyal customers really are, our business started dropping so quickly that in about 6 months we had to let 2 technicians go. Shockingly this was still not enough to get the owner to reinstate the advertising. A year later he closed shop.

I hope you found this post helpful, if so like it and share it with your friends. And while you’re at it, check out my ebook ‘level up your business’ a guide to starting your own business the right way.


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