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Has a Declining Real Estate Market Taken a Bite Out of Your Business?
Because we primarily work with technology companies, law firms, and financial institutions that are tied to the real estate industry, we have our ear firmly on the ground when it comes to the market.
We’ve heard many stories from companies about how the declining Canadian real estate market has made business harder. This has been further compounded by the global economic slowdown and uncertainty surrounding the path and timing of the recovery.
Even though the Bank of Canada has significantly reduced the interest rate to 0.25% to facilitate commercial and residential activities in the market, experts predict that the market will likely rebound between 2021-2022 for different provinces.
The challenge when business is down is that it can be hard to decide where to place marketing dollars. If you have less revenue coming in, you may be more hesitant to spend money and looking for any place to cut costs – and normally one of the first places companies look is their marketing.
However, we’ve all heard the saying that you have to spend money to make money and that is doubly true when sales are hurting. It’s easy to spend money on marketing when business is booming, but it’s most critical to spend it when business is down.
If the real estate market is affecting your company, now is the time to look at:
- Your point of differential – the competitive edge.
- The markets that you serve and their value.
- Establishing niche markets – or perhaps some new ones if you already work in a niche.
- The most affordable marketing mediums for the most reach.
To the last point, the most affordable marketing mediums that give you the most reach, the goal here is to get the best bang for your buck.
Here are some cost estimates of what to expect:
- Radio run of schedule – starts at $10,000 per month in the Canadian market and then goes up from there.
- TV run of schedule – starts at $10,000 per month in the Canadian market and then goes up from there.
- Google and social pay-per-click marketing – maintenance could start at $1,000 per month, plus a click budget which should be a minimum of $2,000 monthly. Together, that would look like $3,000 per month.
- Inbound automated email marketing —about $2,000 per month.
- Social media marketing — about $3,000 per month.
As you can see the newer digital forms of marketing are far less expensive than the traditional forms. When there is tons of budget, traditional advertising is quite viable – but when stretching marketing dollars, it may be less so.
Another consideration that shouldn’t be overlooked is the cost of your product or service and its revenue potential. For example, a $29.99 product and a service that carries a $5,000 retainer are two completely different profit points and will impact strategy and budget.
Look for the markets that offer the most lucrative potential. Selling 200 units of a $10.99 product vs. selling one unit of a $2,000 service – what would take the least amount of resources and cost to market?
Because we work with many businesses in the real estate market, The Purpose Company knows how to market in times of economic decline. We can help you find your audience even if sales are down and choose the best marketing methods to get through the rough patch – and even come out stronger than you started.
Contact us today for a free consultation. Call 647-880-9709 or visit www.thepurposecompany.ca.