PageView
(Marketing)

Is There a Limit to How High You Can Climb?

Do you know your category's market potential in your trade area? Can you name the degree of your market penetration?

Roy Williams
Roy Williams
April 24, 2022
Is There a Limit to How High You Can Climb?

Last week a client achieved 42 percent of his market potential. Never before had I seen a business break the 40 percent barrier. It was kind of like seeing someone run a four-minute mile. I knew it was possible in theory, but I never thought I'd actually see it. Ben had come to Austin for his annual marketing retreat. After the usual pleasantries, he said, “Traffic is flat, sales are flat, and I'm not happy.” “Ben, you've done everything that can be done. You've trained your staff, created a tantalizing compensation structure for them, advertised relentlessly, added every conceivable product line that might increase your attractiveness to your customer, refined your purchasing methods so that your prices are visibly better, built a fabulous new store for the comfort of your customers, and through it all, not one of your competitors has awakened.” “Are you saying that 3 and a half million is all that can be done in my town?” he bristled. Looking him calmly in the eyes, I carefully enunciated a single word: “Evidently.” Business owners, I tell Ben's story to give you a glimpse of the Realities of the Marketplace:

  1. Impact Quotient. How powerful is your message compared to your competitors'? This is the Impact Quotient of your message, whether it's delivered through mass media, face-to-face by your salespeople, or word-of-mouth by your customers to their friends. Advertising is more effective when you have something to say.
  2. Market Size/Ad Budget Ratio. How big is your town relative to your ad budget? The more populated the trade area, the more expensive it is to advertise. How able are you?
  3. Competitive Environment. How good are you at what you do? More importantly, how good are your competitors, and how many of them are there? Each of them is going to retain some customers regardless of what you do.
  4. Market Potential. What is the potential of your trade area? The total dollars spent in your product category is not a number you're likely to change. The question is, what percentage of that total will be yours?

Do you know your category's market potential in your trade area? Can you name the degree of your market penetration? Until a business achieves 4 to 6 percent of their market potential, they usually lack the financial steam to sustain a serious move on the marketplace. But when they've accumulated sufficient cash and courage, the ride to 25 percent is wooly and wonderful. Growing from 25 to 33 percent is much harder than the jump from 5 to 25. And creeping from 33 to 40 happens only when you're blessed with very weak competitors. Ben's total trade area contains 125,000 people. Statistically, they'll spend 67 dollars per person/per year in his product category. This gives Ben a market potential of 8,375,000 dollars. Growing from half a million to 2.1 million was fun and easy. Growing from 2.1 to 3.5 required Ben to stretch his comfort zone far beyond what most business owners would have been willing to consider. No stone has been left unturned in the 7 years we've been working together.“Ben, the way I see it, you've got four choices:

  1. Fire us and hire an ad firm that will tell you what you want to hear.
  2. Start a new business in an unrelated category in your town.
  3. Launch your existing category in another town.
  4. Shut up and be happy with what you've accomplished.”

I knew that Ben would never do number 4. I figured he'd go for number 2, or possibly even number 1. To my surprise, he immediately picked number 3. “Roy,” he said, _“You may not remember it, but you told me three years ago when I built the new store that I needed to be thinking about what I was going to do next. You said building that store was the final thing I might do to improve volume in my town. It looks like you were right.” We spent the rest of that day evaluating towns for an excited Ben to visit in 4 different states. He's on the road picking one now, and then we'll start climbing again. Business can be fun when you work with people of courage. Do you?

(Scaling)
Roy Williams
Roy Williams

Roy H. Williams is the OG Marketing Strategist and Master Copywriter. He IS The Wizard of Ads™, and it is his proven methodology, principles, and framework that are used daily at the Wizard of Ads™.

Share this:
Previous
subscribe for free stuff

Secret Formulas Periodical.

Rare, bizarre, and unexpected tools, tactics, and techniques for profitable persuasion beamed directly to your pocket periodically, without warning.

(No spam. No strings.
Let's grow your home
service business.)
Frequently asked questions

Questions? We’ve got answers.

Why Wizard of Ads®?

Are you ready to transform your business into a distinctive, emotionally resonant brand? Here's why hiring Ryan Chute and Wizard of Ads® Services is the game-changer your business needs:

Distinctiveness Beyond Difference: Your brand must be distinctive, not just different, to stand out. We specialize in creating emotional connections with your customers to make your brand unforgettable.

Building Real Estate in the Mind: Branding with us helps your customers remember your brand when they need your service again, creating a lasting impression.

Value Proposition Integration: We ensure that your brand communicates a compelling value proposition that resonates with your audience, creating a powerful brand strategy.

Who Should Work with The Wizard of Ads®?

Wizard of Ads®  offers services that start with understanding your marketing challenges. 

We specialize in crafting authentic and disruptive brand stories and help build trust and familiarity with your audience. By partnering with Wizard of Ads®, you can transform your brand into one people remember and prefer. We understand the power of authentic storytelling and the importance of trust.

Let us elevate your marketing strategy with our authentic storytelling and brand-building experts. We can take your brand to the next level.

What Do The Wizard of Ads® Actually Do?

Maximize Your Marketing Impact with Strategic Alignment. 

Our strategy drives everything we do, dictating the creative direction and channels we use to elevate your brand. Leveraging our national buying power, we ensure you get the best media rates for maximum market leverage. Once your plan is in motion, we refine our strategy to align all channels—from customer service representatives to digital marketing, lead generation, and sales.

Our goal is consistency: we ensure everyone in your organization is on the same page, delivering a unified message that resonates with your audience. Experience the power of strategic alignment and watch your brand thrive.

What can I expect working with The Wizard of Ads®?

Transform Your Brand with Our Proven Process.

Once we sign the agreement, we visit on-site to uncover your authentic story, strengths, and limitations. Our goal is to highlight what sets you 600 feet above the competition. We'll help you determine your budgets and plan your mass media strategy, negotiating the best rates on your behalf.

Meanwhile, our creative team crafts a durable, long-lasting campaign designed to move your brand beyond mere name recognition and into the realm of household names. With an approved plan, we dive into implementation, producing high-quality content and aligning your channels to ensure your media is delivered effectively. Watch your brand soar with our comprehensive, strategic approach.

What Does A Brand-Foward Strategy Do?

The Power of Strategic Marketing Investments

Are you hungry for growth? We explain why a robust marketing budget is essential for exponential success. Many clients start with an 8-12% marketing budget, eventually reducing it to 3-5% as we optimize their marketing investments.

While it takes time to build momentum, you'll be celebrating significant milestones within two years. By the three to five-year mark, you'll see dramatic returns on investment, with substantial gains in net profit and revenue. Discover how strategic branding leads to compound growth and lasting value. Join us on this journey to transform your business.

Ready to transform your world?

(do it - you
deserve this)