A New Approach

Still no calls from my latest postcard mailout, and I decided I needed to do something different. My farm area covers an entire city just outside of Austin that includes 17 subdivisions. I have spread myself thin each month trying to cover as many people as possible, but also trying to limit the amount of cash I spend on the marketing. To date, this approach hasn't gotten me anything.

So, I decided to do a little investigating in the properties in my farm area to better facilitate my marketing approach. It turns out that in the last six months, 10 of the 17 subdivisions had -0- foreclosures in them, while the other 7 had a minimum of of one foreclosure. That certainly narrowed down my audience, but I decided to go a bit further. Of those 7 subdivisions, 2 of them had an exccedingly high number of foreclosures compared to the other subdivisions AND to the total number of properties in their respective neighborhoods. One, in particular, had FIVE foreclosures the last six months. It also has a little over 300 properties, so the rate of foreclosures-per-total per month was 0.8%, or 10%/year. Astounding. The second subdivision on the list came in at a little lower: 4%/year. The remaining 5 subdivisions were ranked substantially lower (the next was <1%/year).

Therefore, instead of spending all this time, effort, and money on hundreds of properties that probably won't amount to anything, I've decided to spend all my time, effort, and money on just these two subdivisions. The total number of households within those subdivisions that match my newly expanded criteria is a little less than 300. Seeing as how I was sending postcards to twice that number each month, I will not only spend less, but cover more potential people in need.

So, my new marketing approach will look like this:

Phase-1: Revise postcard. Remove a lot of the small font type, and replace with larger fonts and color to make it more attentive. Anticipated Cost: Adding additional color will increase postcard cost slightly - not sure how much yet.

Phase-2: Send postcards out once a month to half the homeowners. This way I'll cover everyone in two months. My old approach was covering everyone in 5-6 months, which would lose my branding. This way, people will get it engrained that I am the person they need to see. Anticipated Cost: ~$45/month.

Phase-3: Get 100 bandit signs made with new content. My old bandit signs were actually a little hard to read (white on red) and had my cell phone on them. The new signs will be black on yellow and have my toll free number on them. I'll probably change the slogan from "WE BUY HOUSES" to something else - still deciding. I'll place these at all entrance/exit points to the two subdivisions. The reason I may change the slogan is simple ... Most bandit signs are placed in areas where traffic is either congested (4-ways) or moving too quickly. Signs in those areas need to be short to get the message across quickly. Since mine will be placed in "slower", less congested areas, I am able to add more content to my signs. I'll still keep the verbage down to a minimum, and may just add a couple more buzz words. Anticipated Cost: ~$200.

Phase-4: I am in the process of revising my website, also. It will have a "softer and warmer" (yeah, I watch a lot of HGTV) look instead of the deep colors it currently has.

Hopefully, with this new marketing approach, I'll get at least one deal every 2-3 months. I figure I won't get 100% of the troubled homeowners calling me, but even 25% would land me a deal or two every few months, which was one of my goals for next January.

We'll see how it goes.