Many small business owners hold grossly misguided views about marketing. Most do not track Cost of Customer Acquisition (COCA) – a crucial parameter that determines profits! Smallholder farmers in Africa are especially guilty of this. That’s why most will question this article’s title. And it’s also why they rarely find profitable buyers!
FACT: You Do NOT Need Direct Access to a Database of 2 Million “Buyers” For Your Farm Products!
Today, I made over 15 “sales” phone calls. Most lasted at least 5 minutes. One actually lasted over 15 minutes.
But about half of those calls involved respondents calling back – when they saw my missed call. Not just that, they readily let me tell them why I’d called – even though I was doing so on their dime.
However, being the dignified professional that I am, I always insisted they hang up, so I could call them at my own expense. Despite my best efforts though, the erratic networks on two occasions terminated my call before I could finish.
Both times, the person I was calling promptly called back at their own expense, and encouraged me to finish telling them what I’d called about. And it’s not the first time this has happened.
1. So who are these people who are so nice to me?
Well, they were/are my clients.
But I have NEVER met any one of them in person. And this is despite transacting business with them for upwards of 4 years in some cases.
2. Why do they relate with me in this manner?
I believe it’s because they value their relationship with me. They do not see me as a guy just trying to sell stuff to them.
Most are subscribers to my newsletter. Even when I’m out of the country, I make social phone calls to them. We share jokes and exchange information.
Indeed, some call ME, to ask for my help in finding employees for their farms.
Others ask that I refer them to suppliers of items they need for new ventures they are launching.
For instance, I recently sent contact details of a client in Kano (who has links to manufacturers of packaging for livestock feed) to a new Farm CEO in Uyo who asked for it.
All of this happens because I enjoy the trust of these business owners.
And I built that trust through the Web Marketing System I used to attract them to me in the first place.
Most of them are past buyers of at least one of my farm support products. And they’ve found it worthwhile staying in touch with me since then.
My point is that I have this highly RESPONSIVE group of people who have connected with me, because they want what I offer.
But I do not have one million of them.
And I doubt that I need a tenth of that number to achieve my business goals – financially or otherwise.
The truth is that the solutions I offer are NOT meant for mass distribution.
Instead they are targeted at Farm CEOs operating at a certain high profile level.
That’s why I do not subscribe to mass advertising channels to promote my products and services.
This is what many smallholder farmers do not understand. As a result they end up (figuratively speaking) fishing in over sized ponds with sparse – and starving – fish populations.
Little wonder they tend NOT to reap bumper harvests in their marketing.
Look, as I type this, I’m talking to about 4 clients about having them share “costs” with a new Kano based CEO who has asked me to develop a Ration Formulator for Ruminants™.
This new application will allow use of concentrates with locally available ingredients of the farmer’s choice.
For instance, it will be used to formulate balanced low cost rations for Horses, Beef Cattle, Dairy Cattle (lactating, pregnant) and other ruminants.
We discussed on Sunday (he called me) for over 30 minutes, and we agreed on a tentative scope of work for development of the app.
Being a member of my Farm Business Ideas Club, he is entitled to a lifetime discount of 40% on ALL my products and services (with the exception of my Feed Formulation products).
So, of the required investment of N150,000 (One hundred and Fifty Thousand Naira), the Functional Requirement Specification I sent him stated he would only pay N90,000 (Ninety Thousand Naira).
But I also offered another incentive: If he pays 100% in advance, he gets an extra 10% discount.
I sent him the FRS on Sunday afternoon, and he acknowledged receipt.
But since sending it to him, I’ve been thinking it would be useful to bring others on board, so they can split the development costs, making the cost per head much less.
And that was why I began calling up my other clients. I did not have to, but I chose to, because I like to help my clients make the most efficient use of their funds.
I believe in protecting my clients, because it effectively amounts to protecting myself!
Now, even though those I spoke with said they did not have an immediate interest in or need for the app, 2 of them promised to speak with contacts they believe may be interested.
Past experience assures me they are not making idle promises, as I’ve had many referrals from these CEOs over the years.
One example: About 30 minutes after my conversation with one of them, he sent me an SMS saying “Sorry I forgot to ask you the cost of the software development.”
So, I use my existing base of serious buyers of my products/services, to reach out to others like them.
It’s a high quality Pre-Qualified Sales Leads Generating System that enables me achieve a low Cost of Customer Acquisition (COCA) = higher margin per sale.
PLUS, I get to make sales at premium rates to ready buyers, convinced about the value of what I offer.
In contrast, vendors of so called databases of millions of potential buyers often offer less value.
Especially in my part of the world.
I’ve said this many times to those who use such platforms.
Little or no profiling of the mobile phone numbers and email addresses in such databases is done.
As a result, those who choose to “advertise” to those audiences are basically shooting in the dark and hoping for the best.
They rarely know what kind of people they are sending their marketing messages to. No demographics or psychographics of ANY sort.
The vendor does not tell them how s/he got the phone numbers. Indeed, many vendors don’t care. They just offer you the “opportunity to advertise to millions”.
For a farm business owner looking for serious bulk buyers, this is not a smart way to advertise.
The fact that everyone eats farm products does NOT mean you will make more sales by marketing to everyone!
Not unless you have an outlet like a hotel or restaurant through which you can do so. For instance, selling your catfish or chicken meat in form of special dishes served with drinks or for home delivery.
If you do not have that, sending adverts to millions of phone numbers makes little sense if many are individuals who may only want a few units of what you sell.
Depending on their location, they may find the market in the neighbourhood a more convenient source, compared to your farm, no matter how gre4at your products are.
Also, there is the important matter of stress arising from attending to hundreds of small buyers over 2 weeks, for instance, compared to dealing with few bulk buyers who buy you out in a few days.
Sadly, even when it’s pointed out to many smallholder farmers, they seem unwilling to save themselves the hassle.
It would appear they prefer the “easy” way of throwing “advertising” money at millions of phone numbers and emails, then crossing their fingers, to THINKING of smart strategies to connect with high value prospects looking to buy bulk farm products.
If you’re ready to step up your game, and operate at a superior level of sales and marketing, then you want to adopt the approach I’ve described in this article.
And it is to help interested Farm CEOs, that I’ve launched my new Farm Products Sales and Marketing Support Service.
To give you an idea of what you’ll get by enrolling for this service, click here to download my PowerPoint Show offering details.
You will be able to book a 30 minute to one hour Needs Analysis Session with me. 24 to 48 hours afterwards, I will prepare and send you a ready-to-use PDF Sales and Marketing Action Plan.
When we talk, I will explain to you (among other things) why…
1. People in Your Farm Neighbourhood Are NOT Likely to Be Your Best Buyers
2. You Will Rarely Be Able to Afford the Service of Competent “Sales Agencies” for Your Products
3. Your Best Bet Will Often Be to Take Ownership of Your Own Marketing!
There is so much I can tell you that will make you more effective in the THINKING you employ towards finding buyers for your farm products.
Enjoy MORE successful Farm Products Marketing & Sales.
Email me via tayo at tksola dot com TODAY.
PS: What You Get When You Signup
1. A step-by-step Marketing Action Plan: that you can implement to start attracting high profit BULK buyers for your farm products.
2. My DVD: containing the full Sales & Marketing Coaching Video
3. Access to my Sales & Marketing Support Service: in which I help you develop and implement strategies to find long term and profitable bulk buyers using my contacts, and access to relevant networks.
See my PowerPoint Slide Show
4. And I’ll also add your farm products and services to my new online directory’s exclusive listing of Farm Products Buyers & Sellers in Africa (terms apply).
Email me via tayo at tksola dot com for details.
