If people saw your brand, would they know what it meant?
My name is Ryan Spelts. I’m a small business owner. I’m a marketing student. I love marketing, and I am putting these videos together to help you and help my clients be more effective advertisers and to get the bang for their buck that they need to out of their marketing dollars. I know how expensive marketing is. I own a magazine company. We sell advertising. It’s not cheap. I also own a roof max dealership, and I know how much we spend in marketing, just trying to make sure people know who we are and what we do. So this is the third video in the series, and today I want to talk about branding. Branding is so crucial, and to give you a good idea of how important branding is.
There was a study done where people were presented with diamond earrings. And these diamond earrings were identical, and they were told as part of the study, there’s no catch. There’s nobody trying to pull one over on you. So these are real diamonds. The question that was presented to the people in the study was what do you think these diamond earrings are worth? Unbranded, they’re just a set of diamond earrings. The average price that came back for these nice diamond earrings was $550. That’s what people assumed that they were worth.
The same exact earrings, same exact situation, but they said, these are diamond earrings from Tiffany’s. Tiffany’s is a great brand. We all know that they do high quality stuff. They guarantee their stuff for a lifetime, they’ll clean it, they’ll let you upgrade often to a bigger diamond down the road when you’re ready to. So, Tiffany’s has done a great job in branding just by saying that those earrings, the exact same earrings were from Tiffany’s. The price point became $873. They were on average worth $323 more than the unbranded diamonds. Now, , Walmart is not known for their jewelry. That is not their key selling point. “We sell awesome jewelry.” Their their low cost, low price, that’s their brand. Everybody knows that. Walmart’s the place you go if you wanna find value. Well, those exact same earrings again, they’re told these are real diamonds. This is not a catch, but these are diamond earrings that are sold at Walmart. How much do you think that they’re worth? The amazing thing is those exact same diamond earrings, the average price that came back was $81.
That’s the power of branding. When people know what your brand is and they know you’re an expert at it, they will pay more for the exact same thing because of the brand. And they assume the value is higher because of that brand, branding is crucial. So here’s where branding is very powerful. If you’re in a business that has a lot of competitors, knowing your unique selling proposition and selling towards that so people know what makes you different, what makes you unique, and why they should do business with you over your competitors, that’s crucial. If you’re in a business that can generate a lot of leads, real estate is one of those businesses that can generate a lot of leads, but it’s really a pain to follow up on all of them and try to, you know, do business. And you, you end up spinning your wheels a lot. Talking to a lot of people who are not the right kind of client. And so a lot of leads may not be the right answer. Branding can be the right answer being the brand that people know and trust that, you know, as someone who can do a good job for them, that’s, that’s crucial. The other thing that branding does is when you go back in the day you had the phone book and I had a, a brother-in-law who had a plumbing business and he would always put a big full page ad in the phone book and he’d have several other ads. So he’d have ads doing different services that he offered as a plumber. Septic services obviously clogged drains and different things. So he had these different ads cuz he would say, the more they see me in there the better, I have to be known in the phone book.
Well, today your phone book is your Google map listing. And people are going to search and say, I need a plumber near me. And they’re gonna pull up a list of the 60 or 70 plumbers that are in your community. Well, you want to be known among those options, so you should advertise so that people recognize your name, when they look at that list, they’re gonna look at the star rating and look at the top people first. They’re gonna do all of those things, but they’re also gonna look for a brand that they know. And if they see your name on there and they’re like, oh, I know Rentmeister Home Services. I’ve seen them before. I’ve seen them in our magazine. They sponsored our kids little league team. They were part of this big community event. I saw them in the parade last year. Those local, well known brands that people can turn to and rely on, those are the companies that people are gonna call first.
They’re going to feel a level of trust with that company and they’re gonna call them first. So making sure your brand is well known, making sure you’re doing things in the community that you’re part of, things in the community that you use. Good branding guides for your, your logo, um, for your vehicles. If you’re, you know, a service company that’s out and about.
For a Roof Max company, one of the things we did to establish our brand in the community, aside from advertising in the magazines and being on Google search and making sure the map showed up correctly, one of the key things we did is we bought a 1972 Chevy pickup truck. And it was a nice green, which is one of the Roof max colors. And the reason we did that, and we put it in most of our ads, is we say, don’t replace your roof, renew it with roof max like we did with this truck. And so that’s become a theme that we’ve used and that helps people to recognize our brand because they see that truck, they see it driving around. We put it in the parades locally, we put it in any of our ads that we can, but they also realize that we’re a company that doesn’t just replace roofs. We actually get the existing roof to last longer with a Roof Maxx treatment. Branding will help us become a trusted known service in the area.
And so utilizing your, creativity, coming up with ideas that can help you market and develop a great brand in a community, develop something that people know what it is and develop something that’s valuable just like Tiffany’s with those diamond earrings. That’s the importance of creating a brand. This is lesson number three.