But how does it benefit the manufacturer? And “who cares” isn’t an answer!<\/strong><\/p>\n

\n
• Co-op gives them local exposure that they need because it becomes more granular and more measurable compared to their national campaigns<\/li>\n
• Recognized brand names in ads help you sell more of their crap, which means more money to them<\/li>\n<\/ul>\n

  So how does it all work?<\/strong><\/p>\n

  Well, let\u2019s first talk about Participation<\/strong><\/em>. Participation is the max portion of the ad cost that the vendor will reimburse. This is almost always limited to the amount you have ALREADY banked in the fund. Let’s say, if you have all your ducks in a row, they will cover 60% of the ad out of what you have available to use.<\/p>\n

  Then there is the Accrual Amount<\/strong><\/em>. This is the amount you have “earned”<\/strong> or “banked”<\/strong> based on a percentage of your total product purchases.
  \n
  \nSo let’s rock some math…We will use 50% participation with 2% accrual as our example:<\/strong><\/p>\n

  What this means in English is that the manufacturer will reimburse or pay up to 50% of the ad cost based on your total amount banked. The amount banked is based on your total volume in dollars multiplied by 2%.<\/p>\n

  To calculate the accrual:<\/strong><\/p>\n

  Product purchased<\/strong>: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $100,000
  \nAccrued amount<\/strong>: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $2,000 (100,000 x 2%)<\/p>\n

  Purchased ad: <\/strong> $3,000
  \n50% participation: <\/strong> $1500<\/p>\n

  Amount reimbursed: <\/strong> $1,500 w\/\u00a0 $500 still banked<\/p>\n

  So, now you know the what, where, when, why and how much. Now get a jump-start on your advertising for this spring and start marketing your construction business before those dollars expire!<\/p>\n","protected":false},"excerpt":{"rendered":"

  OK, if you read yesterday\u2019s post and you did your homework, you should now have thousands of dollars in OPM to use for your marketing. More likely, you have a small balance available, especially if you use a supply house. Those bastards like to use manufacturer\u2019s money to go on fishing and hunting trips with […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[7],"tags":[35,40,49,6,112,4,57],"class_list":{"0":"post-1974","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-contractor-marketing","7":"tag-ad-campaigns","8":"tag-brand-building","9":"tag-brand-management","10":"tag-business-planning","11":"tag-construction-marketing-2","12":"tag-marketing-advertising","13":"tag-marketing-and-advertising","14":"entry"},"yoast_head":"\n