Advertising Do’s and Don’ts

Of all places to turn to for advice the last place I thought I would look is a federal government web site, but Industry Canada has published this excellent list of advertising do’s and don’ts and it is worth a read even if you do not advertise in publications as the tips pertain to all forms of advertising.

DO’s

1. Do avoid fine print disclaimers. They often fail to change the general impression conveyed by an advertisement. If you do use them, make sure the overall impression created by the ad and the disclaimer is not misleading.

2. Do fully and clearly disclose all material information in the advertisement.

3. Do avoid using terms or phrases in an advertisement that are not meaningful and clear to the ordinary person.

4. Do charge the lowest of two or more prices appearing on a product.

5. Do ensure that you have reasonable quantities of a product advertised at a bargain price.

6. Do, when conducting a contest, disclose all material details required by the Competition Act before potential participants are committed to it.

7. Do ensure that your sales force is familiar with these “Do’s and Don’ts”. Advertisers may be held responsible for representations made by employees.

DON’Ts

1. Don’t confuse “regular price” or “ordinary price” with “manufacturer’s suggested list price” or a like term. They are often not the same.

2. Don’t use “regular price” or “ordinary price” in an advertisement unless the product has been offered in good faith for sale at that price for a substantial period of time, or a substantial volume of the product has been sold at that price.

3. Don’t use the words “sale” or “special” in relation to the price of a product unless a significant price reduction has occurred.

4. Don’t run a “sale” for a long period or repeat it every week.

5. Don’t increase the price of the product or service to cover the cost of a free product or service.

6. Don’t use illustrations that are different from the product being sold.

7. Don’t make a performance claim unless you can prove it, even if you think it is accurate. Testimonials usually do not amount to adequate proof.

8. Don’t sell a product above your advertised price.

9. Don’t unduly delay the distribution of prizes when conducting a contest.

10. Don’t forget that no one actually needs to be misled for a court to find that an advertisement is misleading.

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How To Calculate Profit – The Lemonade Stand Method

Sometimes we get caught so up in our businesses that we forget we are in business to make a profit. I also think some of us have forgotten how to calculate profit so I think this Sunkist Calculating Profits Worksheet will help re-focus our efforts.

After all, the first business you started was probably a lemonade stand and nothing has really changed except for the way we look at things. Click on the image at the right to see the full size pdf. I think it will help you get back to the basics of your business…or give you an idea for a new one.

International Home Buyers – Who, what where?

NAR’s 2007 Profile of International Home Buying Activity shows that a quarter of REALTORS® report more international business in 2006 than five years ago. Nearly one in five respondents sold a home to an international client in the past year, and one-third say they believe foreign retirees are an increasingly important market in the United States.

The research explored the characteristics of second-home purchases in the United States made by international clients. Here are six of the top findings, which reveal important trends that will help you tap into the expanding international niche:

• Stronger preference for condos and apartments. In 2006, most international home buyers purchased single-family homes or townhomes, and like most domestic home buyers, they financed their purchase. However, they showed stronger preferences for condos/apartments when compared to U.S. home buyers; 22 percent of international buyers purchased condos/apartments, versus 12 percent of U.S. buyers.
• More pay in cash. Twenty-eight percent of foreign buyers bought their houses with cash, compared to 8 percent of U.S. buyers.
• Purchase pricier homes. The median sales price of homes purchased by international buyers was $299,500, which is significantly higher than the U.S. median of $221,900 during the same period.
• Homes used for vacation, investment. Forty-seven percent of all international buyers purchased homes exclusively for vacation, while 22 percent were motivated primarily by investment. Nearly a third of foreign buyers cited both vacation and investment as reasons for their purchase. International homeowners spent an average of 4.2 months of the year in their U.S. property in 2006.
• Buyers from Mexico most prevalent. A third of all international buyers are from Europe, but buyers from Asia and North America (outside the United States) each represent about one-fourth of the total market. Sixteen percent of all international buyers are from Latin America. By individual country, most buyers come from Mexico (13 percent), the United Kingdom (12 percent) and Canada (11 percent). (See below)
• Florida leads the pack. Foreign buyers purchase homes across the United States, but 52 percent of sales in 2006 were concentrated in three states: Florida (26 percent), California (16 percent), and Texas (10 percent). The South attracted nearly half – 49 percent – of international buyers last year, while 31 percent purchased homes in the West.

Canadian home buyers also headed to the South – 46 percent of them purchased home in that region of the U.S. Thirty-eight percent of buyers from Canada bought a property in the West, 10 percent in the Midwest and 6 percent in the Northeast. Similar to Mexican buyers, Florida was the location of choice well over a third of Canadians purchasing homes in the U.S., and California was the second most popular destination.

The U.S. real estate market is still considered a prime investment opportunity for foreign buyers and a “safe haven” in which to put their money. With the weakened U.S. dollar against foreign currencies, those currencies buy a lot more than in previous years. For example, the British Pound Sterling was worth $1.44 in 2001; by 2004 it was worth $1.83. As of mid-year 2007, the pound was worth nearly $2.00. The Euro has also increased in value against the U.S. dollar. More purchasing power for foreign buyers mean they can afford “more house” – particularly in a stabilizing U.S. housing market.