Market Research – Avoid “Ballpark” Costs

“I need ballpark costs. And I need them tomorrow!” screamed the e-mail. “Can you pull together some rough costs for me – don’t need to be based on contacting facilities, don’t go to a lot of trouble – I’ll put a caveat into the proposal that these are only estimated.”The specs accompanying this request were practically non-existent. Something about four markets and consumers of a particular brand of protein bar. And a couple of the markets were small, out-of-the-way cities.What we didWe determined that no focus group facilities existed in these towns. Hotels might be needed for conducting the groups. We learned that no recruiters existed in these markets, either. Interesting…”Don’t contact any facilities,” said the RFQ. “Don’t go to a lot of trouble.” Could we provide the requested ballpark costs? Did we? No. Here’s why.Every project is differentEach project has its own challenges. It’s difficult to give ballpark costs, especially when estimating costs for services we don’t provide…hotel setup, audio/visual services and unconventional recruiting methods in unfamiliar markets. Estimated costs could be significantly higher than the actual costs. Or they may not be. With few exceptions, it’s silly to request, provide or receive ballpark costs.What to doInsist on more meaningful specs. Most projects are more complicated than ballpark estimates will cover. The project we were asked to ballpark involved hotels. Markets without recruiters. Markets where the client’s product wasn’t being sold (but was supposed to be!). Turned out cost wasn’t the issue. Executing the recruiting was. Finding the right respondents would require extremely creative and industrious vendors. And the costs reflected that.Ballpark costs are misleading Besides obvious cost implications, ballpark costs don’t offer reasonable assurance that a project is doable. Ballpark costs don’t take into account obstacles, whether actual or perceived, that could send the project down the wrong track – or derail it. Ballpark costs don’t include expert advice about incentives, group start times, venue fees, over-recruiting suggestions and recruiting methods and fees. Ballpark costs, at best, don’t tell the whole story.In response to the ballpark cost request, we went to “a lot of trouble” to understand the scope and degree of difficulty of the project. Sure, we could have thrown some numbers together and given some rough figures. But who benefits from that?

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Market Research – Why You Can’t Afford Cheap Incentives

The focus group facility suggested that their client offer a respondent incentive of $150. The client protested.”We only want to pay $100,” they said. “A $150 incentive is too extreme. Besides, our list of potential respondents is sufficient, so $100 is a suitable incentive.”But the facility still recommended an incentive of $150. Here’s why:- The recruit was from a limited client sample of car owners because the car model had only been available for three months.- The list included owners who lived outside the recruiting area, which meant the list was more than 50% smaller than the client realized.- Respondents had to fit the screener on various socio-economic demos, which the list did not identify.- Lists often have up to 50% wrong numbers.The client ignored the advice and went with the cheaper incentive anyway. Can you guess what happened?- The initial refusal rate was high.- Potential respondents didn’t return voicemail messages.- The client had to relax specs that they weren’t planning to relax.- Although the groups were recruited and the show rates were excellent, almost one-half of the recruit consisted of respondents outside the client’s original target market.What to do?Recruiting experts are used to recruiting respondents in their markets, so trust their advice. They are accustomed to recommending appropriate incentives. Don’t set yourself up for disappointment by playing cheap with incentives. If you don’t trust a field supplier’s recommendations, they don’t deserve your business. Period.If there’s no compelling reason to reduce a recommended incentive (not enough money in the budget is not a compelling reason), but you reduce it anyway, then your recruiting will likely be slower than expected, respondents may cancel at the last-minute, leaving you with a smaller sample of respondents than expected. And you may be forced to relax your specs–or your expectations.