Advertising Budgets

K

kerriromeo

New member
About What Percentage Of Gross Or Net Sales (please Specify)are People Spending On Advertising????
 
Honestly, I couldn't tell you that for my company. My wife tracks the financials since she is the accountant. I can tell you what makes the best returns for me.

Magnetic business cards
Advertising in the service directory of local papers.
Newsletters

The magnetic cards cost about 13 cents each but it has increased our repeat business 60%.

Service directory advertising costs me about 2,500 a month but brings in sales on average of 8-10,000 a week.

Newsletters cost very little the way I do them and they can be used to kick up business during the times when things may slow down.
(my company works all year round) providing various services, not just power washing.

I'd guess my monthly advertising budget is around 3,000 a month with gross sales resulting in enough money to cover it and have pretty much everything I want. (except that 50" flat screen plasma tv I've been looking at) <G>
 
how narrow are you getting spending 1%??????? seems impossible and to make any kind of money..i am nowhere near that, but only really started heavy advertising in the past 2 years
 
The CEO of JCPenny once said...

That if he was to start all over again and had 1 dollar to start a company...he would buy 50 cents worth of merchandise and 50 cents worth of advertising.

Just a thought.

Once you get established and the ball is rolling you can lighten up...but keep a close eye on your call volume because you may wake up one day without any work.
 
I budget for about 15-20%. I would never lighten up, no matter how much business.

Another thing to think about:

Its not always how much you spend, but where you spend it.

Target Marketing
 
i have to check on my quickbooks again for the percentage that we spent on advertising, in the warmer months its a lot easier, but in the winter months while things are slow and we are trying to build up the painting aspect of our business i have been finding it hard to shell out the approximately 1000 bucks needed for the advertising especially when i dont know what kind of response i will get for interior painitng. Things have been better this winter in that we have begun to be more diligent about doing direct mailings this time of year which is not as much of an investment at once.....
 
Kerriromeo

Have you thought about networking? Go into the search and read about networking.

Send letters (mail-outs) to carpenters, builders, contractors, etc. Send mailers to paint stores and follow-up with a visits. Go to hardware and lumber yards - let them know what services you provide. Work on the individuals that can send you work vs the potential customer. Using this technique will allow you to tarket your advertising market. Just another way to find that customer.


The key to advertisement is:

Rule #1 spend your money in the proper place

Rule #2 Be consitent. Advertisment works over the long term and is expensive - thats why rule number one is number one.


Knowing the proper place is the key.
 
I always advertise a lot..........regardless of business
 
I did not spend a nickle on advertising last year. That is not the norm, and I do almost zero residential.

Scott
 
Scott,
What that tells me along with a few guys you are out there doing the work and your plate is full. Maybe you should advertise so now you can get more work and you can hire guys to do this extra work for you. Now you can make even more money and you don't have to do the physical work yourself.
 
I currently have 7 guys. Some full time and some part time. It is a matter of finding the right guys. Besudes, advertising does not work real well for where I make the majority of my revenue.
as for Physcal work, you are sounding like my wife...
Scott
 
I did not spend a nickle on advertising last year. That is not the norm, and I do almost zero residential.
Click to expand...

Scott quit telling these people how good it is in the desert.

And stop the tails, Scott markets and spends time he just doesnt spend money.

I wish i could say the same. I wish i had all the ad money back from last year and just take off for about 2 years.
 
Henry where did you get your magnetic business cards and how many did you have to buy for the .13 cents each. I also think these are a great way for referals.
 
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