Spend a dollar to make a dollar ...would you?

Lou Zehnder

Lou Zehnder

New member
I have a question? If you are full sure to make 1 dollar on ever dollar spent would you do it?
Spend 1 dollar for advertising to get 2 in return.......would you do it?
 
tough to say....if that is only 2 dollars gross then definitely not. That means 50% of your budget is advertising
 
No... Only one winner in that situation. The advertising company. You give them $100, they advertise possibly a month later, you get calls that cost you time and money, you do estimates that cost you time and money, you do the jobs that cost you time and money for labor and materials, and all you get back is $200? YOU do all the work, YOU risk your money, and the only one that gets paid is the advertiser.

30% would be where I would draw the line on marketing budget. And that 30% would only be accomplished by lowering the percentage you take in salary. The pie is only 100% in size. So a higher percentage in any one catagory means less in another. Most cases, it is owner salary or profit. Generally all the other percentages are set.

Bad return on advertising is simply trading dollars or in some cases giving dollars away.
 
I smell a trick question here somewhere... :scratchhead:
 
50% return on my money is great for certain types of work but not for my Pressure Washing. With 50% of your money going to advertising you will go backward fast with labor, fuel and ...
 
No, I wouldn't do 1 to 1, maybe 1 to 2 if it was great PR, getting my brand out there in a way that leaves a good taste in ppls mouths. Like charity publicity or something. Otherwise I'm not happy unless I'm spending 25% or less to get the sale.
 
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