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  1. #1
    Join Date
    Mar 2007
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    Oregon
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    2,365

    Default % to spend on Advertising

    I'm really talking about staright cost... not your time since, of course, that's free

    Things like Yellow Pages, direct mail fliers, email programs. I suppose it would also include website development and optimization.

    Do any of you have a target % as a function of sales that you aim for?

    I never really have.... which is, of course, why I'm asking.

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  2. #2
    Join Date
    Mar 2007
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    Mesa AZ
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    1,181

    Default Re: % to spend on Advertising

    Quote Originally Posted by Matt Fellman View Post
    I'm really talking about staright cost... not your time since, of course, that's free

    Things like Yellow Pages, direct mail fliers, email programs. I suppose it would also include website development and optimization.

    Do any of you have a target % as a function of sales that you aim for?

    I never really have.... which is, of course, why I'm asking.
    Over the past 10 years I spent apx. 15% of my gross on advertizing.
    Web site , advertizments in small commuinty papers, direct mail, $2-4 goodie for each customer, pens and note pads.

    Phoenix AZ Resale Home, Mobile Home, New Home Warranty Inspections. ASHI Certified Inspector #206929 Arizona Certified Inspector # 38440
    www.inspectaz.com

  3. #3
    Ron Bibler's Avatar
    Ron Bibler Guest

    Default Re: % to spend on Advertising

    I spent $ 3,500.00 last year. and I need to kick that up this year to $ 4,500.00 or more this year.

    I'm working on a new video for U-tube and TV spots... That should be fun...

    Every one is after a fewer and fewer inspection each year.

    Dog-e-Dog...

    Best

    Ron


  4. #4
    Join Date
    Aug 2008
    Location
    Pleasant Hill, Iowa
    Posts
    145

    Default Re: % to spend on Advertising

    I spent about a $1.50,,,,,, all word of mouth!

    Dan Hagman ACI
    ProSite Home Inspections
    Des Moines, Iowa

  5. #5
    Join Date
    Mar 2007
    Location
    Spring Hill (Nashville), TN
    Posts
    5,851

    Default Re: % to spend on Advertising

    Quote Originally Posted by Matt Fellman View Post
    I'm really talking about staright cost... not your time since, of course, that's free

    Things like Yellow Pages, direct mail fliers, email programs. I suppose it would also include website development and optimization.

    Do any of you have a target % as a function of sales that you aim for?

    I never really have.... which is, of course, why I'm asking.
    A good percentage to shoot for is 3% to 4% of your sales. This holds true with just about all retail and service related professions.

    So if you are doing $60,000 a year in sales your advertising budget should be around $2,400 at 4% and $1,800 at 3%. This is just a guide but it works well when planning.

    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

  6. #6
    Ron Bibler's Avatar
    Ron Bibler Guest

    Default Re: % to spend on Advertising

    Dan you have not been around long enough to piss everyone off

    Or you need to go into politics

    Best

    Ron


  7. #7
    Ted Williams's Avatar
    Ted Williams Guest

    Default Re: % to spend on Advertising

    I was always taught that ten percent of revenue should go towards advertising. The trick is figuring out the optimal way to spend that ten percent. I know over the years I've thrown away thousands with misguided ads and/or listings. Live and learn.


  8. #8
    Join Date
    Aug 2008
    Location
    Pleasant Hill, Iowa
    Posts
    145

    Default Re: % to spend on Advertising

    Sorry Ron I know I'm still the rookie! an old rookie too!

    Dan Hagman ACI
    ProSite Home Inspections
    Des Moines, Iowa

  9. #9
    Join Date
    Mar 2007
    Location
    S.W. Missouri
    Posts
    75

    Default Re: % to spend on Advertising

    Quote Originally Posted by Robert Humphries View Post
    Matt,

    I'm from the advertising industry. I'm not sure where most of these guys get off telling you what percentage to spend (no offense guys). It doesn't work like that. What you are looking for is ROI conversion. If you spend 10% of your budget on something that only increases your gross revenues by 2%, then you are wasting your money.

    It's like weight loss. People set goals to lose pounds, but what they are really after is "how they look" in a mirror. If losing ten pounds doesn't get you to where you want to be, then it won't feel worth it, and you'll quit.

    Worry less about how much you spend and more on what tactics and strategies are most effective in converting strangers into inquiries and inquiries into sales.

    Hope this helps.

    Robert

    -
    I am not in the advertising bus. but from what I've learned from running various businesses the above statement is absolutely true. If your spending XXXX.XX and it's making you XX.XX you need to quit and re-evaluate your Ad campaign. Although tracking your "Return on Investment" can be a bit of a pain.

    Alpha Home Inspections
    417- 334-7047


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