I have been told that you should spend at least 8% of what your gross target sales are, on marketing. How accurate of a figure do most of you think this is ? Thanks.
It is in the range but probably at the high end…How much you spend will depend on your market…
In a large market it takes money to get noticed…The chains pay lower prices for all of their marketing material than smaller operations so they need to spend more to do the same amount…
If additional marketing will drive more sales and you are profitable on the additional sales, you should just keep spending more money until you reach your maximum…This % number will land where it lands and will be hard to set in advance of testing your market…
Marketing is the only place you can spend money that has the power to drive business… everything else is just a flat out - expense.
Spend what it takes… on marketing that proves itself effective and don’t restrict your growth by capping the budget…
Might just be that spending an extra couple of bucks over some pre-conceived “percentage” is the straw that’ll break a competitors back…
The best advice I can give is this: Spend what it takes to get people in… but immediately get them in a loyalty-marketing program, or at the very least - your database for follow-up marketing…
Check out this one-page report… then you’ll “get” why you should get customers in a database…
