What % of gross does your advertising run at? | TruckMount Forums #1 Carpet Cleaning Forums

What % of gross does your advertising run at?

Bexiesbruv

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What do you figure your cost to generate 35k in sales is?
 

Bexiesbruv

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So 15% is not unreasonable then? Thats what I figure I will get....or more but very unlikely to be less.
Print needs to give me one call a month to cover the new ad cost (only)
Similarly the online and mobile. My average ticket being $255 but based on $200 in my calculations, as I remember.
I have recently realised that I am not committed enough to put the time into (re) developing advertising programs and risk the cost of failure to gain an ROI with them. Certainly when I started, I would push flyers out weekly into different areas, but back then, I had the time to do that. There is comfort in the knowledge that I am saving 50% of my YP costs and gaining more than I had last year. Also that I can at least bale from the online.
Thanks for your input, I appreciate it.
 

rob allen

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10%
 

shane deubell

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So 15% is not unreasonable then? Thats what I figure I will get....or more but very unlikely to be less.
Print needs to give me one call a month to cover the new ad cost (only)
Similarly the online and mobile. My average ticket being $255 but based on $200 in my calculations, as I remember.
I have recently realised that I am not committed enough to put the time into (re) developing advertising programs and risk the cost of failure to gain an ROI with them. Certainly when I started, I would push flyers out weekly into different areas, but back then, I had the time to do that. There is comfort in the knowledge that I am saving 50% of my YP costs and gaining more than I had last year. Also that I can at least bale from the online.
Thanks for your input, I appreciate it.
Lets start with what we know.

How much $$ cash revenue did you generate, provable.
From last 12 months? ONLY cash $$$

How much are you on the hook for the next 12 months.
Only Cash$$$, no what ifs.

Is that good enough?
 

Bexiesbruv

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Lets start with what we know.

How much $$ cash revenue did you generate, provable.
From last 12 months? ONLY cash $$$
How much are you on the hook for the next 12 months.
Only Cash$$$, no what ifs.
Is that good enough?
CANT SAY
If I decide to get out of the online/mobile after 12 months then $3215 for the 12 months.
 

shane deubell

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Not saying this to be a jerk, just facts as I know them.

The deal going forward is $4,500.00 per year - full package
Print only- $3,215.00

You already had 12 months experience
What was that? $$
 

Bexiesbruv

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Not saying this to be a jerk, just facts as I know them.

The deal going forward is $4,500.00 per year - full package
Print only- $3,215.00

You already had 12 months experience
What was that? $$
Didnt track it well enough.
 

shane deubell

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Hard to make a decision then. Some people do very well with YP online but most do not.

When you google services do they come up #1 or #2?
consistently
 

Bexiesbruv

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They have been first in the organic listings for a while now in the searches I have done for the local City and larger Towns.
I am usually in the three adwords ads above the organic listings and as I said earlier in the post, when I check the Google analytics folks are getting to me via that YP organic listing because I am in top spot on the linked to YP page.
Would that also help me with the organic listings for my web site do you think?
 

Bexiesbruv

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@shane deubell
Do you have a spread sheet for ROI on advertising?
Looks like most folks are in the 10-15 percent of gross sales for ads but that has not been broken down into a per media/campaign type (presumably)
I want/need to learn how to manage advertising and marketing. I dont want to just throw money into it but this $450 a month just feels pretty good. If I mailed flyers I could mail out around 3200 per month at a similar cost.
 

shane deubell

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@shane deubell
Do you have a spread sheet for ROI on advertising?
Looks like most folks are in the 10-15 percent of gross sales for ads but that has not been broken down into a per media/campaign type (presumably)
I want/need to learn how to manage advertising and marketing. I dont want to just throw money into it but this $450 a month just feels pretty good. If I mailed flyers I could mail out around 3200 per month at a similar cost.
Yes, here is a link. For direct mail but you can use it for anything.
https://www.dropbox.com/s/d21rl2zmy6khpii/direct%20mail%20calculator.xlsx?dl=0
https://www.dropbox.com/s/d21rl2zmy6khpii/direct mail calculator.xlsx?dl=0
 

Harry Mullett

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It depends on where you are at with your business and where you want to be. 10 - 15% marketing budget works if you are an established company trying to stay consistent.

If you are new or wanting to expand plan on much more then that. You will have some dogs that do not perform that will mess up your sales averages and percentages. Part of the experimentation process of finding something that works to your satisfaction.
 
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shane deubell

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It depends on where you are at with your business and where you want to be. 10 - 15% marketing budget works if you are an established company trying to stay consistent.

If you are new or wanting to expand plan on much more then that. You will have some dogs that do not perform that will mess up your sales averages and percentages. Part of the experimentation process of finding something that works to your satisfaction.
Definitely agree, going through a growth spurt you might be high as 20-30% .
 

True Pro

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As a new start up. Some months i'm 25% and some months i'm at 75%..
 

Bexiesbruv

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It depends on where you are at with your business and where you want to be. 10 - 15% marketing budget works if you are an established company trying to stay consistent.

If you are new or wanting to expand plan on much more then that. You will have some dogs that do not perform that will mess up your sales averages and percentages. Part of the experimentation process of finding something that works to your satisfaction.
I would say I am established (2005) and consistent with my sales, which are up this year by quite a bit over the last (flat) 3 years. I am also in (mental) conflict with whether I want to stay in the business. I have been thinking about getting out and heading into the oil patch. Even at 55 years of age, apparently you are never too old to get into "the patch", and a friend that owns the service business I would likely go with, figures 3 years and a Guy is on 100k plus bonus per year. Its very tempting.
 

NDY1981

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I figure dropping it now will cost me (at worst) $1500 a month or as little as $430 (not allowing for the actual cost of ads). I would feel a lot better being responsible for my own advertising program, be it flyers, more Adwords or something else. I might even pay myself that sum to walk door to door again.
My YP rep will have to have a very compelling arguement for me to stay, assuming I read the statistics correctly, and I think I did.
24 jobs a year for a $700 a month investment? At $8400 a year, that would be a cost of $350 a job.