Advertizement Budget

[Jtuseo]

What do all of you guys spend per year on advertisement per year?

 

[John Spezia]

$40,000 per year just for T&G Cleaning.

 

[Bruce Humphrey]

$40,000 per year just for T&G Cleaning.

John what percent is that? or what percent do you like to spend. I have often wondered what percent I should be spending on marketing/advertising.

 

[Desk Jockey]

about 4%, last year.

Usually between 3-4 percent for us.

 

[danpauselius]

According to Chuck Violand, (SFS financial guru) you should be spending no more than 10% unless you are a new company. In that case, I think he allowed around 15%.

 

[John Spezia]

15% of my business capital goes to advertising.

Been in business for 2 years. 2005 I was P/T and 2006 went F/T. So I have to get the word out on the streets on the type of services we provide.

You have to spend money to make money right!!!!

 

[Bruce Humphrey]

Yes, you have to spend it to make it. My wife will be going back to work this September after a 5 year vacation. I will be able to divert some funds back into marketing.

 

[diamond brian]

Spezia: What do you mean 15% of your business capital goes to advertising? That you have expressed one as a percentage of the other is blowing my mind!

Not calling you out, but $40k seems a little high for advertising T&G. T&A--yeah, but T&G?!?!

By "capital", do you mean total capitalization, working capital, or that you reside in Albany?

 

[John Spezia]

15% per year of my total earnings goes towards advertising. All we do is T&G Cleaning & Color Sealing and some Marble & Granite Restoration. We gross about $20K-$25K per month in business with 1 Van and 2 Full-Time Guys.
90% Residential & 10% Commercial.

It is pretty high for an advertising budget, but it pays for it's self and then some.

 

[diamond brian]

Wow John, those are great numbers! Thought about learning marble restoration, but I don't see a huge market for it here. Maybe I'm missing the boat?

 

[John Spezia]

We only do about 5 to 10% Stone Restoration. The rest is just grout color sealing.

 

[XTREME1]

I was talking to a fried of mine who has 40 trucks(independent) and he started with 50 cents on the dollar and now is at about 7%

 

[bubba]

I spent about 20k this past year. That includes Radio, TV, Print, Signs, and mail outs. It might be a little bit more. My major was marketing so I have an unfair advantage over others. '

I tell everyone... Remember only the US MINT can make money with out advertising and we can't!

 

[Al]

10%