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Old 12-03-2012, 08:38 PM
cpllawncare's Avatar
cpllawncare cpllawncare is offline
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Join Date: Apr 2011
Location: Greenville, SC
Posts: 2,647
Quote:
Originally Posted by DLONGLANDSCAPING View Post
i dont see where you can go wrong with advertising. Depending on what your advertising if you make an initial investment of 5k dollars in advertising a direct mail campaign for 10,000 homes to be contacted 2 times 3 weeks apart.

10,000 x .005-.01 (1/2 of a percent to 1%) = 50-100 calls. If you land 60 of those calls jobs, at as little as 1,000 dollars per year, thats an initial investmnet of 5,000 dollars and you are getting 60,000 in business. And that is less than 1%.

Twice a year, for 4 years and you will be spending 40k in advertising with a payback of almost 480,000 in business after 4 years.

First year: 120,000 sales
Second Year: $120,000 plus another $120,000
Third Year: $240,000 plus another 120,000
Fourth year 360,000 plus another $120,000

TOTAL AFTER FOUR YEARS: $480,000 sales

Assuming that you are continuing the contract each year.

So your up $440,000 in 4 years. Not bad right?
In theory yes that would be great! but it doesn't work like that.
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