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Old 01-01-2013, 09:49 PM
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Turfdoctor1 Turfdoctor1 is offline
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Marketing Budget

This really needs to be about 5 seperate threads.

What are you guys spending in marketing, percentage wise? We spent about 3.0% of our total revenue last year on marketing and added $120,000 in revenue. Is this ball park of normal?

We have just purchased Real Green. If you are a Real Green user, how much of your marketing do you let them do? I am wanting/needing to add a lot of revenue this year, and looking at some agressive marketing. But, I hate to get away from I know has been successful just to make things more convenient. With EDDM, I can get more than 3 times as many pieces in circulation. Trying to spend my marketing dollars wisely.

Because of the Real Green addition, I have hired an office assistant and another technician position. So, really feeling the crunch right now. I know that I need to add at least $120,000 in revenue just to break even.
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Old 01-01-2013, 09:55 PM
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DA Quality Lawn & YS DA Quality Lawn & YS is online now
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How come you hired before the $$ flowed in? I usually work who I have to the bone then add.
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Old 01-01-2013, 10:05 PM
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Turfdoctor1 Turfdoctor1 is offline
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because the person being worked to the bone is ME!

and, I want to train them properly in the offseason, and not do things on the fly in the middle of the season, like TruGreen. and, because we did $525,000 in revenue with 3 guys last year. Because if we add more work without more help, a single rain day becomes a major issue. Because I've got plenty of cash flow, that's not an issue. I just don't want to take a step back in profit. Keep going?
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Last edited by Turfdoctor1; 01-01-2013 at 10:09 PM.
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Old 01-01-2013, 10:15 PM
Duekster Duekster is offline
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So spent 15K on advertisement and generated 120K in new business?
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Old 01-01-2013, 10:27 PM
TurfWerks TurfWerks is offline
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Sounds like a hell of a return..
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Old 01-01-2013, 10:32 PM
Duekster Duekster is offline
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That is what I am asking. He said he added 120K and needs to add 120K and spent 3% on advertisement ( of 525K)
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Old 01-01-2013, 10:34 PM
TurfWerks TurfWerks is offline
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I'd dump 15k for 120 return every year.. lol
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Old 01-01-2013, 10:42 PM
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Turfdoctor1 Turfdoctor1 is offline
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Quote:
Originally Posted by Duekster View Post
That is what I am asking. He said he added 120K and needs to add 120K and spent 3% on advertisement ( of 525K)


yes, that is correct. Last year, we spent ~$15K. We added about $120K in total revenue from 2011 to 2012.

I'm asking if that is normal. Or if people spend more or less.
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Old 01-01-2013, 10:51 PM
Duekster Duekster is offline
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Quote:
Originally Posted by Turfdoctor1 View Post
yes, that is correct. Last year, we spent ~$15K. We added about $120K in total revenue from 2011 to 2012.

I'm asking if that is normal. Or if people spend more or less.


I personally would not know if that is normal. What I have read heard and seen it is not typical.

I have people say to spend 6% but I do not and I do not know anyone that does. I am sure there is a dollar value where marketing becomes more effective. I am not sure "branding" produces quick returns.

I hear 10% responce and 1% conversion is good but how does that relate? Those are thing ad agencys say.

If I could spend 3% and see 30 then go for it. Where were you placing it.
I have put ad's on the local shopping cards that the grocery store and I am sure there is some branding but not one person called and said they saw it. Most of my return is from my website/internet and truck graphics.
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Old 01-01-2013, 10:52 PM
TurfWerks TurfWerks is offline
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Just curious what you did with 15 to get an 8 times return?
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