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advertising budget

Discussion in 'Business Operations' started by cutterj, Dec 17, 2002.

  1. cutterj

    cutterj LawnSite Member
    Posts: 42

    i was wondering how much you guys spend on advertising each year. I can get direct mail done here for 3.4 cents a house (about 400,000+ available) I was just looking for an opinion on how many to send out. I had good reponse from 20000 last year, but had a hard time getting a hold of a lot of people who called (atleast 20-30 i couldnt reach). I also had even better response to flyers i passed out which was like around $250 for 10000. I'm looking to expand into more accounts, as well as get into small landscaping jobs. I also have experience with brick paving. Itd be nice to send the guys out cutting and be able to do landscaping and paving jobs on the side. Let me know what you guys think. Ive put a lot of money away from last year to expand this year. Thanx

  2. nu83

    nu83 LawnSite Member
    from omaha
    Posts: 238

    3.4 cents a house? It must be a valpac. Which is not direct mail. Also, how did you send out 10,000 flyers for $250? I am sending approx. the same number this spring and the total cost is around $4k. What kind of sign up did you have with your $250 flyers?
  3. cutterj

    cutterj LawnSite Member
    Posts: 42

    sorry let me clear it up. no its not a val pac, they actually are direct mail, if that slot is taken it is just inserted in the local papers. and the $250 was jsut to have the flyers printed, had to pass them all out myself. When is the best time to send them out, my cutting starts april 15th
  4. nu83

    nu83 LawnSite Member
    from omaha
    Posts: 238

    Well ideally you would be constantly advertising, but the biggest sign up time for me starts March 1 - April 21. The weather is a bigger factor than the date, if it is still cold people havn't begun to think about lawn care yet.
  5. turfmarketing

    turfmarketing LawnSite Member
    from Ohio
    Posts: 49

    Many things determine the advertising budget for an organization. Ideally, your advertising or marketing budget are determined by your business plan, not the other way around. An organization sets a business objective like customer retention, new accounts, selling additional services to existing customer base etc., then develops a marketing plan to make the business objective succeed.

    In addition to assigning resources to specific business objectives, organizations also need to spend money on a continuous basis for name recognition or brand building. Things like yellow page advertising, signage, sponsorships, etc.

    As a general (very general) rule, most businesses use a 2 - 5% of sales as a figure for marketing or advertising. So you should probably be spending $2,000 - $5,000 in marketing for every $100k of sales.
  6. bubble boy

    bubble boy LawnSite Bronze Member
    Posts: 1,020

    2.0 cents here (and thats Cdn$)

    last yr spent about $4500, from what i recall.

    had good growth.
  7. f350

    f350 Banned
    from mi
    Posts: 424

    you have a p/m
  8. mowing king

    mowing king LawnSite Member
    from ct
    Posts: 85

    You can do the budget backwards.

    If you want 100k in landscape installs and the avg size job is 5k then you will have to sell 20 jobs. if you close on 50% of your sales call you will need 40 appointments. the avg response from direct mail is 1% so you will have to get 40,000 pieces out.

    the most important thing about advertising is getting the info to the best prospects and freqency. Sometimes cheap ways to mail might not get you the people you want. We mail to mail carrier routes that we pick out. this way you can hit the same neighbor hood over and over.

    For maintence flyers work well as do personnal letters.For landscape install jumbo post cards work well.
  9. Sean Adams

    Sean Adams LawnSite Gold Member
    Posts: 3,597

    I believe that flyers are a good way to develop name recognition. And often times very good accounts will be the result of a targeted flyer campaign (right time, right neighborhood, a little luck, etc...)

    But direct mail, if set up correctly, cannot be matched (telemarketing aside). If you take the time to target your audience carefully, have an excellent approach letter, professionally set (envelope, letterhead, business card) in a hand addressed envelope, personally addressed to that particular homeowner or business owner, your response should always be much higher than 1%-5%...
  10. lawncare3

    lawncare3 LawnSite Bronze Member
    Posts: 1,981

    You are lucky for getting direct mail for $.03 I have to spend that much on a flyer. My budget is about $130.00 and I hope to get at least 30 customers that is pretty good for being 15yr old!

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