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advertising cost

Discussion in 'Business Operations' started by grassmasterswilson, Jul 14, 2010.

  1. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,468

    What is a good percentage of gross income to assign to advertising? I'm looking to grow my business. Will be creating a website and may continue mailers, yellow pages, etc.
     
  2. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    Just my own experience 10% is on the high side but that's just me.
     
  3. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    we experment a lot. this year the baseball team, did Quite well.
    also the refridge magnets.

    because of thei our ad dollar went VERY far. there was monies left over. it looks like it was only 2 to 3 %.

    things like flyers are too costly. your only reaching 1 pot. Customer.
    with the baseball team we reached several thousand.

    we attack it as we do building a team for our crews.
    it takes a while to see what works.

    If your ready, you can throw several thousand at the issue. web sites have never been a GREAT way to advertise for me.

    do your research. then throw 20 to 30% at it. that is IF your ready.
     
  4. Chipperstreesvc

    Chipperstreesvc LawnSite Member
    Posts: 2

    10% is kinda high. But if it works, why not. A website is definitely money well spent, new customers like to see what your about.
     
  5. DiscoDave

    DiscoDave LawnSite Member
    from Midwest
    Posts: 195

    Larger and/or fast growing companies... 10% to 17%.

    Smaller and/or slower paced companies.... 2% to 8%.

    I had a guy tell me about a Scotts Lawn Service franchisee that spends 22%... I do not know if I believe that.
     

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