Marketing Budget

Discussion in 'Pesticide & Herbicide Application' started by Turfdoctor1, Jan 1, 2013.

  1. Turfdoctor1

    Turfdoctor1 LawnSite Senior Member
    Posts: 705

    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.
     
  2. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,867

    How come you hired before the $$ flowed in? I usually work who I have to the bone then add.
     
  3. Turfdoctor1

    Turfdoctor1 LawnSite Senior Member
    Posts: 705

    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?
     
    Last edited: Jan 1, 2013
  4. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    So spent 15K on advertisement and generated 120K in new business?
     
  5. TurfWerks

    TurfWerks LawnSite Senior Member
    Posts: 309

    Sounds like a hell of a return..
    Posted via Mobile Device
     
  6. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    That is what I am asking. He said he added 120K and needs to add 120K and spent 3% on advertisement ( of 525K)
     
  7. TurfWerks

    TurfWerks LawnSite Senior Member
    Posts: 309

    I'd dump 15k for 120 return every year.. lol
    Posted via Mobile Device
     
  8. Turfdoctor1

    Turfdoctor1 LawnSite Senior Member
    Posts: 705



    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.
     
  9. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961



    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.
     
  10. TurfWerks

    TurfWerks LawnSite Senior Member
    Posts: 309

    Just curious what you did with 15 to get an 8 times return?
    Posted via Mobile Device
     

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