Discussion in 'Starting a Lawn Care Business' started by JeffW0011, Feb 23, 2007.

  1. JeffW0011

    JeffW0011 LawnSite Member
    Messages: 182

    Do you guys look at advertising as a fixed or a variable expense. As sometimes you might need a lot and sometimes might not want any. For instance, my goal is thirty cuts per week, so I am looking at advertising as a fixed expense until I hit that goal. Then I won't advertise any more this season unless I start to fall short of that weekly average. Or do you always just try to set aside a certain amount per month for current and/or future advertising? Also, should I shoot a huge portion of my wad up front or are there still lots of oppurtunities to pick up clients as the season progresses? I have $2000 alloted for advertising and marketing this year (is this too much for my goals, not enough, unkown?). I am hoping to acquire 25 regulars and have some vacation clients and other occasionals....hoping to average about 30 per/week. Any advise how to best spend that money? How effective and how expensive are money mailers? Also...any ideas for coupons or other incentives?
  2. Grits

    Grits LawnSite Silver Member
    from Florida
    Messages: 2,994

    I can sum it up in 2 depends.
    It depends on a lot of things, more than I care to attempt to cover and more than I even know. One thing is the type of advertising. The quality of the ad being presented. You never really know how many customers you will get from each round of advertising. You hope for a certain percentage, but you never really know. Overall though, I would say it is variable until you get a good customer base and after that you would be able to allocate a fixed amount to advertising.
  3. echeandia

    echeandia LawnSite Bronze Member
    Messages: 1,131

    As far as accounting is concerned it is a fixed cost. Variable costs are costs that go up or down along with the rate of production. For instance if you were a manufacturer and built mowers the parts you purchase from your suppliers are variable costs. This is because the more mowers you produce the more parts you'll need and the fewer you build the fewer parts you need. In a service business like ours variable costs are usually limited to wages (no work no pay), fuel, and other costs directly tied to delivering the service. Everything else would be a fixed cost regardless of your decision to vary the amount you purchase.

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