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Joined: Feb 2003
Posts: 687
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I have been wondering for a while how much other EC set aside for advertising. I'm not looking for a dollar amount just a percentage. Also it would be helpfull to know what size and leval the business is at. If it is small and newer or big and well established for many years.

I'm a newer business with 1 emp. and I have been spending about 3% except for last year. Last year it was 6% but I did not notice the much of a differance between the years. Some of it depends where I spend the money.

Where I'm at there are maybe a 1000 of other EC working all over a large area. Most every phone book is packed with EC from basic listings to multi pages. Then there is a lot of different phone books to cover just 1 county.

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Joined: May 2005
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I'm in your area and am getting ready to hire. Advertising alone is 5% for me. Advertising is a small part of my marketing (two-thirds of my business is repeat/referred/personal contact).

Those who know more than me recommend 10% of your annual budget for advertising. An interesting side note to this is that you should spend 10% of where you want to be, not 10% of where you are.

Dave

Joined: Jan 2003
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"Where I'm at there are maybe a 1000 of other EC working all over a large area. Most every phone book is packed with EC from basic listings to multi pages. Then there is a lot of different phone books to cover just 1 county."

About the same type of area here, we have been at 20% for years, even as a one man operation, 10 or 15% Just will not cut it, at any less then 15% i was just burnning up money, with little or no response, another thing is the ad's have to run continous, one year, is just testing the waters, you need to be out there, and in their face, your trucks are a great ad, provided they are a professional lettering job, done in good taste, without a good amount of ad's, don't expect the phone, to ring much.

Joined: May 2005
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Another consideration is that if you average two calls per week that average three days work each, you'll do OK. The point is that sales is at least as important as advertising.

Dave

Joined: Apr 2005
Posts: 39
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What percentage of revenue you dedicate to advertising will depend on your planning. Different business models create different challenges and therefore different advertising plans. Without a plan, any percentage could simply be a shot in the dark. Ready, AIM, then fire.

Joined: May 2005
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Another consideration is that advertising isn't usually needed if your business is from GCs. Advertising is needed in residential remodeling to attract homeowners.

Along the lines of wilkie's comment, spending thousands of dollars on something that won't be seen by your favorite type of client may be as satisfying as running the money through a shredder.

Dave

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"Along the lines of wilkie's comment, spending thousands of dollars on something that won't be seen by your favorite type of client may be as satisfying as running the money through a shredder."

Excellant Point, Targeting your ad budget.

Joined: Feb 2003
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Thanks Dave and LK.

Wilkie, I understand the point on the business planing. All I am asking is a quick survey in a percentage and where the business is at. I am tring to keep this simple so more may respond. I'm not looking for a dolar amount. I am not asking anyone here to decide for me my budjet. And I'm not asking how much I should charge for an opening.

I sorry if I can't ask a simple question without the "well you should know it if you have a plan".

Yes I have a plan and yes I am tring to adjust it for next year. I am tring to do some research on advertising results. Just cause you write down a plan does not mean it will work. I could write down on paper that I'll spend $100K on marketing and gross $1M. Don't mean it will happen.

Joined: Jul 2005
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For the year I am at 6%. I am wondering, how many calls do most EC's average per week? I am usually from about 5 to 10 although it has slowed down a bit in the past month or so.

Joined: Apr 2005
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We spend 18% to 20% on advertising. we have 20 employees and 12 trucks. As everyone else we have 1000's of EC's around here but thats what drives our business.
Know your competition, best them then buy them.

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