How Much Did You Spend On Advertising Last Year? - Page 2 - Marketing & Sales - Contractor Talk

How Much Did You Spend On Advertising Last Year?

 
Thread Tools Search this Thread Display Modes
Old 01-28-2013, 11:43 PM   #21
Pro
 
LeeFowler's Avatar
 
Trade: General Contractor
Join Date: Nov 2012
Location: Atlanta Ga
Posts: 785
Rewards Points: 886

Re: How Much Did You Spend On Advertising Last Year?


Quote:
Originally Posted by ppmc
I just spent $742 on the yellow booK
At first I didn't see the date on this posting and my mind was blown. The times, they are a changing.
LeeFowler is offline  
The Following User Says Thank You to LeeFowler For This Useful Post:
1929chrysler (01-29-2013)

Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ContractorTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

   

Advertisement

 

Old 01-29-2013, 03:07 PM   #22
Pro
 
KG007's Avatar
 
Trade: Flooring & cabinetry
Join Date: Oct 2009
Location: Lexington, KY
Posts: 416
Rewards Points: 268

Re: How Much Did You Spend On Advertising Last Year?


Just "dollars" doesn't tell you much. A 1-2 man business that is mostly labor and an average job is a month is busy if they are on a job now and have one waiting. If you need 1,000 jobs a year to be busy, different ballgame. Also depends on gross margin.

Deptartment store like Kohl's has incredible gross margin at regular price. That's why they run "sales" of "...50% off, then use a coupon!..." and still advertise like hell.

But most trades get by on 10% to 40%. (By the way, if you don't put at least 20% on everything you're an idiot. Do the rest of us a favor and go out of business NOW.)

IF (and that's a big IF), the economy was "normal" and we could see a direct correlation, I'd personally earmark about 6% of gross. But the economy isn't anything like normal so all guidelines are out the window. If you're that first example of 1-2 men, word of mouth and $500 per year for signs/cards/T-shirts might be plenty.
KG007 is offline  
The Following User Says Thank You to KG007 For This Useful Post:
MattK (01-29-2013)
Old 01-30-2013, 04:01 PM   #23
Pro
 
SSC's Avatar
 
Trade: Interior Remodeling Specialists
Join Date: Feb 2011
Location: Long Island NY
Posts: 1,273
Rewards Points: 500

Re: How Much Did You Spend On Advertising Last Year?


Quote:
Originally Posted by shimmerl View Post
we are spending for internet ad aprox.4000 in a month plus yellow pages and home shows in a year total 70-80K
Are you a vendor?
__________________

The Finest in Interior Renovations
SSC is offline  
Sponsored Links
Advertisement
 
Old 01-31-2013, 05:37 PM   #24
Member
 
Italian75's Avatar
 
Trade: GC
Join Date: Aug 2011
Location: Northern Virginia
Posts: 93
Rewards Points: 87

Re: How Much Did You Spend On Advertising Last Year?


Last year we spent 1.59% on $1.9 million this works out to be about $30k. This is a formal that has worked well for us. I have to make sure that you understand what is in our marketing budget. It includes SEO, website upgrades, t shirts, different web sites, google adwords, marketing materials (door hangers, flyers, business cards, yard signs,). Our marketing cost per job was $285/job with an average contract of $18,000. Hope this helps pm me if anyone needs more advice.
Italian75 is offline  
Old 01-31-2013, 07:15 PM   #25
Pro
 
ArtisanRemod's Avatar
 
Trade: Remodeling
Join Date: Dec 2012
Posts: 1,115
Rewards Points: 582

Re: How Much Did You Spend On Advertising Last Year?


One man show. Word of mouth is free and all I need. Busiest as I've been in almost 10 years.
ArtisanRemod is offline  
Old 01-31-2013, 10:51 PM   #26
Registered User
 
Kev D's Avatar
 
Trade: remodeling
Join Date: May 2011
Location: Northern Virginia
Posts: 5
Rewards Points: 10

Re: How Much Did You Spend On Advertising Last Year?


Last year was the first year we decided to spend money on marketing. After adding everything up we spent around $2,000 and landed a little over $25k worth of work.

Hopefully after tweaking my old stats I should be able to lower that % which will open up more money to test new strategies.
Kev D is offline  
Old 02-01-2013, 01:10 PM   #27
Pro
 
KG007's Avatar
 
Trade: Flooring & cabinetry
Join Date: Oct 2009
Location: Lexington, KY
Posts: 416
Rewards Points: 268

Re: How Much Did You Spend On Advertising Last Year?


Italian75 is posting GREAT numbers and ROI on marketing dollars. (But look at locale, too. Northern Virginia (D.C.) is probably lots better than Podunk, NE.) Good job!
KG007 is offline  
Old 02-01-2013, 09:58 PM   #28
Pro
 
nlgutters's Avatar
 
Trade: seamless gutters
Join Date: Dec 2007
Location: new hampshire
Posts: 992
Rewards Points: 500

Re: How Much Did You Spend On Advertising Last Year?


About 300k
__________________
www.nlseamlessgutters.com
nlgutters is offline  
Old 02-01-2013, 10:03 PM   #29
Every now and then poster
 
ohiohomedoctor's Avatar
 
Trade: Home Remodeling Professional
Join Date: Dec 2010
Location: Dayton, Ohio
Posts: 13,436
Rewards Points: 3,544

Re: How Much Did You Spend On Advertising Last Year?


Less than $10k. Advertising was an after thought being so busy all year. Looking forward to doing less volume, making more money, having more fun, and taking fewer jobs this year.. bahahahaha..
ohiohomedoctor is offline  
Old 02-02-2013, 04:44 PM   #30
Pro
 
Stephen H's Avatar
 
Trade: Slate& Tile Roofing/Exterior Carpentry
Join Date: Feb 2011
Posts: 2,055
Rewards Points: 2,848

Re: How Much Did You Spend On Advertising Last Year?


historically we have spent less than 2% of gross sales annually on advertising/marketing

in 2013, we will be goosing that up to about 5-7% of what I HOPE gross sales will be, LOL
stephen
Stephen H is offline  
Old 02-07-2013, 11:16 AM   #31
New Guy
 
Littlefield's Avatar
 
Trade: Construction/remodeling
Join Date: Dec 2008
Posts: 22
Rewards Points: 10

Re: How Much Did You Spend On Advertising Last Year?


Wow! Really? 10-40% for marketing?

The last year I owned my company we spent less than $2,000, and grossed right around $600k from that.

I guess that would mean that I'm an idiot, and I should get out of the business NOW!! Heh, I bet there are guys in my town that wish that, too! Ha!

I figure once you get things running smoothly, you should be able to keep it around 5%, but it is true that with different areas, and situations, it might vary, maybe a lot. I gotta say though, if your dumping 40% in marketing, you have to be "churning" customers, and you're probably not.....wait for it........Innovating!

Quote:
Originally Posted by KG007 View Post
Just "dollars" doesn't tell you much. A 1-2 man business that is mostly labor and an average job is a month is busy if they are on a job now and have one waiting. If you need 1,000 jobs a year to be busy, different ballgame. Also depends on gross margin.

Deptartment store like Kohl's has incredible gross margin at regular price. That's why they run "sales" of "...50% off, then use a coupon!..." and still advertise like hell.

But most trades get by on 10% to 40%. (By the way, if you don't put at least 20% on everything you're an idiot. Do the rest of us a favor and go out of business NOW.)

IF (and that's a big IF), the economy was "normal" and we could see a direct correlation, I'd personally earmark about 6% of gross. But the economy isn't anything like normal so all guidelines are out the window. If you're that first example of 1-2 men, word of mouth and $500 per year for signs/cards/T-shirts might be plenty.
__________________
Rich Littlefield, North Georgia, US
Founder, Bear Creek Log Home Restoration, sold after 14 years.
Mobile 706-273-9181
Littlefield is offline  
Old 02-07-2013, 11:28 AM   #32
New Guy
 
Littlefield's Avatar
 
Trade: Construction/remodeling
Join Date: Dec 2008
Posts: 22
Rewards Points: 10

Re: How Much Did You Spend On Advertising Last Year?


These are great numbers.

I like the fact that you answered the question as it was asked, in a percentage of gross income.
Ours last year was too low, 0.003% of gross.
I also like yours per job, I haven't figured ours. We had a service division that did small $250 jobs, and our restoration division did much larger jobs, around $14,000 avg.

I'll probably break those in two and do my figures separately.

Quote:
Originally Posted by Italian75 View Post
Last year we spent 1.59% on $1.9 million this works out to be about $30k. This is a formal that has worked well for us. I have to make sure that you understand what is in our marketing budget. It includes SEO, website upgrades, t shirts, different web sites, google adwords, marketing materials (door hangers, flyers, business cards, yard signs,). Our marketing cost per job was $285/job with an average contract of $18,000. Hope this helps pm me if anyone needs more advice.
__________________
Rich Littlefield, North Georgia, US
Founder, Bear Creek Log Home Restoration, sold after 14 years.
Mobile 706-273-9181
Littlefield is offline  
Old 02-07-2013, 11:29 AM   #33
Talking Head
 
EthanB's Avatar
 
Trade: Poking Things With Sticks
Join Date: Sep 2011
Location: Rhode Island
Posts: 5,323
Rewards Points: 304

Re: How Much Did You Spend On Advertising Last Year?


Quote:
Originally Posted by KG007 View Post
Just "dollars" doesn't tell you much. A 1-2 man business that is mostly labor and an average job is a month is busy if they are on a job now and have one waiting. If you need 1,000 jobs a year to be busy, different ballgame. Also depends on gross margin.

Deptartment store like Kohl's has incredible gross margin at regular price. That's why they run "sales" of "...50% off, then use a coupon!..." and still advertise like hell.

But most trades get by on 10% to 40%. (By the way, if you don't put at least 20% on everything you're an idiot. Do the rest of us a favor and go out of business NOW.)
Quote:
Originally Posted by Littlefield View Post
Wow! Really? 10-40% for marketing?
He's talking about margin. You won't see many people spending 40% on marketing in a field where the average gross margin is less than 40%. Well, you might, but you won't see those people around for long.
__________________
Quote:
Originally Posted by Jaws View Post
Planer.....
EthanB is offline  
The Following User Says Thank You to EthanB For This Useful Post:
Jaws (02-11-2013)
Old 02-07-2013, 11:42 AM   #34
www.magicpoolservices.com
 
MagicPoolSvcs's Avatar
 
Trade: Pool Service
Join Date: Sep 2009
Location: Orlando. FL
Posts: 831
Rewards Points: 502

Re: How Much Did You Spend On Advertising Last Year?


2012 - NOTHING
MagicPoolSvcs is offline  
Old 02-07-2013, 09:46 PM   #35
 
THINKPAINTING's Avatar
 
Trade: Painting
Join Date: Feb 2007
Location: Mass/RI
Posts: 1,183
Rewards Points: 500

Re: How Much Did You Spend On Advertising Last Year?


Quote:
Originally Posted by KG007
Just "dollars" doesn't tell you much. A 1-2 man business that is mostly labor and an average job is a month is busy if they are on a job now and have one waiting. If you need 1,000 jobs a year to be busy, different ballgame. Also depends on gross margin.

Deptartment store like Kohl's has incredible gross margin at regular price. That's why they run "sales" of "...50% off, then use a coupon!..." and still advertise like hell.

But most trades get by on 10% to 40%. (By the way, if you don't put at least 20% on everything you're an idiot. Do the rest of us a favor and go out of business NOW.)

IF (and that's a big IF), the economy was "normal" and we could see a direct correlation, I'd personally earmark about 6% of gross. But the economy isn't anything like normal so all guidelines are out the window. If you're that first example of 1-2 men, word of mouth and $500 per year for signs/cards/T-shirts might be plenty.
Two good mechanics can pump out some serious work. If you have boss and 2 mechanics all painting on each job you better have a long list of referrals giving you leads and then closing them for work.There's no way you will stay busy by WOM here like that. At least not in the re-paint market. If you have steady accounts from years past then you get booked up sure you can back off advertising . If you lose those accounts and you haven't been advertising good luck. We did 4 different jobs for 4 different customers last week, all repaints. This week we are working on jobs for two old clients from a few years back but in order to keep a full work load we have to continually advertise can't just rely in t-shirts and vinyl graphics. We do direct mail, print, SEO, job signs, and everything in between I'd rather turn down work than have none.
__________________
www.thinkpainting.net
THINKPAINTING is offline  
Old 02-08-2013, 06:46 AM   #36
Pro
 
Stephen H's Avatar
 
Trade: Slate& Tile Roofing/Exterior Carpentry
Join Date: Feb 2011
Posts: 2,055
Rewards Points: 2,848

Re: How Much Did You Spend On Advertising Last Year?


well said, ThinkPaint
Stephen
Stephen H is offline  
Old 02-11-2013, 06:06 PM   #37
Deck Parts Retailer
 
killerdecks's Avatar
 
Trade: deck builder
Join Date: Apr 2008
Location: Wayne Mi
Posts: 3,108
Rewards Points: 888

Re: How Much Did You Spend On Advertising Last Year?


30-50k
killerdecks is offline  
Old 02-11-2013, 07:13 PM   #38
Talking Head
 
EthanB's Avatar
 
Trade: Poking Things With Sticks
Join Date: Sep 2011
Location: Rhode Island
Posts: 5,323
Rewards Points: 304

Re: How Much Did You Spend On Advertising Last Year?


Quote:
Originally Posted by killerdecks View Post
30-50k
That's great for your volume Steve. Would you mind telling if you get any advertising dollars from the manufacturers?
__________________
Quote:
Originally Posted by Jaws View Post
Planer.....
EthanB is offline  
Old 02-11-2013, 08:57 PM   #39
New Guy
 
Littlefield's Avatar
 
Trade: Construction/remodeling
Join Date: Dec 2008
Posts: 22
Rewards Points: 10

Re: How Much Did You Spend On Advertising Last Year?


Ethan, thanks for the help! I totally missed where he mentioned margin, and had my mind solidly in "marketing" . Makes sense now!

Quote:
Originally Posted by EthanB View Post
He's talking about margin. You won't see many people spending 40% on marketing in a field where the average gross margin is less than 40%. Well, you might, but you won't see those people around for long.
__________________
Rich Littlefield, North Georgia, US
Founder, Bear Creek Log Home Restoration, sold after 14 years.
Mobile 706-273-9181
Littlefield is offline  
Old 02-12-2013, 12:47 AM   #40
Deck Parts Retailer
 
killerdecks's Avatar
 
Trade: deck builder
Join Date: Apr 2008
Location: Wayne Mi
Posts: 3,108
Rewards Points: 888

Re: How Much Did You Spend On Advertising Last Year?


Quote:
Originally Posted by EthanB View Post
That's great for your volume Steve. Would you mind telling if you get any advertising dollars from the manufacturers?
The only thing I sell, anymore that I don't make, is composite decking and no, but maybe yes, there is a 2-3% kickback @ the end of the year depending apon volume, etc. New program this year.

I do home shows and of course,BILLBOARDS

Advertisement

killerdecks is offline  
The Following User Says Thank You to killerdecks For This Useful Post:
EthanB (02-12-2013)


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Alright businessmen ... I'm gonna give it one more try ... breakin even dirt diggler Business 30 02-27-2007 12:34 PM
Already spent more on advertising then all of last year! ruskent Marketing & Sales 37 02-17-2007 01:28 PM
online local advertising? bobbyg Marketing & Sales 6 12-22-2006 12:05 PM
My first year donb1959 Business 7 02-19-2006 12:48 PM
Advertising what works HCI Marketing & Sales 58 02-07-2006 01:23 PM

Join Now... It's Fast and FREE!

I am a professional contractor
I am a DIY Homeowner
Drywall Talk is for
PROFESSIONAL CONTRACTORS ONLY!

At DrywallTalk.com we cater exlusivly to professional contractors who make their living as a contractor. Knowing that many homeowners and DIYers are looking for a community to call home, we've created www.DIYChatroom.com DIY Chatroom is full of helpful advices and perfect for DIY homeowners.

Redirecing in 10 seconds
No Thanks
terms of service

Already Have an Account?