I guess if you look at it like that? I would look at it with the hopes that they would do that much better of a job.That their 60k would be cheap.
Just so you know the average lead cost of the largest 200 specialty remodelers is something like 18%.
Mine is around 11%. those numbers you posted are not out of line at all.
I would look at it like that, doesn't mean you have to, but "Hope" is a risky way to run a business. The point is that $60K is only cheap if that new manager increases your volume by $1.2 million (for me), $545K (for you).... without losing any effectiveness, or increasing the actual dollars.
By the way, I'm not trying to be argumentative, but want to remind the OP that he needs to evaluate his own situation and do the math for his
company. Apply some logic and know what he has in his budget for advertising, and ask himself if he diverts $60K into management will that bring in x amount of dollars to maintain the budget. Is the market share available and does he have the sales staff, crews, and resources to deal with the volume?
Maybe that's a given, but the OP's situation is pretty vague. I wouldn't encourage him to spend $60K unless I know more about the other factors.
In conclusion, I'm not
one of the top 200 specialty remodeling companies in the US nor do I want to be
, so I can't afford 18% nor would I feel comfortable passing those kinds of costs on to my customers. To be able to make a profit with an 18% advertising cost, a company better be doing a huge volume and selling with a 60% or better gross margin. My goal is 5% but I've crept up to 7% when I spent $190K one year. Nice year, but hard to duplicate at this point in time.