What Percentage Of Your Annual Sales Goes For Advertising?
If you’re the typical company, you are not budgeting enough money
for advertising. Many franchisers require that 3% to 6% of sales go
to advertising—more than most small businesses spend, according to
Padgett Business Services.
“They never spend enough,” claims Don Price, marketing expert at the
Denver Small Business Development Center. Even retailers often
budget less than 2%. (The world’s largest consumer goods
manufacturer, Procter & Gamble, spends approximately 25¢ of every
dollar earned on advertising.)
If you are a member of a trade exchange you can afford to do
considerably more in this all important department, because a
variety of advertising mediums is readily available.