Advertising budget

[MacDaddy]

What is a good percentage of gross sales that should be put aside for advertising? Curious to see what others do.

[CIT]

10%

[MacDaddy]

So if your store is grossing, lets say, 250K, you spend 25K on adverising? That sounds really high.

[CIT]

yep, 8-10%. One directmail campaign cost me $5000. Do that 2-3 times a year plus other ads and stuff.

[dcjjp1]

I have spent that years ago, but really cut that back. Direct mail doesn't work for my market, mainly Email and referral system here.

A couple of targeted newspaper ads and hotel in room guides for me is money well spent.

[CIT]

Newspapers don't work for us at all.

[Angelique]

Originally Posted by MacDaddy

So if your store is grossing, lets say, 250K, you spend 25K on adverising? That sounds really high.

Just remember:

• It takes money to make money!
• Advertising is a 100% tax write off!

We're not saying you have to spend 10% for the life of your salon but if you really want to get results you have to invest in repetitive advertising for several years. You need what the marketing world calls "Top-of-mind awareness" in your local market. That means when people think of tanning they automatically think of your salon first, over any of your competition.

Invest in your advertising as a top priority expense for several years and over time you will see that your local market consumers will see you as "the leader in Tanning salons" in your area. You will know that your salon has the local market "Top-of -mind awareness" when another salon runs ads and you get the influx in business and reap the benefits from their advertising dollars

Peace, Love, & Sunshine!