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right now im around 18% for just marketing (lawn signs, ads, flyers, truck wrap, shirts/hoodies, door hangers).. it was our first year with roof cleaning so we spent a lot, but it was totally worth it.. I look at advertising as more along the lines of branding.. I like to know what is really giving us leads so we dont waste money, but at the same time, understand that every advertising may not equal X amount of calls.. thats where the branding part comes in... 

on a side note.. i have a hardscaping friend that years ago was putting around 100k into advertising and doing around 1.3mil in sales.... He just wanted his companies name to be everywhere possible.. the more he was scene, the more people were comfortable with the company, and when they needed a service he provided.. they most likely called him first.... he has since grown to over 3 mil in sales.. i dont know what he spends on advertising now though....

-- Edited by jcstomper on Sunday 30th of September 2012 06:38:09 PM

what percentage of gross income does that equate to? Sounds like you have a good system Mike but gettin screwed by lowballers

We should spend more...but right now we're at 5-7% on marketing (including dues to some professional networking groups) I'd like to be up to 10%

I need to get my AZZZ into a Rotary club and some other networking orgs. However, if I do that I know I'll have to expand my # of crews. Which always sounds good...but in reality that reality can be a royal pain to implement.

sweetwaterfish wrote:

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This got me to thinking so I'm going to play with these #s
Here's where biz is coming from:

50% sales person
25% repeat/referral
20% advertising
5% dunno...not classified...multiple sources

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 Expain what the salesman does to earn 50% please.  ( ie Answer the phone, knock on doors, cold call ?)

I speant 14K on advertising this year but in the past I have been as high as 30K.  Now I get :

33% of my business from repeat customers so I have eased off on advertising.

24% Paid ads

17% Referrals

15% Google       

   8% Saw Me

                                                                                                                                                                                            17

 

Correct 50% of businesses generated from the salesperson. in reality salesperson gets 100% of the profits because she's my wife and business partner!

I may not have worded it the best but I understood what you meant.  I wanted to know what the salesman does to meet this goal.  ( ie Answer the phone, knock on doors, cold call ?)

Tonya is one of the rare breed of salespersons who loves cold calling, and is awesome with relationship building and follow up. Many of these commercial accounts take a year to develop, with monthly touches and meetings until they pop.

She also answers the office phones from our advertising, so she acts as a defacto appointment setter for me with the residential work.