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03/24/2009

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.



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