As someone who works with many SMEs, I find they worry a lot about the marketing budget.
That's fair. There's only so much money to be had.
The question isn't, though. "how many hundreds of sales can you bring", but "how hard will it be to make enough sales to cover the cost of marketing"? Remember: After the cost of marketing is covered, everything else is gravy!
And you're still building your brand for long-term growth.
I have a client who sells homes. The home prices range from $750,000 to $3 million.
When we were talking about the costs of marketing, even calculating marketing as 10% of sales, he can spend about $12,000 on marketing to make a single home sale. That wouldn't include smaller sales along the way, such as land, less expensive homes, etc.
Here's the one big take away: If you aren't paying to market you business and build your brand, you're very likely to fail.
Proof? Coke spends $4-5 billion a year on marketing and advertising, despite being the clear leader in soft drink sales. Why? To stay the clear leader in soft drink sales.
For my client, people don't buy houses every day or week, like they do Coke, but when they do, he wants to be top-of-mind as the person to see to make it happen.
What are you spending on marketing and advertising? What are you getting from it?
Want to talk about your SME marketing and how to make sales and build your brand, email me at bobperyea@gmail.com. Let's schedule a free consultation about how we can grow your business.
Image source: The Guardian https://www.theguardian.com/environment/ng-interactive/2021/jul/14/food-monopoly-meals-profits-data-investigation
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