How Much Should You Spend On Advertising Your Building Company?
Russ Stephens
Helping residential home builders to generate more leads and more sales at higher margins while improving the building experience for their clients.
This number is the holy grail of business.
When you crack this code, there is no limit to the size you can grow a building company to…
How much do you spend on advertising your building company?
Is it a dollar figure or a percentage?
If it’s a percentage, is it three percent of the annual revenue???
Maybe it's more...but most likely it's less.
Low Advertising Spend Translates To Low Margins
After talking to a lot of owners of small custom home building companies, it seems with many of them who are doing $3 million a year or less on sales, that it's almost considered a ‘badge of honour’ to spend under $10,000 a year on advertising...and in some cases nothing at all!?
And unfortunately, many of the building companies that haven’t been investing in their?marketing?or regularly spending money on?advertising, are now signing up plenty of building contracts, but at LOW margins!?
Low margins that will come back to haunt them as the year progresses and the cost of labour and materials increases due to supply and demand.
There are really two big problems that emerge as a consequence of not investing enough money in marketing and advertising...
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2 年Absolutely phenomenal article Russ.