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Advertising Budget

We have very cool ad budget calculator where you can enter your own actual figures.

Create the budget for business as usual, based on your historical sales, based on what you think sales ought to be.

So, you start with a number…Budget a range of 10-12% of this number for Total Cost of Exposure.

We now multiply these numbers by your AVERAGE Mark-up above Cost of Goods Sold. (not your average margins, but your mark-up.) For example, if you consistently use a keystone mark-up (100%) it means that you are selling your products at twice your cost. Your mark-up is 100% of the cost. The most difficult part of setting your ad budget may be calculating your average mark-up if you’ve never done it before.

But wait, there’s more! What you have now is a budget that is not adjusted for your location or rent. Yes, rent matters!

If you’re paying high rent, it (hopefully) means you’re in a good location. If you are spending a lot of money on rent you won’t have/need to spend as much on advertising. This is a good thing.

Subtract your yearly rent (or other payment) from the numbers.

The remaining balance is your advertising budget!


If you need a little help Call me at 270-703-2700