How Much Should You Spend
       on Your Marketing???

This is obviously a never ending questions that most business owners continue to ask every working day.

In an ideal world, there would be a reference book that would give you the answer.  Yes there are Industry benchmarks.  But -- Do you really just want to compare yourself with "Industry Averages"?

Exactly how much you spend can only be determined by your goals - So you MUST firstly know what your business and marketing goals actually are. (That is a completely different article - Click here to read about business goal setting).

A couple of questions for you:

How much interest can you earn with your Bank?
 – Probably about 6.5% per annum (May 07)

What average return can you get on Property?
- Approximately 5%-15% per annum (depending on where you buy)

What return can you get on the share market?
-  10% - 15% per annum (If your lucky and really know what you are doing.

So what return can you get
   by effectively marketing your salon?

• Lets say you spend $300 on a marketing piece for your Salon and it’s distribution.

• From this you achieve 30 bookings.

• Lets assume you make an average of $30 Profit from each of these bookings.

The Sums:

• 30 Bookings  x  $30 Profit  =  $900 Profit

• Your marketing exercise cost $300

That’s 300% return on your marketing investment  (in about 3 weeks)
  - That doesn’t take into account the life time value of any new clients you attracted.

Truthfully – If you knew that you could at least double your marketing investment, you should be investing as much as you possibly can into your marketing – And then some!

Marketing done properly can be one of the very best investments that you can make in your Salon.

Please enjoy (and forward to any of your friends).
Cheers - Ken Hobson
  PS: Email me ken@salonbiz.com.au with any article suggestions.