Thursday, October 22, 2009

Spend at the level you want to be at



Insanity: doing the same thing over and over again and expecting different results. - Albert Einstein

I meet business owners who want to grow thier business to a very high level, but are unwilling to spend at the level they want to be at. Let me give you an example:

A car dealer spends $200 on average per car, on advertising to sell it. He is selling 50 cars a month, so his total advertising budget to move 50 cars a month is: $10,000.
His goal is to sell 75 cars a month. This goal is very attainable, however the client simply wants to grow without adding more money to the budget. If you want to be selling 75 cars a month you will need to spend $15,000. ($200 per car x 75 cars).
This is the same in many businesses, decide what you are spending NOW per each new customer and look at your goals. Spend at the level that you want to grow to.
  • One note on this: Often you can lower your acquisition of a new customer through better creative and being more focused with your advertising dollar

You have heard the above quote already, but it does also relate to growing your business!

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