How much should my landscaping business spend on marketing?
How Much Should My Landscaping Business Spend on Marketing?
The decision about spending money on marketing is not an easy one. As an item in the budget, marketing is as important as any other budget item because it brings money in the door. Successful marketing campaigns can grow landscaping companies in ra emarkably short time when conducted properly. Poorly coordinated marketing plans can cost a lot of money and produce very little results. The real question is how much to spend and how best to spend it.
Marketing Budget Keys to Success
If your company just happens to be the top dog in the local marketplace then your marketing has worked exactly as planned. If your company isn't even in the pack leading the market, you've got a chance to run with the big dogs. It will be how and where you market that will make the difference. Landscaping companies flush with cash can't afford to waste a penny on bad marketing because bad marketing can cut into cash flow in a hurry. Where your landscaping business stands in the hierarchy of competitors, where you want it to stand, and how you want it to get there will depend entirely on the marketing campaign you choose.
Typical Advertising Budgets
The deal is to figure out how much to spend versus how much income comes back in. In other words, every dollar spent on marketing should have a corresponding return of income in ratio. For example, many landscapers commit 5% of their operating budget to market the business. In real dollars that means for every dollar spent on marketing, the company expects $20 in income from sales. Some landscaping companies in more competitive markets will spend as much as 10% of their revenues on marketing efforts. How much to spend is a decision based on several factors, such as:
- Timing - In landscaping, the seasons dictate the services in most cases. In summer, it's yard care and in winter it's snow removal. Some landscapers don't experience as much of a seasonal change but the time of year always determines the marketing effort. All marketing must take place before the commencement of a particular season, so money must be allocated in advance of the expected revenue. Planning should be done at least six months in advance of a season to allow sufficient time to purchase advertising space or coordinate advertising materials production.
- Amount - The budget will tell the tale in this category. New start-ups are going to devote more money to marketing and advertising than an established company in many cases. However, an established company still should conduct "maintenance" marketing to keep ahold of the customers they've already got. Don't forget, existing competitors and new players are always on the lookout for new customers and more revenue.
- Placement - Where you conduct your marketing effort is as important as what your marketing is all about. Putting flyers on windshields can be just as productive as signing up for a billboard if it is done properly. Ads placed in newspapers, sent in the mail, or hung on doorknobs can help target potential customers more effectively than radio or television ads in many cases. And then there is the internet. A website and GoogleTM webpage listing with a phone number or email contact is practically a requirement nowadays.
- Who - Unfortunately, most landscaping companies aren't run by marketing specialists with years of training across a broad range of channels. Most landscapers have training and experience in an entirely different arena. That means finding marketing help. While there are always folks who are happy to give their two-cents worth about the best way to accomplish the task, it's probably a good idea to avoid relatives, friends, or neighbors and go with someone who has some time in service. It may cost a little more but the results will most likely make the cost pretty minimal.
- Message - Deciding what to say is as important as who to say it to. Does your company highlight its high-tech equipment and the great job it does or does it focus marketing content on its people and the great job they do? Do you promote low prices or high quality? These and many other questions should be answered before engaging in a marketing campaign. Unclear marketing information and mixed messages can confuse potential customers and result in the opposite effect than what is desired. Working with a marketing expert will help with sending out the right message to potential customers.
- Best Market- Commercial customers and residential customers are two different animals to a landscaping business. Deciding how much of which market your company should attract will determine many factors dealing with the basic direction of a marketing effort. It may be a combination of the two markets or it may one marketplace exclusively. A marketing expert will help answer this important question.
No Autopilot in Marketing
One thing is for sure about marketing and that is that it is not a stagnant, static environment that hardly ever changes. Marketing is dynamic and is a reflection of current trends, activities, and attitudes. Markets change and so must marketing if it's going to remain effective and produce tangible results. Campaigns are constantly evolving and by paying attention to the results, landscaping companies can tweak the message or the method of delivery to achieve the best return on their investment. It takes a keen eye and a constant finger on the pulse to properly manage an effective and successful marketing campaign.
What are your landscaping competitors doing
Because marketing can appear more complex and complicated than it really is, many landscapers think it is beyond their reach. You don't have to be a rocket scientist to conduct a successful marketing campaign. Take a look at what your competitors are doing for marketing. A landscaper can quickly determine which landscaping business is growing and vibrant and which company isn't flourishing. By emulating the successful company's marketing methods, it is possible to achieve similar results. Just remember, you're going head-to-head with competitors so you better be ready for the consequences.
Launch For Success
Scary or not, a landscaping company that wants to stay in business has to evaluate their market and engage in some kind of marketing and advertising effort if they're going to remain competitive. Successful marketing can be the beginning of a beautiful thing that brings opportunity and advantages in the market. Like a multi-stage rocket headed into outer space, a multi-stage marketing campaign can keep a landscaping business moving forward to bigger and better things. It takes more than one effort to keep a marketing campaign producing results and landscapers should understand how important it is to keep their company in front of customers via marketing.







