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1 reply created 8 months ago
posted by Let'Er Buck 8 months ago

We just received a marketing proposal for our tunnel wash. It was quite a bit more than I feel comfortable with. We are in our fifth year and are doing fairly well. What is your budget for marketing? One time I thought I heard a budget number based on a percentage of gross revenue. Does anyone have a number like such?


reply by Robert Roman 7 months ago

I know operators that spend $40,000 and more on marketing and promotion.

How much to spend (budget) and what to spend it on (tactics) depends on goals and objectives (strategy).

“We are in our fifth year and are doing fairly well.” This implies maturity, and we are not doing well enough. Otherwise, there would be no talk about cost of marketing proposal, and website would not be down.

Marketing plan $4,500 to $6,000; website, apps, cart, $6,000; direct mail $2,500 a month; PR $12,000 annually; miscellaneous $6,000 Highway billboard is $20,000 annually. Not to mention cost of loyalty program, re-wash policy, money back guarantee, etc.

So, there is cost to design and create marketing program and recurring monthly expenses to drive it.

I also know some conveyor operators that don’t spend much at all on marketing and promotion. These are multi-million dollar stores sitting on prime real estate with traffic counts of 45,000 cars a day or more.

Hope this helps.

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