If you’re a new HVAC company, you may be wondering the amount of money you should spend on advertising expenses. First, of course, advertising expenses are an important part of growing any small business.
The right marketing plan can help you expand your reach, generate more leads, and increase sales. However, how much is too much, and what’s the typical budget HVAC company’s spend on advertising expenses?
Read on to learn how to grow your business utilizing the right marketing expenses for your HVAC business.
How Much Should You Spend on Advertising Expenses?
As a general rule, most small business owners know (HVAC businesses being one of them) if you’re looking to grow your HVAC business, you should dedicate between 2% to 5% of your sales to advertising expenses.
Now, you may be asking? What if you don’t have many sales? Here, in essence, lies the problem for many young HVAC businesses. It should come as no surprise that tiny advertising budgets yield tiny results. So how can you give your young HVAC business a boost?
It’s simple: play bigger.
If you want to stand out ahead of the pack, you need to advertise bigger than your competition. Spending less than 5% of your sales on your advertising budget is playing small.
If you want better results, you need to play bigger. That starts with your advertising budget. Even a 5% budget is considered a managing budget. It’s the budget you use to replace any lost customers in your HVAC business.
To grow and scale your HVAC business, commit 10% of your sales to your advertising expenses. Few, if any, HVAC businesses commit 10% of their budget to marketing expenses. However, if you look at that rate in comparison to other industries, 10% is still small potatoes.
While 10% will help you grow, it won’t grow at a fast enough rate that young HVAC businesses want. In that case, we suggest committing to an even larger budget.
It will help you grow and scale your business much faster to become a dominant player in your market.
Use the 20/20 Rule for Marketing Success
To grow your business, use the 20/20 rule for marketing success. What is the 20/20 rule?
We’re glad you asked! It’s spending 20% of your projected sales revenue on advertising expenses and using 20% of your time towards advertising your services.
Some ways to devote 20% of your time to marketing could be:
- Getting involved in your local chamber of commerce
- Joining a leads club
- Sponsoring a local team
- Going to networking events
- Joining HVAC organizations
By committing 20% of your budget and time to your marketing, you can grow your HVAC business quickly and use the extra service to scale your business.
Get Started Today!
If you’re looking to grow and scale your HVAC business, you need to find a marketing partner you can trust.
For over 30 years, Enterprise Selling Solutions have helped HVAC companies stand out, grow, and scale their business. If you’re looking to improve your marketing efforts this year, contact us today.
We’ll help you adjust your advertising expenses to what works for you to grow and scale your business in 2021 and beyond.