Does anyone know what cost percentage of advertising is common for sales? Is there a place to find such information for specific industries? I have a client that may be using more of his funds for advertising than he should.
Try searching for industry averages for small businesses at www.bizstats.com. They have some free stats that will give you advertising as a % of sales based on the industry and type of business.
Keep in mind that a start-up/new business may need to spend more than a well established, well recognized business. I'd make sure the client is tracking the effectiveness of his advertising--he may be spending money on ineffective advertising.
Michelle L. Long, CPA, MBA
Author of: Successful QuickBooks Consulting: The Complete Guide to
Starting and Growing a QuickBooks Consulting Business
SuccessfulQuickBooksConsulting.com
It is very hard to designate this. If a retailer has a good and visable location he may not need as much but I have found that most of my sucessful clients do around 8-10% of sales
