How Much Should I Spend on Marketing?

An HVAC Contractor in California asked:

“What percentage of my total revenue should I spend on marketing?”

EGIA faculty member Gary Elekes started by suggesting that any company reviewing their marketing strategy should prioritize aligning their outreach efforts with the size and goals of their company. Elekes said a quick exercise, reviewing or creating a company business plan, will more naturally shed light on how a company should build a marketing campaign.

Elekes added that that businesss plan should also include one, five and ten year goals to track your progress, saying, “what that does is frame the conversation around ‘well, where am I now?’ and ‘where do I want to be in one year, three years, ten years?'”

“The beginning parts of what marketing costs are link back to that conversation,” said Elekes.

Elekes explained that achieving in your business plan will go hand-in-hand with your marketing plan. “What you’ve done is you’ve created the backbone of a company that can then grow,” said Elekes.

Gary Elekes is serial entrepreneur with a passion for helping others become more successful by sharing what he has learned over the past 3 decades working closely with all facets of the contracting industry. During his career, Gary has held senior management positions at Lennox and Service Experts.

Our faculty members have also answered questions on other topics related to company structure and growth, including Effective Marketing Strategy and Marketing for the Post-Summer Downturn.

Hear more from our “Ask The Experts” faculty members on “Cracking The Code,” our weekly web series.

Contractor University members can click here to log in to their member dashboard and submit a question through the Ask the Expert portal.