October 2008

If you’ve never really done much advertising and relied mostly on networking and word-of-mouth, how can you figure out where to start?
The first thing you must do is calculate your minimum and maximum allowable ad budgets:

* Step 1: Take 10 percent and 12 percent of your projected annual gross sales and multiply each by the markup made on your average transaction. In this first step, it’s important to remember that we’re talking about gross markup here, not margin. Markup is gross profit above cost, expressed as a percentage of cost. Margin is [...]