It really depends upon your gross margin doesn't it? That's my argument. 10% of spend on Marketing is a rough guide and you are asking for more than that which I am saying is potentially expensive.
Of course I understand you have to spend to accumulate, but you don't have to over spend and use someone who is rehashing other people's articles.
I actually charge an hourly rate and work out my pricing based on how long it takes to research, write, edit, 2nd draft, and proofread new copy. However, you can always ask for quotes and see how much it would actually cost to have written, designed and printed, and delivered, 1,000 flyers, for example, from different businesses.
My point is that small businesses sometimes try not to spend to save, and do not generate new customers or market to existing customers effectively and lose business. Some advise a budget of 20% of total budget for marketing.
If your total marketing budget is less than £300, then of course you are massively restricted and will struggle to generate new customers whether locally or through your website. Some marketing materials are used to sell a product or service, other times it's to inform, join a discussion, compete, and/or state your positioning, etc.,.
However, you are investing to gain a return, so, you will get your money back to reinvest in more marketing. If you spend £300 on a flyer, for example, and it generates £2,000 new business for you, which generates £900 repeat business for you, and if your net profit margin is 25%, then you'd make £870 -£300 = £570 net profit. But next time, you only spend £200 on printing and delivering the same flyer, but say instead of a 1,000 print run you do a 3,000 print run, you'll begin to make more net profit.
But, if you spend a little more or find a supplier who costs less to have more printed, you increase your ROI on that flyer. So, for example, 500 flyers may yield £1,600 sales; 1,000 £3,200; 2,000 £6,400; 4000 £12,800 over the year. Once you have the copy and the design, you can print away until your hearts content all year long.
When the new customer buys from you, you send them another flyer/leaflet/small catalogue, and text message marketing, email sales letters/newsletter, a free sample, introduce a friend offers, etc., which then generates repeat and new business for you too with offers, etc.,.
You should know which marketing channels work best for your target customers.
Gross Margins
You know how much sales your business needs to reach to cover overheads and break-even. By investing in copywriting and a good design, for arguments sake, you are doing so to increase your response and conversions over the long-term; thereby increasing your sales long-term.
If you find your gross margin is an issue, then finding cheaper suppliers and/or materials is going to help improve your business risk and profitability. If your businesses costs are high, and pricing is low, then you are not going to turn a profit - ultimately failing.
