Ask for a value proposition. Then, average or use the highest quote to base your budget on. Of course, this quote will not be accurate . For example, if you think the company is going to organize an event during the year, you can make a quote for buffet expenses; The problem is that you still have no idea how many people there would be at that event or what the ideal menu would be for the occasion. After all, it's just an estimate, maybe the company won't even do the event, who knows? Working with a margin of safety As you probably noticed, both methods we presented are imprecise.
And that is why the margin of safety is essential Phone Number List for your marketing budget. Basically, you should always estimate a little more for each budget item, a good margin is 15% to 20% of the value. Taking into account the financial availability of the company The first two methods assume that there is good flexibility to accommodate marketing expenses in your company. And that works very well for medium and large companies. But on the other hand, small businesses may face a resource constraint. In this case, the best method is to start from the value that can be made available to the sector and then distribute it among the planned expenses .
This process is basically a matter of allocation. If you only have $20,000 for marketing next year, how are you going to allocate that money among budget items? To do this, of course, you must take into account an estimate of how much each item will cost and be aware that you will need to make a much greater effort to negotiate prices and reduce costs. You may have to eliminate some less important elements in your planning.