Q:

Dr. Margolies,

I am finishing up my loan proposal and was wondering
if you had any recommendations for the amount of
dollars that should be devoted to advertising in the
first year?  Should this be a percentage of gross
sales or a fixed amount?

Any thoughts are appreciated.

A:

Thanks for the e-mail. I wish I had a great answer for you. Advertising in the 
beginning is usually a larger portion of your budget and is dependent on many factors 
including the best for the buck in your area. Inexpensive advertising can be available if 
you are going into a small market and very expensive in a large metro area. Therefore 
before setting a specific budget it is important you determine the market and the 
methods best ustilized for this. For instance .. yellow pages .. shopper newspapers .. 
metro newspaper ads .. insert flyers .. printed material .. patient and community 
newsletters (includes print and postage) .. hiring a PR person .. radio/TV .. and more 
is dependent on what worked in the past and what will work in your area. I would first 
set aside funds for a printing and mailing campaign .. hiring a chiropractic advertiser 
for this is possible and they can give you the details in terms of cost .. a direct mailing 
firm found in the yellow pages can also help promote to a specific demographic area as 
well as print and mail. Welcome wagon and New neighbor programs are also useful.

So to answer your question .. I'm not sure of the % for you. Get the details or is you 
need to be general say 15-20% for a safe estimate and this is off the cuff.

Have a Great Day

Dr. M