Type “marketing budget template” into a search engine and you’ll find several examples, from the most basic to impressively detailed.
But 99 percent of the time there’s one important line item missing – your Cost of Occupancy.
Cost of Occupancy = Yearly Rent or Mortgage
Your yearly cost of rent or mortgage payments should be treated as a marketing expenditure.
You sell a product or service that relies on foot traffic. The better your location, the more visible you are to potential customers.
The more visible your location is to potential customers, the less advertising you need.
Location = Advertising
Therefore, your Cost of Occupancy should be designated as a line item in your marketing budget.
This allows you to analyze your current location in terms of marketing investment:
- Am I in a location with the best possible return on investment?
- What kind of signage is allowed (both inside and outside of the building)?
- What is the drive-by traffic like? Is there enough visibility for daily commuters to notice my business?
- How convenient is my location for potential customers (easy access, parking)?
Ideally, your location will offer the best visibility and access for the least amount of rent or mortgage payments.
Thinking about your Cost of Occupancy from a marketing perspective will rein in over-enthusiasm for luxurious space with poor visibility; likewise, it can shine a new light on a location you may have previously rejected – a space that needs work, but the location is priceless.
Give some thought to your current Cost of Occupancy in terms of marketing – how wise is your investment?
Next time, we’ll look at an easy way for any business to create a spot-on marketing budget.
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