It’s that time of year. Everyone is making their budget for the new year. Businesses are figuring out if they can hire new employees and if they can afford to give out generous bonuses or increase salaries. They’re determining how much money they can spend on their marketing budget, which includes how much they can spend for the year on promotional products.
Promotional products are a great way to promote your brand and gain more customers. When you’re developing a promotional budget, you have to consider how the promotional products will help grow your business or maintain your brand. You’ll also want to factor in how much you’ve spent on promotional products in the past and whether or not they’ve been effective. Your budget should align with how much you hope to grow your business. Consider the percentage of sales or profit you need in order to reach that growth rate.
Planning a 2020 promotional budget may be difficult because it is hard to predict growth in a changing market. That is why businesses typically use a percentage method to predict the company’s growth and profit for the year, and then make a marketing budget that aligns with that. Typically, companies allot about 20% of their marketing budget to promotional products.
Many people make their budgets by factoring in products, services, or events they have launching during the year. For instance, you may have minor events throughout the year, where you don’t need much of a promotional items budget. But if you have two big events per year, you’ll want a lot of extra swag not only to promote the event, but to have as giveaways during the event. Keep in mind that allotting a higher promotional product budget during this time can cut into your profits. Be mindful of this as you make your budget.
To make the most of your promotional products budget in the coming year, give us a call and we’ll help set you up with the right products.