Does Spending More on Marketing Pay Off?

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KEYWORDS Budget Marketing

When it comes to bringing cars in, is word-of-mouth really the best method or is marketing essential to business success? 

The Ratchet+Wrench Industry Survey asked shops what percentage of sales they dedicate to marketing, and despite a standard benchmark of 6 percent, the majority of shops (59 percent) fell in the 1-4 percent range, but nearly 10 percent of shops still do not have a dedicated marketing budget. 

Comparing shops of similar size (under 2,000 square feet) Ratchet+Wrench wanted to find out whether or not a marketing budget had a direct correlation with car count.

Shops Under 2,000 Square Feet 

Average Monthly Car Count No Dedicated Marketing Budget  Marketing Budget of 1-2% Marketing Budget of 3-4%
Less Than 50 50% 10% 0%
50-99 16% 20% 20%
100-149 0% 40% 40%
150-199 17% 20% 0%
200-249 17% 0% 40%
250-299 0% 0% 0%
300 or more  0% 10% 0%

When it comes to smaller shops, the difference between a budget of 1-2 percent and 3-4 percent of a marketing budget does not seem substantial, but 50 percent of those that had no dedicated marketing budget fell in the smallest average monthly car count range, less than 50. 

The results did range quite a bit, and it’s hard to draw a clear correlation between spending more on marketing and getting cars to the shop without considering other factors. It seems that what works for one shop may not work for another and it’s up to the individual to find the tactic that works best for it, which may not necessarily mean spending more. 


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