Tags |
|
|
Links |
|
|
Other Added - What Does the Point of Diminishing Return Mean?
All too often, copywriters create advertisements without thinking long enough about what's going on inside their prospects' minds.What are they thinking?What are their proble
Monthly Widget Sales: 35
Gross Revenue: $3,500.00
Less Advertising: $3,000.00
Gross Profit: $500.00
Example 3
Product: Widgets
Maybe you often heard that vending machine business is one of the most profitable home based businesses. Yes, it's true that vending machine business is an instant home based busine
The point of diminishing return simply means that no matter how much more money you spend on advertising, your gross sales will only increase in small increment, if any at all.
Below are some sample budgets for a single product showing how diminishing return can affect your profits and sales.
Example 1
Product: Widgets
Price: $100.00
Monthly Ad Budget: 2k
Monthly Widget Sales: 30
Gross Revenue: $3,000.00
Less Advertising: $2,000.00
Gross Profit: $1,000.00
Example 2
Product: Widgets
Price: $100.00
Monthly Ad Budget: 3k
Monthly Widget Sales: 35
Gross Revenue: $3,500.00
Less Advertising: $3,000.00
Gross Profit: $500.00
Example 3
Product: Widgets
Many of you are cold calling—or introductory calling, as I prefer to think about it—to set new business appointments with prospects. In order to effectively set new business appointments, it is impo
Below are some sample budgets for a single product showing how diminishing return can affect your profits and sales.
Example 1
Product: Widgets
Price: $100.00
Monthly Ad Budget: 2k
Monthly Widget Sales: 30
Gross Revenue: $3,000.00
Less Advertising: $2,000.00
Gross Profit: $1,000.00
Example 2
Product: Widgets
Price: $100.00
Monthly Ad Budget: 3k
Monthly Widget Sales: 35
Gross Revenue: $3,500.00
Less Advertising: $3,000.00
Gross Profit: $500.00
Example 3
Product: Widgets
We all succumb to the annual ritual of making a bunch of resolutions about how we will change our lives with the start of the New Year: eat better and healthier foods, exercise more, reorganize our
Example 1
Product: Widgets
Price: $100.00
Monthly Ad Budget: 2k
Monthly Widget Sales: 30
Gross Revenue: $3,000.00
Less Advertising: $2,000.00
Gross Profit: $1,000.00
Example 2
Product: Widgets
Price: $100.00
Monthly Ad Budget: 3k
Monthly Widget Sales: 35
Gross Revenue: $3,500.00
Less Advertising: $3,000.00
Gross Profit: $500.00
Example 3
Product: Widgets
Used primarily in the beginning as a traffic-monitoring device, remote security cameras are becoming the weapon of choice in the war against terrorism and crime around the world. A trained technicia
Less Advertising: $2,000.00
Gross Profit: $1,000.00
Example 2
Product: Widgets
Price: $100.00
Monthly Ad Budget: 3k
Monthly Widget Sales: 35
Gross Revenue: $3,500.00
Less Advertising: $3,000.00
Gross Profit: $500.00
Example 3
Product: Widgets
Business cards are very useful as an advertising tool when you are launching a new business. Never leave home without your cards as you never know when you will meet someone to whom you want to giv
Monthly Widget Sales: 35
Gross Revenue: $3,500.00
Less Advertising: $3,000.00
Gross Profit: $500.00
Example 3
Product: Widgets
Price: $100.00
Monthly Ad Budget: 4k
Monthly Widget Sales: 40
Gross Revenue: $4,000.00
Less Advertising: $4,000.00
Gross Profit: $0.00
The examples above clearly illustrate that sometime spending more money does not necessarily mean making more profit. It doesn’t take a rocket scientist to figure out that example 1 is clearly the most cost efficient budget. Assuming that without the advertising the merchant wouldn’t have any sales.
When you’re planning your advertising budget, take into consideration the demand for your product and always be very careful when adding dollars to your advertising, just because your
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.otheradded.com/article/7129/otheradded-What-Does-the-Point-of-Diminishing-Return-Mean.html">What Does the Point of Diminishing Return Mean?</a>
BB link (for phorums):
[url=http://www.otheradded.com/article/7129/otheradded-What-Does-the-Point-of-Diminishing-Return-Mean.html]What Does the Point of Diminishing Return Mean?[/url]
Related Articles:
Think Property First For Commercial Real Estate Mortage
The More Connected We Get, The More Disconnected We Become
Advertising Theory and Where it Falls Short
Bookmark it:
|