The correct amount to budget for advertising can be calculated only by multiplying your top-line sales volume by your average storewide markup, then deducting the cost of occupancy.
Miraculously, the great Dave Young has created an automatic, online ad budget calculator and donated it as his personal gift to the small businesses of the world.
Check it out. It’s amazing. You plug in your sales volume, your average markup, and your rent, and the ad budget calculator instantly shows you a conservatve ad budget and an aggressive ad budget.
This is truly an amazing tool.