Calculate your marketing budget

Estimate allowable funds to acquire each sale

Before you begin any marketing initiatives, you’ll need to figure out the amount that you can afford to spend to acquire a sale. Many businesses devote a percentage of sales to their marketing budgets. However you arrive at a cost-per-order goal, the exercise to review and estimate costs kicks off an ongoing process. Using the Marketing Budget Calculator clarifies costs and defines the remaining allowable budget for marketing and potential profit. Do this for each product and/or bundle.

Businesses need to price products based on a thorough examination of costs to deliver a product as well as competitive, retail and wholesale environments. Whether selling at retail and/or ecommerce, consideration for the costs of goods, credit card processing, shipping and handling, inventory storage, returns, customer service, administration and any royalties makes or breaks business success.

The template includes a sample product profile which is designed to create a bundle of products for ecommerce and/or DRTV where the sale of the initial product is followed by “upsells,” or additional, usually related products or services. The first worksheet shows an example of how a company might fill out the form. The second sheet is blank for you to use.

Start with the retail price you have already chosen based on current competitive, retail and wholesale environments. Results of the exercise may cause you to change your retail price in the event you allow too little for marketing and and/or profit.

Get the Marketing Budget Calculator to start estimating your numbers when you click the download button. There are two pages to this PDF: an example and a blank worksheet:

Click button to download


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