How can you tell if you can afford to make customized items for your marketing strategy? Finding a price point for a discount, for example, requires making financial projections to analyze break-even costs and potential sales volume.
Consider the promotion by itself as you calculate the costs associated with it. Consider only the costs are outside your regular advertising budget. If you had been planning to advertise on the internet anyway, but now find that you need to create an ad about your medical tools, consider only the production costs for the ad, not the ad space that’s already accounted for in your regular advertising budget. In cases like social media, all are free, however the % of reach is too low unless you will provide budget for the ads.
Project the sales you’ll generate with the promotion. Subtract the associated costs from the sales. The balance is the profit, or contribution to overhead, the plan will generate that.
