DW's Blog

Sales vs Expenses

by DW Green — November 1, 2023

There is a fine line between reducing costs and maintaining or increasing sales.

A client is considering switching from a weekly ad to a biweekly ad. What effect will reducing print advertising in half do to sales? I don’t know the answer. In the short term maybe not so much. But long term, it could be a different story. Controlling/reducing expenses is a good thing. But there is a fine line between reducing costs and maintaining or increasing sales. Reducing labor expense too much will result in reduced sales. Reducing inventory can also reduce sales. And on and on.

To me advertising frequency is about brand exposure and having an ad presence on a competitive basis. Though biweekly ads will reduce ad expense, what it will do to sales long term is unknown. To me, any activity that contributes to sales and brand awareness is a prudent expense.