March 31, 2025
Many economists and analysts are saying that a recession is coming sometime this year. That said, many weight loss companies and their top managers will say they’ll have to cut expenses, especially marketing. That’s the knee-jerk reaction, but it’s dead wrong.
When consumers cut back on spending, they will revert to trusted brands and companies. They will look for quality. If they don’t see ads or messages for those companies, then every company is the same to them. No points of differentiation. Everything and every company becomes a commodity. That company no longer has your “share of mind”. It’s invisible. Not good
Recessions can be a great time to INCREASE your marketing, and capture a large share of the market, because everyone else is being silent. In addition, with less competition and demand, the cost of all advertising (online, pay per click ads, TV, radio, etc.) goes down, giving you more bang for the buck. The decreases your “cost per client acquisition.”
A weight loss company should be spending at least 10-15% of each sales dollar on marketing. That means $48,400 to $72,600 per year or $4,033 – $6,050 per month (based on a typical retail commercial weight loss service with $484,000/year in revenue), and $56,300 per year ($4,692 per month) for a medical weight loss company with $563,000/year in revenue.
Don’t cheap out on marketing. it can cost you current customers as well as new ones.