292 MANAGEMENT OF DAIRY PLANTS 



appropriation among the different kinds of advertising to be 

 used. Without a definite appropriation, advertising is likely to 

 go on in a haphazard way, without continued purpose, without 

 enthusiasm. Without an appropriation, the man in charge of 

 the advertising cannot be certain that he can afford to do this 

 or that thing. With an appropriation for a year, advertising 

 may be planned for a year; each step may be taken with satis- 

 faction because money has been set aside for it, and when the 

 total appropriation is kept in mind it is easily determined 

 whether a particular advertising outlay is reasonable or not. 



The amount of money that should be set aside for advertising 

 by any creamery business can be best determined by the mana- 

 ger after a careful study of the special circumstances and trade 

 conditions of his business. Even then he cannot be very cer- 

 tain as to the percentage of his gross sales he should set aside for 

 advertising until he has tried out an annual appropriation or 

 two, and studied the results of his advertising expenditure. 



A few general principles may guide in determining an approp- 

 riation. Advertising should always pay for itself and in addition 

 return a profit, either through increased sales, more economical 

 selling or strengthened good will or some other valuable thing, 

 and the appropriation should not be so large that such a return 

 is not reasonably probable. A new business requires a larger 

 percentage of gross sales for advertising than an old-established 

 business. If it is intended to increase production and secure 

 larger sales in old territory or new, the appropriation must be 

 larger than if it is intended merely to hold an established trade. 

 If competition is keen, the appropriation percentage will have 

 to be larger than if there is no competition. Generally, it is best 

 to appropriate conservatively until experience proves what is a 

 sound basis of appropriation for a particular business. 



The appropriation set aside for a year's advertising is usually 

 a certain percentage of the gross sales of the preceding year. 

 Creameries doing a wholesale business appropriate all the way 

 from o.i of one per cent of their gross sales to i per cent. Cream- 

 eries doing a retail business necessarily appropriate a larger 

 percentage, often as much as 5 per cent of gross sales. 



