Why Most Brisbane Business Owners Are Guessing (And Losing Money)
I’ve sat down with hundreds of business owners from Chermside to Cleveland, and when I ask, "Which of your ads brought in that customer?" the answer is almost always a shrug.
Most people look at their bank balance at the end of the month. If it’s up, the marketing is "working." If it’s down, the marketing is "rubbish."
This is a dangerous way to run a business. You could be spending $2,000 a month on Facebook ads that get plenty of 'likes' but zero phone calls, while a small $500 investment in Google is actually paying your mortgage. If you don't know the difference, you're probably throwing good money after bad.
In this guide, we’re going to look at how to stop guessing and start measuring real profit. We aren't going to talk about "engagement rates" or "brand awareness." We are going to talk about dollars in vs. dollars out.
Mistake 1: Counting 'Likes' Instead of Dollars
The biggest mistake I see is business owners getting excited about the wrong numbers. A marketing agency might send you a report saying your "reach is up 400%" or you got "5,000 impressions."
Who cares? You can’t pay your staff with impressions.
If you want to grow, you need to stop chasing likes and focus on how many people actually picked up the phone or walked into your shop. If an ad costs you $1,000 and helps you sell $5,000 worth of plumbing services, that’s a win. If it gets you 10,000 likes but no one books a job, it’s a failure. Period.
The Simple Math of Marketing Success
To see if your marketing is working, you need a basic formula. Forget the fancy spreadsheets. It looks like this:(Total Sales from Marketing - Cost of Marketing) / Cost of Marketing = Your Result
If you spend $1,000 and it brings in $4,000 in profit, you’ve made 3 times your money back. That’s a healthy business. If you spend $1,000 and only bring in $800, you’re paying for the privilege of working. You’d be better off putting that money in a high-interest savings account (or taking the family to Burleigh for the weekend).
Mistake 2: Forgetting the 'Hidden' Costs
When calculating if an ad campaign worked, many Brisbane tradies or shop owners only look at the invoice from Google or Facebook. They forget two major things:
1. The Cost of the Goods/Service: If you sell a couch for $2,000, you didn't "make" $2,000. You have to subtract what you paid for the couch, the delivery driver's wages, and the rent for the showroom. 2. The Management Fee: If you pay an agency $1,000 a month to run your ads, that $1,000 must be included in your calculations.
I once spoke to a landscaper in Carindale who thought his ads were killing it. He was spending $2,000 a month to get $10,000 in work. Sounds great, right? But once we looked at his materials, wages, and fuel, his actual profit on those jobs was only $1,500. He was spending $2,000 to make $1,500. He was losing $500 every single month and didn't even realise it because he was only looking at the top-line revenue.
Mistake 3: Not Knowing Where the Lead Came From
If someone calls your business today, do you know why?
Most business owners tell me "word of mouth." While word of mouth is great, it’s often a lazy answer. Often, a customer heard about you from a mate, then Googled you, looked at your reviews, and clicked a paid ad to get your phone number.
You need to see exactly where sales come from so you know which tap to turn up and which one to turn off.
Practical ways to track this without being a tech genius:
Ask every single caller: "Just so I can thank the right person, how did you find us today?" Use different phone numbers: You can get cheap local numbers that redirect to your main line. Use one for your Facebook ads and one for your flyers. If the 'Flyer' phone rings, you know that $500 at the local printer was worth it. Voucher codes: "Mention 'BRISBANE10' for 10% off." If people use it, the ad worked.Mistake 4: Ignoring the "Lifetime Value" of a Customer
This is where the analytical side really matters. Sometimes, the first sale doesn't make you much money, but the
customer is worth a fortune.Let’s say you run a hair salon in Paddington. It might cost you $50 in ads to get one new customer in for a $60 haircut. After you pay the stylist and the rent, you’ve made $0.
Most people would say "that marketing failed."
But if that customer comes back 6 times a year for the next 3 years, they are worth over $1,000. Suddenly, spending $50 to get them doesn't look like a mistake—it looks like a bargain.
When you calculate your results, don't just look at today's till tape. Look at what that customer will spend over the next year. This is how the biggest businesses in Queensland grow—they are willing to break even on the first sale because they know they’ll make the profit on the second, third, and tenth sale.
Mistake 5: Giving Up Too Early
I see this all the time. A business owner tries Google Ads for two weeks, doesn't get a flood of calls, and cancels it. "Google doesn't work for me," they say.
Marketing is like a new apprentice. They aren't going to be profitable on day one. They need to learn the ropes. It usually takes about 3 months to truly see if a marketing channel is going to make you money.
Month 1: You're gathering data and seeing what people click on. Month 2: You're cutting out the stuff that didn't work and doubling down on what did. Month 3: You should start seeing a steady flow of enquiries.If you pull the pin after 14 days, you’ve just spent the "learning money" and quit right before the "earning money" started.
How to Start Measuring Properly (Starting Today)
You don't need a degree in data science to do this. Here is a simple 3-step plan you can start tomorrow morning:
1. Set a Goal for the 'Win'
What is a lead worth to you? If you’re a roof tiler, one lead might be worth $15,000. If you run a cafe, it’s worth $25. Write down what a "win" looks like. Is it a phone call? A form fill on your website? A walk-in?2. Track the Source
Create a simple spreadsheet (or a notebook on your desk). Every time the phone rings, mark down where they found you. If they say "the internet," dig deeper. "Did you see us on Facebook or did you search for us on Google?"3. Review the Monthly Spend
At the end of the month, look at your total marketing bill. Total Spent: $1,200 Total Leads: 10 Cost per Lead: $120Now, ask yourself: "If I could buy 10 more customers for $120 each next month, would I do it?" If the answer is yes, keep going. If the answer is no, something needs to change.
What’s a Waste of Money?
I’ll be blunt: most "brand awareness" advertising for small businesses is a waste of money.
If a salesperson tells you that you need to spend $3,000 a month on a billboard or a radio spot so people "know your name," be very careful. Unless you have a massive budget, you need "Direct Response" marketing. That means you spend a dollar and you get a lead
now*.Leave the brand awareness to Coca-Cola and Westpac. You need the phone to ring so you can pay your bills this Friday.
Real World Example: The Morningside Plumber
We worked with a plumber in Morningside who was spending $4,000 a month on a broad Google Ads campaign covering all of Brisbane. He was busy, but he was stressed and felt like he wasn't making money.
When we looked at the data, we found he was getting heaps of clicks from people in Ipswich and North Lakes. By the time his trucks drove out there, sat in Gateway traffic, and did the job, he was barely making a profit.
We changed his strategy to only show ads to people within 10km of his base. His total number of calls went down, but his profit went up by 30% because his fuel costs dropped and his team could fit in two extra jobs a day.
He stopped measuring "how many calls am I getting?" and started measuring "how much profit is each call making me?"
Summary: Your Action Plan
If you want to stop wasting money and start growing your Brisbane business, here is what I’d tell you over a beer:
1. Stop looking at vanity numbers. Likes, follows, and impressions don't pay the bills. 2. Calculate your true profit. Subtract your wages and materials from the sale before you decide if an ad worked. 3. Track everything. Use different phone numbers or just ask the customer. Don't guess. 4. Be patient. Give any new marketing at least 90 days before you judge it. 5. Focus on the lead, not the 'brand'. Make sure your ads give people a reason to call you today.
Running a business is hard enough without wondering if your marketing is a black hole for your cash. When you start measuring the right things, you stop worrying and start growing.
Want to know exactly which parts of your marketing are making money and which are just wasting your time?
At Local Marketing Group, we help Brisbane business owners cut the fluff and focus on the results that actually matter. We don't care about 'likes'—we care about your bottom line.
Contact us today to see how we can help you get more customers.