"Step By Step: Here's How We Would Make Our Gardener A Millionaire By Growing
His Revenue By 91 Times"
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We' Walk You Through A Real Life Example Of How A Gardener Could
Increase His Sales From £100 to £9,120 Per Customer - No Kidding...
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By Michael Maven When my wife and I first moved in to our new home in a new area, the garden was overgrown. So she called a local boutique gardener. She likes to have a gardener come over in the summer and keep
the garden tidy etc. |
After he left, I walked around the garden and noticed there were a few weeds growing amongst the inner plants around the lawn.
There were also leaves from the trees laying amongst the weeds and
some of the bigger hedges were overgrown.
I thought it didn’t look complete. I asked my wife why the gardener
didn't tidy up the rest of the garden, and my wife replied that the
gardener simply 'didn't ask'..!
So I asked her “While the gardener was in the garden, if he offered to remove all the weeds and leaves for an extra £25, what would you say?”
She said yes.
“And what if he could slightly shape and trim the small shrubs and bushes for another £25 – would you say yes?”
She agreed, she’d probably say yes.
So I asked, “How often have ANY of our gardeners asked you these questions?” – she said “never”!
I was amazed that not even 1 gardener had even offered these extra services.
You see, if my wife had said yes to just one of these services,
the gardener would make an extra 25% in revenue. He charged us £100
already and could have added an extra £25 or even £50 to his sale price.
So if she took both services, that would be an extra 50% in revenue.
That was 4 years ago.
Since then, we’ve had several different gardeners come over to look
after our garden. I asked my wife why this was. She said she always
loses the gardeners info, and she just calls in whoever she can find.
Can you believe that? Not one gardener has EVER contacted us again to see if
we wanted our grass cut again, or our hedges trimmed etc.
So I asked “If the owner came and inspected the gardeners work
(something that never happens) and made sure you were 100% happy, would
you use the same company again?”
Of course, she said yes - because it’s a pain to look for a new
gardening company each time she needs the garden done.
Then I asked “If the owner mentioned a monthly discount program, where
they call and arrange your gardening for you automatically every 4
weeks, would you say yes?”
She said “absolutely”.
So now we just doubled the gardener’s revenue! Even if only half the
people take up the new offer, that still adds an extra 50% to the
revenue. All the gardener needs to do is follow up with us each month.
So that’s a 25% increase to the original £100 of revenue by providing more services (either the weeding or bush trimming for £25). It’s also an extra 50% in revenue if half the customers say yes when following up to ask customers if they need their garden tidied again.
That's not counting the repeat business and additional services each
year, either.
So we have a 75% increase in revenue so far.
Next I asked my wife “Imagine the second time they came over, the
gardener said, we have a weekly service called the ‘10 minute trim and
sweep’.
So anytime we’re in the neighbourhood, we’ll come by, trim your
hedges quickly, clear up the mess and sweep up the leaves on your
driveway. It would cost £6.25 each time – would you pay that?” I asked.
She said yes, definitely.
So that’s another £25, or 25% boost in revenue (it's a weekly service so
they come four times between their normal monthly full servicing).
That’s an increase of £25 (25%) added to our initial £100 sale + the £25
for weeding/bush trimming + £50 for half the people who take up the
follow up service = £200. Overall that’s a 100% increase in sales.
I know - not everyone will say yes to the extra services. But you can
see how this works, right? And so far it hasn't cost us anything!
Consider that the average homeowner stays in their home for 7.6 years.
If this gardening service is used from April – September each year,
that’s 6 months each year that a household uses the gardening services.
So each year it costs 6 * £200 = £1200. So each
customer now has a lifetime value of 7.6 * £1200 = £9,120. That’s an increase of 9120% on the original £100 revenue per customer the gardener was getting PLUS the continuous customer fees and additional services as well (which are not included here). |
That’s how you increase a £100 fee into a service charge of £9,120 and still have happy, smiling customers all day long. |
Even if you wanted to be conservative at this point, and cut the
figure of £9,120 in half again that still leaves you with £4,500+.
Compare that with the original £100 value of a customer and you see how
these small changes all start to add up.
Now, my wife and I live on a long main road with approx 200 houses on it. Do you
think our neighbours are experiencing the same issues that we are, with
their gardens? Do
you think they want to keep their gardens looking tidy, and driveways
free of leaves? Of course they do!
So next, imagine that the gardener asks my wife if he can put together a short letter with her testimonial in it. He wants to mention her in a mailing to our neighbours this one time. And he'd like to let them know how good and reliable she found his gardening service.
It’s basically a quick introduction to his services, for our neighbours. He would also say that if my wife agrees, he will give her the ‘10 minute trim and sweep’ gardening service, FREE for a whole year!
So he would send out the letter to 200 houses. They all have the same problem with their gardens and driveways. Then the gardener would follow up and perhaps send a few more letters from himself.
How many of our neighbours do you think would sign up with him? 10?
15? 20?
Well if just 1 person signs up, do you know what happens? The gardener
doubles his business again, (he now has two customers with a lifetime
value of £4,500, instead of just one).
Now let me ask you…
How easy was that process? Very easy. How much did it cost? Hardly
anything! What risks were taken? Absolutely none!
I admit that this is a simple example. But the question is do you
currently use all of these techniques in your own business? And do you
do it consistently?
What if your company isn’t small like this last example? Well, these
simple strategies can be applied to big companies and still produce huge
growth.
For example, I use a water softening system to stop hard water build ups
at my home. It’s made by a major manufacturer. The systems 'salt blocks'
are supposed to be replaced once a year. But I’m a busy guy so I
rarely find time to change it.
I’ve only done the replacement myself twice in the past four years. And
in that time the company never followed up with me a single time to
perform their £160 service. If they had simply systematically followed
up with me according to their own guidelines, they could have more
than doubled their revenue on my purchases.
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Do not underestimate the effectiveness of these
techniques. They can be applied to large companies as well as
smaller ones. I’ve personally witnessed million pound companies
who aren’t systematically following up using the simple
techniques above.
They could easily be doubling revenues, but are not. Have you ever bought a product or service where the owners have not followed up with you? You have probably gone to someone else in that case. And the original seller lost your extra business. |
Are you making this mistake in your business? Very few people do this systematically. Most businesses are too busy finding new customers.
The best things you can do to grow your business are:
Once you have that optimised then you are in a stronger business position. You'll be able to spend more money to bring in higher value customers. Your competitors won't stand a chance against you.
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