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Such Thing As A Free Lunch?


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Old 04-05-2007, 10:02 PM
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As quoted from http://www.lawncaremarketingmagic.com

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Such Thing As A Free Lunch?

Quote:
Originally Posted by [b
Quote[/b] ]I was thumbing through the latest issue of Turf magazine and came across the section of postings from one of the big lawn forums sites. The question was “Is There Such Thing as a Free Lunch?” and the printed posts went on to debate the merits of offering a free cut upfront in order to acquire a new customer.

Here’s my take on this debate. First, you should be willing to break even, and in some cases even LOSE money to acquire a new customer. The reason for this is because once you get a new customer, if you’ve priced your services appropriately, you will more than make up for any money you lost or didn’t get on the first service over the life of the relationship. The Lifetime Value of your Customer is a critical number to know when it comes to knowing how much your average customer is worth to you over the life of the relationship. If you know that number, you’ll know exactly what you can afford to spend, or in this case lose, in order to acquire the customer.

Now, even though I just said you should break even to acquire a new customer, this doesn’t mean you should GIVE your services away. It is my belief that you should give some type of discount or additional services in order to acquire the new customer. You want to give them an opportunity to try out your services without losing sleep over the fact they just signed a lengthy service. You want them to feel like they got a FABULOUS deal and that the value of the services were more than worth the price they just paid.

So when it comes to giving a free cut on the first visit, I recommend NOT doing it. However, do look for other premiums or incentives you can offer. Free spot treatment of weeds. Or free shrub trimming of a limited number of shrubs. Or a free Spring spruce up treatment. Basically, give them something that doesn’t cost you a whole lot in hard costs or extra time, but is perceived by the customer to be of great value.

Follow this suggestion and while you probably wont make as much up front, you’ll go a long way towards cementing your position as a service provider that provide excellent value in exchange for the prices you charge.
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