Brian Hanna has lost his mind..

[Mikey P]

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[Mikey P]

I'm sure they have it all thought out but lordy

help me figure this out..

new customer spends $49 to $150 and you're going to give away $99 in service and up to two hours of labor?

 

[Lee Stockwell]

Yes. They have it all thought out. It'll work, and make money....in time.

 

[Lee Stockwell]

It's February in Detroit.

Most of their overhead is "sunk costs" anyway.

 

[Ralph Pastorelli]

Don't see them making money on that unless they really push up sells like protectors and urine treatments, I'm sure it's not included in the free cleanings.

 

[Lee Stockwell]

It's a well-oiled operation that probably does that without needing much pressure.

After all, if you got a "free" cleaning, it wouldn't seem so expensive to add more value to the job?

 

[Desk Jockey]

He did something similar last year and I think it kept crews busy and some cash flow as clients added on other cleaning.

As Lee pointed out, cold and snow in Detroit aren't exactly ideal for carpet cleaning.

 

[Brian H]

Look at all your traditional advertising costs... What does it cost to gain a customer and what does it cost to RETAIN one?!! We are pretty good at retaining customers, we are just looking to gain new ones.

Trial and error...If it works, we may do it again. If not, then we will have found one thing that doesn't work.

 

[Mikey P]

How do you pay the guys on the 4 free rooms?

 

[rwcarpet]

Almost....almost sounds like desparation. I'm glad I don't have a gazillion trucks and employees! They must have such a volume that a few free rooms won't hurt them. They do make a ton on inplant rug cleaning.

 

[dealtimeman]

sometimes it is not about making money, it is more important to get new customers and keep your guys busy all of the time and make sure you aren't losing money in all of the overhead.

 

[Brian H]

Michael gets it.

Robert, We can keep customers, we just are trying different ways to get ourselves in front of new customers.

Ralph, No, we don't high pressure sell... we refund 100% of the job if the crew is accused of that. As far as other stuff, an additional visit from our Stain Removal Specialist is included in that free cleaning for any stains the regular cleaning crews can't get out.

Mike, We pay the crews commission on our 4 room price. We do anticipate that we will get some other business while at the home just because we are there.

 

[Brian H]

Oh and Myke, you know how to spell my name correctly.

 

[Desk Jockey]

I can only speak for us but when its slower we will accept a much smaller margin just to keep the guys busy. And yes anything brought in is much better than me covering their whole burden.

Funny but when busy we become much more selective in what we want to do.

 

[Brian H]

Richard, we have a lot of overhead just sitting all winter.

 

[Desk Jockey]

I can imagine. When it gets cold and snowy here the majority of work we get is emergency related.

 

[ruff]

I do not have a single doubt that Hagopian and Brian, know very well what they are doing and the campaign is well thought out.

 

[Mikey P]

Brian

In last years campaign, what percentage of free jobs were up sold on?

 

[Steve Toburen]

Look at all your traditional advertising costs... What does it cost to gain a customer and what does it cost to RETAIN one?!! We are pretty good at retaining customers, we are just looking to gain new ones...

Makes sense to me, Brian. One of our more astute multi-truck SFS grads (NOT Richard!) calculates his New Customer Acquisition Cost at @85.00. Plus instead of giving away money to mass media you are rewarding loyal customers for their referral for work to be done in a Detroit winter. (And the great majority of both new and existing clients will have Additional Service Options performed.)

Steve

PS Brian, HERE is a another neat way to kick-start winter work using 50.00 Gift Cards. (The "double dip" here is you are making your commercial clients look like a hero to their employees.)

 

[Brian H]

Brian

In last years campaign, what percentage of free jobs were up sold on?

Right at about 70% wanted additional work done while we were there. It was a worthwhile campaign that created work during a slow period. This year we decided to try something a bit different that would hopefully pull in new customers.

 

[Mikey P]

since you're being so forthright, how many new customers were gathered in last year's effort?

 

[Brian H]

since you're being so forthright, how many new customers were gathered in last year's effort?

None, and that was what we are trying to change this year. It was a free room of cleaning to our existing customers.

 

[Mikey P]

I assume they need to redeem their free cleaning before spring hits?

 

[Shane Deubell]

Pretty gutsy thats for sure!

Most of us are just too chicken$hit to try anything like that.

 

[Brian H]

I assume they need to redeem their free cleaning before spring hits?

We don't really care when the free cleaning is redeemed. We are more concerned with getting the referral right now.

 

[Mikey P]

Do you try and send new hires or old vets on the "free" jobs?


The newbs get paid less but the old dogs can sell better..

 

[Desk Jockey]

Most of us would consider his newbys, old vets.

Their tech's stay with them a long time.

 

[Brian H]

Do you try and send new hires or old vets on the "free" jobs?


The newbs get paid less but the old dogs can sell better..

New or old, everyone is paid the same commission. Besides, it's not about the selling, it's more about developing relationships. If people chose to have other cleaning since we are all ready in the home, GREAT!! High pressure sales drives people away!!!


Oh and our newest crew leader, started in 2004. I checked about 6 months ago and our average crew leader has been with us for over 17 years.

 

[PrimaDonna]

Interesting concept. We are just starting to dabble in this sort of thing. I'm very interested to see what kinds of things others are doing and to try some unique/out of the box type promos like this.

We ran a couch promo at 50% off and then 10% off any other work completed at the time of the couch. (Launched the promo in January, with the stipulation that the work had to be completed by end of February, so we still have a few of these that are scheduled and we didn't do yet). It was an effort to gain new clients and I posted it on our FB page, and on a few community FB pages that we are active on and get a ton of referrals from. Kind of as an after thought, I sent it out to all our clients in Service Monster. I figured it couldn't hurt and the offer was already to go and typed up, so I only had to copy and paste into SM and send.

Every customer that redeemed was one of our existing clients - so much for gaining new clients. But we didn't mind because it generated a ton of revenue during an otherwise really slow time. We upsold or had add ons for 100% of the jobs completed. To date, 10 jobs completed, $7615.48 in sales, Avg. job ticket $716.55.

Working on crafting my next promo now.....

 

[A.J.]

Makes sense to me, Brian. One of our more astute multi-truck SFS grads (NOT Richard!) calculates his New Customer Acquisition Cost at @85.00. Plus instead of giving away money to mass media you are rewarding loyal customers for their referral for work to be done in a Detroit winter. (And the great majority of both new and existing clients will have Additional Service Options performed.)

Steve

PS Brian, HERE is a another neat way to kick-start winter work using 50.00 Gift Cards. (The "double dip" here is you are making your commercial clients look like a hero to their employees.)

This is genius.

Shoot around here if I told someone "I'll give you a $10 check for each person that you get as a referral" I can almost guarantee they'd get at least one.