10,000 th post better make it good |
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MR. STEAMER
True Patriot Only in the GTA Joined: 03/March/2004 Location: Canada Status: Offline Points: 14544 |
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Posted: 13/November/2006 at 6:53pm |
I'm mailing out a 20% coupon to all the customers that have used my service since March 2005. Thats just over 1200 customers.
I was wondering if anyone has had success with this...people read mail that is directly addressed to them. I hope it works
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Hammy
Carpet Cleaning Guru Joined: 27/September/2006 Location: Canada Status: Offline Points: 10330 |
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Great idea Steamer, just make sure you have a 2nd, 3rd, 4th, 5th......................etc opinion from outside sources befor you mail it out. People like coupons addressed to them. Nice job on the 10,000 th post. |
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Could somebody just clean my carpets!
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jtuseo
Carpet Cleaning Specialist GULLY Joined: 23/November/2005 Location: United States Status: Offline Points: 681 |
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Steamer you are going to get a good response. I would mail them out now and mail them out again before Christmas Dec. 4th would be a good date. That is when I am mailing out my next mailer. You will probally see 5%-10% return.
John
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WWW.PREFERREDCARPETCLEANING.COM
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jtuseo
Carpet Cleaning Specialist GULLY Joined: 23/November/2005 Location: United States Status: Offline Points: 681 |
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Oh one last thing. You do not have to give them a 20% off coupon. On the postcard give them free deodorizer. Its better for you. They will want you to always give them that 20% off in the future. Cya!! Cover your Ass!
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WWW.PREFERREDCARPETCLEANING.COM
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Superglide Ken
Grand Potentate SGK Joined: 17/March/2004 Location: Canada Status: Offline Points: 4868 |
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MR. STEAMER] I'm mailing out a 20% coupon to all the customers that have used my service since March 2005. Thats just over 1200 customers.
I was wondering if anyone has had success with this...people read mail that is directly addressed to them. I hope it works I disagree about that being a good idea. You are offering a 20% discount for a service that you don't charge enough for already? That has the direct effect of cutting your profit in half after expenses are taken into consideration. Been there and done that. A much better approach is to offer a larger discount on a product with a higher margin that you might not normally sell, like Scotchgard for example. Say you offer 50% off during April. You have 80% margin on this product, so if you reduce the price by 50% you still make 30%. Say you do 100 cleaning jobs a month. Say that 50 of them take the gard. Regular price for 500 sq ft @20/ft is worth $100, but you only get $50 on the promo.The gard costs you $20/job, so you still make $30 . $30/job X 50 jobs gives you a $1500 profit on the gard that month. Now say instead you pick the 20% off instead. You do 100 jobs at a discount. Your job average is $150 per house. Normally you get $15,000, but you just gave 20% of that away or $3000. Not only are your profits down $3000 on the cleaning, but you never made the $1500 on the gard either, so you are out $4500 for the month. So who is smart now Mr Steamer? Edited by Superglide Ken - 13/November/2006 at 8:06pm |
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Inventor of the Teflon Wand Glide and the Turboteck Rotary Air Duct Cleaners for TMs.
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Hammy
Carpet Cleaning Guru Joined: 27/September/2006 Location: Canada Status: Offline Points: 10330 |
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If Steamer didn't mail out anything what do you think his sales would be. If he gains $15,000 less the 20% or $3000 he is still up $12,000. It's a promotion, Steamer will just have to upsell to make up for it. 20% off can be manipulated any you want, you just have to be creative.
Edited by Hammy - 13/November/2006 at 8:12pm |
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Could somebody just clean my carpets!
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Superglide Ken
Grand Potentate SGK Joined: 17/March/2004 Location: Canada Status: Offline Points: 4868 |
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He has too many customers for that to happen, Hammy. Steamer has alot of expenses. If he did $12,000 in sales, he would not make more than $6000 of that.Doing it the way I suggest he could make $17,500 in total and put $10,000 in his pocket. That is how it worked for me about 10 years back. I have done it both ways. Both work, but one way gives you more money, and does not set you up with a bunch of customers looking for 20% far into the future. Something to think about.
Edited by Superglide Ken - 13/November/2006 at 8:12pm |
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Inventor of the Teflon Wand Glide and the Turboteck Rotary Air Duct Cleaners for TMs.
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Hammy
Carpet Cleaning Guru Joined: 27/September/2006 Location: Canada Status: Offline Points: 10330 |
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we still don't know what the 20% off is for. Lets have Steamer answer the question before giving him all the advice. Kenny if you read my first post you would know what I said about getting different opinions.
Edited by Hammy - 13/November/2006 at 8:40pm |
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Could somebody just clean my carpets!
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MR. STEAMER
True Patriot Only in the GTA Joined: 03/March/2004 Location: Canada Status: Offline Points: 14544 |
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20% off all cleaning.....Only to customers that have used us before....I still rand 100 thou direct mail flyers as well..
it's a thank you for using my service...they have until jan 31 Edited by MR. STEAMER - 13/November/2006 at 9:04pm |
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Superglide Ken
Grand Potentate SGK Joined: 17/March/2004 Location: Canada Status: Offline Points: 4868 |
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I read it, but I have had enough experience with this issue to know the way I would play it, but you have to understand what market you are in. For 16 years I trained my customers to only buy when there was a sale on. I was busy as hell making very little money because of it.For many of the warm months I was working 150 jobs per month pulling in $10,000 or more a month as Calgary's lowest priced Cleaner($49 for 5 rooms). My customers loved it. I had NO social life cause I was worn out when I was not working.
By 1998, I got smarter. I fired most of my customers and raised my prices 5 times till I was making $.50/sq ft by 2001 instead of the .10 I averaged in 1998. I stopped giving discounts on the cleaning, but gave sales on the gard instead. My earnings per month on my truck often went up to well over $20,000/month as a result.Because I was only cleaning 1/2 the houses as before, my expenses were less than $5000/month of that , so I was making $15,000+ per month from 1 TM. I am not saying the GTA is Calgary, so steamer might not be able to duplicate that experience there, but I know I am never going back to the sales tactic of cutting my cleaning prices. All you do is ensure that your business has little value, and you can only sell your equipment for pennies on the $ when you want to get out. That is what happens to most carpet cleaners. You ask Ted if I am right. He has seen it far to often, and believe me, it does happen to the great majority of companys. I don't want it to happen to steamer, but some guys never learn, so ignore my advice if you want. Your risk, your reward. |
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Inventor of the Teflon Wand Glide and the Turboteck Rotary Air Duct Cleaners for TMs.
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LilNiteRidrhood
Master Carpet Cleaner Joined: 17/March/2004 Location: Antarctica Status: Offline Points: 1257 |
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I would make the offer in Jan and Feb when you need the calls.
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dennis_is_ok
Carpet Cleaning Specialist Joined: 02/August/2005 Location: Canada Status: Offline Points: 460 |
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steamer must get a nice x-mas gift from Canada Post every year.
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MR. STEAMER
True Patriot Only in the GTA Joined: 03/March/2004 Location: Canada Status: Offline Points: 14544 |
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a 20% roll back is only $5 off per room..... I charge $25 per room...I'm no where near 5 rooms for $49... I had a few pit falls this year...with my unexpected number change....and the lack of monthly direct mail...I'm finding this november slower than ever. I got 2 truck sitting here ready to go.
20% gets them off the pot.....and more business is better than no business
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MR. STEAMER
True Patriot Only in the GTA Joined: 03/March/2004 Location: Canada Status: Offline Points: 14544 |
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