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Ian Gourlay

  • Posts: 5748
Do you spend £500 a week promoting your company?
« on: May 16, 2005, 09:21:34 am »
If you want a £1000 turnover and you are starting from zero customers you would need to spend at least £250 a week on anvertising.

I am using  a one in four return qouted by Mark Roberts N.I.

However if its leaflets you might have to wait until second or third drop.


The point I am getting to is does an expected one in four return depend on price.


Some cleaners charge 20p or less per foot others , maybee easier to achieve job?  But would a one in four return be possible.

 Some charge 50p. would require more justification of why you are better.


Does in depend on Carpet inspection, Sales Talk. etc



Is it wise to spend this much?

If you had a shop you would probably have overheads of £500 plus a week before you made money.



Dave_Lee

  • Posts: 1728
Re: Do you spend £500 a week promoting your company?
« Reply #1 on: May 16, 2005, 05:47:58 pm »
Ian,
When you say 4:1 return, I take it you mean takings on converted quotes.
Isnt the real test, the ratio of enquiries you achieve from an advertising campaign, whether its a YP ad or a Leaflet etc. After all, the marketing is done to get enquiries and then its down to you to convert them into jobs. If you are operating on a low price, you stand a good chance of getting the job by quoting over the phone, but for the higher price you need to go and do an on site quote. You can set that vital first impression, explain the process, create the desire. Obviously if your prices are low, you could still achieve the same ratio of takings done at a higher price, but you would need to do more jobs. If I spent £100 on a good leaflet, self delivered, I would expect a £250 return within a day or two of delivery and up to 20:1 return over one year. YP I find is more around the 4:1 mark for me.
Dave.
Dave Lee, Owner of Deepclean Services
Chorley Lancs. Est 1980.
"Pay Cheap -You get Cheap - Pay a little more and get something Better."

SMP

  • Posts: 101
Re: Do you spend £500 a week promoting your company?
« Reply #2 on: May 16, 2005, 06:01:01 pm »
Dave,
£100 on a self delivered leaflet is a lot of leaflets.  What do you mean?  £100 will probably get 10,000 leaflets which would take you at least a week to deliver - for £250 return  :o.  Even if it was a "good" leaflet you'd probably get 5000 for £100.

I've clearly misunderstood.

Steve
Steve Poole

Dave_Lee

  • Posts: 1728
Re: Do you spend £500 a week promoting your company?
« Reply #3 on: May 16, 2005, 06:53:53 pm »
Steve,
You say £100 would get you 5000 good leaflets, this may well be true if by good you refer to the content of the text, layout etc. also I suppose, where yo get them printed. However the ones I use (not that often, last ones printed three years ago) cost £100 for 2,500. The other thing is, at 4:1, thats expecting converted takings of £400 per 5000 leaflets. If you take into account delivery, at say the same cost as the leaflets, making a total of £200 per 5000, then at 4:1 that an £800 return or £160 per thousand. Depending on what you charge, this may not be a bad initial return but I would rate that very low as a total one.
Dave.
Dave Lee, Owner of Deepclean Services
Chorley Lancs. Est 1980.
"Pay Cheap -You get Cheap - Pay a little more and get something Better."

Shaun_Ashmore

  • Posts: 11382
Re: Do you spend £500 a week promoting your company?
« Reply #4 on: May 16, 2005, 10:09:29 pm »
1:4 is not very good if the average spend is £50, if you got a lesser ratio but a higher spend you wouldn't need to look for so many customers, look at the content of your leaflets and alter the copy to suit the customer not you, ask your customers what they want remember it and then transfer it onto the leaflet.

things that customers look for are; natural cleaning solution, non resoiling or no residues to make resoiling happen, quick drying times, prompt service, curtious professional, years of experience, maticulous worker etc etc

then if you want to upsell you could offer protector after you have cleaned or an extra carpet at a discounted price while you are there.

If you push the job ticket up the ratio of jobs got for your adverising pound can come down (hopefully not) and you'll find that you will become more profitable as you won't need to send as many costly leaflets out.

Shaun