Why Offline Businesses Are Losing Money and Need Your Help

15 replies
Here is a perfect and real life example of how offline businesses need your help and also how to help them.

I walked in the house last night and my blushing bride was none to happy. It seems that our less than studious neighbors have let their grass grow to chest high heights and with all the rain we have had a nice little tick explosions has occurred. She stopped counting the number but it was high enough that she requested (demanded really) that we have the yard spraid to kill the little blood suckers.

Not a problem I told her - we had just had the yard sprayed a few months back so I would just call them back. Problem was I can't find them. I am sure they are out there but I've slept since then and to be honest I have no clue what their business name is or how to get in contact with them.

That is their problem, not mine. See I have someone coming to spray the yard tomorrow regardless of the fact I can't find the original business. I have a problem and I want it solved now.

Another quick story. When I first bought my house I had the carpets cleaned. Six months later I had them cleaned again. It is has been over a year since I had my carpets done and they are due.

What's the problem you say? Well think about this - if you sell a service and you know that every 3 to 6 months the person is going to need it again don't you think you'd set something up that allows you to contact the customer and remind them the service is due?

Seriously, the yard spray cost me $75 bucks. I think I am suppose to have it done 3 to 4 times a year. So they got my first $75 but lost out on the rest. That is at least $225 a year and I am not going anywhere and either are my neighbors so lets say I stay in this house another 10 years and I get it sprayed 3 times a year that is $2,800 they missed out on because they couldn't make the effort to contact me to buy a service that:

1. I needed and had to have it done again
2. I was willing to pay for
3. I was satisfied with the results and would use them again
4. I would refer others to

It's no wonder so many businesses fail to make all the money they can.

Tim

So how do you help them? Find a service business that offers services on a monthly, quarterly, annual basis.

Offer to setup an auto responder for them to existing clients a couple of weeks before the service is set to be needed again. Offer the customer a coupon to send out for them to book again, a referral program, etc.

Make it totally hands off for them except to collect the email addresses (which you tell the customer they collect to send out a customer service survey). Then set everything up and profit.

Best part of it - once you do one pest control company in town, you can use the exact system to do another one.

Show them with proof how they can make money from your service so that it is an investment, not an expense.
#businesses #losing #money #offline
  • Profile picture of the author Jeremy Kelsall
    Looks like you were slacking when these businesses were at your house - You should have signed them up
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    • Profile picture of the author FlightGuy
      Originally Posted by Jeremy Kelsall View Post

      Looks like you were slacking when these businesses were at your house - You should have signed them up
      I agree! Should have been on top of this one, Tim Great points, otherwise.

      Best Regards,
      John Dennis
      Signature
      "If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much." - Jim Rohn
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  • Profile picture of the author Tsnyder
    I'm as much in favor of online follow up methods as the
    next guy but I've had much greater success enrolling local
    business owners in a program called Send Out Cards.

    It has a fantastic online system with a contact manager that lets
    the owner set and forget the mailings... they go out automatically
    and people love getting greeting cards.

    Tsnyder
    Signature
    If you knew what I know you'd be doing what I do...
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  • Profile picture of the author iw433
    Thanks great add-on service. Great way to get business from those that already have a website. Can also be done for those that don't have or want a site.
    Signature

    Bill Skywalker Edwards
    Address-O-Lite

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  • Profile picture of the author artwebster
    I can't find the original business. I have a problem and I want it solved now.

    Odd, that. How did you find them the first time? They must have been doing something right then!
    Signature

    You might not like what I say - but I believe it.
    Build it, make money, then build some more
    Some old school smarts would help - and here's to Rob Toth for his help. Bloody good stuff, even the freebies!

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  • Profile picture of the author joshril
    Great post Tim. When setting up auto-responders for clients, are you using something like aweber or an auto-responder you are hosting? Assuming something like aweber, are you using your own account or helping them setup their own?
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  • Profile picture of the author Doug McIsaac
    Originally Posted by TimCastleman View Post

    What's the problem you say? Well think about this - if you sell a service and you know that every 3 to 6 months the person is going to need it again don't you think you'd set something up that allows you to contact the customer and remind them the service is due?
    I would, but I am constantly surprised when I meet with new clients and they do not have a customer retention plan in place. In many cases they don't even have a database of clients. Too many businesses owners are in their businesses because they were good at something painting, fixing cars etc and have NO idea how to market their business.

    Many of these businesses plan their marketing based on how much money they have in register when the "advertising salesperson of the day" walks through the door.

    Getting them to map out a customer retention strategy and a yearly marketing plan can completely overhaul their business.

    Doug
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    • Profile picture of the author TimCastleman
      Jeremy -

      I was out of town the first time they came at a top secret meeting of Offline marketers in Vegas. I say top secret because if any of the people who were there spill their guts about what I talked about I own their asses legally.

      I think I found them through a referral in the first place to whoever commented on that part. And no I wasn't going to call up my friend at 11pm at a night and ask for their name again.

      You guys are looking at the trees, not the forest.

      Just got done watching UFC, off to bed. Nite all.
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    • Profile picture of the author JerryIL
      I had this problem with my taxes. Just couldn't remember to get to H&R Block until the last day...
      They have a nice way to set it up so they will call you, email you or mail you a letter based on the date you tell them you want to be notified that it's time to get your taxes done. Solves your problem.. makes them lots of money.

      Great post...

      Jerry
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      • Profile picture of the author AndrewCavanagh
        What's even more alarming for these businesses is that the cost of acquiring a new client for most businesses is VERY high.

        The cost of keeping those clients is usually quite low.

        Following up with an email autoresponder at key times is a great idea. You can use the same email sequence to give helpful tips and educate people on why the business they're using is unique and the best for them.

        Also on the topic of these businesses with repeat services...

        You can help them do even better if you make some kind of special offer to their clients where they come and perform the service automatically at predetermined intervals and either bill the client 3 months, 6 months, 1 year, 2 years or 3 years in a advance or charge them automatically.

        When you help a business put clients on these kinds of deals it substantially increases both the income stability and the selling value of the business.

        Kindest regards,
        Andrew Cavanagh
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  • Profile picture of the author Chris Lagarde
    Tsnyder - I've been a member of SendOutCards and I like using it (personal use only...I'm not a distributor).

    My question for you is this: Isn't anyone you sign up to SendOutCards have to pay the $299 signup fee?
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    • Profile picture of the author Tsnyder
      Originally Posted by Chris Lagarde View Post

      Tsnyder - I've been a member of SendOutCards and I like using it (personal use only...I'm not a distributor).

      My question for you is this: Isn't anyone you sign up to SendOutCards have to pay the $298 signup fee?
      Depends on the size of the business and how often they
      plan to use the system (volume of cards sent)

      A customer can isgn up for as little as $25 and buy points
      as often as they need them. (I haven't signed anyone up
      on that plan)

      We have banks and insurance agencies that literally send
      thousands of cards annually. They signed up on the wholesale
      customer account. That would be the $298 system licensing
      fee you mentioned. (the fee includes enough points to send
      100 greeting cards so it's a slam dunk value)

      The system works much like an autoresponder in that they
      can design a campaign card and send it to their entire database
      with a mouse click... either immediately or at a preset date(s).
      It saves them a ton of time and money.

      People love getting physical greeting cards in the mail... this
      system works like gangbusters for customer retention and referrals.

      Tsnyder
      Signature
      If you knew what I know you'd be doing what I do...
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  • Profile picture of the author CDarklock
    I cannot count the number of yard services we've signed up to come out twice a month, and they simply don't show up the second time. They come out once, we agree on payment, they do the work... then two weeks go by and they just don't show. We call them, they don't call back. Then we have to go get another yard service.

    Lately, we've taken to just getting on Craigslist every couple weeks and hiring a one-shot guy... which is cheaper, but honestly, I want "set and forget" yard service. Needless to say, we're quite willing to pay higher prices if people will just SHOW THE HELL UP.
    Signature
    "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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  • Profile picture of the author RockstarBen
    Dead on. I had a similar conversation with one of my new clients. They own a car wash and oil change business. It was super-easy to convince them how an A/R could send out a reminder to "change the oil" every so often, plus remind them when it is time to protect their paint from the elements with a wax treatment, etc. These are so simple and once the business owner gets it, they will hire the consultant who can deliver. Great insight, Tim!
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  • Profile picture of the author Zeus66
    So, anyone involved in selling this A/R service offline... can you post a quick blueprint for how you approach and sell businesses in your area? What forms of advertising do you use? Do you upsell additional services, like website creation, SEO, etc.?

    Thanks,
    John
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