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Cold calling

by Johnnod
5 replies
Hi everyone

So I'm in a new job with a new project. I have a simple service which targets companies that services pools. This service assists them identify new customers.

I haven't contacted any companies yet because I'm stuck on pricing. How much is a new pool lead worth to clients? I realise that would be determined by the demographic of the area, but in terms of servicing and maintenance? How can I price these leads?
#calling #cold
  • Profile picture of the author Jason Kanigan
    You can find out in the process of the call.

    And in fact, it's good practice to because otherwise you could be undervaluing your lead.

    First find out if they're interested in receiving fresh, pre-qualified leads.

    Then you can ask what their average install price is...

    ...and then what the average maintenance rate is and how often they go out and do that. And how long does the average customer stay with them (years and years).


    Then you can develop a LTV with the customer (have them do it, preferably. Good qualifier too, if they know it already--or don't have a clue what you're talking about.)

    Right then you can see what a lead is worth, as a % of LTV.

    What they can pay you is out of margin, not gross sales, but you want the starter number to be as big as possible.

    Also, they obviously aren't going to close 100% of the leads, so you have to figure out a closing rate (another question to ask and qualify with.)

    So say a pool is $20K install, $100/mo X 7 active months over 5 years to come out and take the little water samples typically, totaling an LTV of around $23500.

    Now you need to find out what their typical closing rate is. 1/3 leads? 1/5, 1/10?

    I'll bet a company is willing to pay up to 10% for great leads.

    That means we have a max budget of around say $2500.

    That applies to all the leads, not each lead. So given a 1/5 closing rate, we're at $500 per lead.

    Get the prospect to figure all this out rather than you giving them the numbers.

    "If they say it, it's true. If you say it, you have to defend it."

    The Monetizing the Problem technique will help. (Gawd it's crazy to think about how many things I've shared with this forum, only to have them buried by time and have no one see them. What a loss.)

    Me personally, I'd sell these leads to companies with leaders who:

    > buy leads

    > know what their LTV is

    > know what their closing rate is.

    Then it's easy to figure out whether the issue is your leads or their salespeople.
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  • Profile picture of the author Johnnod
    Excellent, thanks a lot for the reply. I've toyed with the idea of just asking them, however I thought it may turn them off and I may lose them as a potential client.
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    • Profile picture of the author Jeremiah Walsh
      In all fairness, this is something that you almost have to ask them. Each company may have a different cost to acquire customers.

      Some may close 1 in every 3 leads... another might close 1 in every 5 leads.

      There are so many factors at play that you don't know but need to understand. Only by doing a deep discovery with them will you find out their pains, their value, and ultimately what they want from you.

      You can leverage that information to provide them with a "value assessment" that will close the deal for you... but you cant do that if you don't get the numbers from them.

      If they are interested in your service they will give you the info you need. If they aren't interested, they wont.

      If they aren't interested, either the pain isn't real enough, or your pitch wasn't full of enough value.

      Just my 2 cents...

      Originally Posted by Johnnod View Post

      Excellent, thanks a lot for the reply. I've toyed with the idea of just asking them, however I thought it may turn them off and I may lose them as a potential client.
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