Starting agency/consulting business in Home Improvement niche.

10 replies
So I have finally decided to setup my own agency helping home improvement businesses get more leads through digital marketing.

I don't want to have to spend too much time on individual proposals, instead I will sell one 'productized' service.

I am looking at offering the following:

SSL Website
Monthly SEO maintenance
Social Media Management
Facebook ad campaign
Lead funnel creation & maintenance
Email marketing campaign
Monthly reports


Price: £799 per month (plus ad spend)

What are people thoughts on this? I am looking for any kind of feedback, I can take it
#agency or consulting #business #home #improvement #niche #starting
Avatar of Unregistered
  • Profile picture of the author Jason Kanigan
    Turning it into a product is a good idea.

    Price is too low IMO. Keep in mind that for many people, when a price point is too low, it makes them ask, "What's missing? What's wrong with it?" That $750 BMW just doesn't make sense. In the real B2B world clients WANT to pay more...because they want the assurance that comes with it.

    The $200 template website maker does not understand why they can't get bigger businesses as clients...it's because of this reason.

    Price yourself to be worthy of "touching their business."
    {{ DiscussionBoard.errors[11239364].message }}
    • Profile picture of the author Kevin Dee
      Thanks Jason. With no testimonials, do you think I should still be charging £1200 plus? And they have to stump up the ad spend on top of that.
      {{ DiscussionBoard.errors[11239369].message }}
      • Profile picture of the author Jason Kanigan
        Originally Posted by Kevin Dee View Post

        Thanks Jason. With no testimonials, do you think I should still be charging £1200 plus? And they have to stump up the ad spend on top of that.
        No testimonials is only an issue if it bothers you.

        If you ask good questions, you'll demonstrate to them you understand the issues and their business situation.

        If you're constantly fearing, "I sure hope they don't ask about references," be certain you'll unconsciously make them ask.

        Money Tolerance is a very real issue and here it is: what you believe is "expensive" and what the buyer believes is "expensive" are often two very different things. Get out of your own way. Charge what you are worth.

        Learning how to qualify your prospect will also help. Say you only help people who have a problem of say L25K a month and more, and have an extra L5K a month to invest. That's the amount they're eager to grow their business. Maybe it's L50K. The investment has to be justified by the size of the problem. If they don't have it, they don't qualify to work with you.
        {{ DiscussionBoard.errors[11239374].message }}
  • Profile picture of the author SARubin
    Well, I've owned a small home restoration business. And I've worked with many contractors. So maybe I can give you a couple insights?

    I'm going to play the devil's advocate here, and try to get you to ask some critical questions of yourself, and your offer.

    These are questions I might have in mind, if you ever came to me with your proposal...


    Why should I even want any of what you're selling?


    SSL Website. If I already have a website, then I don't need you to make another one for me. (if I don't already have one by this day and age, then why should I want one now?)

    Monthly SEO maintenace = Another monthly expense for something I don't understand (No thanks)

    Social Media Management. (What the hell does that even mean? I already post on Facebook and Twitter, so explain to me what you're going to do differently, and why I need you for this?)

    Facebook ad campaign (OK, we have a Facebook page, so I know what that is. Now tell me what your ad campaign is going to do for me... how much is it going to cost... and why we can't just do it ourselves?)

    Lead funnel creation & maintenance (How is that different than just placing ads and answering questions when someone contacts us? Does that mean your going to answer my messages for me and set appointments for estimates?)

    Email marketing campaign - Why would I want that? If someone contacts my business looking to get work done on their home, that usually means they want an estimate from a reliable contractor (not a lengthy caravan of emails explaining the benefits of my services)



    Now, I'm not trying to talk you out of anything here. Quite the contrary, I'm giving you a "heads up" so you can think about how to approach the mindset of a construction worker / construction business owner.


    A lot of it also depends on whether you're going after big companies, or small outfits.


    And you also need to think about how you're going to contact these people. Because most of us don't want to be bothered by yet another digital advertising sales rep.

    Usually, we're busy people with a no B.S. attitude. So be prepared to quickly tell me about the benefits of what you're offering me. Then (if you get my interest) you can tell me about your product features (This is also basic selling strategy for any customer. But even more so for Blue Collar Business Owners)


    I wish you the best of luck. Because many construction / home improvement companies need what you're offering. But they only vaguely accept the concept. So you need to get them to understand, and accept it. That's your challenge.

    All the best,
    SAR
    Signature

    If your advertising is not getting you the results you want to see... I can show you how to fix it - Direct Response Copywriter / Conversion Flow Specialist

    {{ DiscussionBoard.errors[11239384].message }}
    • Profile picture of the author Kevin Dee
      Thanks for the feedback!

      My sales process will be advert into funnel> optin to webinar> show how to get more clients> offer free strategy call> make offer to become client.

      This is designed to make them see what works and why it works before I even offer them the chance to become a client.
      {{ DiscussionBoard.errors[11239388].message }}
      • Profile picture of the author DABK
        You're not clear on anything you are offering.

        Like Jason said, you're not charging enough. How much time will it take you to manage facebook and 2 other platforms at a level sufficiently intense to produce good results?

        I'm betting after you think it through, you're going to say at least 500 of your 799 should go to that.

        How about SEO... how much work will you need to put in to make me rank high enough that I'm happy for home additions Las Vegas? How many such keywords should I be ranking for to get a sufficient bump in sales? 5? 10? (I mean, it would depend on location and business type... but it's not 1.

        I'm going to bet you're going to want at least 500 for a 3 to 5 keywords in a medium city, a hell of a lot more if you're in cities like London, Chicago, etc.

        I know a general contractor who does a variety of jobs... He is willing to pay 2.5% of what he is left with after he pays for materials and subcontractors / workers. That translates into $500 to $600 per job, on average.

        In other words, he'd be willing to pay almost all of your entire fee to get just one new average job. Will all you do only get him 1.37 new jobs a month?

        By the way, the fact that they can pay $x is no reason for you to charge $x, but it should be one of the factors. (I also know a house painter who is willing to pay only 1% of gross. Gross, for him, on an average job is only $3k, which means he's willing to pay only $30 per new job. (True, SEO is easier for him than for a restoration or home addition company, in my area, but not almost 20 times easier, 20 times less time consuming to do).

        I know a lady who owns a wedding dress shop, she's happy to pay $140 to make one sale (she sells them between 1 and 5k a pop... wedding dresses). She is quite happy with her social media manager, who she pays $625 a month for facebook, pinterest and instagram (2 posts a week each and setting up and tweaking 1 ad per platform per month). She's happy because she's calculated that her 625 a month bring her in 6 or 7 sales a month, which means she's paying less than the $140/sale limit and because the number of appointments from social media is going up so she thinks he's going to end up with more than 6 or 7 sales a month if she keeps at it for a few months.


        Originally Posted by Kevin Dee View Post

        Thanks for the feedback!

        My sales process will be advert into funnel> optin to webinar> show how to get more clients> offer free strategy call> make offer to become client.

        This is designed to make them see what works and why it works before I even offer them the chance to become a client.
        {{ DiscussionBoard.errors[11239489].message }}
        • Profile picture of the author Jason Kanigan
          Originally Posted by DABK View Post

          You're not clear on anything you are offering.

          Like Jason said, you're not charging enough. How much time will it take you to manage facebook and 2 other platforms at a level sufficiently intense to produce good results?

          I'm betting after you think it through, you're going to say at least 500 of your 799 should go to that.

          How about SEO... how much work will you need to put in to make me rank high enough that I'm happy for home additions Las Vegas? How many such keywords should I be ranking for to get a sufficient bump in sales? 5? 10? (I mean, it would depend on location and business type... but it's not 1.

          I'm going to bet you're going to want at least 500 for a 3 to 5 keywords in a medium city, a hell of a lot more if you're in cities like London, Chicago, etc.

          I know a general contractor who does a variety of jobs... He is willing to pay 2.5% of what he is left with after he pays for materials and subcontractors / workers. That translates into $500 to $600 per job, on average.

          In other words, he'd be willing to pay almost all of your entire fee to get just one new average job. Will all you do only get him 1.37 new jobs a month?

          By the way, the fact that they can pay is no reason for you to charge , but it should be one of the factors. (I also know a house painter who is willing to pay only 1% of gross. Gross, for him, on an average job is only $3k, which means he's willing to pay only $30 per new job. (True, SEO is easier for him than for a restoration or home addition company, in my area, but not almost 20 times easier, 20 times less time consuming to do).

          I know a lady who owns a wedding dress shop, she's happy to pay $140 to make one sale (she sells them between 1 and 5k a pop... wedding dresses). She is quite happy with her social media manager, who she pays $625 a month for facebook, pinterest and instagram (2 posts a week each and setting up and tweaking 1 ad per platform per month). She's happy because she's calculated that her 625 a month bring her in 6 or 7 sales a month, which means she's paying less than the $140/sale limit and because the number of appointments from social media is going up so she thinks he's going to end up with more than 6 or 7 sales a month if she keeps at it for a few months.
          Thanking you for the quality of your post, not because you agreed with me lol (though that is nice.)

          So what your post points out is the value of understanding your cost of customer acquisition. An agency owner could divide their prospects into two funnels...those who understand CCA and those who do not. They could choose to work only with those that do...and put the others on a drip education campaign, or ignore them.

          Powerful qualifier if you use it.

          And my "most interesting takeaway" from DABK's post is how people in different niches and businesses understand CCA and are willing to make a controlled investment in getting a buyer.
          {{ DiscussionBoard.errors[11239515].message }}
  • Profile picture of the author WebPen
    I think one of the most important things to keep in mind is the importance to be targeted.

    Know what these people want, and then give it to them.

    Companies in the home improvement niche are gonna have different struggles than an accounting firm or magician or a company in the corporate event industry.
    {{ DiscussionBoard.errors[11239836].message }}
  • Profile picture of the author Benjamin Ehinger
    I would also add in blog and content services. Often, when you don't provide this, it's left for the client to go find a writer for the content. It's much easier for them, if you already have a content writer ready to go for them. Plus, you can add a little bit to what the writer charges for your own profit.

    I agree with Jason, too. the price is too low. Love the idea of making it a product, but I would offer three or four packages. Make one an introductory offer at a low price, one somewhere in the middle and one as a premium package at a higher price.

    Make your premium package basically the, "everything is done for you plus some" type of package, while the lowest priced package is more of a "just to get things rolling and get to know each other" type of package. The middle package should be your best seller and should give clients what they need without any super premium features.

    Benjamin Ehinger
    Signature
    Ready to Explode your Content Marketing?

    Discover How to Increase Revenues with My Complete SEO Content Strategy Here!
    {{ DiscussionBoard.errors[11240423].message }}
  • Profile picture of the author JohnVianny
    Start doing Lead Generation.

    Design your funnel : you have to put 100% of your effort in it.

    I suggest you to produce different block of your product with different prices, and a membership, which is ultimately what will bring you more money in the long term
    {{ DiscussionBoard.errors[11240439].message }}
Avatar of Unregistered

Trending Topics