Profit From Clients That Say "No" To Your Services...

 
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Old 12-06-2015, 07:27 PM   #1
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Profit From Clients That Say "No" To Your Services...


I was speaking with one of our certified partners in Dallas last week and we were discussing the methodology behind our business model, and I thought I'd share a little of our conversation here...

Our company specializes in modern kitchen remodels, and we have discovered a way to eliminate all of our marketing costs (free PPC on Google, essentially) and to profit from clients that end up saying "no" to our services, normally due to the price being out of reach...

We've set up what we call a "funded proposal" or a "self-liquidating offer"...

Essentially, we offer them a low dollar offer to get them started through our sales process...

For us, we offer a $297 kitchen design service...

We're using 2020design, which kicks out beautiful designs in about 20-30 minutes...

Here's how we sell it 99% of the time...

We offer a free in-home design consultation that gets them to opt-in to our list on our website... My assistant then calls them and goes through a quick over the phone questionnaire... She then works to schedule the free design consultation and informs them that though the consultation is free, the design service is $297...

We used to do this all for free, and ended up getting burned by clients going with someone else or using our designs and elevations to DIY their project... We wasted time, expertise and fuel...

And since our customer acquisition cost is approx $12/lead, selling them a $297 service that we can knockout in about 30 min has added an additional $10k/mo to our bottom line...

Whether your in our niche or not, you can find ways to offer the same kind of self liquidating offer to off set your advertising costs and even add more quick cash to your bottom line...

I keep seeing people complain about PPC & SEO costs... Using a low dollar offer up front will help with that (along with getting better at PPC and SEO)
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Old 12-06-2015, 07:39 PM   #2
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Re: Profit From Clients That Say "No" To Your Services...


So are you saying you can crank out quality, professional renderings of what the end design would look like in 20 minutes? I don't do kitchens or much with software, but that seems like an unreasonably quick amount of time to get that done.

Mind sharing a few examples? Sample pics?

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Old 12-06-2015, 07:54 PM   #3
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Re: Profit From Clients That Say "No" To Your Services...


Sure thing!

And you have to understand that you're dealing with homeowners, not trying to win an award at the NKBA...

There's a "good-enough-point" that you can reach to have your clients drooling over you, without having to put in any extra work...

And yes, it doesn't take long, especially after you've done it a few times...

And keep in mind that when a designer says it'll take a week to get drawings to you, they're normally buying themselves time to schedule more appointments with clients, hanging out with family/friends, etc...




Last edited by mrhamel; 12-06-2015 at 07:57 PM.
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Old 12-06-2015, 07:59 PM   #4
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Re: Profit From Clients That Say "No" To Your Services...


Impressive...

Definitely looks better than what I thought could be produced in twenty minutes.

Perhaps upgrading my software skills and running a similar concept for decks is an idea worth exploring.
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Old 12-06-2015, 08:09 PM   #5
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Re: Profit From Clients That Say "No" To Your Services...


Absolutely... Technology has come A LONG WAY...

And here's the kicker... I'm a marketer, not a contractor or designer... I just happened to get thrown into the design thing... But I've been in the field "just enough" to pretty much handle any client that needs design work...
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Old 12-06-2015, 08:11 PM   #6
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Re: Profit From Clients That Say "No" To Your Services...


Quote:
Originally Posted by mrhamel View Post
Absolutely... Technology has come A LONG WAY...

And here's the kicker... I'm a marketer, not a contractor or designer... I just happened to get thrown into the design thing... But I've been in the field "just enough" to pretty much handle any client that needs design work...
Your not a contractor?
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Old 12-06-2015, 08:25 PM   #7
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Re: Profit From Clients That Say "No" To Your Services...


No, he's a marketer for 2020Design! ;-)
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Old 12-06-2015, 08:29 PM   #8
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Re: Profit From Clients That Say "No" To Your Services...


Hey, he taught me something....

And perhaps by "not a contractor" he means not a trades professional. Maybe he is out there bidding jobs as a paper contractor.

Or he could be a marketing rep
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Old 12-06-2015, 08:41 PM   #9
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Re: Profit From Clients That Say "No" To Your Services...


I'm a partner in Kitchens By Design, LLC... The GC in the company is my dad... We hold a corporate license here in Cali (which technically shields me as a license holder)... I wish 2020 offered an affiliate program... I would have already posted a link lol!

I got started by my dad having this stupid idea to put his biz online... We reincorporated, changed the license, and the madness began lol!

But my true passion in all of this is marketing... Though I've learned a $#!+ ton over the last couple of years...

I love working with clients and helping other contractors wherever I can...
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Old 12-06-2015, 08:44 PM   #10
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Re: Profit From Clients That Say "No" To Your Services...


Some good thoughts you shared mrhamel.
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Old 12-06-2015, 08:52 PM   #11
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Re: Profit From Clients That Say "No" To Your Services...


Thanks META!
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Old 12-06-2015, 08:56 PM   #12
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Re: Profit From Clients That Say "No" To Your Services...


Quote:
Originally Posted by mrhamel View Post
I was speaking with one of our certified partners in Dallas last week and we were discussing the methodology behind our business model, and I thought I'd share a little of our conversation here...

Our company specializes in modern kitchen remodels, and we have discovered a way to eliminate all of our marketing costs (free PPC on Google, essentially) and to profit from clients that end up saying "no" to our services, normally due to the price being out of reach...

We've set up what we call a "funded proposal" or a "self-liquidating offer"...

Essentially, we offer them a low dollar offer to get them started through our sales process...

For us, we offer a $297 kitchen design service...

We're using 2020design, which kicks out beautiful designs in about 20-30 minutes...

Here's how we sell it 99% of the time...

We offer a free in-home design consultation that gets them to opt-in to our list on our website... My assistant then calls them and goes through a quick over the phone questionnaire... She then works to schedule the free design consultation and informs them that though the consultation is free, the design service is $297...

We used to do this all for free, and ended up getting burned by clients going with someone else or using our designs and elevations to DIY their project... We wasted time, expertise and fuel...

And since our customer acquisition cost is approx $12/lead, selling them a $297 service that we can knockout in about 30 min has added an additional $10k/mo to our bottom line...

Whether your in our niche or not, you can find ways to offer the same kind of self liquidating offer to off set your advertising costs and even add more quick cash to your bottom line...

I keep seeing people complain about PPC & SEO costs... Using a low dollar offer up front will help with that (along with getting better at PPC and SEO)
I'm on OC (Anaheim Hills) ever do work in this area?
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Old 12-06-2015, 08:59 PM   #13
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Re: Profit From Clients That Say "No" To Your Services...


Damn 20mins. It takes my supplier 2hrs to just figure out door style, material, finish and brand let alone layout. Layouts normally another hr or 2 and then an hour to do a basic rendering.

There's no charge for it either but it's rare they don't buy from them after spending all that time in the show room figuring it out.
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Old 12-06-2015, 09:03 PM   #14
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Re: Profit From Clients That Say "No" To Your Services...


Yeah, we're probably getting spammed for 2020Design in the meantime....
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Old 12-06-2015, 09:07 PM   #15
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Re: Profit From Clients That Say "No" To Your Services...


Maybe I'm confused. Your website seems to be tied to IKEA. Don't see a current CSLB listing for Kitchens by Design.
Is your company strictly designs or full blown remodels.
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Old 12-06-2015, 09:15 PM   #16
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Re: Profit From Clients That Say "No" To Your Services...


This is an excellent idea! I don't think that I can get my prospects to cough up $300 but I'm sure I could sell a 3D drawing for half that price all day long. All I would have to do is offer them the service for $149 with the option of applying that to the cost of installing and/or purchasing a new TV from me.

The customer thinks that they got a $149 discount on a $200 TV installation and I was able to scoop up an easy $200 for about an hour worth of work.
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Old 12-06-2015, 09:23 PM   #17
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Re: Profit From Clients That Say "No" To Your Services...


We have no affiliation with IKEA... We've just put together a lot of content about them...

As for the lack of CSLB info, we act more as a referral partner for contractors we work with... We generate the leads and do the design work, then hand it off to licensed GC's... Our initial visit is for design, then we set a second appointment with the GC that will be doing the job...
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Old 12-06-2015, 09:24 PM   #18
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Re: Profit From Clients That Say "No" To Your Services...


We cover LA County, Orange County, Riverside County, San Diego County & San Bernardino County (all the way out to Palm Springs... )
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Old 12-06-2015, 09:25 PM   #19
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Re: Profit From Clients That Say "No" To Your Services...


We have a questionnaire that we run through during our consultations... That give us all of the "finish" information we need... And the only reason no one would pay for the service is because you simply didn't ask...
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Old 12-06-2015, 09:29 PM   #20
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Re: Profit From Clients That Say "No" To Your Services...


Quote:
Originally Posted by META View Post
Yeah, we're probably getting spammed for 2020Design in the meantime....
Too funny!

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