The value of a customer can be deceiving. Many people ONLY look at the bottom line of that one job, and see nothing else.
For instance a one-time window cleaning job that brings in $175.00 would be viewed as simply a customer WORTH ONLY $175.00.
But that is FAR FROM THE TRUTH. The fact is that one-time customer is probably worth many times more if you play your cards right.
The fact is many customers will become LIFE-TIME customers provided you did a good job AND followed up regularly to stay in front of them. So let’s say this one-time window cleaning job for only $175.00 becomes a life-time job.
For the sake of argument we’ll define life-time as 30 years. We’ll assume that they only hire you every other year. And let’s say the price stays the same (which is unlikely but makes the math easier). So that means they will hire you roughly 15 more times at $175.00.
That will total $2,625.00. Not a ton of money, especially over 30 years, but the math doesn’t end there! It’s safe to assume that this one account will REFER YOU 5 more customers. Those 5 accounts add ANOTHER $13,125.00 (remember, each one is worth AT LEAST $2,625.00). This is starting to add up now huh?
Now it’s very plausible that you may get more referrals off this second generation group of referrals. So let’s say each one of those 5 refer you 3 more similar customers (15 times $2,625.00). This is ANOTHER $39,375.00 on top of what you already have earned.
These numbers are VERY POSSIBLE, however the amazing part is you MAY DO EVEN BETTER. What if some of those “every other year” accounts BECAME YEARLY ACCOUNTS? Wow… that math would be OFF THE CHARTS. What if you got more referrals as well? WOW!!!
The point I want to drive home is this. It’s good practice to OBSESS over making each customer a happy REPEAT customer because many of those will become a CHEERLEADER. And cheerleaders SEND YOU BUSINESS!
And that business will yield more cheerleaders which just make you more and more money. So do yourself a favor and work hard at making one-time clients a life-time client. This is the single fastest way to build wealth in a service based business.
I advertise on Groupon for my home cleaning business, however some of these houses are extremely large and groupon only allowed you to change a certain amount for example 51% of what you normally change and they get 50% of that 49% of all customers that they bring you. My questions is was this or is this a good way of generating new client for only 39$of 3 hrs of cleaning?
AWESOME QUESTION… The answer to that question DEPENDS on your ability to turn “one -time” jobs into “life-time customers”. As you can see from this article, you can turn that one-time jobs that don’t in and of themselves pay much into MUCH MORE. You just need to get a certain percentage to flip to a long-term client THEN get referrals. Also… If i were you, I would consider increasing the Groupon price so you can have a little more left over (find a balance between giving them a deal AND you being able to break even from a cost standpoint).
Thanks for your prompt reply. I have tried that but groupon won’t push it, I was coming to a conclusion of ending the campaign since I have to travel one hour away from my location, with such little payout.
I was wondering if you could recommend a large self wringing commercial size floor mop? I have several office with large floors and the smaller mops take a long time to complete my work. Not a fan of hauling around a wringer…any advice?
No worries… there are other methods to get accounts.
Hi Jim! Nothing comes to mind. Can’t you just leave a large mop and bucket there (small price to pay for such convenience)?
Hi Tom. I’m having a problem finding out who the owners of buildings are. I live in KS and owner info is private. Any suggestions?
Thanks!
That was a Great point you made in article. Never really looked at that way before. Thanks for pointing out.
Hi Tom, I love all your posts. They have helped me a great deal in my little business. I was wondering if maybe you could help me out with a quite for a house 6000sq.ft. not too dirty just messy twice a week. I’m at a loss. I don’t want to break the bank but I want to make money and also have enough for my worker. This house will also generated 2 dr. Offices.. if this was you in the beginning- What would you do??
Thank you
Cyndi Thomas
Sorry for the delay… Without seeing anything, I can’t bid it. I did however do a post that will help you out a lot… http://cleaning4profit.kinsta.cloud/2013/04/28/how-to-quote-house-cleaning/
Hi Erica! If it’s a big building, then it’s managed by a property management firm, and odds are they are listed on a marquee outside the building. Look them up and mail to that address. If the building is small, then you mail to the company that is using the office/retail space AND mail a sales letter to the “Office Manager”.