Simple Micro Hack to Grow Your Contracting Business Exponentially Dave Negri; what if you could grow your business by 40% without adding any more marketing campaigns with no more postcards, mailers, just by tweaking it just a tad and go through this thing called asset recovery.
Well if I sat down to think that I was going to grow my business by 40%. I would rack my brains and say Man I got to do a ton of work but I’m going to show you today. Now, what if I told you, you could grow your business by 40% without adding any more marketing campaigns. That’s no more postcards no more mailers no more just by doing exactly what you’re doing now but tweaking it just a tad. And I mean just a tad it just blew me away when I sat down and went through asset recovery. I’m still speechless as I go through it. You know there’s a lot of times that we all know things like I knew this and I practiced it a little.
But to take it one more step. I actually added 40%. I can actually add 40% to my gross sales. So, before you say I’m crazy to listen to me and you can actually implement this into your business very, very soon like tomorrow. So, let’s just take a look at today we’re talking about leads when I’m talking about referrals. We’ll get back to that maintenance smartening next. And, but today I want to talk about this because I implemented it. It made it tweaked a little bit more than what I was already doing and the results were just fantastic. So here we go.
Everyone spending the money for leads. Now the national average for closing leads, the leads that you get is 30% and the contractor around some someone will hire some less. I know in painting roofing plumbing you’re doing about 30% on highly paid leads.
If you’re a builder you’re probably doing about 10% to 15% because you’re talking about huge high-end stuff. But let’s just stay in a room about 3%. Now let’s say that you have 100 transactions in your average transactions that you’ve closed on those hundred is $1,000 so say you’ve done a hundred thousand dollars’ worth of business. Now that’s 30% of the leads that you got. So, you paid for 300 and 30 leads you closed one hundred.
Well, what happened to the other 70%? When I sat down and gone through. Well, that’s not a bad closing ratio but let’s take a look at what the averages are for most people. Of that 70% that, didn’t say yes didn’t say no. If you moved on to the next sale how many of those people actually will buy within the next year was an amazing. It’s him raising a high number 65% of the 70% that didn’t close or you didn’t close is going to buy from somebody within the next year.
So, you’ve already spent the money on the Lists and you were dropping them out the back end and going after more new leads. So, the whole idea behind asset recovery is to take in work those leads. Well, they didn’t say yes but they didn’t say no. So, I only sent one to follow up. But now that I know that 70, 65 percent are going to actually buy within the next year, I put in more follow up the process into my, into my sales process.
So, am I spending more money on a small tab? Am I implementing any new marketing strategies? No, because I’m actually taking something I had. I am expanding it out farther so that I can benefit from the results of the money that I’ve already spent on leads. So, let’s just run the numbers for the fun of it. But you’ve closed a hundred transactions, thousand dollars is your average sale. So, you’ve done $100,000 hours with business. You’ve closed 30%. So that means you’ve purchased 330 leads that you’ve heard that you pay for. You close to a hundred. So that means there are 230 leads that have dropped off your radar. My radar too. I mean I was just one follow up and I was getting results. But when I come to the realization that 65% of those 230 people are going to buy within the next year they called me and they called you.
Why am I not continuing to follow up and follow up, and follow up might as well? So, out of that 230 people that fell off 161 of them. Can you believe that 161 of them are going to buy within the next 12 months from someone the services that they contacted you about? So, what if you only captured 25% of that 161 people that fell off. Think about that. You just captured 25%. Not a going after all of them. Just 25%. That’s 40 people. That’s 40 sales that you could have if you follow up and followed up and followed up.
That’s another forty thousand dollars just buy this in an area that’s 40% added to your revenue. It’s that simple. Now if you had said to me, Dave I want you to increase your business by 40%. I’d be on not looking at this, looking at that. That I had you more marketing strategies. No, it’s this simple follow up on leads that you’ve already paid for.
Put together a program that will continually get these people integrated into your system so that you can keep in touch with them at least through the year. Things happen. I’ve had people say well I’m not going to do it right now something happened. Call me back in a few months. Well, that happens and there’s a lot of people that just fall off it or not. They contacted you in the beginning because they wanted to do something.
So, might as well just keep following up with them until they say “Hey I had bought or Don’t bother me anymore”. So, here’s what I do. As soon as I do an ask them a proposal I’ll send them a postcard thanking them for the opportunity to do this and to give them an estimate.
I thank them for them giving me an opportunity to come out and do an estimate of the needs that whatever they need to be done. You know that goes a long way. Just on that alone, I’ve gotten business again people that are just like any and when I get a survey they say you know the reason I did business with you is that you sent me that crazy postcard just thanking me for giving you an opportunity. Come on give me an estimate. I felt like you wanted to do business with me. Well, I do you want to do business with them.
Now. I added a step further. So, I programmed the card to go out as soon as I come home then I program to other cars for follow up. One goes out in seven days after I’ve mailed the first postcard thanking them and it’s just as “Hey how you doing. Just want to keep in touch with you.” And there’s some other stuff I do.
But then there’s the other postcard that I’ve been out ten days after that one. And then I schedule one for a phone call in about three weeks. Now in that interim they’ll go on my monthly newsletter so that the least know who I am and what I’ll do is after two months I’ll send them another card in the mail.
So yes, some continue to spend money but it’s not a whole lot of money. You know, I was talking on an average of let’s say your average ticket is a thousand dollars. I know everybody says it. But that was an easy one to work with. What would you be willing to spend to get another 40 customers that you’ve already got in your file?
Would you spend a hundred bucks in marketing over the next year? So, for each one. So that’s 4000 to get 40000. Yeah, I think I would and I don’t think I would I know I would. I do it all the time. So, it’s just not about the money it’s about the return. You know you know to send out of 27% postcard to get a thousand-dollar job. I mean it takes a little bit of money but it’s not a new program. I mean it is a new program because it’s something that you’re implementing into your already year process. Your system. It’s not like “Oh I had to do more marketing. I got to get more leads.”
Well you know you don’t have to get any more leads because you can you just never really knew what to do before your closing ratio can now go up and if you’re saying well my closing ratio is already better than 30%. Well you know it may be but if you’re not tracking it and you’re lying to yourself. So, here’s just a brief overview. You’ve paid for 330 leads. You’ve sold 100 at a thousand dollars a pop.
I mean a hundred dollars a pop now. Now that’s just right. Thousand dollars a pop. So, you’ve done a hundred thousand dollars for the business. This could be a month it could be a year really doesn’t matter because the numbers are the same.
You’ve got 230 people that you have an additional 230 people that you paid for. Hundred and sixty-one are going to buy within the next year. You want to continue to follow up with those people and follow up with those people until they either buy or they say “Get off my back!”
So, remember what Zig Ziglar said. I hope most you know Zig Ziglar was. If you’re young and you have to look it up. He said Terry says people have skinny kids just go sell and continue to sell. So, what you need to do is put together your system.
Card goes out because when you go do an estimate and they don’t say yes right away. Thanking them for the opportunity you just give them a proposal to send out or put in your Hopper automated two or three post postcards or regular cards to go out in increments of seven days and then ten days after that and maybe ten days after that and if you’re a phone person then by all means call. I’m not a phone person so I’m not going to call the.
Put them on your newsletter list if you don’t have a newsletter list. Then listen. In the next couple of weeks, we’ll show you how to put together a newsletter and how to create an automated system to do all this stuff for you. Really, it’s that simple.
And like I said before if you had time me down as David got to grow your business by 40% I would have kicked in screens. There’s no way. I just got so much work to do. But really this is a really simple process. You’re just adding I’m tacking onto or creating a system that you never had before. But on the back end of your proposals of your leads, it’s really simple.
So also get minds book, “How to double your profits in six months or less”. You get some tremendous information and error. If you just take one or two things and run with it. Your business will grow.
Simple stuff really simple stuff. So today have a great day. Next week we’re going to talk about basically how to keep your competition from stealing your customers. So that would be pretty interesting. I know it is one of my favorite subjects. So, have a great week. Thanks for listening to us.
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