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I got this is an email today. I would like to know if you all think this study is true and if people are going to look for carpet cleaning in a coupon mailer.
A new study finds that 72% of consumers are using more coupons than they did 6 months ago! AND 39% said they wanted to receive their coupons via direct mail!
How would you like 39% more customers?
Here are my thoughts. I want to get what I am charging now. So I raise my price and the offer the coupon to be at the rate it is now. I haven’t done coupons because it seems that people that use them should of have their carpet cleaned years ago. That’s what my parents experienced 12 years ago when they had the business. The economy also didn’t tank like it has recently. Having said all this people are still going to need carpet cleaned no matter how the economy is. I am just glad I don’t sell carpet know. What are your thoughts? I would like to try this, but I would like to see if anyone is getting good results already.
We have found that even giving 10% off will get returning customers calling. But we live in a “very frugal” area. We always put a minimum on our coupons so that it’s at least worth our while to go. If it’s people that should have had their carpets cleaned a long time ago, we reflect that in our extraction fees when we do an estimate. We got tired of doing scary, scary rentals and not making any money on the job because of time spent extracting. Even our higher end clients like the coupons because they’re feeling the sting economically. And since we’ve seen less growth these past few months we feel the discount is worth it. Here, if we raised our prices I don’t think we’d do as well. We were lucky to get them up where they are now. I’ve talked to other operators in our state and we’re all right about the same price because we can’t get it raised much more than that.
The operator in our neighboring territory does the val-paks and says that’s where most of his new business comes from. But again, it depends on your area. What works best in the South, may not work well somewhere else.
Just a reminder of a “winter special” we run in our slow months of Jan. – March. I sent out approx. 1800 postcards offering 25% off in Jan., 20% off in Feb., and 15% off in March. So far this month, we have booked over 45 jobs with a gross sale of over $6700 and still have 16 days to fill. Last year, we ran a Jan. & Feb. at 25% off, leaving us with a huge Feb and a so-so Jan. This is why we decided to run a declining special. Seems to be working great. Another change we made from last year was to add a $100 min. service fee (good move) This is relatively inexpensive to do whether you print yourself or hire it done. We printed them ourselves, labor and postage included, for under 40 cents each. Good ROI.
sutton – Did you let everyone know of the declining % upfront in Jan or did you send out different postcards each month? I’m guessing you let everyone know upfront but wanted to ask. Sounds like a heck of a good deal for everyone! I like it!
Brian,
Strong numbers, I applaud you. My question is this. You have done about $9000 in sales before the 25% off. How much do you think you would have done without offering this 25% off? Is everyone using the 25% off? What percentage of the sales have used the 25% off versus not? I know you have grown a pretty strong customer base and was curious if you could still post strong numbers now in these months without such a high percentage off, or if you feel the winter months still require this incentive to post high numbers?
the card sutton has used,i have used also.it works well.one card that says,25 % off for jan,20% off for feb,15% off march.$100 min.charge.now you don’t have to send out cards every month.the only thing we changed was the discount rate.ours goes 20%,15%,10%.and the $100 min. charge applies.thanks sutton.
Kansas,
A single card was sent on the 30th of Dec. with all three discounts posted, giving the customer an option.Dave,
Without the discount mailing, we would have been lucky to hit $3000 in January where now, $10,000 is realistic. Work is extremely slow here. So far this month, we have scheduled 53 jobs from the discount and only 10 new customers from other sources. Of the 53, I’m not sure of the percentage that would have called regardless. My guess would be 25% or less. We can now look forward to Feb. as being equally strong and March, who knows?I realize 25% off is a huge discount but, I can still make all my payments, keep my employee employed, keep my vans running the streets for exposure, pull excess work from my peek season and stash away some beer money!! (I’m a simple man)
I feel this is an all-around great promotion that all should try during their off-season. As Tim mentioned, this can be tailored to suit your pricing structure. Instead of discounts, a $ off will also work. Make sure you document a minimum charge. Also beware: people will try to call at the end of the month to squeeze the discount to the next month. I also documented that in the postcard that states, “Service date dictates discount”
Sorry about the book, I guess I got a bit excited!
Brian, I can’t wait for your next book!
I also did this years ago. I warn you, some competetors get steamed! One was angry enough to tell me in public how he felt about me “giving away work”. On the flip side the cash flowed, the van was noticed in public, and my bills got paid. The only down side for me, was when it snowed 8 plus inches.
P.S. snow is a four letter word…
I sent out pretty much the same card. Only mine was 20%,15% and 10%.its doing ok, but not as well as Brian’s. It is 15 below zero right now and I have to get out and clean carpet! Maybe not such a good thing? 🙄
We use the same discount program as Brian. I did raise my minimum to $120.00 this year. Same $/sqft as last year. I decided to test how effective the card is by not sending it out this year until late January for a February start date. We normally send it out late December for a January start date. So far, I am down 66% vs last year YTD (I don’t do nearly as much business as Brian but the numbers tell the tale). Of the work I have done, most of it was new business. So I called my regular early January customers and they asked about their coupon (no ?’s about pricing, just where’s my coupon)? I gave them the discount over the phone and they booked cleanings. Seems once you start this the customers begin to expect the offer every year. Or, it becomes their signal to get the cleaning done. The reminder cards didn’t seem to drive any business. There could be some other things that are effecting the numbers like the weather (seems it’s cold every where), people effected by the slow economy, etc.. I usually get a lot of calls about road salt. They haven’t used as much this year because of the cold. Seems the salt is not as effective below a certain temp.
The only way to know for sure if these customers would have called later in the year without the coupon is to not send it at all. And wait to see what the results are. I have seen enough 15 days into the year that I am printing post cards as I type this. And will send them out as soon as they are done. I will be sending it out for a January start again next year.
Rick
I also sent out the same basic card, 1000 of them, trying to drum up work for Jan. and Feb. My results are not close to Sutton’s but there is some. Yes, these customers would have booked a job at a later time, but the prime months, April thru Sept. are way too busy and even a few could even out the workload. It also would allow space for new customers not having to wait 2 or 3 weeks in the prime months for an appointment.
Same card as Sutton and Turner. Good results. I feel these are good customers that always want “the best deal”. This promotion props us up in the winter and gets those jobs out of the way for the really busy months.
It gives me even more incentive to sell stain protector. If I sell that on every job, the tickets are still pretty good. The biggest thing we’ve found out this year is our upholstery cleaning with the discount has increased 10 fold! DO THE CARD. IT’S GOOD FOR BUSINESS.
Ferris has a great point on the upholstery cleaning. He listed “Carpet & Upholstery Cleaning” on his card and I somehow only listed “Carpet Cleaning”. I am getting very few requests for the latter. Next year, before printing, I will have Ferris proof-read my coupon. 😳
I have been sending out these cards 4 or 5 times a year. Sometimes 10% off, some 15%,some 20%. some the discount is for cleaning only and the winter one is for all services. One thing i haven’t done and I think i will from now on is list the services on there that I perform. I had a real good year on upholstery cleaning. I think with the economy tanking, people are going to try and get another year or two out of their furniture.
Sutton did you send the 1800 cards to clients or fresh new prospects? If they were new prospects how did you decide who or where you were sending them? Do you have a sample of what you sent?
Thanks!
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