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Service leads with repetition

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andrewbaltimore

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I provide a service and have some workshops of mine in different locations.
Customers from other cities ask me for services but I cannot provide them.

It is important to notice that customers tend to ask for other services over time (they repeat) and market is not very big even though it's growing (so there aren't a lot of workshops).

In the past I tried to sell leads unsuccessfully. The main problems were that those workshops were too busy/lazy (they were neglecting the customers I sent to them) or they served the customer once from me and the following times the customer went directly to them.

I distribute the main products needed to perform the services but I'm not the only one selling those products.

My approach is to open new workshops were there is enough demand but what to do with those areas were the demand is weak for an owned workshop but there are customer to be attended?
 
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Andy Black

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I provide a service and have some workshops of mine in different locations.
Customers from other cities ask me for services but I cannot provide them.

It is important to notice that customers tend to ask for other services over time (they repeat) and market is not very big even though it's growing (so there aren't a lot of workshops).

In the past I tried to sell leads unsuccessfully. The main problems were that those workshops were too busy/lazy (they were neglecting the customers I sent to them) or they served the customer once from me and the following times the customer went directly to them.

I distribute the main products needed to perform the services but I'm not the only one selling those products.

My approach is to open new workshops were there is enough demand but what to do with those areas were the demand is weak for an owned workshop but there are customer to be attended?
Will customers travel? Is it possible to do an online version of your workshops?
 

andrewbaltimore

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Feb 19, 2016
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Will customers travel? Is it possible to do an online version of your workshops?

Some customers already travel but the majority of them are not willing to do it.

I have some DIY free guides and tutorials on my website so people are also buying the products and doing the service themselves but that only works for minor services. There are some big services where a trained professional is needed.

At some point I decided the best mixed solution was to offer franchises so I didn't have to invest too much but still be able to open new locations.
I had big problems with some of the new franchisors (one ended in court because they were breaching the contract) but some of others work well.
 

Andy Black

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Some customers already travel but the majority of them are not willing to do it.

I have some DIY free guides and tutorials on my website so people are also buying the products and doing the service themselves but that only works for minor services. There are some big services where a trained professional is needed.

At some point I decided the best mixed solution was to offer franchises so I didn't have to invest too much but still be able to open new locations.
I had big problems with some of the new franchisors (one ended in court because they were breaching the contract) but some of others work well.
For service providers there’s often two markets, the DIY folks and the DFY folks (Done-For-You). By definition those two markets don’t often overlap. It’s interesting that you have some services that are more likely to be DIY and others that have to be DFY. You’ve made me realise I have that a bit too, and that I should think a bit more about it.

It’s nice to be able to serve both markets. Are you able to create a paid course? Are you able to train people up so they can setup a business for themselves? Would they then want a steady stream of leads for their new business?

I have a client who trains people with a technical skill and some then become franchisees. He sells the training and also sells the consumables they use in their business.

We’re now working on a lead generation system for all his franchisees. He’s not even interested in making revenue from generating leads for them - he sees it as even more added value if they pin their flag to his mast, and that growing their business will help him sell them even more consumables.

For all my clients, and for this guys franchisees, I don’t sell leads. I prefer to sign them up as a client in that region where they pay a fixed monthly fee for the lead generation system. They also pay the ad spend. If it works for them then they continue to pay. If it doesn’t then we keep trying to dial it in or part ways.
 

andrewbaltimore

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Thanks for your accurate response, really helpful.

Glad my point of view also helped you. You're right, DIY and DFY are two separate markets but it's even better, a lot of DIY customers end coming back as DFY after some time (sometimes because they struggled doing it themselves, sometimes because they want something more elaborated) so the CLV is higher than expected.

How do you determine the fixed monthly cost they have to pay?

Right now, and because I had some troubles in the past, I'm working on a booking system for the workshops so customers can book themselves based on availability. This also implies that I'm fixing prices for everything I offer as bookable and everyone under my flag will have to give those same prices nationwide. Before that, I gave them some margin to quote freely.

I'm wondering about what would be the best strategy in terms of pricing if I offer a fixed monthly payment in exchange of a stream of leads + already booked services.

For service providers there’s often two markets, the DIY folks and the DFY folks (Done-For-You). By definition those two markets don’t often overlap. It’s interesting that you have some services that are more likely to be DIY and others that have to be DFY. You’ve made me realise I have that a bit too, and that I should think a bit more about it.

It’s nice to be able to serve both markets. Are you able to create a paid course? Are you able to train people up so they can setup a business for themselves? Would they then want a steady stream of leads for their new business?

I have a client who trains people with a technical skill and some then become franchisees. He sells the training and also sells the consumables they use in their business.

We’re now working on a lead generation system for all his franchisees. He’s not even interested in making revenue from generating leads for them - he sees it as even more added value if they pin their flag to his mast, and that growing their business will help him sell them even more consumables.

For all my clients, and for this guys franchisees, I don’t sell leads. I prefer to sign them up as a client in that region where they pay a fixed monthly fee for the lead generation system. They also pay the ad spend. If it works for them then they continue to pay. If it doesn’t then we keep trying to dial it in or part ways.
 

andrewbaltimore

Contributor
Read Millionaire Fastlane!
Read Unscripted!
Feb 19, 2016
25
33
29
Are you able to create a paid course? Are you able to train people up so they can setup a business for themselves? Would they then want a steady stream of leads for their new business?

I have a client who trains people with a technical skill and some then become franchisees. He sells the training and also sells the consumables they use in

About this, yes totally I would be able to create a paid course and makes a lot of sense.

My only concern about offering high quality training (online or live) is: would make sense to train people that may not become a franchisee and that can compete directly against my franchisees? How is your customer dealing with this?

Thank you
 

Andy Black

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About this, yes totally I would be able to create a paid course and makes a lot of sense.

My only concern about offering high quality training (online or live) is: would make sense to train people that may not become a franchisee and that can compete directly against my franchisees? How is your customer dealing with this?

Thank you
He sells the shovels. They might be a miner trained by him, or competing with a miner trained by him. It kinda makes no difference to him.
 

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