Advertising Purely For One Service

Discussion in 'Business Operations' started by DLONGLANDSCAPING, Feb 5, 2013.


    DLONGLANDSCAPING LawnSite Bronze Member
    Posts: 1,418

    If anyone is interested in adding another dump truck to the fleet, here is a way to get a nice down payment on a new truck or buy a nice used dump.

    So i have really been upping my game with advertising this year and am planning a big year growth. Some of my advertising goals at the end of 2012 was to pick a niche service and advertise the $hit out of it. Since i want to get a "newer" dump truck (06 and newer) i would like to have work secured before the truck is purchased. So i chose Mulch installation and delivery.

    Since no one else around me advertises for mulch delivery or installation (besides 1800 i wanted to pick something that no one advertises soley on and i have the equipment to handle. (most companies do it, but dont advertise for it, which will set me apart)

    My plan is to hit 5,000 houses with twice with EDDM post cards and an additional 5000 door hangers two weeks after the postcards go out in mid march for a "last call" deal they cant refuse.


    10k post cards printed and mailed (.21 cent each) =$2,100
    5k door hangers printed and handed out (.065 each)=$325


    IF i shoot for 1% response rate and 75% of that response landed, i will be at 113 new mulch clients.

    If i average 75% of those will want installation and 25% of those will want just delivery i can assume these average numbers:

    85 mulch installations: Average of 5 yards each
    5 yards of mulch at $75 installed = $375
    +edging = $100
    +delivery(1/2 off) = $42.50
    +Weeding= $50

    TOTAL PER JOB SALES: $567.50

    -TOTAL LABOR/OVERHEAD ON JOB: 3 guys @2.5 hours each job includes fuel: $112.50
    TOTAL MATERIALS ON JOB: 5 yards at 21 each purchased: $105

    TOTAL PROFIT: $250 dollars x 85 new jobs $21,250 dollars

    (if i do end up landing these jobs i will just order 500 yards of mulch directly from the supplier and save 6 more dollars on material each yard)

    28 mulch deliveries: Average of 5 yards each +85 dollars delivery charge

    5 yards @38 per yard plus delivery: $275 dollars

    TOTAL LABOR AND FUEL EXPENSES: (45 minute round trip including time to load material): $35 dollars

    TOTAL PROFIT: $135 dollars x 28 jobs= $3,780

    -taxes, insurance, other expenses leaves me with around 14k for a new truck. -depreciation write off

    I just wanted to share how I justify a purchase, If i complete 50% of the total 113 signed i would be completely happy, but to our full potential i am sure we could put down another 500 yards per season with an extra 2 guys this year, at leased this is my plan...

    Some advise to new guys, or guys that have been in the industry for awhile. Niche markets are the way to go. Doing one thing extremely well will benifit you with utility customers.

    Also, keep in mind that this was only for 5 yards each, some of my accounts take 20 yards, and some take 3 yards, and most of them want flowers and bush trimming while we are there as well as two other times per year. :usflag:

    DLONGLANDSCAPING LawnSite Bronze Member
    Posts: 1,418

    Well since i got no replies on this, and i just got my post card proof back, figured i should give you guys some pictures.


  3. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Posts: 10,742

    Badass. I love it. Who did your design? Ive thought about doing one just for irrigation installs and repairs
    Posted via Mobile Device
  4. LawnsharkMB

    LawnsharkMB LawnSite Senior Member
    Posts: 582

    $85 dollar delivery fee? Wow.

    The highest delivery fee I've ever paid is $40 and the most I've ever paid for a yard of mulch is $28.50.
    Posted via Mobile Device

    DLONGLANDSCAPING LawnSite Bronze Member
    Posts: 1,418

    Thanks jacob, i am very excited about the results this is going to produce.

    DLONGLANDSCAPING LawnSite Bronze Member
    Posts: 1,418

    Are you a home owner? Im not selling wholesale mulch to other companies, the prices are competitive in my area for mulch. If home owners want mulch delivered, thats the price of mulch directly from my supplier for home owner pricing. This saves me some grief if a customer calls my supplier and asks how much a yard of mulch is. Because it is exactly the same as i am advertising. I am just buying it at a much lower rate and marking it up m just like they do.

    My delivery charges are depending on where the customer lives. but most deliveries cost between 75-100 to deliver anything around me. That is why it is so neccesary to have a dump truck or trailer to haul your own material.

    DLONGLANDSCAPING LawnSite Bronze Member
    Posts: 1,418

    Sorry for not answering your whole post. Bob from Plan-it graphics did the designing. I am thinking about sending 3500 cards out each month with specific services like this.

    Normally we get calls throughout the summer from weekly accounts that want extra work, but very few from other new customers wanting services. In the spring we get a huge load of calls from our advertising, but it slowly dwindles off. If i can produce a stead amount of calls throughout the entire year spending around 1k a month advertising, i think its well worth it when we are doing much more work.

    It takes money to make money and around here word of mouth only goes so far. There are too many companies doing quality work around me(as well as too many hacks doing horrible work).
  8. ToddH

    ToddH LawnSite Silver Member
    Posts: 2,184

    Looks like you have it figured out. Let us know how it goes in the home owner response.
  9. knox gsl

    knox gsl LawnSite Fanatic
    Posts: 5,067

    Subscribed, I have thought about doing this myself.
  10. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Posts: 10,742

    Man u got the gears in my head spinning. I gotta focus and finish this baby room first.
    Posted via Mobile Device

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