Cost Per New Customer

Discussion in 'Starting a Lawn Care Business' started by LawnExperts, Sep 23, 2012.

  1. LawnExperts

    LawnExperts LawnSite Member
    Posts: 18

    Hi, I'm in Dallas area and I was thinking about the cost per new customer acquired for lawn maintenance and I got to $ 80.00 per new customer.

    Does this marketing cost per new customer sounds reasonable?

    Thanks for your input.
     
  2. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    I don't do that because sitting at home doing nothing is worse then the money I spend on gas and the mileage I put on and using up my free time.

    Thing is you can put an add in a local paper for a $100 and get 10 customers at $10 per new customer.

    You can send out 10,000 mailers, for $1,000 plus postage and get 100 new customers at $10 per customer.

    Both forms cost the same per customer.

    One may argue that mailings are better based on the number of new customers. Though if ten neighboring town newspapers were advertised in then for the same $1,000 in cost as mailer would yield the same 100 new customers.

    Not just cost must be considered. Your available time and date you need advertising done by are important factors.
     
  3. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    Probably varies from market to market. Did you try one thing and it came out to $80 per customer? Most everything that I tried cost much more than $80, but maybe it was the methods that I used.
     
  4. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,276

    It's realistic, IV spent more than twice that on advertizing that didn't work and a fraction of that on advertizing that was outstanding. Obviously the less you spend on advertizing while reaching your set goals the better. It will take some time to dial in what works and what doesn't for you. The bad news is what works will likely not work in just a few short years. IV had many good systems that had great results dry up over the years when other guys copied them and flooded the market. Just stay attentive and keep and eye on what works and whats not and do not get complacent in a routine always look to improve.
     
  5. Utah Lawn Care

    Utah Lawn Care LawnSite Bronze Member
    Posts: 1,308

    That is a reasonable number. It's up to you how fast you're willing to grow. If you are patient you may get 15 new customers/year from just having a website which is virtually free. If you're full-time and want to grow and expand quickly you may need to get involved with post cards, door hangers, newspapers, billboards, and other methods. The more costly things like postcards will get you new clients, it's just a matter of if you're willing to pay 2-300 per new client doing it. Figure out how long your average customer stays with you, and how much you charge your average customer. That will determine what they are worth over the life of them being with you. Let's say that number is $4000. Are you willing to pay 80 bucks to earn 4000 over the next few years? Are you willing to spend 200 to earn 4000 over the next few years? You need to decide what makes sense for you, and what your goal for your business is. If you're willing to grow slowly one can do it for relatively cheap.
     
  6. TheBetterDoorhanger

    TheBetterDoorhanger Sponsor
    Posts: 526

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