New customer cost

Discussion in 'Lawn Mowing' started by fitzg2md, Sep 25, 2007.

  1. fitzg2md

    fitzg2md LawnSite Member
    Posts: 156

    How much would you say that a new customer costs you on average to obtain. For instance, if you spent 100 dollars on advertising, and get 4 new customers from that, then you spent 25.00 in advertising dollars per new customer. If you get a referral from someone, that customer was had with no additional cost. But he still goes into your average, so now you have 5 new customers with only 100 in advertising dollars...20 dollar cost per new customer.

    I know there must be a more "professional term" for this cost, but I cant for the life of me remember what it is, and im too lazy to look it up!:waving:

    Anyways, what kind of numbers are you looking at? Try not too go back too too far...maybe just this past year's numbers. -Mike
  2. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Not sure man, but it gets tougher every year, I think next year I'll be looking at around 60-100 per customer... I tell you thou, the quality is unbeatable, I'm aiming for that exclusive elite customer, that 1 or 2% that is so perfect... On the other hand if I'm just in the top 10% I stay pretty content, those used to run me around 25-40 bucks or so each, well, make it 40+ to be sure.

    See because I look at it this way: Advertising doesn't cost, it PAYS!
    The more I pay, the better the cherry picking.
    As for money they're worth every penny in gold, why pay 40 for a 400 / year customer when I can pay 200 for a 2000 / year one?
    Heck if that's all I had I wouldn't hardly need 20 of those 2k customers, 30 at the most, I'd be so set.
    If I want that exclusive elite of a customer, it's like the needle in the haystack, hard to find but well worth the effort.

    And yeah there's cost associated with word of mouth too :laugh:
    We just don't always see it.
  3. fitzg2md

    fitzg2md LawnSite Member
    Posts: 156

    no one else care to add?

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