Buying More Customers?

Discussion in 'Christmas Trees & Seasonal' started by christmas79, Nov 19, 2009.

  1. christmas79

    christmas79 LawnSite Member
    Messages: 208

    Here's my questions I have about 125 customers now getting phone calls everyday. I found a small lighting business for sale gross $4,000.00 selling it for $1300.00 which includes the lights and contracts. Should I take on more business or just stick to what I have? Thanks
  2. David Gretzmier

    David Gretzmier LawnSite Gold Member
    Messages: 3,645

    I am not so sure. 4000 in rehang sales is around 4 rehang customers for me. many folks it might be 8. but the reality is it may be 15. and that means low prices and probably low profit. my cost to get a new customer is based on my advertising bucks spent divided by the number gained in a year. this year i may get 20, 30 or 40 new ones, who knows. but in previous 4 years I have gotten 35-40, so take the 12 grand I spend and divide it by 40, and that means I spend 300 bucks for each new customer. so yes, 1200 bucks for me gets me 4 grand in rehang revenue.

    but I am not so sure I would pay that for someone elses customers, unless they could prove to me they are pretty profitable ( do they have man hour records for each job?) and I had some assurance that most of the customers would stick. If you already have 120 customers, I probably would not really dig into this much unless we were talking about 20 grand or more.

    really, 4 grand in rehangs is not too much to quibble over.
  3. christmas79

    christmas79 LawnSite Member
    Messages: 208

    Thanks for your help David.

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