Well, today was a good day. Had the business partners out to the new office and we sat down and had a great conversation about where the business is going and what we need to do to get going. I think this is a great refresh that we need. My partners have been busy in their other business but we are moving in the right direction together.
So we are going to start paying people to help post on Facebook. Im hoping to gather a decent amount of people who will post about our business for us and help spread the word. I guess, its not that questionable, this is what every celebrity or influencer really does. They get paid to help promote something…but this feels a little different for some reason. Not sure what that is. We will see how this goes.
Sat down today and was talking with my parents and I had the idea of just paying larger amounts to people to book a service on Fix it Today. Right now we are offering $20 which will basically break us even but it obviously isnt enough for people to convert. So where do we go from there. Realistically for the services that are on Fix it Today (hvac plumbing and electrical) these damn Google clicks are $40 and up. Why don’t we just do what I talked about from the beginning and spend our advertising money on customers? Im thinking of paying $50-75 per user that will book a service. If you get a service call that $100 and get half off or more, thats a great deal for a homeowner. How does that look for us financially? We lose $30-50 per customer. While the numbers don’t look good at the beginning it all matters about the customer lifetime value. IF they use the service a second time, we are back to zero, a third we are making money.
So how much money can we realistically afford to lose per customer? This is a hard question to answer. The local trades are $200-250 CAC but they have a large return. We have talked to providers who have lost money at that rate though. So what if our “loss” was less than a single click from Google? Our biggest fear right now advertising is on Google. If we can get people to book preventative maintenance things like hvac maintenance for $50 off, its a $30 CAC which is less than a single click. Too bad there isn’t anything we can think of for plumbing or electrical. Water heater drain or flush? I got nothing for electrical.
The girls are doing great as usual. Multiple handyman companies and now pest control companies are looking to sign up. Neil is going to have some work to do. Tomorrow we should switch to our CRM and also Zoom for phones and chat. Hopefully this will bring better organization and faster turn arounds registering providers. We are adding 7 more services before we move to Houston.
