Darrell Backen Digital Marketing: The maximum profit is always in volume business ,SIDE BY SIDE to eliminate driving time.

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The maximum profit is always in volume business ,SIDE BY SIDE to eliminate driving time.

You will have to decide on what kind of promotion you want to run. The idea of the coupons is that the customer will save some money. I would recommend that you offer a sliding scale discount based on volume. This works on the principle that if one person wants to get his lawn done, he gets 5% off, but if he can influence his neighbor to have his done at the same time, then they both receive 10% off their total bills. If they can organize 4 or more neighbors, THEY ALL WILL RECEIVE 20% OFF THEIR RESPECTIVE BILLS! This means that on a standard starting price of $50 they would all receive $10 off. This also means that you will only receive $40 dollars per lawn BUT YOU WILL MAKE MORE MONEY PER HOUR AS YOUR TRAVELING TIME IS ELIMINATED! I can usually complete about 3 lawns in an hour if they are side by side compared to only 1 and a half when I have to drive, load and unload between jobs. I have doubled my efficiency this way. I have had up to 20 neighbors on the same block agree to have their lawns done all at once.

I believe my fuel expenses were around $3.00 that day (the aerators use hardly any fuel, a 5 gallon gas can usually lasts a few days). So how much profit is involved in that days work? The maximum profit is always in volume business ,SIDE BY SIDE to eliminate driving time.

Comment balloon 0 commentsDarrell Backen • April 15 2010 12:04AM

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