Is it worth spending $20 to bring in a $30 customer?

Sometimes, when I talk to lawn mowing contractors, I am told that if the lawn is low-value, it is hardly worth the advertising it took to bring in the customer.

Your average lawn-mowing customer is worth a lot more than that.

Let's do the sums

Considering the different seasons, you would expect to get around 21 mows yearly. If you were looking at a minimum charge of $30 and your average customer lifetime length being three years, this would make your lowest customer value $1890

The goodwill value based on the standard 12-week turnover would be $180. A lot more than you paid to get the customer.

If you were to buy a lawn mowing customer list, you would pay somewhere north of $12K for a business of 50 clients turning over $1K a week.

If you built that yourself, spent $20 a lead, and secured only one in three quotes, then it would cost you $60 to bring on every new customer. This means that to build a business of 50 customers, turning over 1K a week would cost you 3K instead of 12 K.

That sounds like a bargain to me.

However, another thing to consider is your time frame. If you want income tomorrow, then buying a business is your only real choice. It would take you six months to build a business this size.

Building is your best option if time is on your side.

A good lawn-mowing customer is pure gold.

If you aim to attract one or two good customers a week, you can't go wrong.

If you want to learn how to get lawn-mowing customers calling you, you can find out more in the lawnmowing101 Skool Group.

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Anyway, get out there, mow lawns, and have fun

Stuart

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