I have read about 30-40 posts here and I felt the conviction to write to some of you as I can see that the cost of leads are taking a burdon upon you. I bet some of you are experiencing maximum pressure and your busier than ever but going broke and you can't understand why. I know I got someones attention. Do you know how I know?
Thats what happened to me. I spent way to much time complaining about the cost of the leads because I was always price focused. I thought I needed to be because of the cut throat nature that I was experiencing from the customer. I'd walk in the home and feel the pressure to compete with people who are low balling the price on these jobs. I realized that companies that low ball prices to get jobs are not winners, they are going broke and they don't even realize it yet. Their weakness in sales and understanding their customer causes them to compete the only way they know how, price, price price.
Sign me up quick!
Some of you folks need to really take a look at your perspective. I could care less if I blow 30 leads at $6.00 - $8.00 each. Do you even realize how dirt cheap that is? You really need to go out there and purchase some home advisor leads and wait til that hits your account for the same lead at $50.00 all day, every day. When you are done the job, are you asking the customer for more business? Are you asking if they have friends and family? We hardly buy leads anymore because we are still eating off the friends and family of our current customer base. It is unbelievable. Cost me only $8 bucks, I am so greatful for such a low price to do so much business.
Cost of Doing Business
I see many of you breaking the chops of thumbtack, stating that if you don't get ahold of them, then its free. I can understand that model if you are not given a phone number or email address, then fine. Let me tell you a secret about the leads and I tested this theory and encourage you to try it today. Go sign up for a service with thumbtack just to test the system for yourself. Most pros email one single time, what is with that? I mean even when I give a phone number no one calls me, its ridiculous. Your not even working the lead trying to catch that customer. You need to be on that customer 2x a day for the first week. If you do only that adjustment, you will get some great results. These folks have a cost of business to provide you leads at good prices. they have employees, advertising costs that you dont pay for , building costs, and I'd be a little upset if folks fail to run their side of the street right and you expect the company to eat your failures. You need to own the mistake of not working your leads if your not working the leads.
How to tell you are not doing it correctly!
I typically walk into a home and when I hear them ask me what the price is off the bat and they keep persisting thats a sign that I need to change their perspective because they are viewing me as cheap labor and its an indicator that I have not demonstrated the value of what I do. Its a symptom of the issue with how I am delivering my services and I correct it. I am not a fast talking used car sales man, not by a long shot. Quite the opposite. I tell folks all time, If its price your looking for I am not your company and if you don't hire us I know some decent companies that may do the job almost free. The cheapest option is not always the cheapest option, its usually the most expensive option because of poor quality of materials and labor. I see it all the time. I will paint the picture of when it happened before and let them decide if they want to do cheap cheap cheap, I know that isn't the customer i'm serving.
Pick better demographics and analyse your areas better. Don't take leads if you know that zip code is in a majority homelesss section of town. Of course you will fail if you do not get better demographic information!
I'd say about 70% of the time, my price will be higher than the other competitiors but I explain and review exactly why and identify what they really want. Most customers want quality, even the ones hounding you about price. You just don't understand the dynamics of turning that exchange around. Henceforth, your probably not making much money and now beating these folks at thumbtack up about a $6.00 lead when it costs $50 at home advisor all day every day. You should be closing that job site on seen and collecting a 50% deposit the same day you take a look at the job. No exceptions.
Change your perspective folks! My knowledge comes from a multitude of failures over and over and over again, I'm giving you the secret so you don't have to fail as much as I have to get to where I am today.
I have read your post about not working the leads, and agree with every word you have said. I do stay on top of the leads I decide to persue like white on rice. However, Im not sure where you are getting your $6.00 price. That is the old system thar had those types of prices. Ive been in the lead generating business myself and there is a huge difference in a "Quality" lead and a lead that is Trash. TT is not qualifying the leads. They are not providing a phone number, an email address, or anything else for that matter and they are sending the same lead to 15 different pros. Dont tell me TT has overhead to pay for. They are making a killing on one lead when that customer contacts 5 or more Pros. Referrals is a no brainer, but you have to land a job before you can bank on a referral from that customer. If TT new structure works for you thats great. Dont preach to those of us who know what it takes to be successful, and are simply trying to get the quality leads we are being charged for. Charged A LOT for.
I don't even pay attenton to it to be quite frank with you. The last I remember looking at it was when tokens were now seen as a cash value and they were around $6-8 each electrical one. Let me look right now and check.
This is not accurate. Leads are continually going up and being sold to multiple contractors. You so the low bidders don't win and that may be so, but there is a continual stream of them being brought in by thumbtack so in reality you would have to wait years for them all to be gone, and by then , there would just be more. Thumbtack charging $75 for contact from a homeowner that wants three rooms painted is rediculous. Not to mention, sometimes, they just contact you to verify what you already said in your quote. Plus, thumbtack gets that $75 fee on multiple contractors. I agree thumbtack can bring you good business but you are starting to charge way to much on your leads. Time to start looking at porch, craftjack and homeadvisor. You guys are your own worst enemy. greed.