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Change this one thing to profit more than 99% of businesses
Increase average ticket size and smother your competition.
Andy Walker
July 15, 2024
How to make more money easy.
Welcome to the Home Service Marketer newsletter.
In today’s newsletter, we will discuss:
How to spend more money
How to make more money
Smother your competition
“Whoever can figure out how to spend the most for their lead and for their sale will win.”
- Dan Kennedy
It is approximately a 3-minute read.
Understanding ticket size
What is ticket size?: Your ticket size is the average amount each job is worth to you. If your average sale is $2,000, your ticket size is $2,000.
Why should you focus on it?: If you do 100 jobs per year at a $2,000 ticket price and you increase your average ticket size to $2,200, you will make an additional $20,000 per year.
How do I increase it?: You need to have additional services you can sell to them that add additional value and appear cheap in relevance to what you have already sold them.
Links of the day:
Customer Acquisition: Whoever can spend the most money will win
Know Your Numbers: LTV/CAC by Hormozi
How to think about innovation: Jeff Bezos Speech
Nothing overcomes bad economics
The more money you spend, the harder it is for your competition to acquire new customers. If you get this right, you will effectively smother them out of your market because you will win the majority of impression share across the internet.
But that sounds confusing, right? How can I simply start spending more money? My profit will drastically decrease. This is a full circle back to increasing your average ticket size.
If you are selling a $2,000 service and, through a mixture of upsells, can increase it to $2,200, you can now effectively pay an additional $200 to acquire each customer that your competition cannot.
But you cannot do this unless you have a secondary service that you can upsell. Let’s look at some examples.
Example 1: Pressure washing
You’ve sold and closed an $800 house wash job. You will now be on the job site with all of your equipment face-to-face with your customer. You now have the ability to upsell:
Gutter cleaning
Fence/deck cleaning
Driveway cleaning
Example 2: Epoxy Garage Flooring
You’ve now sold and closed a $1,000 job. You will be on the job site with all of your equipment face-to-face with the customer. You now have the ability to upsell:
Garage organization
Garage Painting
Driveway sealing
Car lifts
The customer is already a buyer. More people will be sold face-to-face than over the phone.
If you are not attempting an upsell every single time you are leaving $$ on the table.
How I can help you:
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