Today I have a special guest Chris Martinez from Houston Texas. Chris has window-washing company and Chris has been gracious enough to join the show and we are continuing that side special about reoccurring monthly income.
Going over our conversation, we cover a ton a ton of nuggets that really could be helpful to your business and I hope you get a lot out of it.
I had a lot of fun with Chris today and we enjoyed the talk! We’re just hoping everyone gets a value out of the today’s episode.
Chris: It’s not about how many jobs you can do; it’s about the customer you can attract that has the money to spend on your services.
Chris started his monthly income window washing for 2 main reasons… 1) to fill a need of his customers and 2) as marketing tactic to be in certain communities each and every month. The nice thing about that tactic is it looks like you have a big service company because the community is always seeing your trucks.
One of the other things the monthly reoccurring services does is compound your customer life time value. And we’re not talking about any referrals here either.
So let’s run the numbers for the reoccurring monthly business:
You have a customer that originally spends $450.00 for the initial service and they take the monthly reoccurring service at $65.00. For the 12 months they have spent $1,185.00 with a life time value of just 5 years that’s $5,800.00. That is worth the customer AND it is worth to you the day you preform you initial service.
Now you can add in referrals, the chances for referrals are greater because you are on their radar.
You exponentially grow your life time value and now the happy client sees you every month. They can’t forget about you because they see you and your charge on their credit card statement. You own that customer for life.
You have to do something pretty bad to lose that customer. No one is going to take that customer away.
One other thing about reoccurring monthly business is that when you go to sell your business potential buyers look at your business differently. Businesses with reoccurring customers sell faster, and for 3 to 5 times more than traditional businesses.
So seriously look at your business and see how you can start creating an extra profit center by creating reoccurring monthly business.
It’s a smarter and more profitable way to do business.
Check out our other episodes about creating reoccurring monthly business:
- Discover How to Increase Profits and Create Reoccurring Revenue with Maintenance Agreements
- Part One Prelude to Creating a Subscription Based Service Business