Well folks Larry is the warmest in my answer. Dave is getting there with this last post but here is the thing.
If you aint put a dollar on the head of a customer you might want to reconsider after what i tell you.
See just about every business has a "average value per transaction".
For a company like Lockheed Martin that might be 100 million. And for the small landscape guy with 3 workers that might be $4000.
But if you aint tracking it you have no idea what the mix is in your business. Mix i am refering to is the number of low value jobs and the number of average value and the number of high value.
See Larry is dead right about the flyers and the entertainment. But how do you decide where the line is.
What amount should you spend to secure a new client or a new order.
or
What amount and where do you spend the money to keep a customer.
Not every customer wants entertaining. Some want the job done properly to their spec, just like Larry mentioned. So sometimes the money needs to be put into processes and quality checks or new tools to ensure quality is improved or process maintained.
So how do you decide what this line is?
Comes back to what the value is to you.
Yeah dont give me the story you want to be loved and liked and make the customer happy and he will give me another order or they precious.
Guys there aint a person out there that dont want these things.
But you in business taking the risk to either pay rent at your shop and employee people to make money. Not be a celebrity at some fashion show.
So yeah word of mouth works but what if the people who know you dont have work.
This is one of the reasons small business battle. Its the main reason you go from feast to famine.
I dont doubt for one second that anyone of you are the best at doing what you do. If you were not you would not even survive for a few days unless you spent your life scamming people and i dont for one minute believe you guys would even be close to that. More likely you scamming yourself.
So tell me whats the dollar value of client worth to you?
I aint gonna give you the answers that easy.
You dont have to give it to me in exact dollars more a case of tell me how you think you work it out.
Then while you at it, answer this question. Are you self employed or temporarily employing yourself?