![]() |
|
![]() |
|
![]() |
|
![]() |
One of the most powerful offers you can use in your advertising is the word Free.
But, you may well ask? how can I make a profit giving my products and services away without charging for them?
Which is the exact reason why you need to understand the 'LVC Formula' which stands for the Lifetime Value of a Client!
Here's how it works. Let's imagine for a moment you own a beauty salon. Now if you get a new customer, they may pay you $80 for their first treatment.
But how much is this $80 client really worth?
After all, most clients will continue to buy off you for many years to come.
For instance, let's imagine your average client returns for a beauty treatment 8 times a year? and remains a client for 2 years.
$80 (price of consultation) x 8 (purchases a year) x 2 (number of years)
Now if you have a calculator handy, you'll work out the value of this client as $1280.00.
And if your profit margin is 40% this calculates to a $512 profit per client.
Let's imagine we sent a letter to all the nearby businesses offering women a free manicure valued at $30.00 (I'm not a beauty therapist, so please forgive me if all these figures are way out).
And if the manicure costs you $7 in products and 30 minutes of your time (which if you're not busy? you'd just be sitting on your butt anyway!)
So effectively the $7 investment could have just made you $512 in profit.
And how easy is it to give away a free manicure?
Or for other industries?
·A free car service
·A free dancing lesson
·A free consultation
·A free ice cream
·A free report of some sort
The secret lies in giving away something which has a high perceived value, but actually costs you very little to produce.
Why does it work so well?
Using the word 'Free' in your advertising STOPS inertia. You see, people are happy with their current hairdresser? or their mechanic.
But when they get an opportunity to trial a product or service for FREE ? there's something irresistible and risk free about it, isn't there?
A word of warning though. Make sure you offer the best possible service? otherwise people will not come back, and you'll get a bad name very quickly.
And of course, where possible, make sure you collect a database? and measure your results.
What could you offer for FREE? Write down a few ideas now? and start implementing this stuff.
It could have an almost overnight effect on your sales.
Scott Bywater
Copywriting That SELLS
Level 12 / 418a Elizabeth Street
Surry Hills, NSW, Australia
1300 88 21 91 / + 61 2 9282 6445
Scott Bywater is a professional direct response copywriter and the author of Cash-Flow Advertising. To get a complimentary copy of his special report '7 Ways To Increase Your Turnover... No Matter What The State Of The Economy' (valued at $29.95) and a free subscription to his "Copywriting Selling Secrets" ezine where you'll discover how to write ads and sales letters that make people line up and practically beg you to do business with them visit his web site at http://www.copywritingthatsells.com.au
So you've decided to run a print ad in your... Read More
Many home improvement contractors attempt to use advertising to expand... Read More
Q: I've never really done much advertising for my business;... Read More
1. Give your customers a discount when they spend over... Read More
So many business people neglect this valuable asset that may... Read More
Moving Message Signs are a unique, attention-grabbing way to communicate... Read More
In the business of marketing and advertising, it used to... Read More
As a business owner, you have the option of taking... Read More
If your ads aren't paying off then you need this... Read More
Your print ads should do more than just get noticed.... Read More
This information is based on the principles of Laws of... Read More
How many times has this happened to you?A friend recommends... Read More
Would you like to know how a car wash chain... Read More
I just read some advertising suggestions on an Internet marketing... Read More
The opportunities to get free advertising for your product or... Read More
Without a powerful headline, your message stands little chance of... Read More
If you own a mobile detailing business or mobile car... Read More
As I was searching through a kitchen drawer the other... Read More
Scrolling LED signs is type of LED signs that displays... Read More
Sure, everyone needs business cards. But why not make your... Read More
How To Gain FREE Advertising That Will Make You Rich!Okay-Just... Read More
Without a plan to distribute your cards, there's no need... Read More
We already know this from our history books. If you... Read More
Let's take an example that is easy to check: I... Read More
Ah, my very favorite promotional product of all, the refrigerator... Read More
To many ad agencies, radio is considered advertising's ugly stepchild.... Read More
If you own a small business you should consider ways... Read More
Today in the Business world whether online or off, it... Read More
Business cards are the most underutilized and misunderstood marketing tool... Read More
The success of a business plan stands or falls on... Read More
Many believe that when it comes to advertising, it's a... Read More
Newspapers are considered the PRIMARY advertising medium by 99.4% of... Read More
Most small businesses do not have a high powered advertising... Read More
I'm sure while you have seen many tips on advertising,... Read More
Have you ever wondered why your perfectly fine classified ad... Read More
"Do we need to cast a voice-over talent for this... Read More
When people discover my background in advertising, the questions flow.... Read More
This is the second part of creating your own business... Read More
If your ads aren't paying off then you need this... Read More
Would you like to know how a car wash chain... Read More
We have a Great News that we think that may... Read More
Are you confused by all the information you receive from... Read More
2005 puts us at the mid-point of the first decade... Read More
Walk around any trade or consumer show and you will... Read More
I am always amazed when I hear about companies who... Read More
The great Claude Hopkins (Author of Scientific Advertising) once said,... Read More
Stand Out in Ways that Matter to Directory Users A... Read More
Mail order is a very complicated business. Every phase must... Read More
Yellow Pages Ads - Buying SecretsOK- let's agree that many... Read More
I was in the fine city of Chicago this week... Read More
Advertising Advertising |