How to Determine the Profit per Customer You Need to Make

Audio Transcription

Get ready to enter the business coach thrive time, show 3 2 1, alright, drive nation. Welcome back to the conversation, it is the thrive time show on your podcast download and they were talking about determining the profit per customer that you want to make her deal. This is absolutely super important for everybody. Listening because I know there are a lot of entreprenuers out there. They’re really really really good people and what’s happening for you is that you are devaluing your business right now, every single day, because you’re not charging enough money to make a profit to your just not in there. Somebody else listening right now. What you’re doing is your overcharging. You are charging people so much money that people just can’t afford to do business with you and they might want to do business with you, but they realize that doing business with you with you is that you’re going to get your going to get a chance girl make sure you don’t you offer a good service, but I know that this guy is going to always try to take as much money as possible, / deal and so jeffrey. The first recordable understand this concept of determining the profit per customer. When he says know, your numbers is a fundamental precept of business selling. Your numbers is a fundamental precept of business. Is he saying that if you, when you start a company from day one, you want to know how much money per customer you want to make so i? Just this is so business coach backwards. Tell most people think this is why I think so elephant in the room, we’re approaching capacity at r3 stores, which means we cannot possibly bring in more members.

So if you have not been to elephant the room, men’s grooming, lounge I would we probably will only have consistent availabilities for probably the next 30 days? I mean it’s crazy, so I’ll know I was sitting next to victor in the call center that yesterday the phone rings, and this would be able to be saturday the phone rings, and he tells me that he says dude I turn the haircut down nice ok google turn that deal. Ok google turn the haircut down. Okay, cool and I turned the daisy call center manager. I said:hey I’ve heard you guys shut down like on friday, at least like 9 people in a row. They were not open, they go. We are literally booked out for two weeks in advance and i. Don’t know most people that cut the book their haircuts more than two weeks in advance right, dr. Edwards, with revolution health, one more client who booked out 3 weeks in advance. If you want to see a doctor, we’re so good at marketing that he knows book advance so again, but we have to know in the elephant in the room. How much profit want to make per customer I will be very transparent for all the listeners out there. I would like, if you buy an elf in the room franchise from us. I would like for you to make about $3 for haircut. That’s about what I’m. Looking for 3 hours. So, it’s 15, 5000 members. You can kind of predict your income, that’s what I’m on break for! The next thing is when I built dj connection I knew that my profit per wedding was about $175. A wedding so I knew based on my income goes. What I did is I said that i, don’t think I feel do I actually did the math of my wife. We sat down. I said okay I want to make $10,000 a week, and she said $75 per show detour to get to work, I’ll check, and then you can know where you say your business coach price point right and you can actually use these numbers has more of a dashboard like we talked about with paul hood from hood cps.Com all the time you want to use these numbers as a dashboard to show you where you’re going and that that way you know you’re not just kind of drifting along your on a path that you can stay on. So you want to determine the least amount of money that you will make on a deal so that you can determine how many deals per week. You need just to break even and how many deals a week. You need to achieve your goals, so you can.

You have to know how much money you make per deal. Is that what you need to know? How many deals you need to make per week to break even how many deals need to make per week to achieve your goal? And if you don’t know this stuff already don’t beat yourself up. This is such a common thing that I see with the client I work with that. We work with other drive time show in our business code program your business, everyday, the burning fires, year of your fulfilling your product or service, and when you sit down with clients-and we break this down every single time, it’s kind of like an eye-opening experience. They’re just like right, I knew what we were making money but like a now, I know exactly what I need to do by you know, day 7 of the month, if I’m going to hit my goals so I’m going to walk you through the six steps you have to take, then I want to get a business coach client steve currington with total lending concepts. Your editorial on this and ryan went pee with tip top k-9 sagar the steps one. You got a massive spreadsheet, with three columns so on the first column, what your income right now, this it be your very at this-is your income, all that all the money that comes into your business on.

The second call me want to list all your fixed expenses expenses that are the same every single month, I like your lease that your flasher, maybe your insurance things that are more static, more the consistent bills that are not going to change your mind like a phone bill, a utility bill that kind of thing, and then you want to list your variable expenses. Another variable expenses are expenses that go along with every time you provide a service. So maybe every time you train the dog, you have the services associated costs associated with training, the dog, maybe housing, the dog, paying the trainer, the food. You want to type all of your income and expenses, and it should take you a minimum of 5 hours to do the see what type of all your income and expenses for the past 3 months post make. The spreadsheet, with the columns, include income, fixed expenses and variable expenses, step to the last 3 months. Take you about 5 hours, somebody would say, and I would say the how come you don’t know. This already sent three expenses that are variable into the variable expenses for put all the expenses that are reoccuring they’re flat into the fixed expenses column, step 5 schedule, a free attendance at our in-person thrive time show financial workshop. We do basically want a month if your business coach client, it’s free, it cost you nothing extra paul hood. Is there marshall morris? Is there? Is your coaching client? This is free if you’re, not a coaching client becoming coaching client or you get out to one of our 2-day workshops and you can buy your tickets at drivetime, show.Com, a schedule, 6 or step 6 step. Number 6 is schedule at specific time and place to hold your weekly one hour of power. Accounting meeting with yourself.

I can help you and then every week you look at your fixed expenses and variable expenses and you wage war on any increase expensive. And then you ask yourself the same question. Every week self, how can I cut expenses by 3% without hurting the customer experience? Then you said yourself self. How can I improve the experience for my customers by 3% without increasing costs that you ask yourself self? What can I live without and then you say what can I stop spending money on so that I can begin investing 11% of my gross revenue in advertising 5% of my gross revenue? Should we spend on advertising? So what can I do with out? Maybe it’s cable! Maybe it’s that new iphone watch you have! Maybe it did. What were the things that you can cut from your personal expenses, your business expenses, that you could afford to spend five to 11% on marketing, because all the studies out there will show you that business coach small businesses on average spend less than 3% of their total marketing budget on advertising, but all the fortune 500 companies are spinning over 10% call jackson for nike for pizza hut he’s a drive mentor. He explains in one of our podcast that the average fortune 500 companies spend 5% minimum on advertising with the average one is spending 11% fastest one. That’s what did I ever do the fastest growing at donald’s? Yes, you do mortgages roughly. If somebody gets a $300,000 house from you how much profit do you make on a deal the company we make, we make a percentage of the loan amount. We sell the loan. How much do you make on a conventional loan? The typical in this is across the board for most lenders they’re making between like two two two and a half a 3% of the loan amount when we sell them on a convention on that loan size. Now getting this all the listeners out there. Typically, a loan is where steve’s company all mortgage companies will give you. The guilt will sell you.

The mortgage will give you the mortgage. So now you owe money right and then, as soon as they get you alone, they sell that mortgage as part of a at ranch ranch on the secondary market. It goes into as a mortgage-backed security to be sold into a mutual fund or big funds by it and that’s how they do it roughly three and six thousand bucks. Why don’t you try to make 14000? Why don’t you try to just get to cuz i, see companies in town that really rip people off with closing costs and fees? Why don’t you do that? Well, we won’t close very many business coach loans, first law. If we do that in the ones that we will, it really won’t be a good loan for them for the person that does get it and furthermore, the government has come in and regulated lenders on what we can even charge so there’s maximum that we can charge. So there comes a point where, even if I want to take advantage of somebody, I can’t because a lot of them so ryan at tip, top k-9, it’s a dollar for the first lesson, and then you have a different package options right now. Have you arrived at your price point over time to start with, it was based off kind of what other people were doing and we started in a little lower and we raise prices over time. I feel like a lot of people. Do that, but, like we have competition one of our packages, that would do a lot of boot camp right now. It’s $2,500 and I have a competition is selling them for $3,500 and they’re not doing as good a job or don’t have as many add-ons as we do so and you what you want to do. Is you and your wife have certain financial goals, and you want to achieve those, and you want to be fair. I would just tell her they’re listening.

You always make sure that your prices never take advantage of people right and your business coach can help. You determine a fair price for a fair profit point, but you just want to make sure that your prices are never doubting your customers, otherwise, every time your business will shrink end of this on a three and a two when I wanna boom. Here we go free