$100,000 YEARLY ONLY WORKING 2.5 HOURS

This is a old video I recorded for a private facebook group last summer on the math behind doorhangers. You literally can't afford to not do doorhangers! Want to know the secret? They only work as hard as you do. I gained 150 recurring customers in under 4 months. You can do it too! Just put out 20,000 doorhangers and youll have a $40,000 a month business!

[@Devinsheridan97]

Let’s goooo to the bank 🏦 🤑

[@blackbeardlawncare7811]

Thank you!!! I have been struggling to figure out the "potential" of my service area, and the first part was exactly what I needed!
One question though, where did the 5-10% number come from?

[@Notmuchhutch]

Obtaining 5-10% of your market seems very doable. I don’t have any science behind that number, but here’s my best break down (assuming the market is similar to mine).
Let’s say there are roughly 5 large multimillion dollar companies in any given service area. I’d assume they on average have less than 1000 homes on their recurring route. (That’s a 3+ million dollar business assuming only simple services) that would be 5,000 out of 8,000 total addressable homes! That’s leaves 3,000 for all the solo guys doing anywhere between 20-200 lawns. We know there’s 100 solo guys in any area adding up to the remaining amount. I want to be the best of the best so 10% of a market seems reasonable. Of course I’d like to have 20 or 25% over time but it takes many years to establish that kind of dominance!

[@blackbeardlawncare7811]

​@@Notmuchhutch
Interesting! I don't think 20-25% is possible. Out of curiosity, I looked up the data for Mike's Bellingham shop (I only have the info he shared publicly, so adjust accordingly) and plugged in your numbers.
Bellingham School District has 49,749 households; times .4 = 19,899 times .05 = 995 customers at 5%
995 customers @ $2,000 revenue per customer = $1,990,000
Mike has said he's doing around $1.6m in Bellingham. That would be around 4% or 1.6% of the total households in the area @ $2k per customer average spend.
I'm actually wondering if the 40% number is accurate. The survey I found had a pretty small sample size (1,721 people). I would love to hear from more companies to see if they are getting that much market share. We are still growing (this is our 4th year) and are at .75% of the total households. Our average spend for full mowing season customers is around $2,400. ~22 average mow services per season.
(To simplify the math you showed, 40% and then 5% is just 2% of total households. To put it another way; if you go to censusreporter.org and find the number of households in your area, 2% of that total is the 5% you were showing. It's not perfect, as you may or may not cover an entire school district, but it's how I run my service areas.)

[@Notmuchhutch]

Great breakdown! Good point on the 2% for easy math. I meant to make a video response to this and forgot. But here's my 2 cents again...
I think 40% is likely the right average across America and I would bet that is accurate and likely rising (more old people and less hard working young people). Remember lower income, rural, and down town city areas likely are not paying for services so there might be parts of states with as low as 5% using a service. Verse high income zip codes in tightly packed residential neighborhoods that might be closer to 70% of homes using lawn services.
McDonalds has 42% of the Global fast food market.
Apple has 61% of the US phone market.
Amazon has 38% of total US e-commerce.
Granted theses are national brands that have been in business for decades but I think they show that if you are the top of your league you can have a massive market share. Even in your a small town there is tons of room for growth. I believe it is totally reasonable that a matured company with high quality standards could take over 20% of the entire market (50% of the addressable 40% of homes using lawn services)!

[@calebbartlett1776]

Hey thanks for the great videos! How do you handle the first initial mow when passing out your instant quote door hangars? Do you just tell them OTP about the per minute charge, or do you just eat the cost?

[@Notmuchhutch]

If it is really bad I will write "Initial $XX" on the top. Otherwise we just eat the price. consider it part of the customer acquisition cost.
I'd rather have a customer that will pay me $2,000 a year, then try to charge them 2-3x on a initial and they drop us bc they think we are scamming them.

[@calebbartlett1776]

@@Notmuchhutchgotcha man, great advice. Keep up the great videos, they’ve helped me a ton.