I talk to stone fabricators like Ali every day. Regardless Z Code System Review of their size or profitability, they all want more business.But, like Ali, they're all looking for a solution outside of their existing asset. While there's nothing in particular wrong with this thinking, I advise them to look within their existing asset for profit opportunities before they invest in more product offerings, a bigger yellow page ad, or whatever they're thinking of doing.Now, pay attention, I'm about to tell you something so simple and valuable that you might pass it up because of its simplicity.Conventional thinking in the countertop industry tells us that homeowners have a lifetime value that is made up of a certain amount of total upgrades, future job requests, and referrals. I hear numbers all over the board.
To calculate your average customer value, you must first find out your average revenue per job. Simply take your gross revenue over the last 12 months and divide it by the total number of jobs completed.Next, find out how much a customer referral is worth. For example, if you average one referral for every three homeowners divide your average revenue per job by three. You can then add this to your average revenue per job you just calculated. You have now determined your average lifetime customer value.
Got that? Okay, let's move on.Now that you have that, let's use an example figure so we can continue. Let's say your average customer value is $7,000.You CAN increase that number without raising prices, without adding another customer, or without selling them flooring or cabinets. This is just one of your own "acres of diamonds" that you have within your countertop business.Now, remember earlier in this article when I said that people who need new countertops typically are going through a certain life event? Knowing these events is so important, but few people actually take the time to think about them. The most common major life events are:Moving. Either somebody intends on selling their home or has just moved into a new home.
Generally, there are two types of options - calls and puts. When you plan to buy a call option, you can purchase the stock at the strike price before expiry of the option but are not obligated to do so. When you buy a put option, you have the right but are not obliged to sell the stock at the strike price at any time before the expiry date. When people sell options, they have created a security that was not existence before and is known as writing an option. On the other hand, when an individual writes a put, he is obliged to buy shares at the strike price any time before expiry.