THE BUSINESS
Bricks & Mortar interior design / home furnishings / remodeling business in NW Tucson, Arizona suburb (Oro Valley – Tucson’s “Scottsdale”).
Primary Target Market is affluent LEB/S (see Dan's latest book re Boomer/Seniors) within 15 miles of her showroom.
Leads currently generated via referral, newspaper advertising, direct mail, and walk-in traffic, and other misc. direct response methods.
All products and services are PERSONALIZED for the homeowners. <1% of Sales from displays / stock.
Mid to Upper price range products & services
USP’s:
1. Total Value
2. One-Stop Shop
3. Made in U.S.A. products featured
WHAT
Shock & Awe Package (VIP Client Kit) handed to or FedEx’d to prospective clients that have scheduled an Initial Design Consultation (first meeting in-home) with the staff designer(s).
WHY
Owner (my wife) accepts new clients By Referral Only. Her staff designer(s) – currently only one – take all walk-in’s and other leads.
Wife’s conversion ratio is 91.6% and average client sale = $17,562
Staff Designer’s conversion ratio is 31.7% and average client sale = $3,489
Wife is always MAX’d OUT with clients.
In order for the business to grow, the staff designer(s) – (straight commission compensation @ 20% of Gross Profit) MUST generate more and/or more profitable sales.
HOW IT WAS DONE
The basics for all the components of the Shock & Awe Package were written by myself, for the most part, based on GKIC Direct Response Principles.
One piece – The Smart Homeowners Guide – was modified from content licensed from an Interior Design industry guru.
Chuck Trautman, IBA in Phoenix, assisted with the radio interview on the CD.
The Smart Homeowners Checklist was S&D’d from the example in the August 2012 Diamond Letter by fellow Diamond Luxury Member Jim Edholm, who I understand S&D'd it from Craig Proctor, one of Dan's clients I believe.
The 6-piece stepped set on the Right-Hand side of the kit was S&D’d from Matt Zagula’s Shock & Awe Packages he shared at the Trust Based Marketing seminar in March 2012 that I paid $10,000 to attend (well worth it).
Unfortunately, Matt's version, since he's an "investment guy" was WAY too subdued for my wife's interior design tastes. I spiced up Matt's presentation a bit with the "scrollies" on the paper.
The 8-Ways report is something created prior to my finding Planet Dan. Hmmm? Go Figure?
Two Additional Pieces Under Development
Cost of this VIP Client Kit = $11.22 each (including development and printing costs) - see 'Kit Cost' tab
If Kit is "mailed", this cost does not include postage or FedEx (typical method), which could increase delivered cost by 50% - 300%.
Certainly, there is an 'incentive' to hand deliver (no additional cost) vs. FedEx ($30 additional cost),
BUT - THE most important factor isWHICH delivery method will INCREASE the Probability the VIP Kit will be read, and therefore INCREASE expected SALES and GROSS PROFIT.
RESULTS
Since implementing this Shock & Awe Package (Client VIP Kit), staff designer’s results have improved dramatically in ALL key measurements:
Staff Designer Before VIP Kit After VIP Kit % Change
Conversion Ratio 31.7% 42.4% +33.8%
Average Client Sale $3,489 $4,214 +20.8%
Average Gross Margin 45.2% 48.5% +7.3%
Gross Profit per 100 Prospects $49,992 $86,657 +73.3%
Commission (20% of Gross Profit) -$9,998 -$17,331 +73.3%
Additional Cost per 100 Prospects ($11.22 per Kit) -$1,122
“NET” PROFIT $39,994 $68,204 +70.5%
WHY IT WORKED
BOTTOM LINE
Who Else Can Point To Such Results From Just ONE GKIC Diamond Letter/Call Idea?
Which Diamond Call / Letter idea next year will CATAPULT your business, like it did ours?