Secrets to Operating a Successful Gunsmithing Business was written by Gene Kelly, President of the American Gunsmithing Institute and the Gun Club of America. This is the fourth of a seven part blog series.
Secret #5:
Understanding the Lifetime Value of a Customer
To acquire a new customer takes time and some expense. A satisfied existing customer will bring you business for many years and at very little cost in marketing. Again let’s do some simple math. Let’s say that a customer’s Gunsmithing job is $100. He is happy with the work you did for him, but you only did that one job and you never see him again.
That customer was worth just $100 dollars to you. But most gun owners own a lot of guns, so what if you kept in contact with that same customer, and he did $100 worth of business with you twice a year for 20 years. The “lifetime” value of THAT customer would now be $4,000! Now what if you could increase the transaction size (dollar amount) of each job and do work for them more often? That same customer could now have a “lifetime value” of easily over $10,000. How many of those customers would you need to meet your financial goals?
BUT, you must have a simple way to keep them coming back again and again spending more and more money. I will reveal how to do exactly that in the Business Success Tool Box Package which is available with the AGI Master Gunsmithing Course.
Check back for tomorrow’s blog where we’ll discuss extracting maximum benefits from the business, “tax-free!”
