My ORM Journey..Letters Ready To Go!!

I am excited as i am about to launch my ORM company, I have 20 letters ready to go!! As for now i am only offering a review filter system because im still learning SEO, but i will be providing my client with FEEDBACK CARDS to staple to customers receipts or hand them out (300-700 cards a month) + the review filter + monthly report, i truely believe that this system alone can help a business owner gain good reputation and help them become a better business owner, i am going to encourage them to reply to reviews...good or bad, hopefully only good tho right?? lol anyways im wanting to charge $399 a month for this service then after i build the online reputation good i hope to have them sign my "stability" contract for half the price, but half the work, im not sure if $399 a month is to high for just review filter+monthly report+feedback cards....any advice would be great i am going to use FEEDBACKMAGNET for my review filter i also customize every package i send to the owner i will leave a few pics so any advice would be GREAT..thanks!! O yea i took sum pics off of feedbackmagnet to include in my package(hope this is ok, should be right? lol) also i change some of the images to my liking and my letter is basically like 7878 letters just a couple tweaks! WISH ME LUCK!!
THE LETTERS ARE BEING SENT OUT FRIDAY SO MIGHT TAKE ME SOME TIME TO REPORT BACK, BUT I WILL REPORT GOOD OR BAD!!

First I want to say: Good Luck with your journey, keep us updated I always love to see when people try 7878's method!

But now.. the price ... $399 a month, let's see your costs...
- FeedbackMagnet: $60
- printing 300 - 700 quality feedback cards: $60 - $150 (here in Germany)
= $120 - $210 bucks

So at $399 bucks a month, you will have a max. of $279 left for your work (creating the monthly report, designing the feedback card, managing everything etc.) and all other costs like tax etc. Proof me wrong, but I guess in the end you will work for just a few bucks.
How did you calculated the price? I don't know from where you come, but here in Germany that would be way to less.
I like your thinking about starting lower because you are not that skilled yet, but make sure you don't go out with nothing with the deal.

AdludumAndre said:

First I want to say: Good Luck with your journey, keep us updated I always love to see when people try 7878's method!

But now.. the price ... $399 a month, let's see your costs...
- FeedbackMagnet: $60
- printing 300 - 700 quality feedback cards: $60 - $150 (here in Germany)
= $120 - $210 bucks

So at $399 bucks a month, you will have a max. of $279 left for your work (creating the monthly report, designing the feedback card, managing everything etc.) and all other costs like tax etc. Proof me wrong, but I guess in the end you will work for just a few bucks.
How did you calculated the price? I don't know from where you come, but here in Germany that would be way to less.
I like your thinking about starting lower because you are not that skilled yet, but make sure you don't go out with nothing with the deal.

Click to expand...

you are completely correct! $279 isn't much profit and my process takes a lot of time to package a CUSTOM letter and me hoping they open it, but yes i want to start cheap but is that to cheap? i am in a small city where people hesitate to spend money, and i just came up with a price i thought was reasonable, i have a very good sales team, but if i tell the client $699 a month and i am only offering review filter+feedback cards+report, that doesn't seem like im offering a lot..even tho it is VALUE but i want to help them to where my service will pay for itself, because if there paying $699 a month for example and there only getting $520 a month extra business it is costing them and from my pov i wouldn't be happy with that, like i said i want to provide affordable value but u got me thinking about my price now lol...good breakdown! and also i am in the USA

Why start cheap? All you're doing is ruining the market pricing for everyone in the field. Charge 2000 and you only need one client compared to the 5 you'd need normally... (prices just used as an example)

tylercason said:

you are completely correct! $279 isn't much profit and my process takes a lot of time to package a CUSTOM letter and me hoping they open it, but yes i want to start cheap but is that to cheap? i am in a small city where people hesitate to spend money, and i just came up with a price i thought was reasonable, i have a very good sales team, but if i tell the client $699 a month and i am only offering review filter+feedback cards+report, that doesn't seem like im offering a lot..even tho it is VALUE but i want to help them to where my service will pay for itself, because if there paying $699 a month for example and there only getting $520 a month extra business it is costing them and from my pov i wouldn't be happy with that, like i said i want to provide affordable value but u got me thinking about my price now lol...good breakdown! and also i am in the USA

Click to expand...

What a coincidence. I also happen to be in a small city in South Carolina where people hesitate to spend money. Whereabouts in SC are you located?

Scratch that, saw the address on your envelopes. You're literally hitting the same metropolitan area as I am. Welcome to the grind, man. Let me know if you want to meet up sometime and talk shop.

Copy seems professional. Why not sending those letters only to those who have bad reviews ? I'm sure you can find a lot of local businesses with bad reviews not only on google but on sites like yelp, send the letters to them and emphasize how much business/money they are losing (incurring pain) every month because of those bad reviews and how you can help them (removing the pain).

TylerCarson, how are you selecting which prospects to mail? What is your criteria for a business sent your mailer?

tylercason said:

if there paying $699 a month ... and there only getting $520 a month extra business it is costing them ... i want to provide affordable value but u got me thinking about my price now lol...good breakdown! and also i am in the USA

Click to expand...

That is part of the economics of a small town. One rule of thumb that might make sense is if the market area for your potential client does not have a car dealership, then that narrows your potential clients who can afford your services significantly. They just won't see the return. You might not have enough clients to make it worthwhile, if it is too small.

Another point/set of suggestions... You might prefer to set expectations up front by referring to your pricing as "Introductory". It lowers the risk for the client, allowing them time to see some return on their investment, before committing to you long term at your "Regular" prices. Offer them a bonus month for every client they refer who signs up for 6 months at your "Regular" price. Prepare to offer them additional services that can make up for your current price.

You don't want to end up with long term contracts working for less than minimum wage, and clients won't like the surprise of huge price increases.

great advice from everyone.i appreciate it, also my clients have a 3 star or less on average and some have no reviews . also UPPERMINDS i would love to hear from you and your knowledge especially if we are in the same area of work, if you could send me a message that would be great, maybe we can put our heads together thanks, NOTE i also want to target dentists and lawyers, just havn't figured out the correct approach i have some ideas just nothing i feel comfterable with pushing considering i would like to offer them something different than a "restaurant" so to speak

Great thread! I think pricing lower will give you valuable experience. You'll really learn what it's like to work for people who only want to pay $399/month! Pareto's Principle is even more exaggerated with lower priced clients in my experience.

I do think in your situation it's worth it to take on a couple small clients to get your feet wet.

BHopkins said:

Great thread! I think pricing lower will give you valuable experience. You'll really learn what it's like to work for people who only want to pay $399/month! Pareto's Principle is even more exaggerated with lower priced clients in my experience.

I do think in your situation it's worth it to take on a couple small clients to get your feet wet.

Click to expand...

not real familiar with Pareto's Principle, can you explain more?? ....and i am ready to get my feet wet! lol i know how it is to work with "rich" people or people with money, because my current full-time job is in the painting/remodeling business, it can be frustrating at times but i know some people want understand the value of having a online reputation (especially old school people) i'm assuming...

Pareto's Principle is known also as the 80/20 rule. 80% of your work will come from 20% of your clients. My goal is to see those difficult clients before taking them on as clients. If the first thing they ask about is price, you should know they care most about price. That's my leading indicator to thank them for their time and move on to someone who cares about the work and results before discussing price.

tylercason said:

not real familiar with Pareto's Principle, can you explain more?? ....and i am ready to get my feet wet! lol i know how it is to work with "rich" people or people with money, because my current full-time job is in the painting/remodeling business, it can be frustrating at times but i know some people want understand the value of having a online reputation (especially old school people) i'm assuming...

Click to expand...

It's more commonly known as the 80-20 rule.

I know a corporate client shopping around for a big remodeling service right around your area.

BHopkins said:

Pareto's Principle is known also as the 80/20 rule. 80% of your work will come from 20% of your clients. My goal is to see those difficult clients before taking them on as clients. If the first thing they ask about is price, you should know they care most about price. That's my leading indicator to thank them for their time and move on to someone who cares about the work and results before discussing price.

Click to expand...

ok great i did sum research on pareto's principle sinced it sounded intertesting lol good way of thinking, also any suggestions on once i have a meeting on how to approach the meeting? as in should i do powerpoint presentations or just be quick and to the point showing them value, i don't want to waste their time or mine. and upperminds send them my way, i will give you % lol message me

tylercason said:

ok great i did sum research on pareto's principle sinced it sounded intertesting lol good way of thinking, also any suggestions on once i have a meeting on how to approach the meeting? as in should i do powerpoint presentations or just be quick and to the point showing them value, i don't want to waste their time or mine. and upperminds send them my way, i will give you % lol message me

Click to expand...

Those are not mutually exclusive options. Powerpoints can look more "corporate" and may appeal to professionals (e.g. dentist) vs some types of small businesses (e.g. restaurant), but in both cases can be very useful to guide your discussion / keep yourself on point.

Aside from ppts, you could bring some "props" (e.g. screen shots) and use them as reminders of your key selling points (e.g. circle, write on them). Show how they stack up vs competitors.

Do some research on their industry so you know ballpark numbers and are prepared to inquire on their numbers (part of how you get to value proposition).

Prepare your questions to help lead down the path to your value proposition. Have a solid explanation of how your proposal will solve their problem.

Good luck!

what happen to you man?

he got rich and forget about us
any update OP?

Good Luck dude! I hope this ORM company will provide a great profit margin to you. I just want to know the charges of different services.

Hi Mate!
Good journey but how we can conduct good feedback management to prevent negative comment on our sites? Waiting for your replier to get better advice.