Service Magic advertising

Service Magic advertising

Postby LeeMR on Tue Apr 14, 2009 10:35 am

I was contacted by Service Magic about using their service. I know they have been around for a while, and they seem to have name recognition.

For anyone who is not familiar with their service, as I was not, here is what the sales rep told me. You choose the categories that you want to be listed in. In our case it would be "Liquid Concrete Delivery". You post your ad, with a phone number that rings to their office. They send you the lead. You get to choose the radius of service, zip code listings and such to get referrals from the area you want. The cost per lead for each request for concrete delivery is $22. It sounds a little steep for me.

Was wondering if anyone has had any experience with this service? You don't have to sign a contract. You can start or stop the service at will, change your area of coverage, change the types of work you want referrals for, etc., all on line. Any thoughts on this would be helpful.

Thanks,

Lee G.
Lee Gentile

MIX-RITE CONCRETE
http://www.mix-rite.com
888-MIX-RITE (649-7483)
228 Dedham Street
Norfolk, MA 02056
lee@mix-rite.com
LeeMR
 
Posts: 52
Joined: Thu Dec 25, 2008 12:37 pm
Location: 228 Dedham Street, Norfolk, MA 02056

Re: Service Magic advertising

Postby smnstn on Wed Apr 15, 2009 10:43 am

Lee -- it sounds like a rip-off to me. The advantage it would offer you is that it could help pre-qualify active leads in your densely populated area. If you pay for the leads, not the actual completed delivery, you could wind up with a monthly bill of thousands of dollars for which you have nothing to show. They will be going after every inquiry that ready-mixers receive as well, calling those leads, and billing you for them because they pass them along to all their subscribers. Granted, you would set different parameters on your qualified lead list, but I don't see a huge benefit, especially if you have to pay for a bunch of "blue sky" inquiries - people going for the lowest quoted price.

And what about that misleading category, "Liquid Concrete Delivery"??? This could confuse a large number of people looking for "Concrete, Ready-Mixed" which is the traditional Yellow Pages category. I think these people are simply trying to make money on second-guessing the regular Yellow Pages.

Lets say that you get 20 qualified leads in a busy week, and you actually deliver to 10 of those. You would have to fork over $220 for the delivered orders, and if I'm reading what you wrote correctly, ANOTHER $220 for the orders you could not service. I don't know what kind of margins you have on your concrete, but $440 dollars could have been one complete gross delivery on your own. What about the time it takes to deal with each potentially bogus lead that the service produces? Do you have a secretary?

Smnstn
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Posts: 98
Joined: Sat Jan 03, 2009 5:38 pm

Re: Service Magic advertising

Postby LeeMR on Wed Apr 15, 2009 10:55 pm

Hey Simon,

I had kind of come to that conclusion on my own. If I were quoting excavation jobs that were worth say $20,000 each, then maybe it would be worth it paying $22 for a lead. The odds are, you would land at least one in 5 jobs, even say one in 10 jobs, and the service might pay for itself. At the rate of $22 for a job, like you said, that may be worth $400, is a stretch. If the cost were say $5 per lead...mmmmmmmm..... maybe it would be worth it.

Thanks Simon......you just confirmed my own thoughts!

Lee G.
Lee Gentile

MIX-RITE CONCRETE
http://www.mix-rite.com
888-MIX-RITE (649-7483)
228 Dedham Street
Norfolk, MA 02056
lee@mix-rite.com
LeeMR
 
Posts: 52
Joined: Thu Dec 25, 2008 12:37 pm
Location: 228 Dedham Street, Norfolk, MA 02056

Re: Service Magic advertising

Postby smnstn on Thu Apr 16, 2009 8:43 am

I'm not sure how to bring a thread to a conclusion on this site. But, let me say this -- the ultimate decision is up to you, but if you had a reasonably successful season last year, I wouldn't allow anyone else to piggy-back this and take profit on your work. I think that the money you'd give to them could be better spent on feeding your automotive gas tank to pay personal calls to contractors on days that you cannot work. I'm guessing you have some kind of flier you could pass out ...

Smnstn
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Posts: 98
Joined: Sat Jan 03, 2009 5:38 pm


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