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The Offseason Book: Chapter 5: Adjacent Services (Cure 3)

⏱️ 27:25
AUDIO EPISODE
The Offseason Book: Chapter 5: Adjacent Services (Cure 3)
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Chapters

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  • 0:00
    Josh Cathy's Struggle
    The host introduces Josh Cathy, a landscape business owner facing severe financial and operational challenges despite high revenue, highlighting issues like employee theft, debt, and unreliable staff.
  • 2:58
    Business Realignment Strategy
    The episode explains how Josh's business was realigned by subcontracting low-margin mowing and focusing on high-margin landscaping and snow removal to improve profitability and employee quality.
  • 4:19
    Cure 3: Adjacent Services
    The host defines Cure 3 as selling services adjacent to the core business, especially those with opposite demand curves to combat seasonality, and differentiates it from upselling.
  • 5:28
    Cross-Sell Tree & ORA
    An explanation of the cross-sell tree is provided, along with the 'ORA' framework (Onboard, Retain, Ascend) for business growth, emphasizing ascending customers through cross-selling for higher profit.
  • 6:43
    Impact of Cross-Selling
    A case study demonstrates how cross-selling snow removal and organic lawn care dramatically increased annual customer value and reduced churn for a business without additional marketing.
  • 8:36
    Types of Cross-Selling
    Four types of cross-selling are discussed: bundling, recommended products/add-ons, partner referrals, and seasonal cross-selling, with practical examples for home service businesses.
  • 11:01
    Team Empowerment & Automation
    The episode stresses the importance of empowering and training teams with product knowledge, sales materials, and software to identify and act on cross-sell opportunities effectively.
  • 13:02
    Retail Cross-Selling Lessons
    Techniques from online retail, such as price drop alerts, post-purchase recommendations, common combinations, and abandoned cart follow-ups, are adapted for home service businesses.
  • 15:30
    Personalized vs. Mass Messaging
    The host advocates for personalized communication over mass messages, even if time-consuming, highlighting its higher effectiveness and value in building customer relationships.
  • 16:26
    Strategic Adjacent Service Addition
    A warning is given about strategically adding adjacent services only if they have an opposite demand curve to the primary service, to fill offseason gaps rather than just boosting revenue during busy periods.

Key Takeaways

Subcontract low-margin work to focus your resources and time on higher-margin services, increasing profitability per hour and improving the quality of your labor pool.

Implement adjacent services with opposite demand curves to combat seasonality; for example, if landscaping is your core business, offer snow removal to keep revenue stable in winter.

Utilize the 'ORA' framework (Onboard, Retain, Ascend) by prioritizing ascending customers through cross-selling higher-ticket, higher-margin services to maximize customer lifetime value.

Empower your team with product knowledge, sales training, and instant pricing tools to identify and act on cross-selling opportunities, turning customer service calls into sales opportunities.

Adopt retail cross-selling techniques like bundling, post-purchase recommendations, and abandoned cart follow-ups (for declined estimates) to increase customer spend and engagement.

Focus on personalized communication (e.g., iMessages, personal calls) for cross-selling, as it builds trust and is significantly more effective than generic mass messages, even if more time-intensive.

Strategically add new services only if they fill offseason gaps or have demand curves opposite to your primary service, avoiding the trap of adding services that inflate revenue during busy periods without solving seasonality.

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