Angie's List and the Big Deal

[ward]

Seems like you have to be on Angie's List to some degree today. Submitting to the rigor of the online rating system gives confidence to consumers. As an advertiser on Angie's List you may have been offered the chance to get in on the 'Big Deal' promotion going around this Winter and Spring: $400 of work for $200 plus you pay Angie's List $80 for the lead. So, that's $400 of work for $120.

I wanted to show why this is such a bad deal and you shouldn't allow yourself to submit to Angie's Big Dealidoo. Assuming the average job from Angie's List is small--under $1,000, more like $500, most of which are small jobs for retired individuals who have small yards--you are talking about taking a substantial shearing every time you advertise through the 'Big Deal' program. On a thousand dollar job, you are offering a 28% savings. Even on a larger $2K job (rare with Angie's list coupon clippers), you are still offering 14% discount.

I told the reps that it didn't make any sense because either you are forced to falsify your own bid numbers in the first place to make up for the loss or you are allowing yourself to work 'at cost', an unsustainable business practice. The rep assured me that Angie's List would never want you to falsify your own bid numbers. I was left to conclude that they were perfectly content to allow you to suffer the losses on your own.

Caveat Emptor

 

[Crazy_Jimmy]

They try and hit me up all the time because we have a bunch of good reviews on there , but there's no way im paying to be on there with the other 15 tree companies on there in my area. I think angies list has 3 million members , that's not even one percent of Americas population

 

[Crazy_Jimmy]

read this article http://www.cbsnews.com/news/why-angies-list-is-getting-a-rash-of-bad-reviews/

 

[Tom Dunlap]

I'm no running a business now but friends of mine are. Some have been on AL for a while. When I talk to them I come away with a feeling like AL is acting a bit like a 'protection' program. Strong arm tactics in there too.

AL has done a good job of marketing itself as a good place to get a reference to a good company, right?

But I hear about a facade of good reviews and not so honest at that sometimes.

Maybe it works I dunno...

 

[ward]

That's right, Tom. Strongarm tactics used by the vendor to squeeze his supply chain. The next quarter's revenue--it there is to be any growth--will come from the existing service providers. Find creative ways to reward the customer, squeeze the supplier, grow the quarterly profit.

 

[Tom Dunlap]

Sounds like a modern day 'Godfather' story to me.

 

[ward]

To be Godfather-grade, there would have to be a throffer on the table, e.g. something offered, but also something threatened: 'I'm gonna make you an offer you can't refuse'. Of course, one feels the squeeze with AL but not to that degree. Without being too crass, I think that the neologism 'Dealdo' might not be inapposite: an offer that substantially compromises the offerer by making him vulnerable to exploitation by the offeree.

 

[Tom Dunlap]

Thanks for the insights.

 

[BrokenBranch]

In our market, some of the tree companies on angies list, all only around for a few years, previous landscapers, etc. have great reviews and the work they perform is horrible to the trained eye. As someone said before, its mostly the elderly crowd, with smallish easy jobs that use this type of service thinking the companies were verified as professional, so they don't have to worry about getting scammed. Then the a rated company with great reviews by uneducated customers show up and give them wrong diagnosis, advise un needed trimming or removal, improper pruning with spikes,( the best one I have heard) we have to top it or your insurance company will drop you because that oak is too tall! They are much cheaper then any of the other prices, some limbs get hacked off or trees removed and the customer thinks what a great job for a good price and they get another good review for work not up to any industry standards. The best is when going on an estimate and the customer thinks I am attempting to screw them because my price is significantly higher, even with copies of certs, info with web addresses for them to research what they are purchasing, and a comprehensive written estimate detailing the trees, condition of each and proper course of action to meet the trees and their goals. Discouraging to loose job to a rated co that's estimate is written on scratch paper - trim trees in front yard 300.00. Sorry done ranting!

 

[treehumper]

BrokenBranch, what you've cited is an industry problem. How could the public, young or old, know what standards are? How well is the message conveyed? I have participated in seminars through local shade tree commissions to educate the public but, the numbers attending are small. We need to be doing a far better job of reaching out to the public. Outside of Bartlett's I've never seen a tree company or more importantly, the TCIA or ISA at places like the NJ Garden Show, the Philly Flower Show, and other home and garden consumer expos. Imagine if they set up a booth and had a seminar on the show's roster?

Until we do a better job of educating people on the new paradigms of tree care then those who continue to promote the old style will flourish and undermine us.

 

[ward]

We have heard it said before: "be careful of what you wish for".

40 Grandma's with a pair of dogwoods in the front yard queuing up to plunge Angie's Big Dealidoo into you right as the Spring rush starts.

40 x 400=$16k worth of work that you are doing for $4K.

With the way that they have it written, the customer buys the ticket and the order is created. There is no right of refusal on your part.

No thank you.

 

[BrokenBranch]

Hey treehumper! I completely agree, some of the public awareness seminars I do attendance is not good either, wish the two major organizations would do more like you said with home improvement type shows, etc, but then fees would prob go up. OK with me but would not set well with some. We did basically an informational booth at our large home and flower show, not to drum up tons of work, but show some right and wrong practices and the after affects. Had lots of people stay for a long period in the booth, look at the displays, take a lot of the is a informational flyers, and ask lots of questions. Some even made sure to get back and talk to one of the cert. Arborists. Think it was money well spent and time will tell if people seek out us or another C.A. company, or a company that does pro work. Plan on found more of this educational type advertising this year, think it will work better than this is what we do, this is the equip we have, and will beat other guys price type ads. That is not the clientele we want anyway! Any other suggestions welcomed if anyone has experience with education for the customer type advertising.

 

[treehumper]

The challenge is collecting contact info for a future follow up. Have them register if you're doing a lecture style seminar. If you do an online newsletter have a sign up sheet. You could also do a draw for something. Just be sure to have a check box asking if they would like someone to follow up with them. People know your there to court prospective clients.

It could be something to discuss with the local chapters and have the booth manned by reps from different companies.

 

[craneguy1]

About 5 years ago we pulled our advertising from A.L. after about 3 years and about a dozen phone calls regarding our incorrect ad. They never fixed it....ironic. we still maintain a superior rating with consecutive super service awards since about 99.

 

[Tr33Climb3r]

Yea that big deal is bogus, They emailed me the docusign a couple times. I deleted it after I read into it. I called our "rep" which changes often and never get a response. I am done with angies list.

 

[jim454]

Maintain an A rating and NEVER spend your money on Angies list advertising.
Its not a bad deal if you stick to that.

I got an F on work that we never did. It was a nightmare but we got the review erased.

A word of advice, check your reviews often. Just because your have email review alerts, they may not get to you. When I stopped giving Angies list money, they started getting careless.