GETTING YOUR PHONE TO RING, PART 1 OF 4

 

Michael Stone of Construction Programs & Results (www.markupandprofit.com) is a popular speaker, business coach and consultant dedicated to helping construction-related contractors survive and thrive. He is the author of "Markup & Profit; A Contractor's Guide" and his newest book, "Profitable Sales, A Contractor's Guide", and can be reached by email michael@markupandprofit.com by phone (1-888-944-0044), or visit his website (www.markupandprofit.com).

 

For the next few weeks, we will be reprinting from his newsletter his latest series on "Getting Your Phone to Ring".

 

This is the first of four newsletters where we are going to focus on how to get your phone to ring during this "soft" market. We are hearing from coaching clients and many more in the construction world that this is the big issue today. No leads coming in.

 

So this series of newsletters which we’ll send over the next few weeks, will focus on getting your phone to ring.

 

Let's start with the basics.

 

The definition of marketing is "the process associated with promoting for sale your goods or services."  There are four components to marketing, (The four P's.)

   Product: What you have to sell

   Price: What you charge for your work

   Place: Where and with whom you do business

   Promotion (Advertising): How you convey your message to the buying public.

 

The definition of advertising is "a paid form of nonpersonal message communicated through the various media to your buying public. It is a marketing tool and is designed to influence the purchasing behavior and/or thought patterns of the reader."

 

A marketing tool, designed to influence purchasing behavior and/or thought patterns. Who's purchasing behavior and/or thought patterns do you want to influence?

 

For most electrical contractors, it would probably be a waste of time and money to influence the purchasing behavior of apartment dwellers. Or of homeowners living in a rundown neighborhood with falling property values. In order for advertising to be effective, you need to determine your target market.

 

But first, you need to pinpoint what you do best.  Figure out exactly the type of work you do that brings you the highest profit, and stay focused on that work. In our research, we have found that most companies do one thing very well and up to three things profitably. After that, the profitability of the company declines in direct proportion to the number of different types of jobs that are attempted. Please don't say you specialize and list your 30-40 specialties. That's not specializing. Pick the 2-3 specialties that bring you the most money and stay with them.

 

After you have pinpointed what you do, then determine who needs that work done. Take time to determine who Mr. and/or Mrs. Perfect Customer is. Do they own their own home? Do they make a certain income level? Are they in certain neighborhoods? Did they just purchase the home or have they been at that address for a long time? Is their home fairly recent or over 40 years old? Time spent establishing your ideal customer will pay dividends. Put the demographics together for Mr. and/or Mrs. Perfect Customer and they become your target market.

 

Once your target market is established, make sure your company image matches. When a customer reads your company name, it should tell them exactly the kind of work you do. Bob Jones Electric, Inc. is not nearly as good as B. Jones Residential Electrical Repairs.

 

If you have a company name that doesn't tell your customers exactly what you do, now would be a good time to change it. Generally you can have a transfer of names complete in 6 weeks to 2 months in this business. Go through the pain of making the change before you move ahead with advertising.

 

Once your customer is established and you have a recognizable company name, write your business plan (if you haven't already). A business plan is your game plan, your blueprint for success. You can't build a new or remodel job without prints - don't run a business without a plan. Once it is written, all you have to do is follow the plan. That plan should contain contingencies for times like today and a variety of other "what if" scenarios. Do a good job on your business plan and map out the future for you and your company.

 

If you don't know where to start with a business plan, we recommend Business Plan Software (http://www.brs-inc.com/?rp=rp-markupandprofit). Not only is it an affordable, quality software program, if needed there are real people at the other end of the phone.

 

Ground Work Finished

 

Now you need to put together the advertising needed to let folks know you are in business and ready to help them. That advertising campaign must focus on your customer's three basic fears. Don't talk about yourself, your great quality, your customers, the jobs you have done. The customers have their radio tuned into station WIIFM. What's In It For Me?

 

They want to know if you will:

   Do the job they want done?

   Do the job on time?

   Do the job at a fair price?

 

That is all they care about. They don't give a rip about you, your company, your quality, your anything. Their world is about them. You are the same way when you go to make a major purchase - it's all about you. That is reality. If you don't focus on the wants and needs of your customer and answer those three fears, they simply won't call.

 

Don't try to write your own advertising copy. Unless you have been well trained in all facets of the advertising game, stick to what you do best and hire the pros to help you write your ads. You don't save any money by writing ad copy that doesn't get your phone to ring, you waste it.

 

A couple of final thoughts.

 

If you have the word FREE in any of your advertising, get rid of it. It only attracts people who are looking for something for nothing. Those are leads you don't need.

 

When our economy tightens up as it does about every six to eight years, many companies respond by cutting their advertising. Stopping advertising to save money is like stopping your watch to save time. Doesn't work. When the economy tightens up, you must increase your advertising. You have to contact more people because fewer are buying. And you must advertise year around if you want business year around.

 

Let's be clear. The lack of leads so many are experiencing is due to working by referral only. Referrals should not make up more than 20 - 25 percent of all your business. If referrals are over 25 percent of your business, when the economy hits a little bump in the road you will see a drastic decline in calls into your company and sales. Advertise and stay with it. Let referrals be the icing on the cake.

 

You have a lot of work to do, and a week before our next newsletter. Get R Done.