Posted by Mark Paskell on Thu, Apr 30, 2009 @ 06:14 AM
What are you doing with your old leads? Do you throw them away or leave them in a pile to call on a rainy day? What do you do with the TIO'S (think it over)?
A contractor client recently told me in our weekly coaching session he sold a job for 50K. The lead was from two years ago. The contractor said he was ready to throw it away.
Thankfully he didn't throw it out. Instead we developed a simple program to call back all his old leads and customers. This program has lead to several opportunities and has revived old projects.
So before you throw out or totally dismiss old leads call them back and ask them if they did the project. You might suprise yourself and find gold in something you thought was worthless.
This simple program involves calling back all old leads and customers. Set a goal for yourself to call customers and old leads one evening a week. In one hour you can make 10 phone calls, two hours 20, and so on. Why not set a goal to make 30 calls a week. If they say they are not interested in doing something now then ask them if they are planning any projects in the future and if they know of any friends or relatives considering work.
The worse that can happen is they say they don't.
The best thing that can happen is you may find gold in old leads, and that is priceless.
Do you have systematic program to call all customers and old leads?
Posted by Mark Paskell on Tue, Apr 21, 2009 @ 09:00 PM
What allows you to have a business that works and produces profits? The answer is systems with clearly defined processes and procedures. The systems needed to run a fine tuned contractor business are marketing, sales, production and administration. In our training, we use the Four Legged Chair analogy to represent these four systems. Each leg must be strong to prevent the chair from falling over or collapsing.
Leg #1; Marketing attracts, educates and informs the target prospect about your company, services and products. The right marketing system should attract and produce lead opportunities that match your core competencies and desired projects. A marketing plan is essential.
Leg #2; Sales converts the right lead opportunities into projects that the company can produce at the right margin. The sales system is clearly defined to insure that whatever the customer has purchased from the salesperson, meets the clients expectations exactly. The company has a trained sales process and staff that determines the needs and wants of the client and matches the services the company provides to the clients needs and wants. All parties are properly trained on how the order processes from sales to production. An easy to use and understood paper work system of forms and checklists is utilized.
Leg #3; Production professionally delivers exactly what was ordered by the customer and documented by the salesperson. The production team is qualified and trained to deliver excellent workmanship, customer service and maintain the budget of the project.
Leg #4; Administration supports the operation by maintaining the books, running the office, paying the bills, measuring and tracking the jobs, payroll, and overseeing and running the business.
Many contractors who start their own business, do so without the use of defined systems. They work hard and long hours and become the guy who is wearing too many hats with little or no time to work on the business because they are too busy working in the business. They think that if they bring on more work, hire more people and work like a maniac that the problems will be solved.
All too often, contractors believe that no one can do the important stuff as well as themselves. They don't have time or interest in developing systems to make business more predictable. They develop a strong ego and stubbornness that cripples their company. This can go on for years.
The solution to running a profitable and manageable contracting business is to decide to develop, learn, train and implement systems for you and your team.
The current economy and educated consumer are putting all contractors to a test we have never experienced before. To think that we can navigate the choppy waters without clearly defined systems is risky. Not to long ago we all had plenty of work. Most would agree, today is a whole new ball game.
Some things to think about;
Are your current systems or seat of the pants managing producing the results you need in your business?
Do you let your bravado prevent you from doing what you know is necessary to learn how to properly run your company?
Have you created an island for yourself (because you don't trust others) that prevents you from delegating and empowering others who gladly want to help you run your company?
What legs of the chair do you have in your current business?
mark the coach
Posted by Mark Paskell on Tue, Apr 21, 2009 @ 05:22 PM
When business is slow it is prudent to find cost effective ways to lower costs. Some items can be pared down wisely with minimal adverse effects to the operation, and some should not be cut, instead increased. A common belief is that marketing should be cut. Cutting marketing is a huge mistake that precedes serious damage to the health of a business. We are hearing from many contractors and businesses that they are falling short in the sales and lead generation department. We ask if they are marketing their business and most say "no we are cutting marketing and not doing that right now. We need more business then we can increase marketing." Go figure!
In order to increase the likelihood that we will stay in business now is the time to increase your marketing. Those who have been marketing consistently are receiving calls and working. The jobs may not be the creme of the crop however they keep the doors open. Those who are not marketing will soon go out of business.
Companies who have planned properly are busy marketing and advertising every week. As spring calls increase these companies will be found, will generate leads and sales, and will survive the downturn. These companies are using "TOMA" (top of mind awareness) to stay in front of their market. They are not relying only on referrals. They are following one of the basic principles of business, marketing to your marketplace to generate leads. Leads lead to sales. Sales lead to work to produce. Work produced lead, to money received to run the company and pay the bills.
To weather the slow economy increase your marketing.
mark the coach
Posted by Mark Paskell on Mon, Apr 20, 2009 @ 12:27 PM
Traditional marketing mediums are not producing the quality leads residential remodelers, general contractors and home improvement companies need to keep busy. Newspapers, post cards, newsletters, print advertising are not producing the needed results. Contractors are saving their money and focusing on marketing efforts that have a higher return on investment. We are seeing a huge investment in time spent on networking activities.
The benefit in belly to belly or face to face marketing, is you decide who you will invest your time with. Identify your target customer, preferably the one with discretionary spending ability or in your chosen niche. Figure out what you have to do to fish where the big fish are located and do it.
Before you embark on your networking activities prepare you elevator speech well in advance and brush up on networking etiquette.
Here is a list of some networking activities to consider;
1. Join the local chamber and go to business after hours, breakfasts and lunches. Chamber members are usually business owners or higher disposable income professionals.
2. Join a BNI referral group.
3. Go personally visit all your professional service vendors and encourage them to share customer contact lists. This includes your insurance agent, CPA, banker, lawyer, dentist, doctor, chiropractor, nutritionist, personal trainer, health club owners, hair dresser and don't forget your shrink.
4. Hold networking events at your showroom for all your subs and vendors and develop strategic alliances to exchange leads. If you don't have a showroom work with someone who does like your cabinet supplier. Offer a door prize like a tool for a carpenter or one day of handyman service for a homeowner.
5. Hold catered open houses at your clients house after the work is completed. Invite prospects, vendors, subs and people who worked on the project.
6. Encourage your employees to generate referrals and give them a $75.00 referral fee whether you sell it or not.
7. Attend community events where movers and shakers tend to congregate. Hold your own event to support some cause specific to your community.
8. Attend road races, bike races, church events, fairs, political fund raisers.
These are just some of the things creative remodelers and contractors are doing all over the country. The key is to make sure that you are thinking outside the box and investing your time and money wisely. If something is working keep doing it. If not, move on to something else. The monetary cost of networking is low and the ROI tends to be very high if you do it well in front of the right people. Remember to be prepared to network, stay positive and have fun.
mark paskell, the contractor coaching partnership
Posted by Mark Paskell on Fri, Apr 17, 2009 @ 08:52 PM
Homeowners have become masters at knocking out contractors with TIO's (think it over), wasting one of our most valuable resources, time.
You know the story. Contractor meets homeowner to give free estimate for remodeling. Contractor does great proposal and homeowner tells contractor you are the best. In fact, you are the one we want to hire so just give us a few days to think it over and we will call you next week. Contractor walks out thinking he has the job and he adds it to the 20 other ones who also said we just need to think it over.
Time goes by and the contractor chases the TIO's for weeks and sometimes even months. No calls back from the homeowner and now all you get is voice mail. What happened? You thought you were their guy but instead they run and hide from you. You wonder if they really meant what they said. The reality is, 99% of the time when a homeowner says they want to think it over, they really mean no. TIO's are like slow no's. They are dead leads and a waste of your time.
How to avoid TIO's
To avoid TIO's use what is called an upfront agreement or contract at the beginning of your meeting. Let the homeowner know the agenda for the meeting and that at the conclusion, you will expect them to give you a decision to either move forward or not move forward. Let them know that no decision is not acceptable. If they don't accept, then you know they are more than likely a TIO in the making that you will have to chase. This concept is taught in consultative sales and will save your precious resource, time. Contractors who take sales courses are taught how to handle this tactic used by the homeowner.
Do you get KOed by the homeowner with TIO's?
How do you handle a homeowner who says " I want to think it over?
Posted by Mark Paskell on Thu, Apr 16, 2009 @ 06:12 AM
Spring has sprung and homeowners are starting to call residential contractors for remodeling and home improvements. Even though the economy has been tough, people still need to maintain their most valuable investment.
The question is are you ready to sell to a consumer who is significantly different now compared to a year ago?
Today's new consumer is looking for The Next Level Contractor. The consumer has changed what and how they buy our services. They are choosing more wisely, expecting more value for less money, calling multiple companies, stalling more often, they are more educated due to the net, they are familiar and tired of the old sales tactics of home improvement salesman and a host of many other factors that will make your sales job more difficult than before the recession started.
Many contractors have educated themselves over the past 6 months, when it was very slow. Remodelers and home improvement companies revamped their businesses, took lead carpenter courses, hired a contractor business coach, negotiated better rates from service providers, purchased sales training for contractors, improved their marketing programs and any other necessary steps to insure viability.
These are the companies that are experiencing a better scenario than most contractors in the industry.
What is your current situation? Are you seeing an improvement in your lead generation?
Are you prepared to market to the new consumer?
Are you prepared to sell your services to the new consumer?
The most requested service at The Contractor Coaching Partnership over the past 3 months, is sales training for contractors with marketing training a close second. This is different than last year when the most sought after services were business planning, design build vs architect process training and lead carpenter training.
This change is more than likely brought on by the changing demands of the new consumer. Contractors who have been preparing for the upturn will do better than those who are sticking to their old ways of selling to the consumer.
It will be interesting to see how contractors who have not realigned themselves, will perform in this new environment.
We will keep you posted!
If you have questions on how you can benefit from a relationship with a contractor coach or sales training for contractors check out our site or give us a call.
mark the coach
Posted by Mark Paskell on Tue, Apr 14, 2009 @ 06:38 AM
Last week, in our Corridor Nine Chamber of Commerce Referral Group meeting, two contractor coaching clients described their recent success using the power of positive thinking and goal setting. In their coaching sessions they are studying the concepts of "Think and Grow Rich" written by Napoleon Hill. The Contractor Coaching Partnership contractor course teaches clients how to use this powerful study guide to develop the right thinking habits and the power of setting goals.
Kyle Dube of Project Plus Builders, described how he has tapped into the ether and universe to attract new opportunities. He reports he has more leads today than he has had in three years. His confidence has grown immensely since he has joined our group six months ago. He is bringing people together and helping them network with others.
Matt Beaton of Residential Energy Solutions reported he is using these concepts to acquire accounts from numerous companies for his energy auditing business. Matt is leading the charge locally speaking often at public venues on green building science. Most recently he was on the panel for Green Energy at The Massachusetts Technology Collaborative Conference in Westboro, Mass.
Coincidently, both Kyle and Matt are members of NARI, an organization dedicated to providing training and education to contractors. Both clients possess a learning attitude and a very open mind. They are becoming leaders in our group and contractor community helping others through the power of example.
In these challenging economic times both Matt and Kyle are shining examples of how to use the power of positve thinking and goals to grow and prosper. They are learning to focus on their goals and continue to sharpen their saw as they build their remodeling business.
What are you doing to sharpen your saw and keep your mind positive in these challenging economic times?
Posted by Mark Paskell on Sun, Apr 12, 2009 @ 08:00 AM
Over the past four weeks we attended many trade shows and spoke with over two hundred remodeling contractors. We volunteered to work the JLC trade show in Providence and the Residential Design Conference in Boston for the Eastern Mass NARI chapter as well as attended the NARI national business conference. We acquired over two hundred business cards from contractors at these events and had the good fortune to meet outstanding remodeling contractors who are at the top of their game and a few who are not.
To date, we have followed up on 100+ contractors cards and have found many with no website or a website under construction. Some of the business cards have a website address and when we went to search for them there was no site. The others had the statement "website under construction" or "coming soon". One even said "we are worth the wait".
In this challenging economy, what do you think will happen if a homeowner tries to contact these contractors and finds no site or one under construction?
If you are a contractor and don't have a website then it is time to develop one. Most homeowners want to research the contractor they call, on line, before they invite you to their home. The internet has replaced the yellow pages. Having a website up and running is now a requirement for business. Contractors who fail to recognize this will lose out to those who do!
If you have a website and it is under construction, we suggest you do not put it on your card or marketing materials until it is ready to launch. Homeowners who see sites under construction will not call you for a consultation. They will think since your site is under construction and unfinished, that is how you will do their job.
If you need help finding a cost effective website designer who produces results, you can contact me and we will recommend some one for you. Also buyer beware of the website designer who is not an expert in SEO (search engine optimization). Your website should be designed professionally and be recognized by the major search engines for your keywords. A poorly done website is worse than having none at all.
While we are on the subject of websites, if you have one, have you updated it in the past year? Are your pictures and content current and is it ranking favorably with the search engines?
Why do you think some contractors have avoided building websites when the marketing experts recommend having one?
Posted by Mark Paskell on Sun, Apr 12, 2009 @ 03:00 AM
I was looking at the dates between today's post and the last one and noticed that it has been almost two weeks since my last post. (promised myself that I would post at least twice a week) I could use some lame excuse why I fell short of writing twice a week but I have no one to blame but myself. Yes, I have been busy coaching contractors and networking and like many people, could justify the lack of results I agreed I would hold myself to. Instead of allowing the excuses, I re-read my goals and definite chief aim and followed my coaching checklist to get my head back in the game.
Whenever we fall off the track it is important to recognize it and have the resolve to right the situation. I learned from mentors that having your goal written down and a checklist detailing the steps to stay on the track for success are crucial. If you take the time to develop a plan on how to correct yourself when you go off the path, less time will be spent in a rut.
When you don't do the things you know you should do, how do you handle it? Do you allow excuses or do you have a plan to correct your path in line with your goals?
Posted by Mark Paskell on Sat, Apr 11, 2009 @ 02:37 PM
Two weeks ago I went to the national NARI business meeting in Atlanta and met many successful remodeling contractors from all over the country. I was interested to learn what was behind their success. The contractors I asked were eager to share the factors and experiences that led to their success. Here are some of the major factors shared;
1. Goals; determined and written down
2. Education and training for themselves and their employees.
3. Business planning
4. Use of Systems; specifically marketing, sales, estimating, and production systems based on modeling other successful contractors' best practices.
5. Hiring the right people who work smart and hard. Also helping employees who don't fit, become successful somewhere else.
6. Finding the right niche market and jobs they want to work on.
7. Knowing the true costs of doing business then using the right markup.
8. Referral and lead generation programs well established.
9. Networking and strategic alliance building at every opportunity.
10. Using an outside mentor or coach as a board of directors to hold themselves accountable and use as a sounding board.
Last week I surveyed one of my clients (Kyle Dube of Project Plus Builders) and asked him what he liked most about the coaching service he purchased from The Contractor Coaching Partnership. His answer was " as owner of a small remodeling company, I have no one internally to hold me accountable for the things I know I must do. Hiring a coach to hold me accountable is like having my own board of directors to keep me focused on the objective."
A remodeler from the midwest said "I use my mentor to come in and assess my organization because he has a fresh set of eyes and no hidden agenda. Sometimes it is better because internally we are too close and less apt to make some tough decisions. My mentor is my board of directors and always shares an objective view that is based on the realities."
Who holds you accountable for the things you know you must do to be a successful residential contractor?
Do you have a mentor, coach or board of directors that will give you the honest assessment of your performance?