Friday, August 29, 2008

How About Those On-Line Leads?

Have you thought about purchasing leads from an on-line lead source?

I know that some remodeling professionals seem to do fairly well (or at least that’s what they say) with on-line leads.

But to be honest, I’ve never had good luck with on-line leads. First, the same lead is sold to many remodeling contractors, not just you. So you are paying for the privilege of automatic competition.

Second, unless you call the lead immediately, you may not even get an appointment because the lead already has what he or she considers to be enough appointments.

And, third, on-line leads are expensive when you take into account that you are not the only contractor receiving the lead.

Tread lightly if you are thinking of using on-line leads. Make sure that you understand the lead generation firm's policies, especially regarding how many contractors will receive each lead and any refund policies. Try a few and ask the lead lots of questions about his or her experience. This will give you a fairly good idea if on-line leads will work for your remodeling business.

Wednesday, August 27, 2008

Fire Your Worst Customers

It may seem counter-intuitive to fire a customer. Especially now when the economy is in a downturn and remodeling is not on the top of everyone’s buying list.

But firing a customer may be just the thing you need to create room in your business for more happy customers.

Now I’m not talking about the person who has a few questions or asks you to fix an item that they don’t think is correct. Using good communication skills, you should be able to deal with just about all customer concerns and questions.

But you’ll run into one or two people who aren’t happy people. No matter what you do or how you do it, they aren’t satisfied. Or they are just down people. They like to complain. They bring everyone around them down. And they take up an awful lot of your time and your company’s time. Plus they are not going to give you referrals.

We had a customer that we did several jobs for. All of the projects came out great and she was satisfied with everything. But she is just not a happy person. I’m sure that there are reasons behind her unhappiness but we found her attitude was wearing on everyone in our company. So we made a decision to remove her from our mailing lists. She doesn’t receive any marketing that we send out to our past customers. Of course, we will cover any warranty issues that she may have. But we most likely would not do any more work for her, no matter how large or small the project.

Firing a customer can be a liberating feeling once it’s done. But before you make that decision, make sure that you and your staff have done everything you possibly can to create a satisfied customer.

Monday, August 25, 2008

Gather the E-mail Addresses of Your Customers and Leads

E-mail is becoming the communication tool of choice for many people. I know that I like to use it because I can send an e-mail from any place at any time. It also gives me the opportunity to be more specific in what I want to say.

Are you gathering the e-mail addresses of your leads and customers?

With an e-mail address, you can follow up with a lead or remind a customer about a product selection. You can also make future contact with a past customer about upcoming promotions.

An e-mail address can greatly cut your marketing costs. Make sure you are collecting e-mail addresses from your customers and leads.

Friday, August 22, 2008

Why We Don't Always Choose the "Best" Option

As I was driving home from my remodeling business the other day (a 15 mile drive that takes me approximately 25 minutes), I was thinking about why I always choose the same route. After all, I have lots of options. I could take the interstate which is shorter and may take me more or less time, depending on the traffic. I could take a shorter local route that would send me past the industrial area. But no, I seem to favor a route that is a little longer in mileage and time but winds me near a national park and through some areas with pretty landscaping. I thought about why I do that. And it dawned on me. I actually like the slower more circuitous route because it is a prettier and more relaxing drive. I enjoy the drive more.

This is exactly why prospects and past customers will use your service, even if you are more expensive. They know and like you! You make the process easy for them. They enjoy using your services!

Wednesday, August 20, 2008

What's The #1 Skill A Salesperson Needs?

You know what I really don’t like? I don’t like telling people when I first meet them that I’m a salesperson.

The reason may surprise you.

You see, it never fails that when I tell someone I’m a salesperson I get a response like “Oh, I’ve always thought I’d make a great salesperson. I love to talk to people!”

Well, I’ve got news for you! Sales is not about talking. It’s about listening!

A good salesperson will listen to the customer, asking questions to find out what the person really wants and needs, and then design a solution that fits.

Monday, August 18, 2008

Thinking about cutting your advertising until the economy improves?

Don’t do it!

For many business owners, including remodeling company owners, the first reaction to a tightening economy is to cut costs. There is nothing wrong with that in theory. But be careful which costs you choose to cut.

For example, advertising. Advertising gets your name out to your potential customers. Without it, how will those potential customers find you?

The trick is to concentrate your marketing dollars on advertising that brings in leads rather than advertising that builds brand awareness. You want a name, contact information and permission to make contact.

Concentrate your marketing budget on activities that generate actual leads for your remodeling business.

Friday, August 15, 2008

100% Referrals? Hmmmm . . . . .

“I don’t advertise. All of my leads are referrals.”

That is a myth that many remodeling contractors buy into. It is a great idea, one happy customer refers another. That happy customer refers two more. It’s the law of compounding that works great when it comes to interest on your savings account but not so great for a business.

Why? Because you have no control. If you rely on others to tell their friends when they feel like it, you may be waiting for quite some time. Life happens and, although your happy customer said she would tell Aunt Sally to call, it completely slipped her mind.

And anyway, Aunt Sally’s bridge buddy already told her about her experience with another contractor, your competition, and she called him.

Now, this may seem like a contradiction but you should be asking for referrals from your customers at all times. Why? Because a referral lead is golden. Your happy customer has already warmed up the lead for you by telling him or her of their wonderful experience working with your company. And there are definitely methods you can use to guide the referral process.

But relying on referrals to bring in one hundred percent of the leads to your remodeling business is a mistake.

Ask for referrals and follow up with them. But include referrals as one element of your well-rounded marketing plan.

Wednesday, August 13, 2008

Take Time Off

One of the best things you can do for yourself and your company is to not show up for work! That’s right. Take some time away from the office. I do that on a regular basis and find that I work better when I get back.

Actually I even work better before I leave! Probably because I want to get things done so I can enjoy my time away.

Sometimes I’ll take just an afternoon off. Sometimes a day. I don’t take a week off that often although I could but I find that a three or four day weekend can do wonders for me.

Getting away helps me re-charge so I’m excited about the work when I return. It forces me to do or think about something other than work. It amazes me when my mind is working on a problem and I just stop thinking about it so much, a solution comes pretty quickly. I can do that easier when I’m away from the office.

And I become a more interesting person because I’ve done something other than work. Then when I run into an acquaintance and they ask “So, what have you been up to?” I can respond with more than “Oh, you know, just working.”

Today I’m taking a day off to play golf out of the area with a friend. And I know that when I return tomorrow I’ll be rested and re-charged.

Whether it’s a few hours or an entire week, taking some time away rests the mind and opens it up to other possibilities.

Monday, August 11, 2008

What You Can Learn From Michael Phelps and his Olympic Medal Bid

Michael Phelps came to Beijing with a goal – to earn 8 gold medals in one Olympics. That would put him one up on fellow American Mark Spitz who currently holds the record with his 7 gold medals earned at the 1972 Munich games.

If you pay attention to the interviews with the Olympic athletes you will notice they almost all have something in common. They have set a goal. That goal may be to improve a time or, like Michael Phelps, to win 8 gold medals.

We see the athletes performing in the Olympic Games. What we don’t see is the thousands of hours that go into preparing for that performance. The goal is what gives the athlete the determination and focus to continue to work, even when it may seem impossible.

Start by setting your goals. They may seem impossible at the time. But the more you focus on those goals, the more you will begin to do the things necessary to move toward reaching them.

Friday, August 8, 2008

Make More Money - Find a Niche Market and Fill It!

Trying to be all things to all people is a waste of your time and money.

We see it all the time: “XYZ Remodeling – We do it all!” “No job too big or too small.” “We do any type of work.”

Trying to be all things to all people is not a good idea. There are several reasons. A broad market requires more marketing in order to reach all of the prospects in that market. You will spend more money to reach more people.

Plus you would market differently for an addition versus a window installation. Marketing for a higher cost addition would call for different marketing materials.

And don’t take this the wrong way but you just can’t possibly know everything about everything! Drywall is vastly different than vinyl siding installation. There may be some jobs you are great at and some, well, not so good.

Instead pick a niche market in your area and build what those customers want.

How do you find a niche market? Keep an eye on your geographic area. Is there an aging housing stock that may need replacement windows or universal bath design? Are there newer communities in need of painting or outdoor living spaces? And don't forget to ask your customers, "What projects are you thinking about for your home?

Find out what the market wants and give it to them!

Wednesday, August 6, 2008

Family Celebrations

We made a quick trip to upstate New York last weekend. A 2 ½ day, 900 mile journey accentuated by bad traffic and expensive hotel rooms thanks to a NASCAR race in Pennsylvania. But the trip was important. It was for a special birthday party. You see, my grandmother turned 99! Yes, I can’t believe it. And neither can she! That’s all she said at her party. “I can’t believe I’m 99!”

Clara Greco has always lived life on her own terms. Coming to America as a young bride from Italy, she set up house with her husband in Boston. He drove a bakery truck, she worked as a housekeeper at Harvard. They became citizens. They bought a house. They raised a family. Her husband passed away. She lived on her own until she was 95, deciding it was time to go to a nursing home. She loves the home. She participates in all the activities. She’s not particularly fond of the food.

What does this have to do with my remodeling business? Nothing. Except a reminder that our families come first. Take time to visit, to celebrate, to honor.

Happy Birthday, Clara! See you next year for 100.

Monday, August 4, 2008

Book Review: Purple Cow

In Purple Cow: Transform Your Business By Being Remarkable, Seth Godin explains that a Purple Cow is a product, service or company that is remarkable, exceptional, worth talking about and noticing. It’s something new or very interesting. For now. You see, many products and services start out as Purple Cows.


Godin contends that the traditional marketing concept no longer works with consumers. Paradoxically, marketers have created their own problems. Back when consumerism was young and many products were new, marketers merely advertised a product and consumers purchased it. Pour more money into advertising and receive more sales. It was a pretty simple formula.


But consumers are too busy to pay attention to advertising. And, worse, yet, they have everything they need! So how does a marketer gain the attention of consumers?


By being remarkable. But it’s a little more complicated than that. Targeting consumers no longer works because marketing messages are largely ignored. And creating a product to market to the masses, according to Godin, is a waste of time and money. Those products for the masses are already taken.


Godin suggests creating a product or service that serves a niche. That way, consumers who are in need of the niche product or service can find you. But that product or service must be remarkable. Very good won’t cut it anymore. Products and services that are very good are normal.


Once you’ve created a remarkable niche product or service, market it to consumers who are most likely to be listening. According to Godin, it is useless to advertise to anyone except those actually interested in your product or service.


Purple Cow is a required read for anyone in business. Godin’s insight into why marketing no longer works and how to reach consumers in an age of marketing overload and consumer apathy are spot on. Read this book if you want to gain marketing advantage over your competitors.