Thank You!

One of the things we love about Thanksgiving is the meaning of the holiday. Giving thanks for all that we have. Tomorrow we will sit down with our family and celebrate.

But today, we want to take this opportunity to let you know we are grateful for each and every one of you who inspires us to continually better ourselves. Thank you.

Happy Thanksgiving!
John and Annette Greco

Focus on the Value of Your Products and Services

During an economic downturn, consumers naturally tighten their purse strings. The media talks about this phenomenon as if it were a mysterious ailment that has suddenly struck our nation. But if you really think about it, isn’t this what we should do in an economic downturn? Shouldn’t we be more careful with our money? Shouldn’t we watch our budgets? Shouldn’t we be careful about going into debt?

I think, though, that with all the ballyhoo from the press we forget that consumers are still willing to buy. They just need to see the value in the product or service. Show them the value and they are more willing to open those purse strings.

Vanity Awards

The other day our remodeling company won an award! It’s not just any award, mind you. It’s the Best of Our Town’s Award in the Bathroom Remodeling Category. But wait, I didn’t enter. And I’ve never heard of the sponsor, the prestigious sounding U. S. Local Business Association or USLBA, for short.

I googled the name and quickly found this to be a marketing ploy. The scheme was outed in The Responsible Marketing Blog this past summer.

What’s the catch? I buy one of their plaques to display in my office. Over-priced, of course. But they do provide a press release I can use!

Be careful about unsolicited awards. Like the Who’s Who Directories that try to get us to buy a high-priced never-to-be-opened book just because it contains our name, these schemes are only after our hard-earned money.

If you really want to win an award, enter one of our industry’s fine competitions. There are many to choose from such as The Chrysalis Awards, Qualified Remodeler’s Master Design Awards, and Remodeling’s Design Awards . You can even find local contests such as NARI’s COTY Awards and your local Chamber of Commerce probably has some small business awards.

Watch Out For E-Mail Scams

The economy is getting tough for all of us, even the e-mail scammers. So beware! E-mail scams to remodeling and home improvement companies are quite prevalent. You may be surprised about that. Most are looking for companies that accept credit cards. That is where the scam comes in.

Here are two recent e-mail scams that I personally received. These e-mails are real and I have not corrected any of the typos, grammar or spelling.

Good Day,We would like to inquire if you have in stock or can help us get 80 watt or 130 watt solar panel and Xantrex Charge Controller 30 to 60 amps andGrundfos submersible water pump (model #:10sq07-200 or 10sq07-240). Please advise your unitpricing as we would be buying upto 15 or 20 units of this material from you for our upcoming project.And also let us know the credit card type you welcome for payment.Thanks for your anticipated business relationship and cooperation.John Enterprise4525 W 9TH AVEKENNEWICKWA 99336REGARDSJOHN ROBINSON

Or how about:

Hello Mr Prince Waren is my name and i would like to place some orders in your and i would like to know if you do have cabinets in your shop or wood products.and i would like to know their price ranges and also the types of payment you accept so that i can advice quantity and the product am interested in so that we can proceed on this order Thanks and waiting to hear from you as soon as possible Best RegardsPrince Waren

Notice that both have poor grammar, spelling and punctuation. While the first asks for information on credit cards accepted the second only asks for types of payment. These are just two of many I have received over the past year. Some include a sense of urgency. Some request contact by e-mail only. All are scams!

How does the scam work? It’s a credit card scam. Either the person will use a stolen credit card or cancel the credit card payment once the shipment has been made, normally overseas.

Don’t fall for it. Delete these messages immediately. They are not legitimate and are not worth your time and effort.

They're Back . . . Energy Efficient Tax Credits, That Is

Part of the economic bailout package signed last month were new energy efficiency tax credits for homeowners. The tax credits begin in 2009 and are mostly the same as those that were in effect in 2006 and 2007.

Check out this article from the Alliance to Save Energy for a great run-down.

If you are a contractor involved in any energy efficient products or equipment such as replacement windows, insulation, roofs, doors, water heaters, heat pumps and much more, you should familiarize yourself with these credits. You can help your prospective customers make a buying decision by pointing out the economic and environmental benefits of installing these products. You can also give your customers all the necessary documentation they will need to take advantage of the tax credit. Use the tax credits as a way to add value to your company.

Falling Lumber Prices Keep Job Costs Down

I recently read an article about the lumber industry. The article detailed that the industry is hurting, production is down, and employment has dropped specifically due to the housing crisis including the large inventory of unsold homes and the number of homes in foreclosure. The article mentioned that demand for lumber hit its peak along with the peak in housing starts in mid-2005.

So what does this all mean to us? It means that prices are down because demand is down. I started noticing this at the lumber yard a while back. I’m sure you have, too.

The down-turn in lumber prices has allowed me to sharpen my estimating pencil when I’m doing my job estimates. I can give my prospective customers better prices.

It’s a good idea, though, because prices can fluctuate quickly to put an expiration date on all of your estimates. I like to use a short time period, like 30 days, because it protects me from price increases and it creates a sense of urgency in my prospective customers.

Happy Selling!
John

Why Do We Celebrate Veterans Day?

Veterans Day is Tuesday, November 11th. Do you know what Veterans Day means? Having a father who was a veteran of World War II and the Korean War, I was curious.

The day actually began in honor of Armistice Day – November 11, 1918, when the Treaty of Versailles was signed at 11 a.m. in Paris to officially end World War I. Armistice Day was passed by Congress in 1938 and was “dedicated to the cause of world peace” and honored World War I veterans.

In 1954, after America fought in two more wars – World War II and the Korean War - Congress changed Armistice Day to Veterans Day in order to honor American veterans of all wars. Veterans Day always falls on November 11th.

Please join me in honoring the 25 million veterans. Thank you for your service and sacrifices. We are grateful.

It's Time To Get Back To Work

It’s finally over. It seems like one of the longest elections that I can remember! But we now have a president-elect – Barack Obama. And whether you supported him or not as a candidate, I hope that you will support his presidency. After all, it’s not in any American’s best interests for the president to fail!

I would suspect that the election results will give the economy a much-needed kick in the pants as investors, both at home and over-seas, sense a change. I think that would occur no matter which party won the office. Just the fact that the election is over and we can get back to business is a major boost.

And that means we need to get back to work ourselves. It’s time to set our goals for next year and map out our plans for how we will reach those goals. What is your sales goal for next year? How many leads do you need? What is an appropriate mark-up for your business? There’s lots to do. Let’s get it done!

Vote or Don't Complain

John and I just got back from the polls. We went early, anticipating a crowd. We were right. I can’t begin to estimate how many because the line snaked around the halls of our local elementary school and into the auditorium. But it only took us a little more than one hour. Not bad at all. We were thinking it would be much worse.

It was fun to see friends and neighbors. We discussed the weather, work, and lots of football (and, yes, John’s Steelers put a whooping on my Redskins last night). Got to read the entire paper, too. That doesn’t usually happen.

Now we wait. Wait to see the outcome. And we hope that whoever makes it to the White House will make a positive impact on this nation.

So get out there and vote. And if you choose not to vote, keep your mouth shut. You have no right to complain. It’s as simple as that.

Six Words That Close The Sale

Sometimes, a sale seems to stall. You’ve met with the prospective customer, gotten the budget, designed a suitable project, explained the value in doing business with your company. But you’ve not been able to get that “yes.”

What do you do?

Here’s a simple six word sentence that I sometimes use to get the sale moving forward again: “How can we make this work?”

This question gets you away from trying to figure out what is holding the prospective customer back and allows the customer to tell you his or her objections. Now you know exactly what you need to do to overcome those objections and get to “yes.”

Happy Selling!
John

P.S. I posted this early so I could say . . . Steelers all the way, baby!!

Leading Indicator of Remodeling Activity

Harvard University’s Joint Center for Housing Studies puts out a report each quarter to estimate future remodeling activity. You probably can already guess that the news is not good. The Leading Indicator of Remodeling Activity, otherwise known as LIRA, is expected to go down about 12% over the next year.

Naturally, as the economy weakens, home prices continue to fall and people lose or are afraid they will lose their jobs, they tighten their belts and reduce spending, typically on things like home improvement projects.

So, what should you do?

Don’t stick your head in the sand and hope it will all be over soon.

As I’ve said, continue to market your company. Find the customers who do want to remodel. Return phone calls. Show up to appointments on time. Treat your customers well. And most importantly, stay positive.

What are you doing in your company right now to weather this downturn? Share with the rest of us.

Annette

P.S. And go 'Skins!!