Are you using the Energy Efficiency Tax Credits to your advantage?

By now you’ve probably heard about the Energy Efficiency Tax Credits. Those are the credits that consumers can take for buying and installing energy efficient products in their homes. The products include replacement windows and doors, insulation, roofing, HVAC, water heaters and bio-mass stoves. (In addition, there are some geothermal and solar products that qualify for credits, too, but we will limit the discussion to retro-fit products).

If your remodeling or home improvement company specializes in any of these types of products, you are missing a big boat if you are not offering products that qualify for the credits. Just about all manufacturers in every one of these product lines are now offering products that qualify.

To learn more about the tax credits and what products will qualify, check out the government’s Energy Star website.

Remodeling magazine has a great section about the entire stimulus package. Check it out at http://www.remodeling.hw.net/green/stimulus-tax-credits/ for a comprehensive guide about the credits.

And you can check out our remodeling company’s blog, Manassas Remodeling Contractor, to see how we have been promoting the credits to our own customers.

But don’t wait for your customers to ask you about the tax credits. Bring it up in your sales presentation. I am still amazed by the number of consumers who are not aware of the credits or don’t know what products qualify.

Regards,
Annette

Put Time On Your Side

Do you have some potential clients who are on the fence about proceeding with a remodeling project? Are you looking for ways to create some urgency to get people to commit now rather than later?

Use time. Time (or the lack thereof) can be a powerful motivator to get your clients to commit now.

By explaining the amount of time each step in the remodeling process can take, your potential clients can see the need to move forward if they want to complete a project by a specific date. To make your presentation even more powerful, use a calendar or timeline and work backward from their date.

Help your remodeling customers feel good about their decisions

There’s a great question and answer on the HGTV Pro.com site that I want to share with you today. It characterizes how our remodeling customers and potential customers are feeling right now. They are afraid, scared, frightened. This state of fear makes it difficult for them to make a decision. So they continue to sit on the sidelines waiting. They’re not sure what they are waiting for. But they are waiting.

We need to convince our potential customers that they are making the right decision. We can do that through our marketing and sales processes. Help your customers feel good about the remodeling decisions they are making and you will see more projects come your way.

To Your Success,
Annette


Ed Del Grande: Ask Ed
April 6, 2009
Recession Remodeling: Money Down the Drain?

Q: Hi, Ed. My husband and I are loyal readers of your column, and we both decided we would follow your advice on the following matter. For the past several years we have been saving up to remodel our bathroom, and the highlight of the job will be installing a big, beautiful whirlpool tub. Now that we actually have the money to do the project, we are hesitant to start the job because of the slow economy. Is this a good time to remodel the bathroom, or should we wait? -Tina, Nebraska

A: Tina, you're not alone, and it seems with all the bad economic news being reported by just about every major media outlet, we've become a bunch of deer stuck in the headlights. I believe that if we all take a break from the doom and gloom and start living our lives again, we may actually get things moving!

Day after day, the news tells about the bad loans and how houses are losing money. However, what you don't hear is that now may be the best time in years to invest in your home if you have a little cash or equity built up.

For the first time in a long time, good contractors are readily available and are aggressively working with homeowners to keep labor costs down. Materials are also coming down in price, especially for larger luxury items. Also, investing in your present home with a big remodeling job or addition can give you the dream house you always wanted without the hassle of moving. So, if you like your neighborhood, have the room to expand, and have some cash on hand, I say go for the whirlpool tub!

I recently spoke to a friend of mine who is completing a gourmet kitchen addition to his present home, and he told me the toughest part was getting over the uncertainty of going forward with the project in an unstable market. Now that it's nearly complete, he and his wife are thrilled with the job and have no regrets. Also, since they will be able entertain at home in the new kitchen, they have no plans to move and feel confident it was a safe investment.

Isn't it nice to hear good real estate news for a change? So, let's all get moving with our own dream projects. Whether it's a kitchen, a bathroom, or even a swimming pool, now is the time to jump in the deep end instead of drowning in fear!

Source: HGTV Pro.com, Ed Del Grande: Ask Ed, April 6, 2009

How to create marketing content for your remodeling business without writing one word!

When you give your prospects and customers valuable information, they immediately consider you an industry expert. And consumers feel more comfortable buying from those they consider to be experts. In fact, when your prospects are looking to you for advice and information, it's a much easier sales process.

You would probably love to have more content to give to your customers and prospects, post on your website, or include in your newsletter but maybe you don't have the time to create it yourself or you really don't like to write.

Now there is a way to give your customers and prospects valuable information and post content on your website and blog, without writing one single word!

The solution is Marketing Packs - articles for consumers specifically targeted to home improvement and remodeling. You can use and re-use these articles for just about any purpose--your own newsletter content, website content, blog posts, consumer reports and much more.

Click here to find out more and learn how you can use Marketing Packs in your remodeling business.

Upselling is everywhere

I stopped in my local Starbucks the other day to grab a latte. I like (and always order when I go) a grande latte. I don’t go often because I have a hard time paying so much for a cup of coffee. But I decided to treat myself.

The person taking my order immediately asked me if I’d like a venti (large) instead. I said no. She then asked if I wanted a flavor. No, I replied. Finally, she asked me if I’d like to add a pastry or muffin. No, just the coffee.

Upselling is everywhere these days. I’ve been noticing it more and more. There’s the perennial upseller, McDonald's, with their now famous phrase, would you like to supersize that? Annette told me she went into Yankee Candle, a retail store that sells scented candles and accessories, the other day and the clerk gave her several options for buying up.

If you pay close attention, you will see it. And, if it’s done well, you will hardly notice it. Pay attention to the upselling that’s going on all around you. Try to incorporate it into your own sales. Offering a few more options with any job is a great way to give your customer additional value and increase the price of the job. But remember you only want to give upsell options that your customer may want to purchase or would benefit from. Simply trying to get your customer to spend more money with you is no way to go about upselling. If you know your customer, you will know what options are most valuable.

Your customer wants to connect with you

You may think that customers want to do business with your business. But what they really want is to do business with you.

Customers are individuals and they want nothing more than to connect with other individuals.

Give your customers that close personal attention and make a personal connection

See life from your customer's view

Take a moment to daydream.

Close your eyes. Think about your customer. Who is he? Where does she live? Work? Play? What is he or she looking for?

Next (and here’s the hard part) step into your customer’s shoes. I mean really see yourself as your customer.

And then imagine the world through your customer’s eyes. What are the unique problems that he or she faces? Really see their point of view. If they are frustrated, why are they frustrated? If they are angry, why? Sad? What is it that makes them so?

Understand their emotions and their desires.

Now step back into your shoes and fill the needs of your customer.

Sales is about the relationship

The other day the owner of one of our favorite restaurants in our little town left me a phone message just to say hi. She hadn’t seen us in awhile and just wanted to make sure that we were all ok.

My first thought was, how did she know my phone number? We’re friendly at the restaurant but that’s about the extent of it. And then it dawned on me that she kept my phone number when we’ve made reservations. There’s a smart business owner. She keeps as much information as she can about her regular customers.

Her concern was genuine and very much appreciated by me and my family. I called her right back and assured her that we were all ok, just busy. And I also made a reservation. One for this Friday when I’m taking two of my customers who just referred me for a bathroom job that I sold.

Do you call any of your past customers just to say hello? Do you stop to chat when you see a customer out on the street? Or at the mall? Or in church?

Selling is about making and maintaining relationships. It’s always been like that. Salespeople who can make those connections usually sell more. Why? It’s no mystery. Because people want to buy from those that they like!

Should you use a square foot price to estimate remodeling?

NO!!!!

Did I say that loud enough?

The answer is a resounding no.

Square foot pricing cannot take into account all of the variables of remodeling. Product selection, current condition of the project, jobsite access are only a few.

Do yourself a favor. After looking at the job site, prepare a detailed estimate based on the work that will have to be done for this particular job. Include labor and materials. Apply your mark-up. Stick by your estimate.

Happy Selling!
John

Are you selling every estimate you give?

If you are, then I bet your prices are too low.

You may be thinking: What? Too low? But I’m selling. I’m a great salesperson. My closing rate is 100%!

If your closing rate is 100%, you are not selling. You are taking orders. Try raising your prices, just a little at first, and see what happens. Your profit margins will be higher. Your cash flow will be better. And your closing rate will not be 100%. That’s ok, though. You are learning how to sell.

Happy selling!
John

Are you trying to sell every job?

You don’t have to sell every job. There are some jobs that just don’t fit your niche. There are some prospective customers you will meet who don’t fit your customer profile. There are some locations that don’t fit your geographic service area. Learn how to say no to the jobs that just don’t fit.

Happy Selling!
John

Take advantage of sales training

Although some manufacturers, like Republic Windows and Doors, are shutting down, others are gearing up for a successful sales season. We recently received an invitation to Home Guard Industries’ Dealer Training and Workshop. Training such as this is geared toward helping us, the home improvement contractor, sell more. Find out what your suppliers are planning this year to help you sell more. If they have no plans, suggest that they provide some training and assistance. After all, it is a direct benefit to them if you sell more.

Happy Selling!
John

Don't Participate

Don’t let this current recession determine your fate! Choose not to participate in the current economic crisis.

Now I’m a sales guy but I know that my company has to keep marketing in order for me to get in front of someone to make a sale. The more people I’m in front of, the more sales I make. It’s a pretty simple formula.

December is turning out to be a pretty good sales month for me in my remodeling company. That’s because I’m not letting the recession or the government or the media tell me what I’m going to do. I’ve got some pretty good leads because my company has been marketing all along. I’m selling and that’s that!

After All, You Are the Expert!

Your customers expect you to be the expert when it comes to remodeling. Make sure that you are up-to-date on local zoning and building ordinances as well as building codes and techniques for the types of projects you typically sell.

After all, your customers are paying for your expertise.

Keep Your Selling Skills Sharp

One of the most important things you can do right now to increase your remodeling company’s sales is to keep your own selling skills sharp.

How can you do this?

Practice, study and practice some more.

Read books, listen to tapes, watch videos.

Then practice your own sales techniques on your spouse, your kids, your friends, your dog. Even in the mirror.

Happy Selling!
John

Make December One to Remember!

When I first started selling remodeling, I did not look forward to the holidays. After all, nobody buys remodeling during the holidays! I might as well save my time and breath and not even see anyone. From the week of Thanksgiving to after the first of the year, sales were dead, dead, dead! We shouldn’t even waste our money on advertising or marketing during that time. After all, everyone knows that consumers don’t buy remodeling during the holidays!

Wait! What if that’s not true?

I started thinking about that. What if I changed my belief system? What if instead I thought that I could sell a lot of remodeling during the holidays? After all, people are thinking about their home, their families. They might even be off work.

And that change in my belief system started me on a December sales record. One of my top 10 sales months in company history was a December. And out of the last 10 years, I have blown out my goal more than half of those years. The others were pretty darn close.

So this year, try changing your belief system about selling remodeling during December. You may be pleasantly surprised to find that there are definitely buyers out there.

Happy Selling!
John

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.

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

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!!