Today I listened to a local radio station that was piped through the phone system as I waited on hold for my buddy at the local hardware store to tell me if the chains for my chainsaw had been sharpened yet. The advertisement talked about wasting money, and one line was a guy saying, “Honey, the toilet is plugged.”
Now, you and I know what to do when a toilet is plugged, but it is amazing the number of others who don’t know how to unplug the mug. Same holds true when it comes to doing work on their homes. They simply do not know, understand or care to get involved in fixing, repairing or building something new.
Why am I telling you this? Because it’s easy to forget. When you are on a sales call, you have to remember your audience. Don’t assume they know all the little contractorese comments you might throw into the conversation. One reason it’s important to ask questions (and listen more than you talk) is so you can determine their knowledge of their home or building, and you can know what level of detail you need to go into with them. Nothing happens in our business unless and until somebody (guess who?) sells something at a profit. They won’t buy if they can’t understand what you’re talking about.
As we roll toward the end of summer, construction-related companies that are doing a good job of advertising are keeping busy and making money. Good on you! With money coming in, keep an eye on how you are spending it.
This time last year, nobody was buying much of anything. August and September 2009 were probably the two lowest “discretionary buy something” months in construction in 8 – 10 years. Remember how you thought and even felt when you wanted to buy something then? Well, now is a real good time to feel that way again. You need to keep a tight clamp on the “I want, I want”. Here is a rule to follow: if you want to buy something, if you really have to have it, just can’t live without it . . . check your budget first. If it’s not in the budget you set last November and December for 2010, don’t buy it.
One of the biggest problems we create for ourselves is the need for instant gratification. I want it, so I am going to go buy it. I will figure out how to pay for it later. “Put it on the credit card”. Gang, if what you want was that important to your business, you would have had it in your budget for the year. If you didn’t put it in your budget, either you aren’t planning your business well, or your inability to control your emotions is overriding your common sense.
Take a hard look at anything that you think you really have to have. Wait at least 5 business days and then revisit the issue. Still important? Good, get your derriere out and sell something so you can pay for it.
I was talking with my son-in-law this week about securing new work. He just moved his family back to our area and has 6 mouths to feed. He did not and does not have time to wait for the phone to ring, he’s out hustling work every day.
He told me he went to see a potential customer last week. They had called seven contractors and he was one of two that returned their call and the ONLY ONE that showed up to look at the job. He got the job, they have already referred him to two other families for potential work. He told me this was the second time in two weeks this has happened to him.
Lee Iacocca, retired CEO of Chrysler Corporation said: “There’s no great mystery to satisfying your customers. Build them a quality product and treat them with respect. It’s that simple.”
Let’s assume that we can all build the same job. Are you treating them with respect when you don’t return phone calls? Or don’t bother to show up for an appointment?
The basic business rules are simple – I call them the Ten Cardinal Rules. If you ignore them you won’t last long in this business.
Interesting quote recently from Brian Tracy. He quoted Kenneth Blanchard, “The key to successful leadership today is influence, not authority.”
I have read this before said other ways, but it always gets back to the theme that the dictatorial manager won’t get the results they want by bullying or badgering to get things done “their way”.
My generation was raised by people fresh out of WWII. The military way of life was drilled into my father and other men of his generation. They figured they won the war with it so it should work for business as well. It did for many years, but today’s younger generation does not respond well to that method of management.
Now, there are some issues where the owner of a company has every right to set the standard. The question is how that standard is set and communicated.
If your staff is not getting things done the way you want them done, you might want to ask someone you trust to give you feedback on your management style. A word of caution. If they tell you that you need to make some changes, then you probably need to make some changes. That can be a tough pill to swallow. I have heard more than one owner declare, “It is my company and if they want to work here, they will do it or else.” That’s fine – if you can build your own jobs. But if you need the assistance of anyone else to get your jobs built, alienating them won’t serve your purpose. If you need to change, change.
What's your opinion on this?Over the past couple years, the topic I’ve been asked to speak on most often is how to generate leads. Contractors want leads – without leads, you can’t make a sale. Some think there is a magic elixir that will get leads in the door. Gang, that potion does not exist. It takes a focused, concentrated, long-term effort on your part to receive consistent leads for your company.
So I’m going to discuss the two flaws I see in most advertising for construction businesses. You’ve heard these before from me, but I’m going to cover them again, and maybe from a different point of view.
The first advertising flaw is not making it easy for potential clients to call. Your phone number should be big, bright and beautiful on all advertising. Your phone number is the address your prospective clients need. I’ll argue it’s the most important number in your business life, even more important than the number that shows up on the last page, last line, far right corner of your P & L. If prospective customers can’t find your phone number easily, they will move on to the next company.
Now some (many?) contractors believe that having a contact form on their website, or prominently listing an email address, is all a prospective client needs. And frankly, many contractors would rather deal with an email than a phone call anyway. Let me explain why that’s not smart. While some potential clients might prefer to send an email or fill out a form, others want to talk on the phone and you should make it possible.
They have a question and they want an answer, now. If they are thinking about building a deck or replacing their cabinets, they don’t want to fill out a form and wonder if they’ll hear back in 30 minutes or 2 days. They know their questions now, and they want their answers now. In 30 minutes they will have moved on, and your returned phone call or email answer is old business.
I know you might be thinking that some phone calls you really don’t want, they are a waste of your time. Or maybe you’d rather they not call because you’re afraid you will fumble the call and lose the lead – it’s better if they send an email. Let me suggest how you might handle this.
Answer their questions but softly move into asking your own questions. What kind of job do you want done? When do you want to get started or when do you want the job completed? Have you had plans drawn up yet? Have you talked with any other companies? Have you made selections yet? Do you understand the permit process? Has anyone created a job schedule? Have you had an energy audit of your home yet? Were you planning on living in your home while the work is being done? You need questions, of course, that pertain to your specialty and to the work being done, but be prepared to ask questions. Questions that make them think about the job and begin making decisions. When they make decisions, they start committing to you.
When you get them thinking about these things, they begin to realize they are going to have to be careful who they pick to do the job. These questions show you care about them and the job, and help establish you as the contractor of choice. I talk about this in the book, “Profitable Sales, A Contractor’s Guide“. You can’t do this with an email. You can do it on the phone.
I receive many newsletters from construction businesses across the country, and I’m pleased that many of you include us on your mailing list. But folks, without your phone number prominently listed, you are losing an opportunity. Someone recently pointed out a company on the east coast that is providing a newsletter outline for contractors. The newsletters are okay, but I have yet to see one with the company phone number on the front page.
Your phone number should be at the top of every page on your web site, right under your company name. Your phone number should be in a font that is at least 2/3 the size of the font used for your company name. Unless you put your phone number at the top of your advertising, you will never know how many calls you are missing. Make it easy for your customers to call and buy from you. Put your phone number where they can find it.
The second flaw. Almost all ads from the construction industry look, feel and smell the same. If you doubt that, open the phone book and look at the yellow pages. Google “Construction Companies” and look at the web sites that turn up. Is there anything that you are saying about your business that is different than any other construction company? Are you giving them a compelling reason to call?
From a client’s perspective, if all construction companies say the same thing, how do I decide who to hire for my job? Real simple. I will go with the cheapest price. Your clients are not in construction. They don’t know what to look for or what to look out for. Very, very few of them know how to find a good, reliable company.
Mike Jeffries, principal at Rivers of Revenue, LLC, has held webinars for us in the past on generating profitable leads. In one of his webinars, posted on our website, Mike says:
“Ask yourself these questions about your competitor’s marketing (or advertising pieces):
1) Do I expect my competitors to make those claims?
2) Are any other competitors making the same claims?
3) Is there anything really unique about any marketing piece from my competitors?
And most importantly,
4) How do my own advertising materials stack up?”
Take the time to watch this webinar. It’s worth your time. His second webinar with us is also available on our website.
Bottom line:
1. You must advertise 24/7/365.
2. Your ads need to be new and original, and enough different than everyone else’s so that you at least get a second look from the prospective client.
3. Your ads must make it easy for them to contact you – that includes having a prominent, easy to find phone number.
Getting busy and learning the basics of promoting your business will help you build up a good clientele that calls on a regular basis and that happily refers you to their friends and acquaintances. It’s a requirement if you want to staying in business.
NOTE: This article was originally published in our August 2 newsletter. To receive our newsletter, sign up near the top of this page in the right column (”Subscribe to our Newsletter”). Mike Jeffries also has a newsletter with weekly tips for your business. You can sign up here: http://www.closingsuccesssystem.com/referral

