Friday

 

Contractors - Don't Sit There... Do Something

During a recessionary period, it's easy to focus on all the bad news. Markets are down, consumers aren't buying anything, and our tax dollars are bailing out the big banks. What will make the most sense for you and your business is to focus on the positive. If you're not as busy as before, use this time to innovate.

Did you know that most new products and services emerge from major companies during recessions? This is because it's hard to invent something new when you're too busy and the money is rolling in. While a lot of your competitors are crying in their beers, you need to innovate, expand, experiment or shift directions.

An example - say you're a general contractor. You've always been asked by clients about design plans and ideas. But you don't really know what good design is. You'd like to increase revenue by offering designs on all your kitchen remodeling projects. In tough economic times, help your business by studying design, taking classes, interviewing designers, and practicing the craft. When the good times come around again, you have not only added a new service to your business, you have doubled the opportunity for more revenue and higher profits.

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Sales Mistakes - The Follow-Up
How Our Categories Work - Select the Right Services

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Contractors - We Don't Trust You

According to a new survey by the Better Business Bureau, consumers don't trust you. Well, not you specifically. A survey on trust was conducted along with the Gallup polling group. They found consumers are less trusting of companies they regularly do business with. Contractors were among the least trusted industries, along with grocery stores, auto dealerships, financial institutions and wireless providers.

"The decline in consumer trust causes serious problems for businesses," said a regional president for the BBB. You could see this survey as a result of a very down economy. But you could also see this as an opportunity to gain an advantage over your competitors.

When it comes to your business, consider and evaluate how you can put trust into everything you do. Does your phone book ad convey trust? What about your sales efforts? What about building trust on the job site? Do you offer any guarantees? Do you promise to make it right if something goes wrong? Do you belong to any associations, such as the BBB, NARI, ASID or any other letter combination that could show you are serious about your craft?

Build trust with potential clients. They have many alternatives to choose from, but if they feel they can trust you and your business they will come back and they will refer others to you. That is how you stay in business.

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Monday

 

Into the Contractor Mailbag

I get email questions from contractors around the country. Here's one that comes up a few times and I wanted to address it here in the Contractor Update:

"I sometimes feel guilty when I tell customers how much I charge? Any advice?"

Many contractors feel like they are asking a lot for their services. They're quite sure they're losing business to others who charge much less than they do. Since many homeowners and business owners don't always know how much your products and services cost, they balk at paying a higher price.

But if you provide a quality service and you are proud of your work, you should never feel bad telling clients your cost. It's important to not flatly state your prices and leave it at that. You'll need to sell your service to justify it. Even if it's just a quick phone conversation. Explain to a potential client that you do great work and they may find someone cheaper but that they will get what they paid for.

If you feel guilty or give in too quickly to a price reduction, you'll only cut into your bottom line or into the quality of the work you do (to finish under budget.) Be proud of what you charge and your clients will sense that confidence that they have found the right professional for the job.

Have a question? Email me at Tim (at) ConstructionDeal (dot) com

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Sales Advice - Be Part of the Solution

You may be a plumber (or a builder, or an architect) but you have a second job. You're also a salesperson. You may love or hate this second job, but it a necessary part of any service professional's business. Every time you talk with a prospective client, you have to sell your services, your products, and your self. Project owners are inviting you into their lives and their homes or businesses. They want a company they can trust and who will do the best job.

The tricky part of your salesperson job is not the service you're selling. What makes it hard is how you sell it. Many tend to talk about the products and services they provide. They talk about all the features of a new countertop or replacement windows or a remodeled bathroom. They are actually selling... nouns. A renovated kitchen is a noun. A new roof is a noun. But you should focus on selling what your services and products will do for homeowners and business owners. Start selling verbs. Actions. Results. Solutions.

Replacement windows may have UV protective glass, brass hardware, and between-the-glass blinds but those are just the features of a particular product. Telling a potential client about the energy savings, the improved value of the home, the ease of cleaning and maintenance, and the beauty and durability of new windows will flip those nouns to verbs. When you let people know how their lives will be changed or that they'll be much easier, you've stopped selling and your started informing.

By providing a solution to a need or a problem, you'll make your second job as a salesperson much easier and maybe even more fun. You'll begin to think of your job as helping the people in your community and that's what being a service professional is all about.

If you're not already a member of the Construction Deal.com network, considering registering with our service for free. Choose your job categories and your work radius, we'll show you a past history of job leads in your area. If you're satisfied that we can provide you enough work, go ahead and become a paid member. If not, you can always stay a member for free until we get more business for you.

Also, you will be listed in our Contractor Directory - for free - as a service to all the companies in our network. This means you'll get exclusive calls, directly from people visiting our site, at no extra charge.

We do have a new plan that will put you at the top of Contractor Directory, if you're interested.

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Online Ad Spending to Pass Newspapers

It's been said that spending money on yellow pages advertising will continue to be a good marketing value for service professionals for years to come. Many contractors continue to buy ads every year, hoping to get a huge return on investment. I cannot see a day that will come in the near future that will cause companies to stop buying space in the printed phone book.

But some interesting numbers are come out on a regular basis that suggests the yellow pages are not quite as effective when compared to the power of the Internet. For example, a report from a media investment bank forecasted that spending on online advertising will pass ad spending in newspapers. Most companies advertising on the 'Net are not increasing their budgets either. They are diverting them. This means that for online ad spending to grow at a whopping 17%, like last year, the money must go to put ads where the people are going.
Alternative media spending is expected to rise at a compound annual growth rate (CAGR) of 17.4% through 2011, to $197.11 billion. Traditional advertising and marketing will see an aggregate CAGR of 3.2%, to $438.99 billion in 2011.
Another report, from Jupiter Research, repeats the growing power and reach of online advertising:
New Jupiter Research Numbers say that the total advertising spend online will match that of print magazines by 2007, and then surpass it in 2008. Jupiter Research analyst Niki Scevak said online advertising will continue its rapid growth pattern as it becomes more performance-driven, to the benefit of publishers, advertisers, and their clients.
Where are you spending your ad dollars? It might be an important business move to make sure you have a presence on the World Wide Web. Having a website may not be enough as nearly half the American population now has broadband technology in their home. In addition to gaining new leads from sites such as Construction Deal.com, you may need to have ads in online directories or banner ads on the online version of your local newspaper. Email can certainly be a great lead tool for your business, too. Pay-per-click could be a great resource as well.

The point is that the ease and convenience of technology is pushing more and more of your customers onto the Internet to find what they're looking for. And while it still may be a necessary evil to put ads in your local yellow pages, it should not be your only marketing outlet. Gaining new leads online is the future because that's where your competitors are spending their money.

Construction Deal.com spends a large portion of our advertising budget online to attract new leads for contractors and service professionals. We have ads in major search engines, like Google, Yahoo!, and MSN, as well as smaller search engines, websites, and online magazines. We act as a marketing arm and online presence for many contractors and companies. The great thing about advertising on the Internet is the ability to track the effectiveness of all the advertising. It can be much harder to track the return on investment for a yellow pages ad, unless you have a special phone number within your ad copy.

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Friday

 

Picture Perfect: Choosing the Right Camera for the Job

More and more, contractors and service professionals have to rely on the latest technology. Computers, cell phones, PDAs, and the Internet fill our lives. Adding to the ever-expanding list, it would be wise for every company to invest in a quality digital camera.

Reasons to Get a Camera
A camera can be an important new tool for your business.
There is a whole host of reasons to make the investment in a new camera, if you haven't already done so.

How to Choose the Right Camera
There are some very inexpensive cameras out there, but you want to consider what you'll be doing with it. Your new cell phone may already have a camera in it and it may be nice to email those pictures to family and friends but the overall quality and resolution is limited. It's not something you want to use for any type of marketing.
Types of Cameras
There are many cameras out there, from ultra compact (inexpensive) to SLR (professional), but your best bet is to look for a "compact digital camera". They are low priced and have good features to show your work. A compact digital is small and lightweight, which means you can keep it with you at all times.

How to Take Great Shots
Without going in to a complete photography lesson, here are a few quick tips to getting good shots on your work sites.

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Thursday

 

Contractors - Investigate your Competition

Open up your yellow pages to your job category and you'll see ads from companies doing the same work as you, in your area.

They are your competition.

But how much do you know about these other businesses?

What kind of specialty work do they do? Are they offering coupons in the local papers? Do they do emergency services or work on the weekends? What kind of products do they sell? And the most important - - how much of your business are they taking away?

You probably only know a few answers to all the possible questions about your competition. You might not think it's important. You do your work and provide high quality services and products and that should be enough. But when any business is not aware or ignores what their competitors are doing they can easily find themselves passed by. The phone stops ringing and no new business comes in no matter how much they spend on marketing.

Other companies in your area will constantly be improving their services, their staff, the benefits they offer to customers, adding new ways to access their business, and new technologies.

Since it can be hard to really know what they're doing and how they do it, it might be a good idea to a little spy work. You can call them up, as a customer, and find out how they run their business. Ask questions and find out what services they offer and what products their using. You might even be able to find out some costs. You could even have a friend or family member set an appointment with a few local companies to see how they handle their sales pitches, what offers they have, how they do their presentations. Then, they can report back to you on what they find.

It could be that you have nothing to worry about, but it could also give you a chance to catch up with them before it's too late. Way back in the day, IBM sold computers.

What will they say your company used to do?

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Wednesday

 

Contractors - Do You Offer Discounts?

Every day, my porch is littered with flyers from remodeling companies and other service pros. Most of them try to entice me with a major discount to get me to try their services. I'll see $500 off on a new roof or $1000 off a kitchen remodel. I might even see a Call This Week and Get $50 Off Our Plumbing Service!

The big problem with discounts like this is that it sets up an expectation. An expectation of continually low prices. A coupon or discount might work occasionally to get clients to try out your company. But the issue starts when they come back to you for more work or refer you to friends and family.

Those discounts could mean clients will always expect to get good deals from you which can really hurt those margins. If prices go back up or the next job doesn't include a deal, they could go elsewhere and use someone else's coupon.

Another side effect of offering a dollar discount helps perpetuate the problem. The Journal of Marketing did a side-by-side study of offering $100 off versus offering 20 percent off and found that the percentage discount lowered clients' expectations of future discounts. Both types worked to get people to purchase, but the percentage discount was less easily remembered.

In other words, you give a 10% discount off the total bill, instead of lopping off $1000, the client will not return to your company expecting better prices than your competitor.

Equally interesting was that the more odd the percentage, the less it worked. A 34% or a 22% discount was less effective than a 20% discount. You want to make potential clients work to figure out the amount off, but not make it impossible to do in their heads.

The lesson is - if you offer discounts, go with a percentage instead of a dollar amount and get a better return when clients come back and offer referrals.

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Friday

 

Contractor Marketing Tools & Customer Service

As a contractor, you certainly have a lot of tools you use on a daily basis. You have one powerful marketing tool that you might not be taking advantage of - your telephone. Your business phone and your cell phone can do more than talk to clients. It can be a marketing communication device. That's a fancy term for saying that you're not always available to answer your phone but your phone can help bring in leads.

The Phone as Marketing Tool
While you're on the job, traveling, or unavailable to take phone calls, utilize your answering machines and your voice mail features. You can record more than just a simple message asking the caller to leave a name and number. This is an opportunity to remind potential clients of the services you offer, the benefits you can bring in to their homes, and the unique selling points of your company (special hours, discounts, coupons.) Your phone message can also provide fax numbers, web site addresses, and alternative phone numbers for better customer service.

Why is Your Phone Important?
It is usually the first point of communication with new customers. And you know what they say about first impressions. If they're not happy the first time they contact you, they may go elsewhere.

Customer Service with your Phone
Calls should always be answered, even if it is a recorded message. If someone is going to be on hold for more than 30 seconds, take a message and call them right back. Hopefully your phone system will have an automated attendant - use this for your marketing messages, but also make sure it is easy to use. Make sure they can "Press 0" to talk to a live person at any time. Finally, make sure your staffs know where you are and can contact you in an emergency situation.

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Contractors: Know Your Customer

Is your yellow pages ad giving you less and less return on investment? There might be a reason for that. As more and more women are making the decisions in the average U.S. household, most appear to be turning to the Internet to find what they're looking for.

According to Burst Media, "Over half of US female Internet users ages 25 and older say the Internet is their main research source," (published June, 2007.) "The Internet was named far more often than other methods. Around 10% or fewer of respondents said they got their information from 'asking family and friends,' newspapers and magazines, television or other sources."

Another interesting fact - even though women are using the Internet as their main source to research products and services, they are going to fewer websites than men. This means that they're checking fewer sources to find what they need (according to Frank About Women's Understanding Online Shopping Behavior Topline Summary.)

If they find you, are you grabbing their attention?

For contractors and service professionals, it's become very important to have a presence on the Internet. Most important would be to have a website. And not just a single-page site with your company name and contact info. If the main decision-maker in the household is using the 'Net to find services and do research, you should be there. You need to provide details about your company, photos, testimonials, and helpful information.

And companies still on the fence about Internet lead providers, such as Construction Deal, need to realize that this is where the business is headed. Nearly half of all the jobs posted on our website are from women. People have put aside their phone books and are going online to find what they need...

Will they find your company?

If you're not already a member, register for free today -- see how many leads we have waiting for you. Continue to review your account, at no cost, for as long as you want. When you're ready to become a member, just let us know! Call 866-663-4711 or join online.

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Some More Statistics from the Articles:

"Over half of women said they had shopped online in the past six months. Online shopping increased with household income. About half of respondents with annual incomes of less than $35,000 had bought something online in the past six months, while 68% of households with annual incomes of $100,000 or more had done so."

"Adult female Internet users typically visited four or more Web sites in the course of doing product research, while men used an average of nearly five."

* Source - eMarketer

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Tuesday

 

Contractors: No Job Too Small?

Have you ever received a call or an online lead and thought the job was too small for your company? For example, someone might want a small repair or a seemingly simply installation and it doesn't seem like it's worth the time or effort. While there will always some jobs that are just not for you, it would be a good idea to carefully consider every job.

In the construction and remodeling industry, there is the habit of only looking at each individual job and nothing else. But it's important to look at client and not just the job. If a client needs your services once, there's a good chance the client will need you again. And again. If people trust a particular service provider once, they will go back to that company again and again. Repeat business is the life blood of any company.

If a potential client comes to you with a very small job and you perform with excellence, you could have a customer for life. Sure, the initial job won't be worth much, but consider that you have made a connection that will include the possibility of more work and referrals. It might have cost you a lot of money to reach the potential client with the small job. Why not turn that expense into a long term relationship instead of dismissing it immediately?

The initial sales call or visit to the site could lead to an opportunity to up-sell to the client. They may not know what they need or you may discover a more serious situation. It could even be a chance to sell a regular service or maintenance contract.

I see a lot of ads for service professionals that declare "No Job Too Small" and I firmly believe it's a great way of doing business. You don't know how many doors each new lead may open for your company.

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Not a Member of Construction Deal?
No matter what size job lead you're looking for, Construction Deal can help! If your company is not even registered with us - for free - you may be missing out on new job opportunities. Register your services, at no cost, to see how many leads we have in your categories and in your area.

If you like what you see? You can become a member for a very low cost. If not? You can continue to monitor your job lead account for as long as you want. REGISTER NOW!

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Monday

 

Overcoming Objections

Closing a sale on a remodeling or building job is an art form. Most property improvement projects can be very expensive. Your potential clients are going to have objections. Keep in mind an objection is not a "no". An objection is a concern and it is important to not give up on your first try. Many sales pros suggest overcoming two to three total objections before giving up.

An objection should be considered a good thing. It shows interest in the sales process. An objection is a question, a plea for more information. "You charge too much" is the same as asking "How can I get my project done within my budget?" By talking to potential clients about your services, you're giving them details on your level of quality craftsmanship and materials.

If they state they are not ready to make a decision at this time, they are stalling. What they are saying is they either want to look for a better bid or they're not ready to make a commitment. Use this as a way to show them that you realize they're stalling. By stating "I understand you feel this is a big step" or "I know you want to get the best deal, but..." you agree with them and set yourself up to close the deal. State your company's case or ask them probing follow up questions. Questions reveal why they want to stall. You'll get replies that gives away the root of the problem and you can adjust your estimate or explain why they need to pay more for a product or service.

The key to overcoming an objection is to agree with potential clients. If you try to fight back or argue their point, your chance of closing drops to zero. By empathizing with them, using terms like "I understand..." or "I feel the same way..." you acknowledge their concerns and set up the opportunity to answer questions. Do not over-talk the objection. Answer their question and move on to closing the contract. You may spend too much time trying to explain their concern and that will only keep it in the forefront of their mind.

If you build trust and rapport, effectively sell your services, and overcome up to three objections you'll have a better closing rate on your potential projects.

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Constructive Criticism

If you have employees or subcontractors that work for you, rest assured there will be complaints. Those working for you will always have a problem with how things are handled on the job, or even the job itself. As a manager, I'm sure you're aware that trying to stifle complaints is a waste of time. The trick is to not only to use any criticism of your company but to encourage constructive criticism. It could be another tool to help improve your business.

The concept of improvement does not mean you're doing something the wrong way. But taking the time to evaluate criticism could lead to a better way of doing things. It would be a good idea to have regular meetings with your staff to discuss problems, concerns, and questions. Let them vent constructively and listen to their problems.

Constructive Criticism:
Many business owners take complaints personally. Many feel that it is “my way or the highway.” But employees and subcontractors can provide you with insight, a different perspective, and possibly solutions to a problem that you might have never seen. And it's a great way to keep quality workers on your payroll. When they feel like they're part of the system and solution, they're apt to be happier and work hard for your company.

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Friday

 

Dealing with "Tire Kickers"

You inevitably have had to deal with "tire kickers." The potential clients who don't have the money for a project or who may only be concerned about getting the best price. They waste your time trying to get free estimates or insanely low bids, only to not go with your company because you care about quality.

Contractors have to deal with these types - whether they come from your yellow pages ad or from an online lead service or even a referral. I've heard it said that more than half of the tire kickers and price shoppers you talk to end up being people builders and remodelers would kill to have as a client. But, you've got to spend some time to weed out the other half.

For every client price shopping you, you'll have another ready to hire you and have the job done right. You need to see it from their point of view. It's not like they are walking into a store to buy a product with a fixed price tag. You're an unknown. They've heard just as many horror stories about unscrupulous contractors and con-men as you've had to deal with tire kickers.

Because there are different levels of service, quality in materials, and even costs based on your part of the country, a homeowner doesn't want to get taken for a ride. If they've never had a roof replaced or remodeled their bathroom, they don't know what it costs for sure so they're out to get the best price.

The first thing you should do is find out who the decision-maker is. Either through indirect or direct questioning. If you're not dealing with that person, it could be someone to avoid. Next, ask about financing. It's not smart to be accusatory here, but do it in a way that lets them know you want to help or know of a good resource. No financing could be a trouble sign.

After this, you'll want to dig a bit into the homeowner's situation. It would be easy to start out with "What's your budget?" Easy, but not smart. Remember, they don't know you and they don't trust you. Why should they? If you ask - - right away - - "What's your budget?" they may be willing to spend $40,000 but they're not going to tell you that. They're going to tell you $15,000 just to see the expression on your face or hear the hesitation over the phone. Their fear is that if they give you their actual budget, you'd say this was fine and you'd end up charging them $50,000 or $60,0000 by the time any surprises were discovered during the process. They are worried at best and afraid at worst.

You want to ask the homeowners, "How long have you been in your house and how long have you wanted to do this project?" Get them talking about their goals, even if it's just during a fifteen minute phone conversation. Determine their wants and needs. Ask, "When do you want to start?" And, at this point, you'll want to find out, "How many other bids are you looking at?" It's good for them to shop around but you don't want a price shopper who doesn't care about your level of quality.

Finally, you want to talk budget. Tell them straight out that budget is an issue with you and you don't want to waste the time of either party. Let them know that you provide a certain level of quality and you need to make sure if you both will be a good fit. Ask them what they can afford to spend.

If you don't like the answer you get, consider the other answers you've already been given before you end the conversation. The other questions and answers will have triggered your instincts on whether or not they're are potential clients for you. If you feel they may be turned, once they realize everything involved and that they are capable of paying for your services, you should spend the time to educate them on what you can do and what all is required.

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Our competitors are not giving you great advice like we do here at Construction Deal. In fact, they're probably not giving you any industry news, small business advice, or even verbally qualified job leads. We are your job lead alternative - become a member today and start realizing your company's potential!

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Tuesday

 

Construction Deal.com - Where Do Our Leads Come From?

Some common questions received at our customer service center involve how we get our leads, whether leads are real, and how the whole process works. I think there may be confusion about how the Internet is fast-becoming the method of choice for homeowners to find service professionals.

Many contractors are spending a large portion of their advertising budgets on phone book ads. And it is a good idea to make sure your company is listed and in the public eye. But contractors may not be aware of how many people are using the world wide web to fulfill their needs.

If their need is a new roof, plumbing repair, or landscaping services, more and more people are going online. For example:
All this means is that people are searching online for information, shopping, planning, and looking for help. They're coming to Construction Deal to find companies to help with home and business remodeling and repair projects. There are several services that can provide you job leads. However, Construction Deal is one of the few that verbally qualifies leads to make sure we have the right contact information, that the property owner is truly looking for help, and helps keep them informed of the process.

Here are some more interesting stats about online usage:
Our renovation, home repair, and new construction leads have come to us online from all over the country. You can tap into our knowledge of the Internet to provide you additional jobs to help your revenue grow and your business expand. Some online services may promise you a lot of leads but never qualify them. Several online services even charge you for leads without letting you review them. Many make you buy a minimum number of leads. We do none of these things. We may not have as many leads as they do -- at this time -- but we provide stronger leads than any other service today.

And we're continuing to add additional resources to bring in more jobs for our network of members. If you're interested in becoming a member to review local leads, you can join for free. If you're satisfied with the 60-day history of leads we've had in your area, you can add one of our premium plans to your membership to get the contact information for all current and new leads that continue to pour in on a daily basis!

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Monday

 

Avoid Micromanaging with Your Crew

Your staff, your crew, and even subcontractors are your company. They're an extension of you and you are ultimately responsible for the work they do. But it's important to not fall into a trap of micromanaging employees. If you have quality workers doing a quality job, it's important you keep them on board.

Micromanaging breeds low morale, distrust, suspicion, and forces good employees away.

Here are tips to help you Avoid Micromanaging Your Staff:
Keep in mind that the job site is your office. And it can be a very dangerous workplace. You do need to make sure that people and property are protected, first and foremost. If that requires you to be a micro-manager for a short period, to keep things safe, then so be it. But, for the long run, make sure that you are managing your crew the best way you can to keep workers satisfied and fulfilled and to keep the quality of the craftsmanship as high as possible.

It can be very hard to find quality subcontractors and employees. Very hard. When you find them, you need to make sure they stick around for as long as possible. You want their respect but you need to make sure you consider their working conditions as if they were your own.

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Wednesday

 

Guidelines to Help Reduce your Tax Liability

Here are some Small Business tax tips from MoreBusiness.com -

"Always Check Your Payroll – This is one of the main areas where you are most likely to get into trouble with the authorities, even if the only employee happens to be you. Being the only employee means that you will have to make the expected tax payments quarterly. It is very difficult for a new business owner to precisely predict income beforehand. However, this is the law and you are still accountable for the estimated quarterly tax payments.

Calculate Estimated Income, Medicare And Social Security Taxes - If Medicare and Social Security tax is not calculated correctly, you will have to deal with tax penalties and interest. If you are willing to spend the required time and energy, then reading up on the subject can help. It is advisable to get tax advice from an accountant in this area.

Seek The Help Of An Expert, Particularly If You Have Employees - Taxes become more complex when employees are involved. This is because you are required to hold back taxes on behalf of each employee and report this to the IRS either on a quarterly or monthly basis. This is where a tax professional comes in. If there are several employees working for you, then a tax professional or a payroll tax service can help by doing the necessary filings on your behalf.

Keep Track Of Your Travel Costs - If you own a vehicle that is used for both business as well as pleasure, it is advisable to buy a pencil and a notebook to keep track of the times when you use the car for business purposes. Record all business calls, business trips to either deliver or pick up material, client entertainment visits or any other use of the car for business purposes. This will allow you to accurately deduct all the operating costs involved in the business use of the car. In case you are audited, you'll have the necessary backup. The IRS is well aware of the fact that hardly anyone keeps records. Keeping good records of travel expenses is one of the best and most important tax tips for small business entrepreneurs. It can result in a profit of thousands of dollars per year."

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Friday

 

Do You Break Down Your Prices?

Your company offers a service and along with that service is the price you charge for your knowledge, labor and materials. Most times, the service you offer is considered very expensive by anyone's standards. Many remodeling and construction companies fear that sticker shock on an all-inclusive total price will scare many away. So, they break down the costs into partitioned or smaller amounts.

Did you know that breaking down your costs into smaller amounts may not be the best business method for your company? Studies have shown that when clients are given a total price, even if it's high, it allows them to focus on the overall benefit of the service. Paying $40,000 for a kitchen remodel, for example, will allow them to focus on family gatherings, making meals with ease, and the luxury of new appliances and cabinets. When the price is broken down to include the costs of the counters, the floor, the labor, and the delivery charges they may want to remove parts of the project. If you're thinking it helps to present the partitioned prices to soften the blow, it could backfire on you. When prices are broken down it forces the client to look into what they're getting for the money.

Partitioned pricing helps when you want to get clients used to a secondary benefit that they ordinarily take for granted. For example, if you can show a client you'll install a product and only charge them a small delivery fee - because you manufacture the product and don't need to order from another company. You're showing a benefit over your competitor who charges a huge delivery and handling fee.

For a large project, to help with sticker shock, consider giving them the price per square foot along with the total price and continue to point out the main benefit of their project.

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Top 9 Sales Cliches

source: Harvard Business School for Working Knowledge

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Wednesday

 

Top 9 Contractor Sales Cliches

Many times, we hear certain phrases over and over and when we're pitching to a potential client, we tend to repeat the same cliches over and over.

You may not even hear yourself doing it, but the client could be turned off and tune out your presentation. When it sounds like "sales-speak", you can lose the trust that your reputation as a service provider has earned.

Here are some phrases to avoid when bidding on your next project:

1- "What would you say if I told you..." or "How would you feel if I could get you..." - these types of sentences just scream salesman. Talk to them about what you know - avoid the gimmicks. They'll listen.

2 - "What would it take to get you to sign today?" I can just picture an eager salesman, sitting on the front edge of the chair, pen in hand, with his tongue slowly dropping from his mouth. I have written about this before, but my favorite close has always been, "Do you have any other questions or concerns that would keep us from getting started?"

3 - "This offer is for a limited time only." People hate pressure tactics. If you can make the offer at any point in time then you should be able to make it again two weeks from now. Sure material prices could go up but you don't know they will. You're reasonably sure of it, but you don't know.

4 - "...But wait! There's more!" I laugh. No, there is not. It's all part of the same package and you've just split it up. People always hear this on the info-mercials - "Act now and we'll throw in an extra set of steak knives!" It can cheapen the value of your products and services you provide.

5 - "I won't be undersold!" or "We're the lowest price in town! Guaranteed." Problem is, you can't really guarantee it because it probably means that you do the job differently than the next contractor. Or you use less expensive materials.

6 - Consider these platitudes: "We go the extra mile", "We treat you like family", "We're professionals." My answer to every single one of these would be, "I would hope so." You're not telling me anything I haven't heard before. Make sure you differentiate.

7 - "I'm your friend. You can trust me." Really? You've been talking about a kitchen remodel for 30 minutes and you both like to bowl. Bosom buddies you ain't.

8 - "Here's what you need..." It basically means I've listened to what you've said and I'll ignore it for what I know to be much better for you.

9 - Using "always" or "never" in your conversation. It can't possibly be true for every circumstance and a generalization like can come back to bite you where it hurts. "We're always on time!" Ha! That's just plain comedy. Promise what you can deliver on. "We'll do everything we can to be on time" will go a lot longer for your company.

Be an expert. Listen to potential clients. Really listen. Pitch yourself, your skills, and your past experience. That's all you need.

Fill in the blanks: Cliches do more harm than _____, because they just go in one ear and out the _____.

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