Contractor Update

Have you ever told a client how to save money while you were working on their project? Told them ways you could cut corners but still complete the job with quality?

If you continue to give this good advice, it could really boost your business. A recent survey by Ad Age found that 80 percent of those surveyed had changed their buying habits. They are eliminating luxury items and even some necessities. They are worried about the economy, their 401(k), and their jobs.

This means your potential clients are going to be focused on cuttings costs and saving money.

And that is where you come in. No matter what type of work you do, you know ways to help people save money. You know there are less expensive products to use, cheaper materials, and things the client can do - on their own - before and after their project. Could giving this advice cut into your bottom line? Yes. But it could get you business where you might not have any at all. And it could get you a referral or two.

Here are Some Things You Can Do:

• If you have sales people making cold calls, have them pitch ideas to help people save.
  
• Give advice over the phone when a potential client calls.
  
• Type up a money-saving tips newsletter and pass it out in your neighborhood.
  
• Call your local newspaper and offer advice. The journalist will like it because it keeps people reading the newspaper and you'll like it because your name will be mentioned in the column. For free.
  
• Put free tips and advice on your website.
  
• Start a blog and put in all the tips from your newsletter.

People will appreciate it, feel comfortable hiring you, and pass on your name to friends and family. In tough economic times like these... those referrals can be gold.

Do You Have Time to Do These Things?

Probably not. I understand that the last thing you want to do when you get done working is sit and type out a newsletter. Or call your local newspaper and talk with a journalist. You're tired.

But these activities don't have to all be done. Or any of them all done at one time. Pick a project or two and break them down into small steps. Write out when you'll perform those small steps at particular points in your day. Stick to the plan and before you know it... you've got those projects done.

However, if you just look at the entire project and all the little things you might need to do, it can seem daunting. If you focus on those first few steps, and only those, you'll be more motivated to start.

It's a great way to help you through the hard times when the phone is not ringing quite so much.

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Labels: Customer Service, Economy, Small Business Advice

All contractors want repeat business and referrals. The best way to get them is to do the job right, the first time. Quality craftsmanship and quality products make a difference. A satisfied project owner will come back to you again and her or she will pass along good referrals. Here's a tip on how to go from good service to great service:

Ask this question to your client before work starts: "What is your number one concern?" If they give a generic answer, dig deeper to try to find out what they are truly worried about. You're looking for a concrete concern that can help you and your team avoid a disaster.

It could be something as simple as keeping down excessive dust at the worksite. It could be they have a dinner party or wedding reception planned for the location and they're worried about the project going over schedule. Whatever the concern is, find it and fix it.

By knowing what they hate, what keeps them up at night, you'll solve the problem before it becomes a problem. When all the work is done, and the dust has settled, you will be a knight in shining armor to your client. In turn, they will sing your praises.

When you know the answer to "What is your number one concern?", you will get you referrals and repeat business and that is the best way to keep profits rolling in.

Labels: Customer Service

Some businesses charge low prices and use less expensive products. Others charge a premium for services and use high-end products. How do you survive during slow times when you perform quality work and charge a "pretty penny" for it?

When people have money to burn, getting clients is not difficult. At times like this, you have to think about how you and your sales team bring in new contracts. You not only have to bring a valuable service and end-product to the table, you have to start presenting your value immediately.

In your first conversation, explain your services are not cheap. Qualify them instantly by admitting you cost more than your competitors. You might lose people at first but you'll keep many by following up with the details that you use the best products, have the best technicians in town, and use the finest products known to man. In other words, you don't cut corners.

Next, let them know the competition is not only less expensive, they are cheaper. There is a difference. Follow with the fact your competitors work with anyone but your company only works with a handful of selected clients. That you provide warranties and guarantees. That you offer superior customer service from start to finish. In other words, the competitors cut corners.

Finally, seal the deal by never offering any coupons and discounts. How will the potential client know this? One, they've never seen a coupon from you and, two, you tell them. Remind them you cannot discount quality. That your business takes longer on the job than most because you put in more time and energy on every project. That your company stands behind every job you perform.

You will lose business because not everyone can afford you. But you will get more of the business you want because some want the best and are willing to pay for it.

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Labels: 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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Labels: Contractor Advice, Customer Service, Small Business Advice, Small Business Marketing

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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Labels: Contractor Advice, Customer Service, Small Business Advice

You've met with the project owner. You've viewed the site. You've discussed your company, your experience, and your strategy. You want the job. The trick is knowing when to pull out the contract. You want to make sure it gets signed.

How can you make sure the timing is right to close the sale? If you have done the following things, it's a good bet the project owner will sign on the dotted line:

You Built a Rapport
Trust is a great commodity. If the client trusts you, he or she will want you to do the work. This doesn't mean that you're extremely likable - even though you may be. It means you both share the same interests and values. Throughout the course of your sales meeting, you have found common interests that bring you together. That bonding builds trust. Trust closes deals.

You Became the Expert
During your inspection of the site, you've provided a smart solution. You may have talked about how you solved a similar problem on another job. You might have shown the current job won't be as difficult or expensive. When you prove you know what you're talking about, it also goes toward building trust.

You Generated Emotional Response
In any remodeling, building, or installation project you're dealing with fear. The project owner is afraid to invest a lot of money and is dealing with a ton of guilt. Part of your sales presentation is to sell the sizzle of the project. When you talk about how the project will change things for the clients and improve their lives or business, you're tugging on their emotions. Give the features of the product, as well as the overall project, but always sell the benefits.

You Spoke to the Need
The potential client agreed to hear your sales pitch. It means that he or she is interested in completing the project. There is a need or at least a strong desire. When you can ask questions during your meeting to find out what the source of the need is, you'll be able to reinforce how much the project will help meet that need. For example, the client may want to be the envy of the neighborhood. When you speak to that need, it will be hard to not get a signature.

You Answered the Questions
Finally, when nothing is left to be discussed and all the confusion has been cleared up, you should pull out the contract. If you leave anything hanging, your potential client may hesitate. You want to ensure all the questions have been answered before you close the deal.

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Labels: Customer Service, Sales Advice, Small Business Advice

If you are a contractor, a plumber, an architect, a kitchen designer, or any other specialist in the building, remodeling, or repair industry, you are a service professional. You provide service to people using your expertise in your specialty.

As a service professional, even a nearly perfect one, you're still going to make mistakes. You're human. And even if you don't make a lot of mistakes, you're still the main person that your clients look to -- in other words, you're in charge. You may have employees, subcontractors, suppliers, and bosses who mess up something on your project. And there are many times when you need to apologize for mistakes that you and others working with you make.

I found this great post on Seth Godin's site about making a truly good apology. I'm sure that many of these are ones you've used or heard in the past:

"On a scale of 1 to 10, where 10 is best:

• 'You can always take your business elsewhere.' (1): Thank you, I will, and so will all of my friends.


• 'It's not our fault.' (2): This is a non-apology, where you are not seeking to redress the issue, nor evincing any sort of sympathy for the injured.


• 'We're sorry that you feel that way.' (3): This is also a non-apology, which roughly translates into 'It pisses us off that you feel that way. If you didn't feel that way, we would be happy.' It also doesn't take any responsibility for the problem, and places all of it onto the injured party. Be careful of any apology that starts 'I'm sorry that you...'


• 'We're sorry if we did something wrong.' (6): This is getting there, but doesn't really accept responsibility either. You are not acknowledging that you did anything wrong; you're still hoping that you haven't. You are offering an apology for appearances sake.


• 'We're sorry that this occurred.' (7): You are sorry, but as a matter of principle you're still trying to insist that it wasn't really your fault.


• 'We're sorry that we caused this problem.' or 'We're sorry that we have let this happen.' (9): This is a full apology, and is what the customer needs to hear. Frankly, it doesn't matter that it was really the post office's fault, and not yours; the customer doesn't care. Most people hearing this cannot help but respond with some sort of graciousness, such as 'Well, all right then, these things happen. What are you going to do to fix it?' This is the target level that you want to hit for your customer service. But for the record, there is still one level to go. The complete apology is:


• 'We're so sorry that we caused this problem; we are really distressed over this. Please know that we take this very seriously. This is a huge oversight on our part. I will immediately notify my supervisor, and we will review our procedures to ensure that this cannot happen again. In the meantime, that is no consolation to you for our lack of service! What can we do to regain your trust? We will be sending you a little surprise as a token of our appreciation of having you as a customer.' (10) In truth, this little speech goes on until the customer interrupts. And it is followed by a few more apologies as the conversation closes, as well."

I thought it was a great ranking and a thought-provoking post. Keep his apology list in mind the next time you hear yourself using one of these. How far down the rank will you go?

Every one is more than tired of getting beaten over the head with the "Customer Service" mantra, but as a service professional you've really got to consider the feelings of your clients and how they're going to be talking about you and your company.

Labels: Customer Service, Small Business Advice