Biz Tips

Contractors, the time has arrived to modernize, save money, and get digital. Technology has changed dramatically over the past 5 years to your benefit. So much so that you can no longer ignore the importance and advantages of using some digital technology to your advantage. And the best part for you is that it’s so inexpensive that it’s nearly free.

Recently, I was speaking to a professional in the industry who mentioned that there were some contractors who just purchased their very first fax machine. I was a little shocked, not that it took so long to have fax capability but because a hardware device was purchased. Fax machines alone are not very expensive depending on its capabilities, but somewhere around the $100 range for an average model. But then there is the cost of the fax line from a local carrier and any extra cost for ink for every fax that comes through. For some contractors, having fax capabilities are necessary. However, there is a much simpler, streamlined, and cost effective method. It’s using online fax services. They provide you the fax number and all communication is done online. Instead of printing a document and faxing it, you can simply fax it right from you computer or even from your smart phone. In addition, faxes can be sent directly to your email address automatically, no extra fee in a PDF format. If you’re looking for an important fax and you’re on the road, this can be very convenient to receive a fax directly to your smart phone anytime and anywhere.

Many of these same companies, among others, also provide online phone services. For some operations, a receptionist is necessary. But some businesses need to save under this economy but still offer a professional service and quick response to their customers. Without a receptionist, you can always have a customer contact your cell phone. But you may prefer to also have an office number or may have several employees out on the road at once, leaving the office empty. Instead of using an answering machine, you can use online phone services that are inexpensive and extremely flexible to meet any contractor’s need. Want customers to be greeted professionally and have calls routed to various employees or business owners on their cell phone whole on the road? No problem. If they don’t answer, would you like the customer’s message to be left in the main phone system message box? Sure, no problem. How about having any messages emailed directly to you, whether on your computer or smart phone, in an mp3 format? Sure, that’s easy. No more waiting to get back to the office to see if any new customers have called. It comes to you instantly. In addition, the cost of online phone and fax systems is minimal. Some can be as little as $7 – $10 per month depending on your need.

How many of you have recently started your new business or perhaps you would like to rebrand your business? It’s simple and can be quite fun actually. There are tremendous online resources to produce and design a new logo, business cards, brochures, and more for your business in a contest format. The best part is how it works and the benefit to you. You simply use on of multiple websites available and enter your need and design requirements. Then thousands of developers from around the world can compete to win your “design contest”. You may receive 80, 90, or well over 100 designs from various designers from all over the globe. And you only pay the winner of your choosing. How can you beat that? Each website and contest offers something unique that you can choose to your liking and budget. But instead of paying someone to develop several designs that you do not like, only to pay again and start over, these online contests offer a tremendous advantage for any company and any budget. You can easily take a look at the quality of designs being produced as well on each site. I recently read a story of a fortune 500 company spending several million dollars just for their logo, when I saw the result, I was quite unimpressed. Logos are important as they offer a unique identity. But they also can be overthought. Think of the simplicity of the Facebook logo, yet it’s identifiable.

The greatest area of need for contractors is in obtaining your first, or upgrading your company website. This technology has seen the most dramatic transformation of them all. It used to be, even several years ago, that if you wanted a professional looking website, you would need to spend a minimum of $10,000 or far more. Otherwise you were left with a simple static website that looked like it was built by you, or a relative or something in their spare time. They were mainly a few pages of text, maybe a few pictures, and even a contact form. But the overall look was not pretty and looked very “texty” than professional and beautiful. But hey, your contractors right? Where’s the beauty in some pipes and drains? Well it’s much more than that. Think of it like this; imagine treating your wife or some friends to a nice steak dinner on a Saturday night. Perhaps you heard of a place having great steaks and you show up and the building looks like it’s about to fall down. The restaurant sign can barely be seen and is tilted sideways, the paint is chipping everywhere, the parking lot is full of deep potholes, minimal lighting, and the entrance is hard to find as it’s in an awkward position. Then you walk in and the hostess can’t be found so you wait, then she shows up in very old dirty clothing with holes. The entire inside is dusty, dirty, dingy, and looks like it has never been cleaned since its grand opening 50 years ago. You see some tables that aren’t even washed as she proceeds to seat you and your group. How quickly is it before you want to pick up and leave to a restaurant that is much more presentable for your wife or friends. The steak may be great, but what good does it do if nobody wants to even stay to find out. Or perhaps you heard of a great restaurant but can’t even find it. How many of you don’t even have a website for your business.

This has been the norm in the contractor community unfortunately. Perhaps it’s because of the cost to have a website developed for your business. Well, that has now changed all due to a website platform called WordPress. Today, you can have one of the most professional looking websites for as little as $40. That’s right, $40. The reason is all because something called a “theme”. A theme is basically like a house built on a good foundation. The foundation and structure is very sturdy and stable but the inside can be changed to look however you want and whenever you want. Themes are similar, they are websites built upon the WordPress platform but they have their own look and feel to them and can be changed at anytime. In the past, themes were very basic and offered little in your ability to change the look of the theme you purchased. It was kind of “What you see is what you get”. But now, technology has changed so much that each them has thousands or almost an infinite amount of variations to make it look exactly like you want. 10 years ago, some of these same themes for $40 or $60 would have cost well over $30,000. But now, even the smallest of businesses with the smallest budget can have an amazing, professional, beautiful, and very functional website for almost no cost.

In addition, these themes no longer require a programming degree or years of website study and development. Yes you too can build your own website. Of course there is always some minor learning that you go through as with anything you buy these days, just as you would learning how to use a smart phone or iPad for the first time. But it can be quite simple. Most themes simply use drag and drop systems to design your own website. You simply design it in a way you want your company represented the first time someone comes across your business. What message do you want them to see? Are you more of a Kitchen & Bath specialist, you may want to have a more image and graphic website for customers to see your work and capabilities that can be very powerful. Or perhaps you offer 24hour service, this is something that can be the main highlight, or perhaps you have or want to produce videos. With WordPress, this step can be 1-2-3. You simply upload your video to YouTube, copy and paste a code into the section you prefer on your website and instantly your YouTube video plays through your website, even though it was uploaded to YouTube.

For contractors, this technology is simply too good to pass up on. There is no budget too small for any contractor not to have a website. It never will replace referrals, hard work, and running a business with integrity. But it’s an increasingly becoming a digital world that can be used as an advantage. This is unlike social media that can come with all the other headaches of non-business conversations and can be very time consuming. A website is basically the very fist location people go to now days to investigate and research whether or not they want to consider doing business with a company. How many of you pull out your smart phone to go on the web to look something up whether it’s the latest news or your about to buy a new TV and you want to see who has it at the best price. Why shouldn’t contractors be just as visible in their services? Especially for $40 – $60.

WordPress is an open source platform that is by far the most flexible and resourceful website platform available in the world. Because it’s open source, it means that there are contributors and developers around the globe that help to continually make it the most powerful, useful, and affordable website program in the world. This is to your advantage. For instance, perhaps you decide at some point you want a little help with the website from some developer. You have thousands of developers at your disposal rather than having to be constrained to using some local company that built your website on a proprietary platform that us unknown to other developers. That’s a recipe for disaster and high expenses. In addition, there are thousands of resources available to help anyone with their website. In fact, with the purchase of many themes, you can simply ask the theme developer questions in their support forums for additional help at no extra cost.

And get this. Let’s say that after 3 years or so you have built up a lot of information on your website but you decide it’s time for a change, a completely new look. WordPress can handle that in a jiff. Simply get a new theme, upload it with a click, make a few minor tweaks to the layout to make it look how you want, and “voila”, you have a brand new looking website with all of your old data in tact. That’s the beauty and power of WordPress.

In addition, WordPress is extremely Search Engine friendly as it comes somewhat SEO (Search Engine Optimization) ready. That’s extremely important because being ranked higher when someone searches for contractors in their area on Google, you want to be at or near the top. It’s not quite set-it and forget it to get ranked high without paying a fee to Google, but it’s minimal. And even if you did set it and forget it, your still probably ahead of some other contractors simply because of the SEO backbone built into WordPress compared to their website.

How can you pas up this opportunity to upgrade or finally get your very first website for your contractor business? The cost is minimal and now, you too can finally have one of the most professional, powerful, functional, and beautiful websites in the industry for less than $100.

Here’s the simple process. Pick out your website name on Go Daddy or some other domain name company. Sign up with a hosting company of your choice for about $5 per month. Install WordPress, typically a one-click installation. Purchase the WordPress theme of your choice. Upload the new them through the auto theme installer for WordPress. Add pages, your information, and adjust some settings to your liking. When it’s ready, simply point the domain name you have registered to point the hosting company of your website and your new website is live. Of course the process can take some time to get it just the way you want, And if you need help, there are thousands of helpful resources to help you build your website. Or contact me, and I can help you.

But the time has come for contractors to take advantage of useful digital tools that are extremely cost effective and allow you to do-it-yourself. Whether it’s phone and fax systems, logos, brochures, or getting your very first website. It’s simply too good of a deal to pass up during an economy like this.  So contractors, it’s the perfect time to get digital, modernize, and use 21^st century technology to your advantage. After all, it’s practically free.

For more information about these subjects or if you need additional help or support visit pressbucket.com

Profit Potential for Plumbers

By Dave Duren

From Minneapolis to Miami, Vancouver to Newport News, the same questions from plumbers keep coming up and one of the most common is “How do I Sell a softener to a homeowner?” And I understand the need for help here. This “category” of the plumbing trade is NOT your mainline bread and butter service area and may not have even crossed you mind before. Matter-of-fact, I bet a lot of you have NEVER had a call about “water quality” at your office. This is what I’d like to address here.

I had a great plumber from St. Paul and my local rep come into our offices yesterday and present me with some cool ideas about selling softeners. The contractor was a young man with his own company that he possibly purchased from a long time existing contractor. He was creative, innovative, and always looking to come up with new ways to PRESENT products to the homeowners. But the bottom line to the conversation was that it always begins when he starts “talking” about their issues. Maybe he is being called out for a standard boiler problem or clogged toilet but he leaps at the opportunity to head to that house and get in the door! And why does he want to get in the door (as most of you know)? To first and foremost, fix their issue and make them happy, but also to observe, look around and ask questions about other issues they might have.

For instance, he might look around and see white build up on a shower head or aerator at the sink or lav. He might also see quite a bit of soap scum in in the tub/shower, shower doors and on the tiles. There may be cloudy dishes around the kitchen. On another job, he might replace a water heater and upon removal, see mineral built up in the pipes or maybe he takes the element out and see a ton of mineral build up on it. He may even see some reddish rings in the toilet and laundry sink or clothes washer. (Evidence of Iron) Then in the basement, he may or may not see a water softener. These are all “TALKING POINTS” for the contractor and the homeowner…..a time to start a conversation about water quality.

As I spoke to my new friend yesterday, I told him out of the 25+ years I’ve been selling water softeners in the wholesale plumbing trade, there are two major areas I’ve seen contractors consistently fall short in generating more revenue and fixing an unnoticed, but “real” problem for homeowners. The first is that most don’t even mention to the homeowner that they sell and install water softeners! The second is that many contractors underestimate their power of persuasion. The homeowner VALUES the opinion of the professional they’ve selected to come into their house and provide a service.

We all have our style of communication and I’ve truly found that a good honest approach is about the best there can be. To take it a step further, when it’s a professional in front of a homeowner telling them in a truthful manner, the cause of their plumbing headaches, they listen! If you’re on the job and see the issues I just spoke about or other similar issues, don’t be shy, whip out your test kit and check for hardness. I know some contractors that may not even say anything until they perform the test. Sometimes the homeowner may see them doing the test and ask “what are you doing?” Bam! An even better time to start talking about water softeners. Here’s a few lines you might consider:

1. I see you have a water softener and I just wanted to check for you that it’s working hard to keep your water free of troublesome mineral.
2. Oh, I’m sorry; I didn’t tell you that we perform a FREE water test with every visit to check the potential of scale problems down the road?
3. I saw a few signs of mineral intrusion in your plumbing system and just want to make sure I was correct before offering you some solutions.
4. Our company also provides water treatment solutions and it looks like you might benefit from these options based on what I see here today.
5. And so on etc…

Once the conversation starts, you may have the ability to pitch a softener solution based on the good, honest approach to the situation. You’ll find most homeowners very understanding and feel they have been treated fairly and respectfully.

I have also spoken with many companies that do similar things in the house but then ask to set some kind of appointment to further go over all options for their “troubled water”. Some even have a dedicated employee who only sells water softeners using good leads generated by the service techs in the field. There are many types of companies out there and many different angles to approach the “selling side” of the model. But what is the bottom line and where do you begin? It starts with having conversations with your customers.

I’ve been traveling quite a bit lately as the year starts to wind down and like most of us, I’ve been contemplating 2013 and what can I be doing to gear up for a great year and another year of growth in my channel of the wholesale trade. And as I fly around, what strikes me hardest is still the fact of how few plumbing contractors even mess around with water softeners and selling them! Our industry calculates loosely that only 10% of the homes in the US that could benefit from a softener even have one. Do you know how much potential that is? 90% is currently untouched revenue generating possibilities! And that is what keeps me getting up every day still pumped up in my job and driving me to find one more wholesaler and one more plumber to convince that they’re leaving a huge chunk of revenue on the table. And the process is so simple. Like I always say in my presentations, all you have to do is cut a pipe plumb an inlet and outlet, plumb a drain line to a drain and plug the darn thing in, push two buttons, and the softener is raring to go! Yes, it is that easy and with a great piece of certified equipment, backed by years of experience in this field the unit can be trouble free for a long time.

So in closing, instead of me asking what will you do in 2013 with water softening, I’d rather ask, why not make a commitment for next year. For those who like to take baby steps, maybe to at least learn more about the softener market and it’s opportunities. For those who are leapers of faith, how about committing yourself to sell your first water softener in 2013. And for you really bold contractors with to-do lists, committing to sell your first water softener by March 1^st 2013 (Or some other specific date). Then set goals to follow through. Let me tell you, it can be done and it can be done well. I’ve seen it through my 25+ years and I know many contractors that have absolutely integrated water softening as part of their everyday business model and make a nice profit at it. Mr. Culligan man, move over because plumbers are elbowing in on the profits! Happy New Year and Happy Selling! 

Presentation Manual – Today’s Essential Tool for In-home Sales

Why do we need a presentation manual?  Many ask that question, they believe that it is a tool the “hard closers” use to win the war in sales.  I don’t think it is a war, we sell our goods and services when the customer sees value in what we bring to the table.  Some people learn audibly, when you tell them something, they internalize it.  Some are visual, they must see it to believe it.  Some are experiential, they must put their hands on it.  So I would have all three types covered, tell them, show them, and put something in their hands.

What is the purpose of a presentation manual?  To validate (Validate: to declare or make legally valid, to give an official sanction, to establish the soundness of.)

three things: the company, the products, and ourselves.  We must show that the company is the right company to do the customer’s work, that the products will do what is needed in their home, and that we will do what we said we would do, and have the necessary competence to do what is needed.

Here are the elements needed in a presentation manual.  Section one:

1. To validate the company, we need a company resume.  It will show how we are different.  We train our employees, we have been in business for ___ years.

(just a side bar, even if you have been in business for 6 months, let the customer know how much combined experience your entire company has.  Total up all the years all of your employees have in the industry, that is your total experience.)

We are licensed, bonded insured.  Show all licenses, current insurance certificates, show awards received.  In fact, answer the phone, Hinshaw heating and cooling, 2003 Fort Collins contractor of the year winner, how can we help you?  It shows that you are unique, and special.

2. Web site, FaceBook business page, all the social marketing.  You do need a business FB page, not your personal page.  Show how you are connected to the community, use your FB page to show your support for community projects in addition to how you market your business.

3. Training.  Show the customer the money you spent last year on training.  It may be staggering, after you consider how much labor you pay for the employees to attend training, and how much you are giving up in lost revenue.  Show a total amount, and let the customer know, that you simply cannot afford not to train your employees.

4. Awards given to company and employees.  Show the industry awards that you have received, as well as the certificates for the employees.  Not everyone will earn them, less will show the customer each certificate.  So you do to eliminate some more of the competition.

5. Value of our installation.  Show the studies that indicate how few of these systems actually go in correctly.  They are found on the internet, or attend one of our training programs, you get several studies there.  Show the customer the small percentage (10% or less) of the systems that are installed correctly.  Then show them your installation checklist, start-up log, or whatever paperwork you have when you complete an installation.  If you don’t have an installation check-list, put one together today.  Use it, and show it to the customer.

6. Problems are not solved by equipment alone.  We must find more than just a new box to solve the comfort needs of our customers.  Instant hot water, unlimited hot water, steam showers, all can enhance our lives.  What is the difference between a $20 faucet, and a $200 faucet.  Emotion.  I am building a new home, I understand fully how emotional it gets when picking out plumbing, some arguments I will not win, so I just accept it.  On the heating/air conditioning side grills, registers, air flow, sound, IAQ, energy savings, and lots more need to be considered to bring real comfort to the consumer.  So ask the questions to discover what they need, then show them a package that includes that in their installation.  Have a set of packages to illustrate what may be needed, more than just a new hot water heater, furnace or A/C.

7. Literature.  We do not do a good job in our industry with literature.  Show the customer the brochure for your products, and then show them how they will get the comfort they wanted right on the brochure.  If sound was a big deal, show them the features that prove it is a quiet unit.  Unlimited hot water, show how you can provide that with this new system.

8. Accessory literature, like the equipment.  Show the client how they can change the comfort in their home with these accessories.  Don’t assume they will not take advantage of the full package, let them make that decision.

9. Manufacturer’s warranty literature.  Show the customer how the products they are looking at are protected by a superior manufacturer’s warranty.

10. Your warranty.  Extend the warranty on the items you install for the same length of time as the manufacturer’s warranty.  Everything.  No small print.  Include a note that says the one thing that allows you to include this excellent warranty is a maintenance agreement, all they need to do to keep the warranty in effect is to renew the maintenance agreement each year.

11. Your maintenance agreement.  Include a one year agreement with each installation, and show them a sample in the manual.  Include a brochure on why it makes sense to have a maintenance agreement, all the reasons.

12. Energy savings calculation.  Include an estimated energy savings calculation in your manual.  It should be part of the package, but not the major reason.  Energy savings are affected by weather, cost of utilities, and most importantly, how they run the system.  Include it, but explain why it is an estimate.  We can save them the cost of heating the water, perhaps even save them on water consumption.  Give examples and have testimonies to review.

13. Financing.  Show how affordable these systems are, “starting at $73 per month”.  Offer financing on every job.  Every one.  Even your friends.  Do not suppose that they need it or don’t just offer it.  Get more than one financing program put together, one for the C and D credit challenged family.  There are more of them out there now then ever before, but they have a right to be comfortable too.

14. Pyramid of power.  Show how they cannot get what you offer anywhere else on the planet.  Your package includes: the company, your installation, the perfect product for them, and you.  Show how it is not possible to duplicate that at another contractor.

15. Our promise to you.  A letter that says your home is as important to you as our installation is to us, and we will treat it with respect.  We will be there when we said we would, and spend the amount of time needed to do the job correctly.  And we’ll clean up.  Completely.

So there you have it, an outline for a presentation manual.  This is just a rough template, not meant to be the final version.  It must be customized for your company, for your employees, for yourself.  Please don’t call it a pitch book, that is demeaning.  Call it a presentation manual, and use it on each sales call.  You may not need it all, but better to have some items you didn’t need than to not have something that will be needed.  Thanks for listening, we’ll talk later.

Upon graduating from the University of Missouri at Rolla, Jim started his career with the Trane Co. After several sales positions, he moved to Phoenix, where as manager of Trane’s residential division, he enjoyed a 50% market penetration. Jim’s background includes positions as President of one of the oldest and largest air conditioning companies in Arizona, residential start-up specialist for the Carrier Corporation, and an officer in a Carrier owned service agency.

For nine years Jim served as Vice President of a 23 year old residential and light commercial service and replacement company, running their sales and installation division. During his time there, his division grew 300%, replacement sales topped $3,000,000 per year, and company closure rate exceeded 60%. So how good is Jim? Even though Jim’s price was always 10% to 50% higher than his competition, his closing ratio on replacement systems averaged a phenomenal 80%! He enjoys training sales, technical, and management team members with companies that want to increase profits and grow to the next level.

Jim has provided high-results training for clients from Calgary, Canada to Adelaide, Australia.  Jim retired from the contracting business in 1999 when he formed his own training company, Sales Improvement Professionals, dedicated to bringing his real-world experience to help enhance your sales and marketing efforts.  He offers many seminars for sales and management teams, as well as Basic Business Boot Camp, a three day program designed to discover what a company needs to charge to cover overhead and make a profit.

He may be reached at:

Sales Improvement Professionals, Inc

1281 E. Magnolia, #D-145 Fort Collins, CO  80524

Ph: 970-482-5622   jimhinshaw@siptraining.com    www.siptraining.com