Watch this video of one of my all-time favorites Michael Gerber who wrote wrote the book “The E-Myth.” If you run a contracting business, I would highly recommend the book.
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Consumer ShortcutsLet’s face facts. Most of us take shortcuts when making a purchase that we are unfamiliar with. For example when we buy a flat screen television, new car or purchase a service we rarely use turn to price and reputation as a “shortcut” to tell ourselves about the quality of what we are purchasing. For instance if i said I was selling a car for $95,000 most people would envision a Mercedes Benz or Lexus loaded with all the trimmings.
Does this same effect happen when people buy hvac, plumbing and electrical service fron our company. Well I guess that depends on how your company positions itself in the market. Are you perceived as high end or a budget?
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Will Lower Prices Sell More?It’s not hard to find contractors who think they are losing jobs because their competitors have a lower price than them. How many are losing jobs because they lower their price instead of standing firm?
That is a question that is much harder to answer. Especially since most people do not want to face the truth. The truth is that you will lose far more sales with a lower price or worse yet, by lowering the price you have already given than they ever will by having a higher price than your competitors.
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It Starts With Great ServiceMany people doubt the validity of getting referrals as an actual mix of their marketing. By accident, many people get referred by customers that love them. So let’s face it, referrals start by doing great service that people notice. In my thinking, if you can make something happen on accident, then you can make it happen on purpose.
As usual, the reason something doesn’t work is usually screwed up in the beginning not at the point the problem is apparent. Let me go over the most effective way to get referrals. The key to getting a hot referral is to let the customer know you need their help. We all want to help someone. Think about it, if your landscaper told you he needed help getting more business, if you loved his service, wouldn’t you tell everyone you knew?
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