Contracting Heaven Or Hell?

“The mind is it’s own place and can make Heaven out Hell or Hell out of Heaven.” – John Milton

Get a Grip On It

It Starts With Great Service

Many 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?

You Need Help

This is the key principle: YOU NEED THEIR HELP. Let’s go over a common moment of truth scenario where someone asks you, “How’s business?”

AT ONE OF THE MOMENTS OF TRUTH… “How’s business been over at (YOUR COMPANY)?”

WHAT YOU NORMALLY SAY: “We are swamped. It’s so busy I had to put in 12 hours overtime.”

WHAT YOU SHOULD SAY IF YOU NEED HELP: “Well, it’s funny you should mention that. We were all just talking back at the shop about one our greatest challenges being finding and keeping great customers like you Fred. Hey Fred maybe you could help me. You’re a smart guy Fred. If you were me, what would you do to find great customers like yourself to work for?”

THEM: “Well I’ll bet my cousin Ernie could use your help.”

YOU: (Here’s a big question) “Really? How do you think he could benefit from our services?”

THEM: “Well, He told me that he was shopping for a new heating system last week.”

The key thing is that you need to find out WHY the person referring you thinks that you would be a fit. If you go in KNOWING why they might benefit, then it is really a hot referral. If not, then it becomes very difficult to probe for reasons why they might benefit.

When you DO probe, send out a reverse question and do not DIRECTLY ask for the business on cold or semi-warm calling leads. Here’s how that would sound…

“Hey Ernie, this is Joe over at Custom Comfort. I’m a good friend of Fred Johnson. Well, Fred was telling me that you might need our assistance with either doing maintenance or fixing a problem with your heating or air but I thought he was probably just exaggerating. You don’t want to get any maintenance on your HVAC system done do you?”

OR

“Ernie if I had to guess, I would say you’re heating and cooling system works just perfect correct?”

OR

“Ernie, Fred tells me that your home is absolutely dust free and that allergies are NOT a problem for you is he correct?”

Always frame you question with a negative outcome to reverse the selling process. Remember in our system you are NEVER selling anything. The customer must sell you. Ask a question with an answer that is opposite of what you want to hear and you will have either an agreement on something (Which keeps you on the phone a bit longer) or a disagreement such as this… “No, I have a huge problem with dust. My daughter has severe allergies!”

YOU: “What would you like me to do then?”

THEM: “Get over here and solve this problem.”

The referral IQ test is simple. When someone asks you how’s business?” How do you position yourself and what do you say? Do you ask for help? Or do you brag about how great you are supposedly doing? No one wants to help somebody who is already doing just fine. But if someone is struggling we can’t wait to help. Tell your customer that you need their help today. You might just get what you ask for.

Persuasion Expert - Keynote Speaker

(Templeton, Calif.) — world renowned social psychologist Dr. Robert Cialdini has been named the keynote speaker for the first annual Sales, Profit & Marketing Summit, Feb. 8 to 10, 2012, in Phoenix, AZ. featuring world renowned social psychologist Dr. Robert Cialdini.

“I’m totally excited for service contractors.” said event organizer Julie Crisara,  “Finally hvac, plumbing and electrical service professionals will get the unfiltered information they need to increase their sales, marketing and profit results directly from the most respected expert in the field of persuasion.  We really hope contractors take the chance to get information that had been only previously available to major think tanks, universities and iconic companies.” she added.

“We defy anyone to show a roster of industry experts that we will highlight at the Sales, Profit &
Marketing Summit,” Crisara said. “We’ve already pushed the limits of excellence with this “first-ever” conference by gathering the greatest collection of sales and marketing minds on the planet when it comes to the contracting business. Obviously having the world’s foremost authority on the psychology of persuasion, Dr. Robert Cialdini makes things that much more of a thrill.”

A Lifetime Of Research

Dr. Cialdini has spent his entire career researching the science of influence. He is by far the most cited social psychologist in the world, on the subject of persuasion, compliance and negotiation.

His books, including, Influence: Science & Practice, are the results of years of study into the
reasons why people comply with requests in business settings. Worldwide, Influence has sold more
than 2 million copies and has been published in 26 languages. Dr. Cialdini’s clients include such
organizations as Google, Microsoft, Cisco Systems, Bayer, Coca Cola, KPMG, AstraZeneca, Ericsson
and Kodak.

“Our goal for the Sales, Profit & Marketing Summit is to exceed the expectations of attendees, which is a philosophy we firmly live by with everything we do as a company,” says Crisara.

A Star Studded Cast

In addition to Dr. Cialdini, the Sales, Profit & Marketing Summit will also feature other contractors and experts in the field of sales, marketing, start-up & growth and recruiting.  The “SPM Summit” will also have such luminaries as Adams Hudson, the country’s top contractor marketing expert and Steve Coscia, regarding by many as the best contractor customer service expert in the United States.  Also Drew Cameron, the nation’s leading authority on sales management, Doug Clay who is a contractor that went from “Zero to $3 Million in Three Years” will be featured as well.

To see the rest of the speakers line up and to get tickets for this once-in-a-lifetime event, contact Julie Crisara at 877-764-6304, julie@contractorselling.com or visit
www.spmsummit.com.

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Callbacks Are Costly

Callbacks are costly. Each time we go to a customer homes it can cost as much as $250 or more.  In a recent discussion on Linkedin,  John Whitney Jr. said, “Field service techs want the right tools and a minimum of distractions. Managers want constant contact, on-the-fly updates, and solid record-keeping. IT/ tech guys want cool new toys and the latest apps. The company wants to get the job done with one visit.  And, of course, the customer wants the work done correctly and in a timely fashion.  Sometimes, these goals all work together. But sometimes they don’t.  What can we do to improve this situation?”

John also goes on to cite credible studies that show that callback rates have climbed. In some service businesses as high as 42% of the calls need and average of 1.5 additional visits to bring the service job to a conclusion instead of repairing the problem thoroughly on the first visit.

The Advantage Today’s Techs Enjoy

With all the advance diagnostic training and tools in the hvac, plumbing and electrical service industry, we all know that techs have the knowledge to do the job right the first time. Also most dispatchers know who the right guy to send to get this work done. So the question is, “Why do callbacks still haunt the plumbing, hvac and electrical service professional?”

Here is the answer that nobody considers… The customer influences your tech up to fail

Get ‘er Done Cheap

That’s right, the customer by the nature of communicating to the tech that they only want the one problem fixed because of a limited budget has essentially told the tech to get this done as cheap as possible. So the “good” tech tries to show his empathy to this challenge by doing the work as cheaply as possible which also means to cut corners. Thus, the callback is generated and the unhappy customer blames you and your tech to get the second or third call for free. Congratulations, you have been set up by the “sophisticated” customer.

Quality Has It’s Price

Now we know there are also techs that get NO callbacks. These are the strong willed techs who although are great with people, REFUSE to do the job wrong regardless of the pricing issues. These techs wills diagnose the whole SYSTEM and not just the immediate problem. Unfortunately, this tech who is determined to fix the whole system will then get turned down more often by the dysfunctional customer who can’t believe the cost to correct the age, neglect, design and installation issues as well as the problem.

Choices, Not Ulitmatums

So what is the solution? The answer is in providing options and prices to every customer to give them a choice for doing the job the best, most all-inclusive way, the median way and also the basic single fix only way. Let them make their choice of how they want this fixed either permanently or just for time being. Th customer then assumes responsibility for their choice..

The best way is RENOVATE the whole system not just the problem. Naturally this way cost more but also includes more warranty and service. The median way is to renovate just the part of the system that is in question. Basically a partial renovation of the part of the system in question. This of course will have less warranty. The basic way addresses only the immediate issue and nothing else. (the way that is most likely to generate a callback) This way you can give very little or no warranty.

If we give options and not ultimatums we shift the responsibility for “callbacks” where it belongs, to customer and not us or our techs. I have implemented this in thousands of contracting businesses across the country and the results is taking callback rates from a starting point of 20% to 40% down to 2% to 3%.

I Challenge You

TAKE THE 7 DAY CHALLENGE -> Let me show your techs how to create options like I mentioned above and then we will test what the results are after 7 days of doing what I am saying. You must agree to measure how much your callback rates drop and how high your sales and customer satisfaction increase in those 7 days. Then you must agree to report back here to share your results good or bad.

I will do this FREE just to create a study of what I am saying. In my past experiences, you will see decreased callbacks and double the revenue. You will also see every being customer happy because they made their own choice and purchased exactly what they wanted. Remember you can only participate if you agree to measure before and after results in all three categories. Callback, revenue and customer satisfaction. Contact me now… The challenge is on! Call 877-764-6304 and ask for joe Crisara. Tell me you want to take the challenge.

The Next Level Contractor Event

FIRST TIME EVER OFFERED: More than “just” a webinar, it’s a SERIES of FOUR powerful webinars (beginning October 6) from the Nation’s TOP trainers. You’ll see the GAME CHANGING METRICS to use in your company including:

• Course #1 High Performance Marketing in the New Economy: Get more leads online AND offline using blistering strategies formed in the ‘new economy’.
• Course #2 Your Next Million Dollars in Maintenance Agreements: See how hundreds of contractors are making millions with no more effort than a simple service call!
• Course #3 World’s Simplest Methods for World Class Customer Service: Leap frog “average” contractors and become “World Class” with simple strategies now.
• Course #4 Your Step-by-Step 90 Day “Next Level” Blueprint: A full course synopsis PLUS a map to take you to the NEXT LEVEL. You won’t wonder what to do next! Tools, downloads, and follow up training included!

Register ONE TIME for access to all 4 webinars. Includes all Workbooks, Downloads, Follow Up training.

NOTE: ONLY 550 lines available (Adams’ last webinar with The News had over 800 registrants)

PLEASE REGISTER TODAY. When this event closes, that’s it. Do not delay.

Agreements Give Life

Maintenance or service agreements are the lifeblood of every hvac, plumbing or electrical service company that is in business today.  In a nutshell, they formalize the relationship between clients and your company.  Agreements allow you a loyal base of fans that not only want to receive your marketing message but actually read this massage as well.

The carnage created by not having such agreements in place can cost you in many ways.  Loss of clients and employees are just the beginning. Without service agreements to supply a steady “lifeblood” of loyal, returning clients it can eventually create an environment where companies can go out of business. Basically this program to sell service for the future at today’s price in exchange for payment today creates a circulation of cash needed to run every business that does service for residential or commercial clientele.

It’s beyond a good idea to start a customer loyalty or service agreement program. Is is completely necessary to sustain growth. Not to mention the challenges that you inevitably face in the tough service business world in holding on to existing market share. Why are maintenance or service agreements so important? There are lots of reasons. Here are a few…

1. Reduces Impact Of Slow Times - Selling pre-paid maintenance creates a “bank” of cash-flow to stabilize the off-peak seasons. Keeps employees working year-round and banks revenue to pay the basic expenses until things pick up again.

2. Creates Loyalty - It formalizes the relationship between the client and the company. Whenever their is a problem they will most likely call and buy from you first before calling your competitor.  You can reciprocate this loyalty by giving this customer priority service, offering bonus services or preferred pricing structures.

3. Customers Finance Your Future - Your customer can finance your growth. If 1000 agreements can be sold at $250 each that is $250,000 you now have to fund capital improvements without going to the bank. You simply pay the “real” cash value of this loan back to your customers at a timeframe that fits your convenience, by doing the maintenance or inspections throughout the year.  Basically, you collect money at “retail” and pay it back “wholesale” at your cost of labor. It’s like getting a “reverse interest” loan.

4. Keeps Your Top Performers Sharp - Can you afford to lose your top revenue producer?  Service agreements keep your top people in selling shape by practicing the skill of creating interest and desire on pre-paid inspection calls.  Your people need constant face-time to stay sharp for when the busy season takes place.  It also maintains the investment you have made in customer service and sales training as well.

How To Begin

It is important that you begin this process immediately or you may find that you will never do it.  There is little or no risk to get started. Here are some tips to create, price and sell maintenance agreements…

1.  Keep It Simple - When creating an don’t turn into a Philadelphia lawyer.  A maintenance agreement is just that. An agreement to do maintenance tomorrow at today’s cost.  Just create a price to do them and then start to offer them. No document or contract is needed to begin. Just sell a maintenance call for next year on today’s call and go back and schedule it for next year as well, and voila! You have just begun your maintenance agreement program.

2. Give Bonuses Not Discounts - Discounts as part of your agreement send the wrong message.  An agreement is a premium service not a discount service. Instead of giving 10% or 15% off repairs or equipment, include enhanced bonuses that add value. Give an extra year of warranty or include late night calls at no charge. Do more instead of less. After all it is a SERVICE agreement.

3. Bundle It - Offer your maintenance agreements by creating bundles.  Do a 3 year bundle and then a two year bundle and then a one year bundle when you offer it. You can do this with or without a repair. Just like a fast food place ask your buyer which NUMBER option they want. Most likely they’ll say, “I want a number two with the fan motor included.”

4. Offer It Every Time - Offer agreements with every repair. Offer to do a maintenance agreement with every repair as a follow up service to make sure the repair is working properly in the future. Kinda like a doctor does when he does surgery or any procedure. He prescribes the solution then tells you to come back for a follow up visit to make sure things are fine.

Not Just Good Idea, It’s Essential

Maintenance agreements in today’s world are not just a good idea, they are essential in the operation of any service business today.  You will eventually find that 80% of all purchases will come from this group of loyal followers. Your only regret in implementing a maintenance agreement program was that you waited so long or that you never got started.

Start today!

Just take the price for your normal maintenance or tune up and that is the price for your agreement.  If you don’t do maintenance right now then charge for one hour of your time and that is your agreement price.  The only failure you will have with hvac, plumbing or electrical maintenance agreements is your failure to get started.  So begin now and you are on your way!

What Is “On Code”

To me, the definition of selling is to provide a solution that is directly “on code” with solving a problem your customer has.  Basically if you provide solutions that are more like a laser beam than a shotgun, your buyer feels you know their situation better than your competitor and so they feel inclined to purchase from you.

To find exactly what people need and want, you have to understand how they think.  Most people in the service business are “out of balance” in this regard.  What I mean is that 90% of the attention they spend is on diagnosing technical issues and not on diagnosing the family or people who live in the home.

Be a Student Not a Teacher

To do an effective diagnosis of the people who live in a home, you must listen and learn about your customer instead of trying to explain what you think is best for them.  Okay so you know they have a problem, but have you know the answer to these questions?

• How much they know about the problem?
• What have they done in the past to take care of it?
• Who needs to give their input in making a decision?
• Do they normally purchase permanent or temporary solutions?
• When were they hoping to solve the issue?

This is just the tip of the iceberg. The list of what you might need to find the “on code” solution for this buyer could go on forever.

Finding The Right “Code”

You know you have found the right code when you can tell a buyer exactly who in the family will benefit from your solutions.  When you start explaining your solution by saying something like, “John, I worked up this solution for you because you told me you travel for business and i wanted to make sure your family is safe…”  you are off to a great start to being on code.

Get your diagnosis in balance and make your solutions personal and customized for someone in the household. Even if it is for their dog.  When you show your intentions to improve the life of those you serve, you will always make a friend and in the course of doing so you make the best sale of all.

This is a 10 minute video of Rodney Koop talking about the struggles he went through as a service contractor and what lead him to eventual success.

To watch the entire 30 minute video, login as a member of ContractorSelling.com

It’s A Family Affair

Most people identify “Mom and Pop” shops for their welcoming charm. Yet despite a reputation for exuding a comfortable feeling, many end up closing their doors. Whether the challenge is big-box competitors, an economic slump or limited resources, making ends meet can be tough. But for Precision Air-Conditioning of Memphis, Tenn., the family business figured out the secret to staying open for 37 years and counting.

Just as individuals have a story, so do businesses. Ten years ago, asking Kathe Stewart if she would ever work in the family business would have resulted in a firm “no.” As a practicing lawyer, she never imagined she would one day be chief operations officer of her father’s air-conditioning company.

But in 2002, an unfortunate event changed the course of her life and the direction of her father’s company.

A Family In Need

In 1973, her father, Dennis Stewart, founded Memphis Tenn.-based Precision Air-Conditioning. For almost 30 years, he lovingly managed the company he built, dedicating himself to his customers.

“My dad genuinely cared about people and wanted to take care of his customers,” says Kathe.  In 2002, everything changed.  Dennis Stewart passed away and his son, Larry Stewart, who had worked alongside his father, took over managing the business.

Even though Larry had just lost his father, he didn’t have much time to grieve. He still had a business to run and customers who needed him. So Kathe decided to help.  “I packed a suitcase only intending to stay for a few weeks,” Kathe says, recalling that fateful trip to Memphis.

More Than Anticipated

What she discovered was a far larger challenge than she could have anticipated.   Kathe and Larry quickly learned that the family business was facing some major challenges. If they wanted to keep their father’s business moving forward in the new millennium, changes had to happen, and they had to do it quickly.

In one sense, the company was in good hands to make those changes, if you looked at the management team. Kathe describes Larry as the technical brains, while she felt more comfortable on the business end.  Although they were an ideal management pair, success in the HVAC industry is never an easy feat. And family businesses have an emotional component that other companies don’t.

For Kathe and Larry, the challenge was keeping the integrity of their father’s customer service, yet overhauling some outdated or ineffective business practices.

He Had What We Wanted

Luckily, there was a consultant who would end up teaching them how to turn unparalleled customer service into great success. That consultant was Joe Crisara.

Kathe and Larry had met Joe in 2005, at a HVAC Comfortech show. They exchanged contact information, and Joe stayed in touch, sending them tips and offering advice.  He eventually invited Kathe and Larry to one of his immersion summits.

“Joe was genuinely interested in helping us be successful whether we bought anything or not,” Kathe says. “He didn’t sell us anything, yet when he was done talking, we decided that what he was offering was what we wanted.”

So Kathe decided to go to the seminar, and she took along two contractors with her. A month later, Larry and another contractor went.  “After the week-long tech summit, I was sold,” Kathe says. “My brother thought we should hire Joe to come and do a more intensive training.”  But finding the money was difficult.

“When we were first talking about this, we kept saying we can’t do that.  Then it became we can’t afford not to do this,” Kathe says. “But Joe isn’t one of those people who makes you buy the big program. For a year, he was very generous with his time and advice.”

And it was Crisara’s generosity that convinced Kathe and Larry to hire him to train their employees. He went to their office in Memphis a few weeks later.

Put Your Customers In The Driver’s Seat

Crisara’s method takes the persuasion out of selling and puts customers in the driver’s seat. He urges contractors to listen more, talk less and offer a variety of options, including expensive ones. Crisara believes that contractors don’t have to slash their prices to make a sale, especially when they provide a good and valuable service.

“It shook us up a bit to recognize that doing the cheapest, basic thing we can do for people is frequently not what they want,” Kathe recalls.  Both Kathe and Larry thought they were “doing right” by their customers. But after hearing Crisara’s theory, they started to open up to the idea.

“When you worked for your dad, and always talked about how he did it, sometimes you have to shake it up and try somebody else’s way,” Kathe says. “We thought we were doing them a favor by giving them the bare minimum. But maybe they may want a tax credit or maybe they may hate their unit. We learned that by giving customers choices we were actually giving them giving them better customer service.”

Everyone’s Not As Open Minded

Not everyone opened up to Joe’s ideas. His program was not met with complete acceptance.  “After we went through Joe’s program, we had one service technician quit, and then another,” Kathe says.

And the customers who had gotten used to Dennis Stewart’s service and taken advantage of it didn’t like Joe’s program either. A handful of customers went elsewhere.

“Customers got complacent with having my dad come over, whether it was Christmas or Sunday, and not charging them,” says Kathe. “Some expected to always get things for free. But you can’t keep doing that and be able to keep your doors open, not today when so many businesses are closing. It’s one thing when we need to fix a unit, but it’s another thing when customers just don’t want to pay for your service.”

Although they lost a few customers, Kathe and Larry were confident in Joe’s program. They spent time implementing it and working hard to connect with their customers.

After the initial shock, real results started to come.

Today, 99% of their customers are very happy with their service. Anytime a bid, service call or installation takes place, Precision Air-Conditioning sends out customer satisfaction surveys. Since working with Joe, only 1% have provided any negative feedback.

“Sometimes it’s just a difficult customer,” Kathe says. “The rest of the time, we messed up Joe’s process because there’s a difference between paying attention to what Joe tells you and doing what he tells so customers enjoy their experience. If you don’t do it properly, you end up pushing through the sales steps and pressuring the customer. That’s wrong, and the result is they will just want you out of their house. You either have a happy customer or you have someone who is never going to call you again.”

Precision Air-Conditioning’s sales have also increased. It has been almost 10 years since Dennis’ passing, and the company continues to grow. Although they may not give as much away for free, the level of dedication and customer service has remained high.

“The difference is whether you are doing the program with a pure intention,” Kathe says. “If you truly want to help people, you will see results. It is a quality that I look for in my staff.”

Kathe acknowledges that Joe’s program is not for everyone.

“It is mandatory that our team use Joe’s program,” Kathe says. “If they don’t, they can’t work for us.”

Looking back, Kathe says the technicians who quit didn’t care about helping others and didn’t fit with Precision Air-Conditioning’s philosophy.

“Growing up in a family business, you tend to be more tolerant of people who aren’t necessarily a good fit,” Kathe says. “We are better now at deciding whether this is a person we want in our company. After all, our company is an extension of our family,” she says.

And for Kathe and Larry, Joe Crisara is someone they want in their family.

“Joe has a natural helpfulness about him,” Kathe says. “Joe shows with his actions that he is generous and interested in paying it forward. He has a way of connecting people. Sometimes he’ll say that he was talking to this person who is trying something new and then he helps me connect with that person. Sometimes the ideas work and sometimes they don’t.”

Since she first started working at Precision Air-Conditioning, Kathe has come a long way in the HVAC business.

“I’ve learned from Joe and other contractors that he’s put me in touch with.” Kathe says “Being part of the Crisara family means that I never feel like I have nobody to call, because he’s always ready to help.”

It is truly a family business. “That’s why our family business is succeeding,” says Kathe.