Opposite George

The above video clip always makes me burst out in laughter. Do you remember when the TV show “Seinfeld” was a huge hit on NBC’s “Must-See TV” every Thursday? I have probably watched every episode at least 2 or 3 times. The one episode that really stands out for me more than all the others is the episode where George Costanza decides he’s going to do the opposite of what he would normally do. The episode was called “Opposite George.”

Looking At the Truth Straight On

Basically, instead of always lying to himself about how good things were going in his life, he decided that he gotten to the miserable place he was now, by the actions that he had taken. He finally owned up to his failures.

The Decision To Make a Change

Upon this discovery he decided that from now on, in order to make his life change for the better, he would do EXACTLY THE OPPOSITE of what he had always done his entire life. Up to this point, his life was typified by economic and personal struggles. He was a man that couldn’t keep a decent job and was also dismissed by every woman he approached as a schmuck.

He decided to break from the past by doing the EXACT opposite of what he normally would do to see if it would make a difference in his career and lifestyle. He began his “opposite” theory as he was sitting in the diner with the gang. That’s when he sees a gorgeous women sitting at the counter having lunch who just happened to glance at him for a moment. Normally he would never approach a woman like this because of the obvious rejection he would suffer.

Instead he does the opposite and walks up to her and states the truth emphatically.  “Excuse me, I just happened to notice you just looked at me.” he began chatting with her. He went on to simply state that he’s a short, bald, out-of-work guy who still lives with his mom and dad. What do you think the result was? She immediately introduces herself to him and decides that she wants to go out with him. Finally he has success!

Later, George uses this same technique of “do the opposite” to land himself a sweet job with the New York Yankees. During the interview, instead of kissing up to Owner, George Steinbrenner’s rear, the way everybody else probably does, he instead tells his potential new boss how much the team stinks, and why Steinbrenner’s every decision has been flat-out dumb. “Hire this man immediately!” Steinbrenner screams. “That’s the kind of attitude we need around here!”

So here’s my point. Every time George did the opposite of what he would normally do, what logic and common sense would dictate, and what everybody else would probably do, he experienced “quantum leap, life changing, success.”

Change What Isn’t Working

You know what? In many ways this thinking is the same key to being a successful plumbing, electrical or HVAC service contractor.  It just makes sense that the best decision to make in order to increase your sales, cash flow and profit, plus get new, happy clients to call and refer you, is the EXACT opposite of what your competitors are doing now that brought you to this point.

For instance, let’s say that you see your buyer could really use an extended service plan that you offer. You know they currently neglect their system and you want to see if they would have any interested in hearing about it. Let’s look at the different ways you could approach the buyer with this.

The Way Everybody Does It – Ask if they WOULD be interested

YOU: Hey Bob, would you like to hear some information about our extended service plan? It offers some really great benefits that would be perfect for you.

THEM: No, I appreciate your offer, but not right now because money is tight.

The Way “Opposite George” Would Do It – Ask if they WOULD NOT be interested

YOU: Hey Bob, I noticed that you chose not to purchase the extended service plan even though it would have saved 15% over the past year. I just want to confIrm that even though it would have paid for itself last year, you have no interest in this?

THEM: What are you talking about? I never even heard of this. Could you fill me in on what this program is all about? (Success at last -You have created interest by doing the opposite!)

The Paradigm Has Shifted

As you can see by this small exchange above, George was actually genius in his approach. Doing the opposite can make a big difference. How can this approach apply to lowball competitors? Can it really apply to buyers who want cheap prices? Will it change your thinking about your marketing, managing and presentations? In short, you bet it will. This principle applies to every part of our business.

Can you really argue with the simple truth that if you follow along and simply do what others who struggle are doing, you will get exactly what they are getting? Why not pull a “Costanza,” do something different and join us along with the most successful contractors in the country?

There are contractors who are actually MORE profitable in this down economy as they pick through the bones of contractors who have failed. That’s right, after the dust has settled they now attract the ex-customer and ex-employees of those companies who are bleeding or who have fallen.

Ultimately where there are problems there are opportunities. Isn’t that why you started a business in the first place? I hope to see all of you this spring who are bold enough to take action and walk the road toward success.

Engine Or Anchor?

I love the use of analogies. One of the prime examples I use is a owner of a contracting company as being the captain of a ship. As the leader you may find yourself heading towards “stormy business weather.” This storm is approaching as your sales revenue is lower than your overhead, field labor and material costs can substantiate. When this happens, you start to take on water. (Go into debt) Soon the whole ship is in danger of sinking.

When you finally wind up in the worst part of the storm the telltale signs are all around you as the captain. The rain of phone calls from vendors looking to collect on what you owe or the lightning of your having to consider a loan, line of credit or even take money out of your own pocket, just to make payroll this week are just a few of the signs that your ship is indeed in trouble.

All Hands On Deck

As the captain it is your duty to get your ship and the crew out of here and into clear waters and blue skies. “All hands on deck!” you scream. As you look around your “ship” you see that some of the crew members are not pulling their weight while others are doing all they can to help. And that is the problem in a nutshell.

Take a walk around your company and look at each employee. Sure when the “sales weather” was great, you hardly noticed some of the crew taking a break on the sun deck while other rowed away.  Now, when it is slow, there is no room for slackers. EVERYONE must pull the oar and get us out of the storm. Ask yourself while examining each person in your company, “Is this employee an engine or an anchor?”

Your Instincts Are Evidence

I really believe that an owner or manager “instinctively” know when an employee is an “anchor” that is holding the ship back from sailing into clear waters. I have to tell you that I believe that instincts are over-rated when it comes to management. I believe that instincts are really the feeling you get when faced with small bits of hard evidence that the manager or owner has observed.

Some of the hard evidence I am talking about is an employee who…

• Routinely comes in late or goes home early
• Shows up absent with no notice or phone call
• Doesn’t bother to wear the “whole” company uniform
• Rarely brings in enough revenue to even cover their own wage
• Specializes in creating call-backs
• Blows off company meetings
• Talks bad about other employees behind their back
• Shows no respect for their truck
• Bring more excuses than results

Anchors Away

The answer to your problems is to release all anchors now and activate all engines to propel your ship.  I always framed this problem as an opportunity. After all someone who is not happy following all your “silly rules” would be happier an more productive working somewhere that excellence doesn’t matter. Once you decide to not tolerate poor performance you will find it easy to steer the course to beautiful, sunny and profitable waters.

Consumer Shortcuts

Let’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?

Price/Quality Relationship

In an article in the January, 2008 Economist magazine, a study was cited that was done by Dr. Antonio Rangel of the California Institute of Technology. Rangel found that if people are told that a wine that they are tasting is expensive, the perception in their brain evolves to increase the quality of the wine they had consumed based on nothing other than higher price meaning higher quality.

Dr. Rangel gave his volunteers sips of what he said were five different wines made from cabernet sauvignon grapes, priced at between $5 and $90 a bottle. He told each of them the price of the wine in question as he did so. Except – of course – that he was fibbing. He actually used only three wines. He served two of the same wines twice at different prices.

Take a Sip

When asked which glass tasted better, they chose the higher priced one rather than the cheaper one. However, this was only their opinion. How do we really know if the brain has perceived a higher quality? As stated in the aforementioned article, Dr Rangel came to a conclusion by scanning the brains of 20 volunteers, while giving them sips of wine.

He used a trick called functional magnetic-resonance imaging, which can detect changes in the blood flow in the parts of the brain that correspond to increased mental activity. He looked, in particular, at the activity of the medial orbitofrontal cortex. This is an area of the brain that previous experiments have shown is responsible for registering pleasant experiences.

The Results Are In

The results of the study showed that the parts of the brain associated with pleasure were stimulated more by the wines thought to be higher priced. (Remember, they were actually the same wines.) This wasn’t just novice wine drinkers that made this judgment. Experienced wine connoisseurs were tested as well.

I think many of us have instinctively known this for years. But, in this study, it is proven science. Essentially, the finding was that higher prices have a real impact on perceived quality (which will then influence sales) rather than people just saying they think it’s better (which will not have an influence).

My interpretation of this study is that it shows that lacking hard definitive information about the quality of a product or service, the consumer searches for other sources of information to determine the quality of one thing over another. In this case, the price of the product itself created the real perception of higher quality.  Are you a quality contractor? If so, price yourself like one.

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.

5 Reasons Why Lowering Your price Could Cost Sales

1. You Look Like Your Competitors – Do you really think that having the lowest price will make you stand out? Every other salesperson says the same thing. Everyone claims to have the lowest prices because they think it will get the customer’s attention.  Even if it did make you stand out, it would be for the wrong reason – the very wrong reason of offering a watered-down version of what people really want.

A higher price with a more premium package is really the only way to look different from your competition. Offer something better that no one else can offer. A lower price just isn’t it.

2. It Takes Focus Off Your Customer - Price does not determine the sale; your customer does. That means that your attention should be completely on them. Everything you do should help you understand and connect with your customers so that you will discover their motivation for buying.

Customers search for a product that is the best solution to their problem. They understand that a product cannot be the lowest priced and still be the best. Making the sale requires that you find the best solution, not the cheapest.

3. It Decreases Perception Of Your Value - Before every purchase, a customer considers, “Is this worth it?” The answer depends on the value of the product, not the price. If they envision themselves using and benefiting from the product, the answer is yes and the purchase is made.

Without value, a product won’t be sold at ANY price, so don’t limit your customers to a dollar amount. Establish value by helping them imagine how useful and enjoyable your product could be in their daily lives.

4, It Brings Your Integrity Into Question - Customers will not buy from you if they don’t trust you; and they definitely won’t trust you if they feel that your price is dishonest. Lowering the price of your product suggests your product was not really worth what you were asking for to begin with. They will believe you are padding your price!

Never lower your price because you know that your service is worth every penny. Have confidence and enthusiasm for your own product. If you believe in what you sell, your customer will too.

5. It Leads To Buyer’s Remorse - Customers want to feel confident in their purchase and know that they received the best value for their money. Lowering the price for your customer puts them in a situation where they feel haggling is necessary. They will question their purchase and wonder if they should have pushed you harder to lower the price.

Even though it seems you saved them money, they will probably feel ripped-off. This will make them uncomfortable with your business and less likely to come to you in the future.

A Limited Strategy

When you lower the price of your product, you are limiting your sales strategy to a dollar amount. Price becomes a dominant part of the conversation ONLY because YOU have made it one.

When was the last time you heard your price was too low? This is probably the first time. We can assume that in all our sales interactions, odds are that – at least SOMETIMES – our price MUST be too low. If that is the case and you have never heard this until now, then I am glad you are finally enlightened.

Focus your attention and sales presentation on what really matters: the customer, the value, the uniqueness of your company and your product. When these things are put first, price will always come in second.

An Important Question

There is an important question that owners and sales manager’s in a successful contracting business ask themselves before engaging in training, coaching or accountability activities.

Here is that question…

“Do I have the right person?”

The difference between mediocre and champion caliber sales managers lies in their willingness to ask this question of every employee, themselves included at any time. The mediocre manager falls in love with the personality of the people they manage and assumes things will turn around eventually.

The winning manager never assumes that the person who they manage hasn’t changed to the point where they might not be a fit with the team any longer. In essence they are asking if the employee is capable of performing the skills and techniques that make up their sales system. Furthermore, if they do have those skills are they willing to take action by using them with a potential buyer?

Always Hiring

When should sales managers start to recruit and hire new salespeople?  You should always be looking for new winning players to add to their team. Only the mediocre or poor sales manager begins to look for top performers after a sales person quits or is fired. In any sales team there are perennial strugglers who never seem to get over the hump. The job of a winning sales manager is to continually take a hard look at their people and continually look for the best possible sales person to put on the team.

No Pressure, No Sales

You may think that you will lose sales people if you put too much pressure on them to meet their goals. The top managers are not afraid of excellence. In fact they expect it from every member of their team and challenge them every day. There are those that respond to this slight pressure by concentrating more and those who quit under pressure. Who do you want in front of your buyer during a tough negotiation?

The internal pressure exerted on the team is the energy that pushes people to compete. Without this pressure, the results are poor, nothing would ever change. Sales people tend to find an economic comfort zone and turn poor performance into a routine. Basically this means that no matter what goals you set for your people, they will adjust their lifestyle to match their income and continue to under-perform unless the sales manager challenges the status quo.

What Are We Looking For?

When hiring your winning team, you must look for the “markers” that are the make-up of heavy hitters. Here is a list of the “16 DNA markers” that the winning manager uses to evaluate new or existing talent on the sales force. Under each marker is a question that can be asked to reveal if the current or potential sales person is in alignment with them.

1. Has Concrete Goals
a. What income do you want to make yearly?
b. How will your lifestyle change 5 years from now if you did earn more?

2. Has a Sales System
a. What is your game plan for your first visit with a buyer?
b. What questions would you ask them?

3. Takes Responsibility For Results
a. When you lose a sale what is usually the reason?
b. How does the economy affect your ability to sell?

4. High Self Confidence
a. Why should I hire you/
b. Why do you want this job?

5. Stays Detached
a. How do you feel when your price is higher than competitors?
b. At what point do you give up on a sale?

6. Emotionally Balanced
a. How many relationships have you maintained with your friends?
b. Are your solutions weighted more towards technical engineering or people?

7. Responds To Rejection
a. How do you feel when a customer tells you no?
b. How do you respond to common “think it over” objections?

8. Money/Value Belief
a. How do you purchase things for your family
b. How do you feel about someone who spends more for something?

9. Not Sold On Objections
a. How do handle price objections?
b. Do you think that a “think it over” objection is valid?

10. Works On Referrals
a. What percentage of sales leads do expect yourself to bring in?
b. How do you ask people for referrals?

11. Sells To The Right People
a. When do you decide to make a presentation?
b. Will you present solutions if decision makers are not present?

12. Good Listener
a. What percentage of your call is talking and selling versus asking questions?
b. What percentage of the call should you spend talking?

13. Connects With Buyer
a. What is essential to learn about the buyer before making solutions?
b. How does the ability to connect with buyers impact their solutions?

“Where’s Jimmy?”

Ralph who is one of the senior techs working at an hvac, plumbing and electrical service business suddenly blurted out a question to his boss, “Hey Bill, where’s Jimmy? I haven’t seen him for a couple weeks now.”

Ralph was referring to one of the newer techs who joined the company about a year ago. “I think he’s on vacation, right Bill?” said Karen who is one of the CSR’s at the firm. Bill, who has owned the company for 29 years set the record straight, “No, we had to lay him off two months ago when it got real slow.”

Bill of course was just being nice.  What he didn’t say was that Jimmy was a dispensable employee. He failed to add enough value to the team, his customers and the bottom line to even keep himself employed, much less to be considered a star player.

Didn’t Miss Him

Think about it. Two people in the company never even noticed he was gone for over 2 months! Talk about minimum impact. Was it really the economy? Or could Jimmy have changed his fate of lining up at the unemployment line and hoping to win the “job lotto?” Now Jimmy’s master plan is to hope.  Hoping to get “lucky” enough to have someone even read his resume in the stack of thousands looking for work.

How Can You Be Indispensable?

Things could have turned out differently for Jimmy and thank goodness for most of you it still can if you are willing to wake up and start taking action. Author Seth Godin talks about how we are conditioned by society to try to fit in and NOT stand out in his book “Linchpin – Are You Indispensable?”  He writes, “If you choose to be indispensable it is entirely possible that you may not be loved by the same people who are your friends right now.”  I know what he means. Breaking from the pack and doing something different will make the rest of the crowd very uncomfortable.  Seth explains, “In time they will come around if they really do love you. If they don’t come around, they probably never were your friend to begin with.

Here are the three things that make hvac, plumbing and electrical technicians indispensable…

1. Become the “Go To” Expert

Yes your technical skills DO count.  You have to be great at engineering total system solutions that are custom fit and “on-code” for each client. Plus you have to be good enough to be able to teach your teammates these skills as well.  Your education is an investment that you need to make in yourself.  Going to seminars when you’re tired after a long day is tough.  It is an investment however that will ALWAYS pay you back as you learn more and become the “go to” expert on your team.

2. Create Raving Customer Fans

I know you think you are good with people.  But how good are you?  Do people give you other opportunities after you already just sold them a solution? Or is it one and done?  Do clients call asking “only” for you? Do they trust you enough to purchase any solutions you offer them?  Remember that this is a business about how well you can focus on your customer and their lifestyle and then how well you can custom fit solutions for them. These are the marks of the customer service champion.

3. Bring Home the Bacon

Indispensable service employees know exactly how much money every truck needs at a minimum.  Then they pride themselves on blowing that amount away every week by at least triple what is expected.  They are a cash cow that helps the company have enough money to reinvest in technical training, great service experiences for clients, top benefits and pay for employees and oh yeah… a profit for the owners.

The Facts Of Life – Service Style

Try to understand the facts of life.  Being indispensable is a three legged stool and if any one of those legs are missing, your future in the service business becomes unstable.  Do you think being good with customers is enough? Not if you have callbacks and fail to meet the financial numbers your company need to succeed. You think that being technically sound is all you need? This is a people business not a “broken parts” business.  You can sell a lot and bring in the money? It’s worthless if you are churning and burning through customers and creating more frustrations than solutions.

How Do You Know You’ve Made It?

You’ll know if you are indispensable in the service business because you are excited to learn more even when your already pretty great. Also you want to use what you’ve just learned to help customers and teammates feel as excited as you are.  Finally, you have learned to convert your technical skills and customer service skill into a tangible financial result that you can deposit into the bank.

Remember that your job is not about getting your needs met.  It is about how you contribute to the greater purpose AND getting paid for it.  I’ll see you at the bank.

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