getting new LARGE customers has hit a brick wall

[huggytree]

my business has always been able to constantly grow and get new Large builders/remodelers........I send out fliers every 3 months and sit back and wait for the calls....years ago id get 12-15 calls each time i sent them out....most were just price shopping and not serious, but id typically get 1 customer each time...sometimes 2 or 3

this concept hasnt really worked for me over the past 1.5 years....im not loosing any customers, but i really havent gained any either....the few ive gained were from word of mouth or employees switching companies and bringing me to their new company...

i have gotten 6 calls from my latest flier(which is the most ive gotten in a long time)....net gain? 0

every call ive gotten for 1.5 years now have been just shopping for the lowest price.......the market has changed so much over the past 2 years

any new suggestions for how to find new customers????

the advantage i have is i know who they all are...i have a list of 600+ builders in my area....cold calling ive found doesnt work.

[billbenson]

Not knowing your industry very well, Huggy its hard to make a recommendation. You need to have them call you, not you calling them. You also need them to easily find you. I'd suggest some sort of give away with your name that they won't throw away. No idea what, but that way your name is always in front of them. We gave away a multifunction pliers, screwdriver, knife thing once. They were expensive but didn't get thrown away. You couldn't afford to give 600 of those away, but maybe try a sample give away next time you put some money in the bank?

I don't know how this applies to your industry, but when I was selling to the large telephone companies years ago, I sold at all levels. Regional managers, engineers, technicians etc. as well as the high level managers who ultimately made the decision. Those were the people that really closed the deal with the decision maker.

[rob0225]

Maybe because word is getting around that you can't be trusted???

http://www.small-business-forum.net/managing-your-business/5545-did-project-behind-customers-back-got-caught.html

[nealrm]

We are talking targeting a small group of businesses. So I would move more towards networking than advertising. Is there a builders assoc in your area and does it hold events? If so, get there for some face time with these builders. Also try the chambers business after hours events. Local trade shows may be another option.

[Russ in Vancouver]

Do you change up the copy on your flyer every time, or is it the same one every 3 months?
I never send out the same flyer twice and I will print on different colored paper for fall/light brown, halloween/orange, xmas/red, spring/green, summer/yellow.
In the past when I went to meet several individual leads for a presentation I often found a stack of my flyers magnetted to their fridge.

[Spider]

... any new suggestions for how to find new customers????
the advantage i have is i know who they all are...i have a list of 600+ builders in my area....cold calling ive found doesnt work.From what you have been telling us there AREN'T any new customers in your area. You know all the builders, you say. New house construcction has pretty well dried up. Who else could you work for? Who else is installing new plumbing work?

You say you don't want to do major construction - in any case, you aren't geared up to do it - and new major construction is probably as dried up as minor construction. So, who else can hire you?

Considering the niche you have chosen, it seems all you can do until construction picks up again is keep sending your fliers (if only to let them all know you haven't gone out of business), keep serving homeowners (including the cheap ones) or expand your niche.

[huggytree]

Do you change up the copy on your flyer every time, or is it the same one every 3 months?
I never send out the same flyer twice and I will print on different colored paper for fall/light brown, halloween/orange, xmas/red, spring/green, summer/yellow.
In the past when I went to meet several individual leads for a presentation I often found a stack of my flyers magnetted to their fridge.

i used to make a completely different flier every 3 months.....now i make 1 for the whole year and send it 3 x

[huggytree]

From what you have been telling us there AREN'T any new customers in your area. You know all the builders, you say. New house construcction has pretty well dried up. Who else could you work for? Who else is installing new plumbing work?

You say you don't want to do major construction - in any case, you aren't geared up to do it - and new major construction is probably as dried up as minor construction. So, who else can hire you?

Considering the niche you have chosen, it seems all you can do until construction picks up again is keep sending your fliers (if only to let them all know you haven't gone out of business), keep serving homeowners (including the cheap ones) or expand your niche.

i do think that alot of the work has just dried up.....im still doing great(financially) and even w/ last year as far as sales goes.......im probably not going to grow this year though.....anytime i stop getting new customers i worry...im not moving forward in 2011

homeowner calls are just fine, but dollar amount on those jobs is waaaay down....they are just fixing what needs to be fixed.....pretty much zero large jobs from homeowners in 2011

i will think on the idea of expanding my niche...thanks frederick

[huggytree]

We are talking targeting a small group of businesses. So I would move more towards networking than advertising. Is there a builders assoc in your area and does it hold events? If so, get there for some face time with these builders. Also try the chambers business after hours events. Local trade shows may be another option.

builder associations have been a good alternative way for me to meet builders....that in combination with the fliers has landed me a few....i do not go to as many builder association meetings anymore and should....ill have to make a point to stop missing 1/2 the meetings............builders over all dont like being approached in person because it happens to them all day long....the fliers i send is my alternative....they see it over and over and when they need me they call..

i was a member of the Chamber, but found it to be horribly worthless in my town

[huggytree]

Maybe because word is getting around that you can't be trusted???

http://www.small-business-forum.net/managing-your-business/5545-did-project-behind-customers-back-got-caught.html


eventually what you say could be true......right now its not, but that could always change.....

[Dan Furman]

Please don't take this the wrong way, Huggy, but everything about you is price price price money money money. I know you are a good plumber, but wow, I almost never see that mentioned. I never see you talk about long-term business growth or the joy of owning a business or the satisfaction of doing good plumbing work, etc. I don't think there is joy, or that you even really like what you do. You are in business for money, and nothing else. Everything takes a back seat to money (preferably immediate return) with you. From what I read, you hate "price shoppers" and don't seem to even like your customers all that much. Money is always first.

And that's ok - I do not mean to criticize or such. That's just the way you're wired. But, you are going to hit a wall sooner or later with that mindset.

[huggytree]

i like my job....i enjoy every day

i like most of my customers

i am wired for money....i work only to get money.....on the customer side all they see is quality/service & a friendly voice, but in private(here on this site) my true intentions come out....i want to make as much money as possible and stay strong as a company

i dont get many price shoppers anymore (and yes i do hate any customer who gets 5-10 bids on a project)....i also dont like customers who only want the lowest price and dont look for quality/service as part of their decision......my advertising and methods has pretty much gotten rid of that customer....its rare i get a price shopper...i think most of the calls like that are my competition checking on me these days.

i dont even think i actually hit a wall yet...i think the economy has and the 2nd downturn has begun 3 months ago

ill still get to $400,000 in sales this year........maybe there will be a last minute upswing for 2011 and ill get back ahead of last year....this may be the first year i dont increase sales...........im trying to figure out why

i do appreciate your honesty though...it makes me think a bit!

[Dan Furman]

i like my job....i enjoy every day

i like most of my customers

i am wired for money....i work only to get money.....on the customer side all they see is quality/service & a friendly voice, but in private(here on this site) my true intentions come out....i want to make as much money as possible and stay strong as a company

i dont get many price shoppers anymore (and yes i do hate any customer who gets 5-10 bids on a project)....i also dont like customers who only want the lowest price and dont look for quality/service as part of their decision......my advertising and methods has pretty much gotten rid of that customer....its rare i get a price shopper...i think most of the calls like that are my competition checking on me these days.

i dont even think i actually hit a wall yet...i think the economy has and the 2nd downturn has begun 3 months ago

ill still get to $400,000 in sales this year........maybe there will be a last minute upswing for 2011 and ill get back ahead of last year....this may be the first year i dont increase sales...........im trying to figure out why

i do appreciate your honesty though...it makes me think a bit!

I'm glad you took that the way it was intended. I DO like you, and generally respect your business skills - you're very introspective too, and that's a great quality :)

I guess I was saying that if you feel that way, that it comes out in dealings / what you choose to do. And I think, in a big picture "Frederick" sense, it could be limiting.

I used to sell cars. New salespeople always had to get over the "I need the $$" aspect. Veterans who didn;t need any one sale got more sales, because they could focus on what the customer needed, and not the money. new salespeople thbought "I HAVE to close this up, or I won't eat", and it showed.

Your situation is obviously nowhere close, but I suspect the overall meaning of what I'm describing has some merit in a big picture sense.

For example, you won't join the chamber because it nets you nothing. But all the big guys belong to the chamber in every instance/town I've ever seen.

[huggytree]

chamber of commerce isnt very good in my town....yes every big guy belongs.....but no one goes to events...meeting people is never going to happen...i was getting 1 job a year and attending 4-5 events..........ive gotten away from networking and that could be one of the reasons im not gaining new large customers anymore

BNI stopped working for me, so i quit....my old group was at 35 and now is at 12.....so the whole group is a failure

maybe i should consider joining a new BNI group closer to home....

and also making a point of going to builder association meetings....at the remodeler council i have gotten almost 66percent of the contractors in the room

[Dan Furman]

chamber of commerce isnt very good in my town....yes every big guy belongs.....but no one goes to events...meeting people is never going to happen...i was getting 1 job a year and attending 4-5 events..........ive gotten away from networking and that could be one of the reasons im not gaining new large customers anymore

See, that's exactly what I mean - you are looking at this too short-term (i.e.: "how many jobs did I directly get from it this week / month / year".) If every big guy is in the chamber, and you want to be a big guy, then you should be in the chamber. It's that simple. Look at it as a long term investment in relationships, and not "calls from handing out my business card".

Where the heck are you, Frederick??? This is your forte'

[huggytree]

i see no long term relation ships just because my name is listed in the chamber of commerce

i do see advantages in long term relationships by going to builder association meetings and talking with builders over and over and over....they may be happy with their plumber now, but long term i know i will get a chance with all of them eventually(or such is my attitude)

joining the chamber is more of a community thing....the biggest local plumber is in it, but he also has a sign and his location is right in the middle of town...its known who he is...(and im not)........he's a fixture of the community(and i am not)...........i cant compete with him as far as advertising goes(its not a money thing)....the town only has 1 sign and he's one of the businesses on it.....there's no opportunity for me to add my name to it....also im not going to buy a building downtown just to show my name...he's larger and isnt a home based business...he's a few levels above me....im not going to pay $1,500 in rent a month just so my local town knows i exist......i will be able to directly compete with him someday, but for now i prefer to use my small size and higher quality to my advantage...when they arent happy with him they seem to come to me....


i doubt youll ever talk me into rejoining the chamber of commerce...i see no immediate or future gain by joining it

i definitely would like to be the big guy, but do it my way.......i plan on building up my company with high paying/quality customers...that way when i hire employees i will make great money from them....not hiring 5 employees and me being the office guy and me making less than i do by myself....i want 5 employees and me making double what i do now and sitting in an office..........there are a few high quality 5 man shops around, so its possible....they have been around for 20 years plus and by now may be down to 2-3 employees......i always see the recession as the reason i have not expanded yet......when my sales are able to grow 10-45percent a year i dont want to blame anything im doing....

[Spider]

...Where the heck are you, Frederick??? This is your forte'David knows my view on this stuff and disagrees with me on it, so he doesn't need to hear it from me again. But, it's a quiet evening so I will say it again.

The art of Chamber of Commerce networking is not to use it as a type of face-to-face advertising or face-to-face selling: it is to become aquainted with and known to the person in front of you. That is not something that happens in a single conversation. It is what happens when you work on projects together - No! not construction projects (in Dave's case) but on Chamber- or community projects.

In my experience, the "big guys" don't go to the Chamber events that the plebs go to. They create events of their own. They run and participate on the Sponsoring committee, or the Political Action committee, the Area Beautification committee or the Finance committee. If Dave is going to the events put on by the Chamber for the members, he will never meet the "big guys." But, even if he wangled himself onto one of these "big guy" committees, he could not discuss his business (and would be quietly reminded that this was not how it is done, if he tried.) You join one of these committees because you genuinely want to contribute to improving your community. Once you have proven that contribution is your prime purpose, then when the need arises, you will be in at the source of the lucrative contracts and deals that circulate among the "big guys" like it's the natural thing to do. As Dave recognises - "...joining the chamber is more of a community thing..." but he does not to want to act on that understanding.

Although he says he would like to be the big guy, I don't believe that is true, really. We all say we want to be ....[something].... but unless we actually create a plan to achieve it and put that plan into action, I believe that we don't really want what we said. Most people will say they want to be rich, but they do nothing about becoming rich. Most people will say they want to be happier than they are, but they do nothing to become happier than they are...etc. There's a comfort and degree of certainty about being at a specific level of accomplishment. Sometimes it's better to just stay at that level even while proclaiming a desire to be at a higher level. Sometimes it is better to see how others have accomplished what one claims to want and do what they do, rather than imagine one can get there doing something different.

I mean, if you want to bake an apple pie, it won't do to use peaches instead!

[Dan Furman]

I would guess that 99% of the owners of those 5 man shops belong to the chamber. They are known in their community/etc. But they probably joined when they were one or two man shops.

I see where Frederick's "think big" is useful here. There comes a point in business where thinking "immediate return" (even a year out) is not always useful. You are probably right around that point.

Every big plumber in my city (the type you want to be, with a crew or three/etc) belongs to the chamber. Every single one (there's only a few, so it's easy to count.) Every big tradesperson is in the chamber. Every big local businessperson is in the chamber. The chamber is where all the big businesspeople gather. It's not a place to hand out cards, really, although many use it for that (with awful results). It's the place to rub shoulders with the bank president, and getting to know him or her over a few years time and a few rounds of golf at the chamber sponsored event, etc. Really, it's how big business gets done.

I'm not trying to be an advocate for the chamber. I am telling you to look at the businesses you aspire to become, and do the things that they are doing.

[Dan Furman]

David knows my view on this stuff and disagrees with me on it, so he doesn't need to hear it from me again. But, it's a quiet evening so I will say it again.



you replied as i was typing, so I kind of repeated some of what you said.

great, great stuff, Frederick. Agree with you 100%

[billbenson]

I'll second that. That was a very informative post Frederick. Thanks.

[huggytree]

just signed a contract with a new customer yesterday

im getting big....just veeeery slooooowly

my way to get big will take 15-20 years....i dont know of a way to get big without cutting prices.....i dont want to get 'big' and make less than i do now.....my body is telling me i need to grow....every day my back hurts more and my knee's feel like pins and needles when i walk up stairs........my body wont be able to do what i do, so its grow or retire......i know too many guys who have a few workers who make less than i do by myself....when i find out what they charge it shocks me......i want to grow by my rules

i have no time to join chamber committee's....right now i have 2 kids in sports and that takes up 3-4 nights a week...next year all 3 will be in sports....i am also becoming my sons cub scout leader.....plus i do get some night time bidding and late work days.....i have no time to rub shoulders with the chamber guys......when i was in the chamber i never heard of any committees for local charities....

a friend has tried to get me into the rotary club many times..ive gone to (2) breakfasts and thats where i met the local 'big' guys and they had tons of charity committees to join....i couldnt give them 1 morning a week

one of us has things backwards.......do you get big first and then do these things or do you do these things 'because' your big and have extra time....if i was sitting in the office all day id have a more normal schedule....right now im the salesman,office worker,worker,accounting dept.......and then im Dad in my only free time...

[huggytree]

Although he says he would like to be the big guy, I don't believe that is true, really. We all say we want to be ....[something].... but unless we actually create a plan to achieve it and put that plan into action, I believe that we don't really want what we said. Most people will say they want to be rich, but they do nothing about becoming rich. Most people will say they want to be happier than they are, but they do nothing to become happier than they are...etc. There's a comfort and degree of certainty about being at a specific level of accomplishment. Sometimes it's better to just stay at that level even while proclaiming a desire to be at a higher level. Sometimes it is better to see how others have accomplished what one claims to want and do what they do, rather than imagine one can get there doing something different.

I mean, if you want to bake an apple pie, it won't do to use peaches instead!

to get big you always say i need to cut prices.....and i agree.....but i dont want to cut prices.......i dont want to make 1percent...i like making 20-40 percent

id like to make $500,000 and have 5 workers in the field...thats my goal........cant get there by cutting prices...there's only 1 path....keeping my prices and slowly building my customer base...customers willing to pay for quality.....

i cant make $500,000 with 5 workers by cutting prices...thats where our dissagreement always has been

i always have goals and see where your coming from too.....but I DO have a plan....there's never a day i dont have a plan for every part of my life....from kids to work to retirement...its all a plan.........i dont have a plan to be a 5 man company in 2 years...wish i did....dont think its possible......know of any company in construction that grew 45 percent in 2010....you only know one!!...ME!!!.....I Dont have a plan?........

the construction industry is doing horribly.....it may be the hardest hit segment....yet i grow every year by 10-45 percent(except this year).......i think its a miracle that my plan for growth is working so well......i dont know of anyone in construction expanding....no matter what plan i have i cant make a miracle.....whats my plan? keep doing what im doing and try to hold out until the recession is over....ill be able to hire easily then......

[Spider]

David, Don't worry about it. You don't need to explain. We have different ways of doing things. If you have a plan that you believe in and you are taking steps to follow that plan, you are doing what's necessary.

[Paul Elliott]

... any new suggestions for how to find new customers????

the advantage i have is i know who they all are...i have a list of 600+ builders in my area....cold calling ive found doesnt work.

What is the common problem that each of them has that you can solve for them?

How about sending Thanksgiving cards to each of them thanking them for their service to the communities you both serve. It's not a direct solicitation of business but one that reminds them that they have made an impression on you and asking them to join you in being thankful at that time of year for all the benefits we do have in this country even during recessions/depressions.

Thanksgiving cards are rather unique and a reminder that more people will remember than a Christmas or Holiday card.

If you want help with the text, email me at paul.marketer@gmail.com or PM me.

Paul

[Steve B]

Nothing I haven't told you before. I think you have to hire someone BEFORE you absolutely are sure you will have 40 hours per week for them. Once you do, you will free up some of your time for the working "on" your business instead of "in" your business. It's a bit of a leap of faith, and I'm sure you'll make a bit less for a while. You may even make a bit less for a long time (or even forever), but you might improve your life (more time with kids, better marriage, more exercise etc.).

I agree with you - you either need to grow now or find another line of work "every day my back hurts more and my knee's feel like pins and needles when i walk up stairs." You can't wait 15-20 years. If I were you, I'd hire someone and anticipate making less as a result (but do it for the family). Although I still think you might be surprised at the financial results.

[huggytree]

What is the common problem that each of them has that you can solve for them?


Paul

thats the correct way to look at it...your exactly right.....but the answer isnt an easy one

right now work is soooo slow and has been for years...very cut throat.....a lower price is what most of them are looking for...the 1 thing im not willing to do....many already have prices that are at or below cost...plumbers who are just happy to have work and make their wages....

most of them dont understand what 'quality' is...there's not 1 of them who thinks they build a poor quality house....yet most of them do....its all justified in their heads...im doing repairs on some houses that are 5 years old or less....yet the builders advertise they build a quality home....its a lie....

its hard to sell 'service' right now....with everyone doing anything to survive right now they all give instant service....when i first started i picked up a few customers because their current plumbers were too busy and couldnt get the jobs done on time...this hasnt been the case for 2-3 years now....

the only reason i pick up new builders anymore is their old plumber screws up too much....if they have ANY complaint other than price i typically win the new builder...

when the economy improves the prices will rise (and get back to where i currently am), the service will drop(too much work = slow service) and there will be more opportunities for me to grab some new customers...right now none of that is possible......

the only home builders building houses steady are the super price cutters.....the rest are doing 0-1 house a year....in the old days that # would have been 5-8 a year....were down to 10-15percent of what it was...there's tons of room for growth as soon as people start spending again.........

homeowner calls used to consist of some larger projects...this year its all 1 hour projects...my # of jobs is the same as last year, yet the dollar amount has dropped 40percent this year....this segment will skyrocket hundreds of percentages when the economy improves...right now these people are just repairing what they have to...not adding any debt by improving things

If i changed my flier to read "we are the lowest price and give superior quality/service' id win tons of new customers....the problem is it would be a Lie....it would be horrible quality and i would be losing money by working for -10 to 1 percent profit......thats where the low price guy market is here right now....at a loss or break even

[huggytree]

Nothing I haven't told you before. I think you have to hire someone BEFORE you absolutely are sure you will have 40 hours per week for them. Once you do, you will free up some of your time for the working "on" your business instead of "in" your business. It's a bit of a leap of faith, and I'm sure you'll make a bit less for a while. You may even make a bit less for a long time (or even forever), but you might improve your life (more time with kids, better marriage, more exercise etc.).

I agree with you - you either need to grow now or find another line of work "every day my back hurts more and my knee's feel like pins and needles when i walk up stairs." You can't wait 15-20 years. If I were you, I'd hire someone and anticipate making less as a result (but do it for the family). Although I still think you might be surprised at the financial results.

i have had work weeks lately where i work 10 hours....ive had says with 0 work....what do i do with my employee??? pay him for 40 hours anyways? what worker would stick with me for 10 hours....ive been averaging 80-100 hours a month...last year i had a few 180-200 hour months + bidding time.....

I always agree with you Steve........when im working 40-60 hours in the field a week steady ill do it....i need to have close to 40 hours for the employee to make the change....10 hours wont cut it......

when im slow i can get 1 homeowner call a week.....when im busy i can get 8 a day.......its a rollercoaster ride

do you still think i should just hire anyways????

[Steve B]

Yes, actually I do. You have to look at the big picture / long term. If you have an employee during your busy times, that will free you up to do more marketing and networking that will help fill up your slow times. The other thing is that during the slow weeks - you can have him/her do stuff around your house - which still frees you up to spend more time with your family. If the "Union" aspect of the employee gets in the way of them doing stuff around your house - then dump the union.

[huggytree]

thanks for your opinion Steve....i am seriously thinking about it...

when the economy shows better signs of improving maybe ill hire even though i dont have the hours for the employee....maybe ill take a 1st year apprentice and spend the time training.......that way the cost is only $50,000........i wont do it now going into winter and as slow as its been

it would be better for my family for sure....id gain weight though sitting around on the phone all day....

i will decide in March 2012 if im going to go for it....best to do it going into the busy season

there's not that much work around my house to make up for the 60 hour shortfall per month.....after 1 month my painting projects and landscaping would be complete... the union wouldnt like me having the apprentice doing weeding in my garden, but i doubt the apprentice would speak up...most would be happy to be employed...

[Spider]

FWIW, I wouldn't recommend you take on an employee right now. Steve is right in that you must look at the big picture, but you also need to have confidence in that big picture. I don't know the Mukwonago area but I do know your attitude to the current situation - "right now work is soooo slow and has been for years."

The time to employ someone (and I would recommend a qualified plumber, not an apprentice) is when you feel that work will be picking up soon. Don't wait for it to pick up, but just be confident that it will soon. Thus, going into winter is the wrong time for you. If spring (April) is likely to pick up, then March is the time to hire. If you hire someone with the expectation that there will be insufficient work, there will be insufficient work! Your attitude will be the most important factor, and expecting no work is the worst possible attitude to have for hiring your first employee.

Wait for Spring. Use the winter to get ready - paperwork, forms, accounting, IRS, getting another van, stocking it, so that your new employee, in March, can sign a few forms, jump in the van and get to work within the hour.

Then - and this is the most important - then, you must spend your time finding the next job for him to do - and the next, and the next. While he is doing the plumbing, you should be doing the selling, bidding, visiting clients, schmoozing. Come March, once you have hired your employee, you must stop being a plumber and become a manager. Your job as a plumber must cease and your job must be to get more work, and more work, and more work.

And when your employee has too much work, you hire another qualified plumber. Hire an apprentice when you have five plumbers, not before.

[huggytree]

just having a positive attitude isnt going to make the economy good in my area....if there's no work there's no worki

i can call builders all day long.....when ive called all 500 in a week then whats next? most of them only have an answering machine....ill actually talk to 100 of them and 90% wont have anything going on....9% of them wont be looking for a new plumber....and the 1% may actually let me bid

advertising doesnt work for quality homeowner customers...only price shopper types....so i cant increase that base.....the homeowner customer base only grows from referrals and referrals grow slowly

would my sales increase if i sat home all day looking for customers?? yes....would it double quickly? no way....probably just a few hours a month

there are only a few events a month i can go to to meet new builders...and i go to 1/2 of them already....cold calling is about all i could do to increase sales

being positive is important..very important...but being realistic is too...if i hire an employee (a journeyman) I will lose $60,000 in wages minimum(+ $50,000 in a van/tools/stock)....yes i can still live off whats left ...but its going to be a lifestyle downgrade for the family....its something to really think about

im not as positive as you Frederick....ive always taken the lowrisk route in my business....hiring someone with no extra work is high risk...just 'hoping' in a positive way that the work will just appear from some phone calls(when it never has before)..

this will most likely be my first year with lower sales than the year before....if it were up 45% like last year was id probably already have someone hired.

im going to consider all the opinions over the next few months....i can get a van/tools/paperwork done in a week if i need it...or give the employee my work van while im putting a new one together...my accountant told me i can do the paperwork quickly and it has already been discusses a few times...

[Spider]

....i can get a van/tools/paperwork done in a week if i need it...or give the employee my work van while im putting a new one together...my accountant told me i can do the paperwork quickly and it has already been discusses a few times...Excellent! Thinking ahead is always good.

[Steve B]

"advertising doesnt work for quality homeowner customers..."

That's quite a conclusion you've come up with! I have a feeling it's not quite that simple.

[greenoak]

it would be good if there was some project you could come up with for the employee to work on during down time... thats what we do a lot.... we are productive even durng times with no customers..... we make things and improve things ....is there anything like that you cuold come up with....
. i like pauls idea of the thanksguving note...good one paul!!!
and i really go along with the idea of getting the employee as soon as possible...you could grow faster probably.an employee jsut expands you and opens things up..... its a scary step tho...

[huggytree]

"advertising doesnt work for quality homeowner customers..."

That's quite a conclusion you've come up with! I have a feeling it's not quite that simple.

yea i know its not that simple.....the phone book doesnt work.....the internet gets me a job or 2 a month.....my church bulletin gets me 2-3 jobs a year...ive tried advertising on a golf course, paying a realitor to be their exclusive plumber($500 a year for 1 $200 job)....yard signs(completely worthless)...ad. in local newspaper for 3 months(0 jobs)

advertising for a 'small' company is difficult....im not going to do Radio or TV....im not going to pay $3,000 a month per phone book for a full page ad(i found out they dont even work well).....ive dropped out of all but 1 phone book now....and my 1/2 page ad isnt placed well this year

word of mouth is everything.....if i had to rely on new customers w/o referrals id be out of business long ago....

i know how to gain new builders, but other than my website and 1 phone book(local mini one) i dont know how to find new homeowners.....works best to let them find me

i am trying Adwords again on a limited basis since my website has had such a dramatic increase since its text redo last year

any future advertising 'experiments' will probably use the internet and my website......i may pay someone to run a internet campaign for me

[Spider]

...word of mouth is everything.....if i had to rely on new customers w/o referrals id be out of business long ago....
i know how to gain new builders, but other than my website and 1 phone book(local mini one) i dont know how to find new homeowners.....works best to let them find me ...Let's see, now - "Word of mouth is everything" and "finding new homeowners works best to let them find me." How can we bring those two thoughts together?

Promoting word of mouth means contacting past clients to ask for referrals, and letting homeowners contact you means coming to their attention without actually contacting them. Contrasting terms!

How about if you call all past clients in the past two years (even if they were clients of a builder - could you do that without offending the builder?) and tell them...

"Hi, I'm Dave, owner of Wakesha Plumbing - I fixed/installed the plumbing on your new bathroom/kitchen a few months ago, and I'm calling just to make sure everything is working as it should. Is everything working fine? _____."

"Excellent! Is there anything I can do for you?"

"That's fine! I just want you to know that I'd appreciate it if you remember me for your next plumbing project - and, if a friend of yours has a plumbing project, I 'd be really grateful for the referral. Have a great week/weekend...."

What does this do?

1. It brings you to the attention of past clients, especially clients with whom you didn't have direct contact in the past.
2. It reminds the client that you accept referrals - possibly bringing you to the attention of other homeowners without having contacted them.

No guarantee of success, but when you are doing nothing through lack of work, doing this is better than doing nothing.

[huggytree]

i could start a database from this point forward with names and addresses...and send them fliers or post cards.... i wouldnt hand write them like i do for the builders....but i could do mailing labels

i have a friend who does this with his cabinet business...he also asks for e-mails (which i wouldnt do)

this is an idea i probably should have done years ago....i think of it once in a while

thoughts?

[greenoak]

that sounds pretty doable.and very worth it.... hopefully they all have a magnet with your name on it somewhere already..... like on their waterheater...

[Spider]

I think a database would be great. Obviously, the fliers and postcards would say different things than what you say to builders, and not be as frequent - a builder could use you every month or so, a homeowners wouldn't need a plumber once a year or more. So, you could send a greeting card every 6 months to past homeowner clients - Happy Thanksgiving and Happy Easter, for example.

What about this? - Have your database include the work you did, so each communication (flier, card) could be "mail-merged" with a reminder, like "Thank you for letting us [work on your kitchen extension] or [install your new water heater]," and so on.

The reason for that is - not only to personalize the message - but because people move and your messages will soon be read by the new homeowner who is not familiar with the work you did. This way, your personal contact passes to the new homeowner.

Then add, "Please call to make an appointment to receive your free annual inspection," and a few words explaining why an annual inspection of plumbing systems is advisable. I'll bet you get a few calls for that, especially from the new homeowner, who doesn't really know the condition of the plumbing system in his recently-purchased house. An inspection shouldn't take you long, and that visit will make you "their plumber" for all future needs.

Yes, you can do so much with a well-designed database.


PS - you might want to talk to Bill (billbenson) about databases.

[huggytree]

that sounds pretty doable.and very worth it.... hopefully they all have a magnet with your name on it somewhere already..... like on their waterheater...



every customer gets (2) cards (1) magnet and (2) stickers(one on the waterheater and one somewhere else downstairs)

i use stickers as a badge of quality...i put a sticker on whatever i worked on.....and the waterheater(no matter who worked on it)

i also give the customer a short speech about how i appreciate any referrals and how my business is 95% referrals




Frederick: the post card for homeowner idea would be a 2x a year thing.....i do the builder fliers 3x a year....maybe i should up it to 12x a year eh? im going to be doing it again this week while its slow

[Spider]

Hmmm - I think the 12 times a year - once a month - would be excessive. I wouldn't expect you to get many more builder calls and, of course, it will cost you more. I cannot imagine that more than every 3 months would increase the response. But a test - every month for the next 6 months - might prove it beneficial, especially as you have the time on your hands to do it right now.

If you want to expand into the commercial space without going major construction, have you tried courting property managers? Some property managers concentrate on managing rental houses and some are onsite at apartment complexes. Then there are property managers who work on or for office buildings and factories. They all have bathrooms and kitchens and some have water supply and waste associated with production facilities. (You may want to avoid the latter, if that gets you more involved than you would like.)

[huggytree]

I built a 2 story barn last year for my business....im fully stocked....the whole first floor is full of materials...probably $20,000 worth.....the 2nd floor is somewhat open still...i keep fixtures/faucets up there and some personal stuff

i built the barn with the idea of being able to handle a 5-6 man shop.....i dont want to relocate

i will be working on new fliers this week for getting some new builders...ive sent the same one out this year 2x now and will be sending it out a 3rd time this next week.
im going to try to get 3 versions made so i can alternate every month...each one with a different theme

if im going to do it monthly i wont be able to hand write the address on them....i wont have the time and its actually painful to write 300+ envelopes.....or maybe ill force the wife to do it as a hobby....i have paid a friend to do them for $200 in the past when ive been too busy

anyone think if i switch from hand addressing them to labels if i will lose some of the impact? i think probably

is every month over kill? i dont think so.......these people have been getting 3-4 fliers a year for 5 years...they all know i exist

3-4 years ago i called each of them and found out who the contacts were.....some of those contacts may be fires/quit by now...i need to call each of them and find out..i may be writing to a bunch of these builders to someone who isnt there anymore...

i also may switch my sales to make myself look small(like i am)....i wont get any large builders, but they dont want me anyways...one issue w/ being small is they are aftaid i cant handle their work load or what happens when i get injured(which i never have)