my builders partner keeps wanting to bring in a competitor

[orion_joel]

Great work Huggy, Hard work often does pay off in the end.

[KristineS]

Good for you. Staying true to your goals and plan paid off.

[huggytree]

latest update on this one..

this builder is 'green' and i had a customer 1 month ago who wanted to do a whole house remodel...she loved me and said i WILL be doing the plumbing no matter who the contractor is..i recommended the 'green' builder...and this week he got the call...its potentially $100,000+ of work for him...5 bathroom house...he's in the bidding phase...i told him he owes me a $100 steak dinner if he wins....whether he gets the job or not ive just made myself more than just his plumber....i find him leads...high end leads...

the last guy i got a good lead for dumped me over price..it was only a $15,000 bath remodel, but i am still angry with him....some people appreciate it some dont...

[orion_joel]

This is really what mutually beneficial business is all about. Sometimes it is hard to compare if you are giving or getting more, but often things find their way of working to that both parties end up happy.

[dynocat]

A few comments from a newbie (not to business, but to this forum). If I'm out of line, feel free to ignore me.

In your posts, huggy, I see a lot of emphasis on expensive dinners, Christmas cards and gifts. (The word, "groveling," comes to mind.) While those are all great ways to show your appreciation to customers, who support your business, I really think the emphasis should be on your quality work, excellent products and efficient service. IMO, most customers will judge you by those things. A friendly personality doesn't hurt either and it sounds like you already have that.

I also agree that none of us should feel the need to apologize for what we charge. We are worth it and it shows in the work we do. The customer will see it and appreciate it.

I understand the idea of giving potential customers a deal too good to pass up. I've been guilty of that a time or two myself. What I've learned though is that most customers--even those who ask for a discount--don't necessarily expect to get it. There's nothing wrong with their asking. At the same time, there's nothing wrong with you saying that, although you would like to, it's not possible. That's when you have the chance to mention your high standards and happy past customers.

My 2 cents, for what it's worth.

[huggytree]

i treat my customers well...expensive dinners when they do something nice for me..yes!

i cut a wire which was hidden behind one of my pipes in a spot with 40 wires around it...i had to lay on my stomach and reach in a dark hole to work on my plumbing...anyways i cut the wire and took out the power for 1/2 the house for 4 days (that same power was just out for 2 weeks and finally back on the day before)...i sent the homeowner a $100 gift card for an expensive restaurant...i saw her today..she ran up the stairs to say hi and asked for business cards(i thought of joking with her and say "that was my kids christmas money i gave you")....those expensive gifts work well...i made very good money on the project and was thrilled to know a $100 meal made her forget about the problem and only remember how nice i was..

i just took out another contractor to breakfast today...he has gotten me many decent projects lately...nice guy, were friends...when i went to pay for the meal i saw they had cookies for sale...i bought 8 large ones that a kid would like and gave it to him as we left....$4 for those stupid cookies got me the biggest smile(we both have little kids the same age)...he's really into his son.....got a call tonight from the wife saying how nice i am and also his son went on the phone to thank me.....

giving gifts to reward people who give you business is the smartest idea....i do it often....it strenghtens the relationship....especially when i take their whole family out and get to know their wifes and kids....i want them to feel like their cheating on their wives when they use another plumber.....i feel i have that with atleast 50% of them...

doing great work is obviously the MOST important thing i can do to keep customers, but every customer likes alittle gift or meal once in a while....were talking $1,000ish a year vs $308,000 in business last year....its .3% spent on meals/entertainment....its an unbelievable bargain what i get for that .3%...plus i enjoy the meals also!...so does the wife..she likes to meet the people i talk about when i go on and on about my work day.

obviously im insecure about that with the customer in this post...i dont know why since he is the one i am closest to....something i need to reflect on...hmmmm

[huggytree]

dynocat-no one offends me or is out of line..i want your idea's!...

maybe i dont know the meaning of groveling.....isnt meals out just a typical sales technique? im just trying to be closer to my customers...make them friends and have a customer for life!


my old boss used to give christmas gifts to his customers...i got christmas gifts from my sales reps at the supply houses i use....

the christmas card idea was fantastic...they all talked to me about it...one of them i saw sitting in an important place at a builders house....it might have been a joke, but i dont think so!....they like my wholesome family...

i will always send out christmas cards from now on and strongly recommend it to everyone....it really does something and its just a nice thing to do!..win,win

the christmas gifts i reserve for the top customers...i really only gave 1 real gift, but did do a few 'free labor' jobs also...

[vangogh]

huggy I think offering the gift cards are a good idea. I can understand where dynocat is coming from though. I'm guessing you probably don't need to give those cards to everyone, but given the nature of your work I suspect $100 isn't exactly a large amount compared to one new job. The cards seem to strengthen your relationship with your customers and lead to more work.

In the end it's really an inexpensive form of marketing.

[orion_joel]

I think the idea of wining and dining clients, is really something that is in the eye of the beholder. It is also something that works for some and not for others, and is really a hard thing to judge.

For some it is seen as a trick and a bad way to do business, while others see it as gold. I would agree that if you operate your business in a professional manner, and provide good quality work, it may not be something that is needed, but at the same time you can also be 100% sure that it is what sets you apart. So many business books that i have read suggest exactly this, and getting to know your customers families and such is also important.

Every little bit helps and knowing this can be the key to the success that you are achieving. The main thing to remember is that if it is working for you don't stop it. You could be in an industry and be the only one that does this wine and dine, or greeting cards or any of the things you do, and that is your key to the success. your competitors may see it as a dirty trick, however that should not be your problem.

[Steve B]

"i want them to feel like their cheating on their wives when they use another plumber.....i feel i have that with atleast 50% of them..." What a great way to look at it.

It sounds like giving nice gifts is worth every penny for you HT. I like to hear real life examples of what works and doesn't work! So much advice that I hear and read seems to be from people quoting theory. Then, other people read their books or articles and re-quote the same theories.