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| Ek's Home | Forum | Chat | Electrical Links | |
| Subject - Directions to take business | |
| SR Scott |
We recently lost a larger contractor of ours, about 17% of last years' billings. If you had asked whom I would have liked to have lost a month ago, his company would be the first one. Decency keeps me from expressing my true feelings regarding the owner, but suffice to say he's a jerk. Normally you'd want to phase someone of his size out over the span of a year or so, but that's not an option. The fact of the matter is that upon review, he actually took up about 22% of our time and talent, so his replacement should be more profitable. Nevertheless, he needs to be replaced. I'm sure that others of you out there have been faced with similair situations or circumstances and am throwing it out for discussion. We're a five man company (four in the field and me doing sales, administrative, etc.)for 6 and 1/2 years and have survived worse, but it stings. The last thing I would want to do is get desperate so thought perhaps more input from others might be valuable. Some things we're considering are: direct to customer lighting fixture sales, more data services and of course finding another contractor. We do remodeling, custom homes and commercial build-outs. My crew is really a long term, worthwhile bunch and I feel its worth the stress of finding more work for them, they've always served me well. Your suggestions would be appreciated. Thanks, Scott |
| wilkie | The best place to look for work immediately is in your customer files. Plan to call ten customers a day, simply ask how they have adjusted to living in their new home and thank them for using you previously. You will be amazed at the amount of work that pours in. If you did not get homeowner info when you finaled the house, generate the same message in a door hanger(they are extremely inexpensive). All of your out of pocket expense should be directed at previous clients as your closure or ROI will be exponentially higher as they already know you and have a favorable impression. Secondly, make sure to ask every client you are currently in front of from here on out a predetermined question. Meaning formulate a way to increase your average ticket. Example: Would you be interested in hearing about the savings we offer our customers on whole house surge protection while we are already here doing work? Or something of that nature. Sell more add-ons by stressing the savings. There are many potential extras you could promote to increase your average ticket. FYI, you spoke of raising your profit margins on the next contractor- why not replace some of that lost revenue in this manner. You see, any extra amount you increase your average ticket is extremely more profitable. If you can increase the "gravy" aspects to what you are already doing, you might not even need to add another "jerk". After all, aren't most general contractors a brankruptcy waiting to happen? All in favor? All opposed? |
| MONOLITH | quote: Of everyone on this board, I've probably been in business for myself the shortest amount of time, but I will add what is working for me. 1. Wilkie is right about making a connection with previous clients. A simple mailed flyer to each previous client, with something along the lines of 'thank you for being a valued customer' and offering some type of discount for any future work, can 'nudge' people into thinking, "yeah, I've been meaning to call that guy". 2. Some of the more established guys here might think I'm nuts, but I did a lot of direct mailing. I printed up a very professional looking flyer, company logo on top, color print, with a brief description of my company, my history and abilities, and what services I offered. I literally bought a 37 cent stamp for each one, and mailed them right to every home in my neighborhood. It has brought me in a lot of work. And some of those homes belonged to builders and home remodelers, and they started calling me too. And the best part, those homeowners put that flyer in the drawer in the kitchen, and the next time a breaker trips, they are not going to look in the yellow pages, they are going to pull out my flyer. All in all, it cost me about 50 cents per flyer/house. So, $250 for every 500 houses. But it more than pays for itself. And isn't $250 worth it to get 500 people to call you instead of looking in the yellow pages for your competition? My flyers have literally made those big $$$ yellow book ads my competition is paying for nearly worthless, at least in my area. Just some thoughts. That's what has been working for me. |
| kbsparky | This falls under "name recognition" -- when someone is looking for an electrician, they tend to call someone that they have "heard of before"  Something as subtle as seeing your work truck around town, for example, if they recognize the name in the phone book, you're more likely to get called than the other guy who runs around in a plain van without logos on it. Your idea with the brochures is a good one, it puts your company at the forefront of the minds of the customer. One thing we do is apply a sticker with our business information on the panel box of all customers we visit. I inform them that I'm putting the sticker there, so they can find my number in the future. Too often, they will lose my business card, but that sticker remains a permanent fixture in the panel. 
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| aline | I like the fridge magnets. My fridge is covered with them holding up my kids artwork. They come in handy when I want to order a pizza. I just look on the fridge and there's the number to the pizza place. Wouldn't it be nice to have your number up there also. Maybe one that lights up when the power goes out so they can see who to call. I know the HVAC people have the talking thermostat than tells the customer who to call when its time for service. Maybe we need the talking breaker that tells the customer who to call when it trips or the talking GFCI receptacle.
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| SR Scott | Thanks for all the ideas so far and taking the time to comment. Your views all seem pointed in the same direction we want to go; upwards. The mailing is a pretty opportune idea because we just moved our office. We have magnets and that's worked out well, folks have said they'd lost my card but had the magnet on the fridge or filing cabinet. We just purchased stickers for brochures and panels, hope that works as well. Offering fixtures is a way we're trying to increase tickets and we'll have to come up with some other ways to make money while we're already there. I know we've passed up lots of money there before, because when your serving contractors, the catch 22 is there's alot of work and your in a hurry. In retrospect I know our "hurry up days" have left tons of money on the table. I've been involved in other forums but really have been impressed by the professionalism, sharing of ideas and structure here. What a pleasant surprise . Thanks again, great ideas so far. Regards, Scott |
| John A. Peters | Scott called me and asked "What happened to Sparky's Board, It seems to have died" I was happy to tell him about our forum here. Welcome here Scott. I wonder if someone might like to leave note over there with Mister Sparky, inviting any one else to come visit us here. Let's invite Patrick Kennedy to join us also. He is the one who had the idea to send out a mailer to over 300 electrical contractors. That took a fiew stamps. This was before he joined ESI. Without him I would not be here. Let's say some thing good to him. |
| wilkie | SRSCOTT, Another opportunity you might want to explore is service agreements. |
| SR Scott | Thanks all for your suggestions, lots of meaningful stuff. Helped get me motivated, been reading alot of posts, both recent and past and a great forum! Just decided to track my replacement efforts (of the large contractor we just lost) by marking all the new customer files we initiate a little differently. Already started six new ones in last couple days, some could be substantial. Have made some cold and warm calls(warm meaning we did work for in past but haven't seen for a few years)calls. Not fun but it will be fruitful. Thanks, helped get me out of a rut. Sincerely, Scott. |
| kbsparky | quote: I was one of those he invited. I wonder where he got our names from (license mailing list, or magazine subscriptions) 
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| Wirenutz | quote: yeah, i'm one of those that recieved a letter, wondered what happened to him, love to see him here ~W~ |
| John A. Peters | I assumed he just looked in the phone books for various citys. |
| Wirenutz | no doubt i was random yes.... |