How to beat the competition - 1 ... by Ken Fenner

[Beth n Rod 1,279]

How To Beat The Competition 1

I am going to do a series of articles here on TGS based upon what I have learned from various marketing gurus, my personal experience in the corporate and business world and what I have read from various contractors. This first article wil be an overview and the next few articles will dive more into details. The only thing you need to bring is an open, coachable mind.

Every business owner faces the same dilemmas.

• How do I keep that phone ringing?

• How can I hire help when I am not even sure I can keep myself busy?

• Where can I spend the least amount of money and get the best return?

SELLING ON PRICE

If anyone is from the same school of thought as I, then they understand that price is only one variable in the selling of service. It is a slippery slope to start undercutting and seling on price. Here are some things I have read on here and various BBS's.

"If you tried to get those prices down here, you'd get laughed at."

"All people are interested in around here is the price"

"Those HOA's.. it's always just about price"

"I'm competing against guys that advertise $99 house washes, what am I supposed to do?"

"The Yellow Pages suck, it's just a bunch of cheap people calling for the best price"

These are alll valid concerns but to a large degree, they are all false. Sure, people consider price when making a decision but not merely in the way you may think. The largest budget consideration for a consumer is not whether or not you are the most expensive, it's whether or not they think they can afford the service. Their answer is always "no". You're answer should be "you can't afford not to". More on selling the value of a service later.

If you are skimming this article, read this next line and paragraph a couple of times.

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People shop on price because they do not know what else to base their decision upon.

It is your responsibility through marketing and sales to educate the public. People want to be sold. They don't want to be pressured, but people get high from buying goods or a service. I can tell you from the experience of being the highest guy in my marketplace that if you take the time to educate a person as to what they should be looking for, you will get the sale. Increased sales at higher profit margins means more advertising money to hinder your competition.

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I have heard this statement made and it's very accurate.

"If you want to see what, where and why Joe Smith buys, see the world through Joe Smith's eyes"

Joe Smith knows not to trust contractors. Joe Smith knows that the job he gets will probably be mediocre. Joe Smith knows that regardless of the price he is going to be ripped off. Why the hell would Joe Smith want to pay me top dollar when he knows all of these things? Is it because I am a better washer? No. What I am better at is making my customer feel at ease with his purchase and delivering on everything I promise.

Mr. John Smith, do you want:

• Your initial call returned within 12 hours?

• A clean cut person in company logo'd gear to come to your home for the estimate?

• A company representative that will listen and make suggestions based upon a detailed exterior evaluation of your property?

• The presentation of professionally designed literature that outlines services along with a full portfolio of before and after exterior restoration pictures?

• Toll Free numbers with automated extensions, direct cell numbers, logo'd trucks, the right equipment to start and complete the job, polite employees that speak clear English and wear ID badges?

• A company with a customer database that allows monthly follow up with newsletters letting you know what's going on with that company, local laws governing washing your car and a discount coupon for being a loyal customer?

These things cost Mr Homeowner and he knows it. If you are targeting a higher income demographic like I have seen many people suggest, these are the things he is looking for and is willing to pay a reasonable premium for. He sleeps well at night knowing the few extra dollars he is spending on my service means far less aggravation in the future.

Some old timers or newbies that insist it's still about price and will continue to sell based upon fear of learning and implementing new ideas may eventually stagnate, shrink then disappear. Think of any large company with which you have done business.. How many of those companies /stores /contractors (that sold unique products) did you give repeat business to? Were your decisions based solely on price?

Do you drink the soda that comes in three liter bottles for 49 cents? Do you buy the least expensive paint knowing it could (and probably will) look like crap? Would you hire a homeless guy that stands at the mini mart near your home to cut your lawn or paint your fence? Why not? He is cheapest. How about that doctor that went to Upstairs University as opposed to the guy from Johns Hopkin's? Will you let him operate on your kid if he offers a better rate?

A home is a person's largest expense in the course of their entire lifetime. New roofs cost $12,000. New Flagstone patios cost $8,000. New decks go for maybe $10,000. An exterior painting can set you back $3,000+. Everyone reading this that owns a home pays these prices. Why on earth would you sell yourself short and offer $150 whole house washes with gutter scrubbing? What makes you think that someone wants to hire a hack (which, until you educate them, is the way you are perceived) to possibly damage what they have worked so hard for? Educate..remove their fear and apprehensions..make yourself different!

Your goal is to make the customer believe that he would be CRAZY to hire anyone else. That he he will have absolutely no issue with work performed, your honesty or your business integrity.

My hope is that this message has reached one person. If you still doubt the validity of what I wrote I will list for you single crew service businesses doing $500k per year in Florida, Texas, and Arizona.

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Ken Fenner