Wednesday, December 31, 2014

Assume the Prospect is Buying

 

Sometimes people make sales too hard.  Sometimes all you need to do is assume the prospect is buying and proceed.

Think about it.  Only masochists enjoy entertaining multiple sales presentations.  Sure, there are a few masochists out there, but most people really want to buy from you and get it over with.

Sales great, Charlie Greer explained that people want to buy.  The reason they call you is they are hoping that you will solve their problems.  So do your job.

Some people are not great decision makers.  They want someone to make the decisions for them, even the salesperson.  If you are in the role of a consultative salesperson, making the best decisions for the customer is entirely appropriate.

Assume the prospect is buying and proceed.  Do not ask the prospect to sign.  Tell the prospect you need a signature so you can proceed with the next step (e.g., schedule the crew, order the equipment, pull the permits, whatever).

You might be surprised how many people will do exactly what you instruct.  It’s what the prospect wants.  If not, he or she will stop you or refuse, which is valuable too.  It gives you an opportunity to unearth the reason for not proceeding.  Solve it or address it and move forward.

This is called the assumptive close.  Try it.

©2014 Matt Michel

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Monday, December 1, 2014

Networking is Mandatory

If you (or someone in your company) is not networking, then your business is not very important to you.  After all, personal networking is very important to your business.

Zig Ziglar once said, “If people like you they’ll listen to you, but if they trust you they’ll do business with you.”

How do you get people to trust you?  You build a relationship with them, which can only be done by personal interaction (i.e., networking).  Get involved in your community with centers of influence.  This builds trust, which results in business and referrals.  While all referrals are good, those from centers of influence are best because they occur more frequently.

Andrew Twidwell, owner of ABT Plumbing, Electric, Heating & Air Conditioning in Grass Valley, CA and Auburn, CA talks about the power of networking…

I joined our local Rotary club back in 2008. In the years since I've been able to turn more than 3/4 of them into returning clients.  Our club has 92 members.  So was it worth spending an hour every Wednesday having breakfast with these folk?  More than you can imagine.  I went into Rotary to help build my business, it did that and so much more.  I've been sucked into an organization that does so many incredible things both locally and internationally.

By the way, yesterday was my first day as President of Nevada City 49'er Breakfast Club.  The things I've gotten from Rotary are, business, friends, leadership skills, and the honor of helping do good deeds both locally and internationally.

The best networkers are involved in multiple organizations.  Twidwell added, “By the way, I'm personally a BNI member and have one of my plumbers active in another BNI group.  It’s another great organization.”

Steve Lauten, president of Total Air in Plano, TX said, “I've been in Rotary for 25 years. The relationships I've developed over that time has allowed our company to survive some big downturns in the economy and helped us build a referral driven business along with BNI.  In addition I believe in putting ‘Service Above Self.’”

For non-Rotarians, “Service Above Self” is the Rotary motto.  It is this commitment to community service leadership that helps build trust among club members.  Rotary and other service clubs expect their members to work.  If that’s not you; if your only interest is referral and lead generation, you will probably not last long in a service club.  You will, however, find a home with BNI, LeTip, or Netweavers, which are primarily leads clubs.

Steve Wiggins of Quality Air Care in Waco, TX agrees.  He said, “Networking is key.  I've been in Rotary, BNI, and several others.  It works!”


As a company owner, networking should be a major part of your job.  Become one of your community’s centers of influence and your top and bottom lines will grow.  If networking is not part of your DNA, hire someone to be Mr. Outside to your Mr. Inside.  It’s too important to ignore.

CYBER MONDAY SPECIAL - Just for reading this blog, I want to offer you the opportunity to join Service Roundtable for just $10. Get marketing, real world mentoring and money back on things you already buy for just $10. Now through Dec 31.  Cyber Monday Deal

©2014 Matt Michel

Monday, November 3, 2014

What to Put On an Important Numbers Magnet

What to Put On an Important Numbers Magnet
                            
You want to create an important phone numbers magnet to earn some of that valuable refrigerator real estate, but are stumped on what numbers to use.  Never fear.  Here are a collection of national numbers and the local numbers you might want to use. 
                                                                  
There are more numbers than you could possibly use.  You will need to pick and choose. 


National Numbers
  • AKC Companion Animal Recovery - 800-252-7894
  • Animal and Pet Travel Resources
  • Airplanes/Airline Regulation - 800-545-USDA 
  • Center for Missing & Exploited Children - 800-843-5678
  • Lyme Disease National Hotline - 800-886-5963
  • National Battery Ingestion Hotline - 202-625-333
  • National Child Abuse Hotline - 800-422-4453
  • National Do Not Call Registry - 888-832-1222
  • National Domestic Violence Hotline - 800-799-7233
  • National Poison Control Center - 800-222-1222
  • National Runaway Hotline - 800-786-2929
  • National Sexual Assault Hotline - 800-656-HOPE
  • National Substance Abuse Hotline - 800-662-4357
  • National Suicide Prevention Hotline - 800-273-TALK
  • Pet Loss Support Hotline - 888-478-7574
  • Pet Spay Helpline - 800-248-SPAY
  • Reduce Unsolicited Credit Card Applications - 888-567-8688
  • Social Security Administration - 800-772-1213
  • Stolen Pet Hotline - 800-STOLEN-PET
  • Stop Unsolicited Junk Mail - 800-288-5865


Local Numbers

You will need to look these up for your community.  Some towns may not have all of them, but this gives you terms to search for.
  • Emergencies - 911
  • Animal Control
  • Cable Company
  • Child Protective Services
  • County Clerk
  • County Court
  • Crime Tip Line
  • Electric Utility
  • Fire Department
  • Gas Utility
  • Hospitals
  • Library
  • Main City Phone Number
  • Marriage License
  • Municipal Court
  • Municipal Water and Sewer Department
  • Newspaper
  • Parks & Recreation
  • Phone Company
  • Police Non-Emergency Number
  • Post Office
  • Public Schools
  • Public Transit/Transportation
  • Sheriff’s Office
  • SPCA
  • Suicide Crisis Hotline
  • Teen Crisis Hotline
  • Victim’s Assistance
  • Waste Removal Services
  • Water Department
  • Weather Forecast
  • Woman’s Shelter


Businesses for Cross Marketing

In addition to your company, you could partner with reputable local businesses with good customer bases and cross market the magnets.  Here are some businesses you might consider:
  • Air Conditioning 
  • Appliance
  • Carpet Cleaning
  • Electric
  • Flooring
  • Garage Door
  • Heating 
  • Home Health
  • House Cleaning
  • Landscaping
  • Lawn Maintenance
  • Lawn Treatment
  • Painting
  • Pest Control
  • Plumbing
  • Pool & Spa
  • Roofing
  • Solar
  • Tree Service

Write-In

You might leave space on a magnet for homeowners to add a few personal numbers.  Here are some ideas.
  • Auto Insurance
  •  Doctor
  •  Pediatrician
  •  Relative
  • Veterinarian


Themes

One option is to create important numbers magnets around a particular theme.  Specialization means greater investment, but also greater interest on the part of the right target.  Besides, magnets are relatively inexpensive.  Here are some examples of specialization.

  • Important Numbers for Babysitters
  • Important Numbers for New Homeowners
  • Important Numbers for New Parents
  • Important Numbers for Pet Owners

©2014 Matt Michel

Friday, September 26, 2014

How Everyone Wins With Service Agreements

How Everyone Wins With Service Agreements

Any business in the service and repair space should offer a service or maintenance agreement.  Correctly designed, a service agreement program is one of the biggest no-brainers around because everyone wins.  The customers win.  The employees win.  The Company wins.  Everyone wins.  Here’s how.


Defining a Service Agreement

First, let’s define a service agreement.  It is NOT an insurance program or extended warranty, similar to what the consumer electronics big box stores offer.  It is real maintenance work, discounted because it is pre-purchased and scheduled during slow periods.  For this reason, many service companies seek any name for their program other than “service agreement.”  It can be a maintenance agreement, a protection plan, a savings agreement, etc.


How Customers Win

Service agreements are a deal for customers.  Here are five ways they win.

1.    Service Agreement Customers Get Needed Preventative Maintenance

Maybe the biggest benefit is it encourages them to get beneficial maintenance work performed, which is too easy to overlook year after year until something breaks. The prevention of product failure is only the least of it.  Good maintenance extends the life of mechanical equipment.  Because the efficiency of mechanical equipment tends to degrade over time, maintenance restores lost efficiency, which is a serious benefit given today’s energy prices.

2.    Service Agreement Customers Keep Warranties Valid

For recently purchased products, manufacturers may require maintenance to keep longer term warranties valid.  These clauses are found in warranty fine print and overlooked until they jump up and bite you.  A service agreement ensures compliance.

3.    Service Agreement Customers Pay Less

Consumers can get maintenance performed a la carte.  However, they will pay more.  Work performed under a service agreement is discounted so customers pay less.

4.    Service Agreement Customers Receive Discounts

Service agreement customers are also treated better.  Typically, they receive direct discounts on repairs of 15% or more.  In addition, some companies reduce the price for after-hours emergency service for service agreement customers, waive response charges, and so on.

5.    Service Agreement Customers Get Better Service

Since service companies view service agreement customers as their best customers, they treat them better.  Their demand service calls move up in priority over non-service agreement customers.  Faster is better.


How Employees Win

Company employees are also big winners with service agreements.  Here are three ways employees win.

1.    Employees Get Work During Slack Times

Because maintenance work can be scheduled at the company’s convenience, it’s usually performed during seasonal slowdowns or other periods of slack demand.  This means hourly employees have work to do and are not sent home.

2.    Employees Can Earn Extra Money

Since selling or extending a service agreement results in a monetary spiff, company employees can earn extra money.  This includes field service personnel and customer service representatives.  The spiffs may not be large, but they add up.

3.    Employees Get To Do What’s Right For Customer

Since work under service agreements are performed during periods of light demand, there is less pressure to hurry through the work because other people are backed up.  Service personnel and take the time to be thorough and do the job right.


How Companies Win

Companies also win with service agreements.  Here are four ways.

1.    Companies With Service Agreements Enjoy Greater Cash Flow

Since service agreements are prepaid or paid on a monthly basis, they help companies with cash flow.  Companies with service agreements start the week, month, quarter, and year with guaranteed business already paid for.

2.    Companies With Service Agreements Retain Employees

Because service agreements means added work during slack times, companies keep their people busy.  Busy people are less likely to look elsewhere for a paycheck.

3.    Companies With Service Agreements Strengthen Customer Relationships

Some people claim that the only true customer a service company has is a service agreement customer.  All other customers become prospects at large the second the service truck hits the road.  In fact, there’s empirical research to support this.  Even when making significant purchases like heating and air conditioning systems, consumers are apt to forget the name of the installing company within two years of the purchase unless there’s a service agreement in place.  A service agreement means there is an ongoing relationship.

4.    Companies With Service Agreements Increase Their Value

Companies with lots of service agreements sell for more than companies without service agreements.  This is because a customer list with service agreements is a customer list with relationships.  A customer list without them is like a mail list that can be purchased for ten cents a name. 

Without question, service agreements benefit customers, employees, and the company.  They are a triple win, a slam dunk, a no-brainer, and as sure of a sure thing as you can get in the world of service.  In the next Comanche, I’ll explain how you can create a service agreement program and achieve buy-in.

© 2014 Matt Michel


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Monday, August 25, 2014

Thermal Imaging for Every Toolbox


Twenty years ago, I used a $20,000 infrared camera to demonstrate cold air technology.  Flir just announced an iPhone infrared accessory for $349.  This changes everything.

Infrared visually shows temperature differences.  It’s been used for years to identify insulation programs, help track down roof leaks, and identify electrical components about to fail (they heat up when approaching failure).  At $349, this should be added to every residential service person’s toolbox.  It will allow service personnel to troubleshoot faster, prevent breakdowns, provided added credibility by presenting visual proof of issues, and ultimately boost average tickets.


How Plumbers Can Use Thermal Imaging

·        Check water heater sediment build up
·        Detect water heater insulation problems
·        Identify potential water heater leaks before they occur by detecting temperature differences
·        Find slab leaks
·        Identify water pipe locations behind walls
·        Detect stoppage locations in pipes
·        Pinpoint piping and plumbing leaks that may not be visible to the eye
·        Find water damage that’s not yet visible
·        Detect moisture damage behind tiles


How Electricians Can Use Thermal Imaging

·        Identify electrical components that are about to fail and get hotter
·        Detect overheating outlets and light switches
·        Find wiring defects
·        Find electrical shorts


How HVAC Technicians Can Use Thermal Imaging

·        Find duct leaks
·        Pinpoint coil leaks
·        Identify electrical components nearing failure, before they fail
·        Check diffuser throw with the help of a screen held perpendicular to the diffuser
·        Identify points of air infiltration from poorly sealed doors, windows, and other penetrations of the building envelope
·        Detect when gas insulated windows have lost their seal
·        Identify insulation problems resulting from water damage, settling, or simply from new construction mistakes
·        Find cold air drafts


Check out a simulator of the product HERE.  Buy the product for $349 HERE.

Sunday, July 20, 2014

Maintaining Truck Wraps

You pulled the trigger and wrapped your trucks.  They look great.  People are already commenting on them.  Follow these seven steps to keep them looking great.


·       Wash with mild detergents

Use a mild detergent when washing your truck.  Make sure the detergent does not cause bleaching.


·       No brushes

Do not go through a brush car wash.  Do not wash by hand with a brush or abrasive sponge.  This will damage the wrap. 

If you want to use a car wash, go through a brushless car wash.  When washing by hand, use a soft sponge or cloth.


·       No ice scrapers or heated windows

If your wrap includes vinyl over windows, do not use an ice scraper during the winter.  Also do not use an electric defroster.  The heat from the defroster might cause the vinyl to lift.


·       No pressure washes

This is a good way to remove your wrap.  Do not use a pressure wash.   Never.  Never, ever.


·       Use an approved silicone or teflon polish

Be careful with waxes, especially any with a petroleum distillate.  Use a silicone or Teflon polish recommended by the wrap company.


·       Cover when left outside for any length of time

If you are going to leave your vehicle parked outside for an extended period of time, cover it to prevent UV breakdown. 



·       Avoid parking under trees

As much as possible, avoid parking under trees or wires where birds congregate.  If you spot tree sap or bird droppings on your wrap, clean the spot immediately with a citrus cleaner, followed by washing it with water.

For more great ideas, go to our Facebook Page to see truck designs from all over the world. 

Plus, join Service Roundtable today and I'll give you your first month for only $9.95! Enter promo code cmelec10 .  www.ServiceRoundtable.com


Thursday, July 3, 2014

‘Dis One, ‘Dis All


An air conditioning contractor in my market loves to call out other contractors and contractor practices in his advertising.  This doesn’t build him up.  It tears everyone down.

Contractors have enough image problems without beating each other up.  The contractor apparently believes people will see every contractor as deceptive, except for him.  He’s right, except for the exclusion.  He gets lumped in with every other contractor. 

It’s like claiming all Pit Bulls are dangerous, except for our Pit Bull, Fluffy.  It just doesn't work that way.  If the breed is bad, then every dog in the breed is bad.  Give the dog time and the aggression will reveal itself.

By mocking other contractors (e.g., calling one folksy contractor, “Dewey Cheatem”), criticizing industry practices like technicians selling, low priced response charges, etc., the contractor creates a perception of common dishonesty within the trade.  Most consumers are not versed enough into the trade’s nuances to pick up his specific criticisms.  Instead, they just get a sense that contractors are deceptive.

Moreover, the sender of messages like this repulses people.  Clearly, not everyone is repulsed or the contractor would be out of business.  However, I’m willing to bet that he turns off more people than he imagines.  Since he appears to use co-op because of his frequent mention of a particular manufacturer, he probably hurts the manufacturer’s sales.


There are ways to build a contrast with the competition without rolling in the mud.  Make positive statements about your company.  Create a unique, distinctive, and meaningful position you can own and defend.  Build yourself up without tearing down the industry that supports you.

Matt Michel © 2014

Thursday, June 19, 2014

Boomerang Generation Creating Pent-Up Housing Demand


Will housing return to the boom times of the past?  Not until the 18-34 year olds who live at home move out, according to a Deutsche Bank Research report.  One in three live with their parents.  In the meantime, contractors are better served by building up their service business.



Monday, June 2, 2014

Do You Have a Swipe File?

Every now and then, ideas dry up.  You need to create a marketing piece, but you’re blank.  It’s time to open the swipe file.

A swipe file is a collection of other people’s marketing.  The marketing may or may not be from your industry.  It is probably preferable that it is not. 

Swipe file material can take the form of direct marketing, magazine ads, newspaper ads, social media coupons, etc.  Every piece in a swipe file bears one common trait.  Something about the piece intrigued you enough to cut or print it, and save it.

When you start a swipe file, you become a student of the craft.  You start looking at other people’s marketing for ideas you can use in your marketing.


What to Swipe

What do you look for in a piece for your swipe file?  Try the following.

·        Attention Grabbers – What gives you pause so that you take a second look?  Is it a headline?  Is it the graphic design?  Is it a picture?

·        Calls to Action – What are the calls to action that companies make?  Which ones seem compelling?  Almost all marketing should carry a call to action, yet it is surprising how often one is missing.  When you come across interesting ones, they should definitely be saved for your swipe file.

·        Novel Promotions – Are there promotional ideas that can be spun into a version that will work for your business?  Don’t simply look for sales.  Look for bundles, affinity marketing, and other promotions.

·        Seasonal Messages – Look for holiday or seasonal marketing that you could use next year.

·        Information Presentation – Is there a way of presenting complex information that you find attractive or easy to understand?  This is especially true for financial information or engineering data.

·        Design – Does the overall design for the piece look compelling?  Why?  What do you like about it?  Could you replicate it or design something similar?



Age of Material

A good swipe file item never wears out.  I’ve used concepts from 20 year old print ad campaigns for a direct marketing effort.  Some things must be modernized, but a good concept a decade ago is still a good concept today.


Graphic Design Books

To kick start a swipe file, visit a Barnes & Noble or Half Price Books and look at the graphic design books.  You will find huge volumes filled with old advertising campaigns.  These are used by graphic designers and advertising copywriter to stimulate their creative juices.


Not Just For Marketers

Swipe files are a tool of any businessperson who interacts with the marketing function.  Even if you do not create marketing, a swipe file gives you a way to communicate to your marketer what you do want.


So what are you waiting for?  Get started.

©2014 Matt Michel

Thursday, May 15, 2014

A Branding Story

If you build a better mousetrap will the world make a beaten path to your door?  No, but a few engineers might show up.


Branding and Goalie Gloves

On Sundays, I play goalie on a geriatric soccer team.  Last Sunday my gloves ripped.  The most important piece of equipment for a goalie is gloves.  I needed new goalie gloves and I needed them before the next game.

Within a five mile radius, we’ve got a couple of Academy Sports, a Dick’s Sporting Goods, a Sports Authority, and several other stores that carry goalie gloves.  I picked Soccer City, a local soccer specialty store. 

When I walked in the store I was greeted by “Soccer Ali,” the owner.  I told Ali that I need a pair of size 11 keeper gloves.  He started pulling gloves from behind the counter.  The first pair he handed me was a brand I never heard of, but the latex was thick and it was the right kind of latex (the most important part of a goalie glove is the latex). 

The glove had side vents along the fingers.  Finger vents may not matter in Europe and other cold weather locations.  In Texas, where we occasionally play 90+ degree weather, finger vents are a nice feature.

There are two types of wrist bands on goalie gloves.  One is split, making it easier to get the gloves on or off, with a Velcro wrap.  The other consists of an elastic band with a Velcro wrap.  The elastic band makes the gloves harder to get on or off, but reduces the possibility the gloves will rip.  The pros prefer the split, but they’re provided with a new pair every game.  Since I pay for mine, I try to get several seasons out of a pair of gloves.

The bottom line was that I liked the gloves and probably would have purchased them without further consideration if they cost more.  Cost more?  Yes, they were too affordable.  It made me suspicious.  I expected to pay about 50% more.

Ali handed me a pair of Adidas Predator gloves, which are the standard in goalie gloves.  I tried them on and pointed at the pair I just tried on, commenting, “Those are better gloves.”

“Exactly,” said Ali.  “These kids come in and all they want is a brand name, but a real goalie can tell what’s important and these are much better.  The latex is thicker.  They are much better.”

Clearly, Ali was in sales mode.  However, he was right that the first pair was better.  I picked up the Uhlsport gloves, which were also good but lacked the finger vents and had the split wrist band.  My last pair that just ripped was Uhlsport.

Ali asked if I wanted to try Reusch, adding that they weren’t as good as Uhlsport.  I shook my head as I considered the Uhlsport and the first pair.  “Try these this time,” said Ali pointing to the first pair.  “If you don’t like them, you can buy Uhlsport next time.”

I bought the first pair.  Having bought them, I still can’t tell you the brand.


Lessons

There are several lessons about branding in this story. 

1.    Brand is more important to people who lack a basis for comparison.  Ali mentioned how kids preferred Adidas despite being inferior and more expensive than that gloves I bought.

2.   The most important brand decision was the first, selecting Soccer City.  Where I bought ultimately influenced what I bought.

3.   Brand doesn’t matter with a good salesperson.  Ali probably could have swayed me to buy any brand he carried.  I previously bought Uhlsport gloves because one of his salespeople recommended them.

4.    Like brand, price can be a signal of quality.  Because they were so affordable, I was suspicious of the first pair of gloves I tried, though they were clearly better quality than more expensive gloves.

5.    When buyers focus on the specifications, the importance of brands lessens.  If a knowledgeable buyer wants a brand, it’s not because of the brand.  It’s because of the specs.  Think of selling to engineers who had time to conduct research over the Internet.  I know.  It’s not a pleasant thought.


©2014 Matt Michel

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Thursday, March 14, 2013

Mobile Apps I Depend Upon



A few years ago, we didn’t know what they were.  Now, we can’t live without them. Without what?  Apps.  The mobile apps we use on our smart phones and tablet computers.

Here are a few of the apps I’m finding I use a lot…


Planner Plus

One of the greatest handheld tools of all time was the Franklin Covey version of the Palm.   The friggin’ Palm.  That’s practically caveman technology.  And yet, it’s a better organizer than anything available today despite the presence of awesome digital tools like iPads and Androids (I’ve got each). 

Why doesn’t Franklin Covey have an app?  I don’t know.  All I know is I like their system, but don’t want to carry around a paper planner. 

I’ve tried a lot of planning apps.  The best is Planner Plus.  I consider it the best because it’s the closest I’ve found to Franklin Covey.  Tasks can be prioritized A, B, or C, and then a number.  There’s a calendar and daily note function.  There is a free version, but I purchased the paid one.


Dropbox

Dropbox is cloud storage, mirroring designated folders on your computer.  It’s a great real time back up of your data.  It also is accessible by your phone and tablet.  It’s one of the few really simple ways to move files from your computer to an iPad.

Dropbox is great for collaborations.  Share a folder with other people through Dropbox and any change is automatically updated on everyone’s computer.

There are several alternatives to Dropbox.  These include Microsoft’s SkyDrive (currently offering the most free storage), Box, and Google Drive.  All of these have free versions and paid versions.


CloudOn

The best Microsoft Office substitute for a tablet is CloudOn.  It syncs with your cloud storage so you can access any file in, say, Dropbox.  Even better, it opens in a Microsoft Office type environment for Word, PowerPoint, and Excel documents.  Now, with a tablet, I truly can access the files I need.  Incredibly, CloudOn is free.


MileBug

The best mileage app I’ve found is MileBug.  It’s got features I don’t use.  I just like being able to record business miles on my phone rather than a paper log.  The free version is limited to just a few entries.  If you like it, it’s worth spending a couple of bucks.


Social Media

Every social media product has an app for phones and tablets.  I use them all, though Facebook is clunky.  I actually prefer Linked In’s app interface or its website.  All are free.


Pandora

One of the best music apps is Pandora.  Enter a song or album you like and it will play it and select similar music to stream.  It’s great for the gym.  Pandora is free.


I Heart Radio

This is another entertainment app.  It allows you to select radio stations from all over the country and stream them like they are local.  I find it a great way to keep up with sports talk during college football season (Dallas’ leading sports station talks about everything but sports).


Urbanspoon

My go to app for locating a restaurant is Urbanspoon.  It’s got the most restaurants and generally good recommendations.  It’s a great app for business travel.


iBooks

iBooks is the Apple ebook reader.  I prefer it over other because of the interface.  Hey, I like turning pages.  I also use the Nook reader, if only because it’s an easy way to grab the free ebooks that Barnes & Noble continually offers.


Annoy-a-Teen

Another entertainment app is Annoy-a-Teen.  This app plays sounds at a frequency beyond the range of hearing for most people over age 30, but well within the auditory range of teenagers.  It drives them insane, which can be highly amusing if they’re taking up all of the seating at a Starbucks (or they happen to be related to you).


HVAC Marketing Toolbox

Okay, I don’t actually use this app, but that’s because I put the content together that powers it.  Hit the spinner and a marketing idea pops up.  Though it’s oriented toward HVAC, it actually will work for any service business.


What Do You Use?

Of course, there are dozens of other apps I use.  These are my go to apps.  What about you?  What apps do you like?  Email me your list of favorites.

© 2013 Matt Michel

Friday, February 1, 2013

Marketing With an AK-47



A few months ago, an AK-47 rifle sold for $600 or so.  Today, they bring triple the price… IF you can find one.  AK-47s are hot, hot, hot!

Why?

Last week I was in Cabela’s at the gun counter.  Gun guy was talking with Cabela’s Guy. 

“You can’t believe all these people buying ARs,” said gun guy.

“Sure I can,” replied Cabela’s guy.

“They don’t even know how to break ‘em down.  They can’t clean ‘em.  They just bought ‘em ‘cause they think they aren’t gonna be able to get ‘em.”

And that, in a nutshell, is it.  Tell people they can’t get something and they want it.  If they didn’t want it before, they want it now.  They REALLY want it now.

The sales term for this is, “the takeaway.”

We want what we can’t have.  Offer us something, take it away, and we want it all the more.

Entire businesses have been built on the takeaway.  Perhaps the single best known direct mail letter in the HVAC industry is John Young’s “winter replacement letter.”  The letter stressed that a limited number of products were available at a special price, spurring consumers to act before they were gone.  This was an example of the takeaway.

How can you use a takeaway in your business?


Tuesday, January 29, 2013

Difference Makers



Every industry has people who made a difference, who nudged the industry, altering the course, and changing things for those who follow.  Often, those who benefit from the difference makers are unaware of their contributions.  At the Service Roundtable we assembled a list of 25 difference makers in plumbing and HVAC.  Two parts of this list were previously published, the not the final group.  Here, the entire list is included.  You may not like our list.  You may not like everyone on our list.  If so, tell me who else you would include.


Ron Smith

The biggest difference maker in the HVAC industry is Ron Smith.  Period.  Ron literally created the residential service agreement.  He was the first contractor to bring a national focus on the residential service and replacement side of the business.  He hired the first retail salesperson in the industry.  He was one of the first contractors in his region to integrate his company.  He was the first to hire women technicians.  He started the Service America franchise system, which was HVAC’s first franchise and first independent contractor group.  He taught more contractors about marketing with his Dominant Market Share program than anyone in the industry.  He was COO of Service Experts, transitioning it through the acquisition by Lennox.  He brought the HVAC industry Tom McCart, Charlie Greer, Ruth King, Al Roach, and others.  John Young worked for him.  He’s in the Contracting Business Hall of Fame and is a Service Roundtable Servant Leader.


Frank Blau

Ron’s peer on the plumbing side is Frank Blau.  Frank taught thousands of plumbing contractors how to make a profit.  He beat the difference between mark-up and margin into the heads of tradesman who didn’t know business.  He created the first flat rate system in the trades and was the first to utilize hand-held digital pricing tools (i.e., the old Sharp Wizard, which has less computing power than today’s low end digital camera).  He helped contractors understand their numbers and built up their esteem so they understood their worth to society and were able to charge what they were truly worth.  Frank was also the first guy to recognize the potential in the yellow pages, taking out full page ads before they cost an arm and a leg.  In many ways, we have Frank to thank for the whole yellow pages explosion in the trades (gee, thanks Frank).  Frank showed us how to turn a union shop into a profit machine and how to win the loyalty of employees to the company over the union.  Frank was also a co-founder of Contractors 2000, which later became Nexstar.  He is a Service Roundtable Servant Leader.


Dan Holohan

If you’re work in the hydonics market, you are familiar with Dan Holohan.  Dan is the hydronics rock star.  He has a cult like following that’s reminiscent of Steve Jobs, Apple, and Harley all rolled into one.  Dan is the focal point for this segment of the industry, giving it a voice, and even a sense of identity.  The “dead men” imagery Dan created after reading old steam heating engineering books (written by “dead men”), gives the hydronics practitioners a bad boy flavor, hydronics contractors have adopted.  Dan brought this about, largely by writing.  Starting with The Lost Art of Steam Heating, Dan has produced a steady stream of excellent and highly influential books and columns. 


Doc Rusk

One of the original industry evangelists for business professionalism was Doc Rusk.  Doc wrote numerous columns and spoke frequently, helping to mold an entire generation of contracting professionals from technicians-acting-as-owners.


George Brazil

One of the best known contractor brands in plumbing is George Brazil.  George revolutionized the plumbing industry by creating a multi-location operation that spanned the west coast and ventured inland.  George plastered the side of his large panel vans with an image of the All-American plumber, dressed in all-white.  He made a science out of studying the yellow pages in the highly competitive California market to position and promote his company.  George and Frank Blau co-founded Contractors 2000, which became NexStar.


Jim McDermott

When Jim McDermott took over Contracting Business Magazine, the trade press was technical.  Jim added a business focus to Contracting Business, which added one to the industry.  More significant was the work Jim performed behind the scenes.  He took an “industry first” approach and encouraging contractors, distributors, and manufacturers to work together for the good of the industry.  More recently, Jim helped with the launch of HVACR Business Magazine.


Samuel Oscar Blanc

Sam Blanc created the drain cleaning industry.  He invented the first power auger and sold the machines during the Great Depression for $250 each.  Before Blanc, drains were cleared by digging up the pipes.  His company, Roto-Rooter, became the trades first franchise operation and first contractor group.


Charlie Greer

Most people know Charlie Greer for his sales training, Tec Daddy DVD training program, and Slacker’s Guide.  Charlie has had more influence in the industry than most realize.  Charlie helped form the Contractor Success Group, the service trade’s first business alliance and precursor to Service Experts and International Service Leadership.  Charlie recruited the majority of CSG’s initial members.  Later, Charlie helped kick-start the consolidation movement when he was approached by investors at a PHCC show about the consolidation concept.  Charlie connected the investor group with the contractors who became the foundation group for American Residential Service, the first consolidator for the service trades.  Charlie is a Service Roundtable Servant Leader and the first recipient of the Tom McCart Consultant of the Year Award.


Dominick Guarino

While Dominick Guarino was Editor-in-Chief at Contracting Business, he helped create HVAC Comfortech, the HVAC industry’s premier residential/light commercial conference and trade show (Comfortech is joined by PlumbTech and HydronicsTech this year to become Mechanical Systems Week).  Later, Dom was president of Residential Excellence Alliance, the leading alternative group for contractors seeking to remain independent during consolidation.  When Dominick founded the National Comfort Institute, he became the industry’s leading evangelist for taking a holistic comfort “system” approach, rather than focusing on boxes.  It’s hard to imagine now, but 15 years ago, few contractors paid attention to the duct system or even knew how to measure static pressure.


Jackie Rainwater

Ron Smith may have created the residential service agreement, but Jackie Rainwater was the biggest advocate of the service agreement, which he only refers to as a maintenance agreement.  Jackie spread the message about the benefits to more contractors than anyone else.  He was an early innovator in contractor pricing practices, flexing some prices up and others down to maximize the bottom line.  He is a member of the Contracting Business Hall of Fame.


Wallace Lee

Wallace Lee virtually created the design/build approach to commercial contracting.  His business innovations allowed commercial contractors to make a profit on commercial new construction, not by wielding the sharpest pencil, but by delivering a creative value proposition.  Wallace was a National Chairman of ACCA and member of the Contracting Business Hall of Fame.


Jeff Forker

The late Jeff Forker was the most influential person in the HVAC industry.  Although he was Publisher of Contracting Business Magazine, Jeff’s influence exceeded his positional authority.  He brought the industry together in a way that no one can or does today.  He brought conflicting parties from across the channel together and used the force of his personality to resolve problem and bring about consensus.   An example is NATE.  Initially, ACCA and RSES both had their own certification program.  It was the direct result of Forker’s influence that both associations gave up their programs and backed NATE.  Without Forker, NATE probably would not have survived.  Jeff was a Service Roundtable Servant Leader.


Jim Abrams

A Missouri contractor, Jim Abrams changed the industry in numerous ways.  He was the founder of the Contractor Success Group, which was the first independent business alliance and helped prompt Frank Blau and George Brazil’s creation of Contractors 2000.  Abrams took a core group of CSG contractors and entered the consolidation movement with Service Experts, before eventually selling his ownership.  Later, he formed VenVest, which formed AirTime 500, Plumbing Success International, and similar groups in electric and roofing.  From PSI contractors, the Ben Franklin plumbing franchise was formed.  From AirTime, the One Hour Air franchise was created.  The BuyMax buying group was created.  Eventually, Abrams sold AirTime, PSI, Ben Franklin, One Hour, and BuyMax to Direct Energy, giving the British utility the largest utility presence in the contracting world.


Brendan Reid

Brendan Reid brought building science into the HVAC industry with Retrotec and the Comfort Institute.  Before Brendan, contractors gave some thought, but little else to the building envelope, which was the sole province of the building scientists.  Brendan helped contractors see the house as a system and was ahead of the curve on building energy and performance contracting.


Jim Kimmons

Jim Kimmons may not have been the first to bring flat rate to the HVAC industry (that goes to Frank Blau), but he made it mainstream.  He wrote an article about flat rate for Contracting Business Magazine that caused the phone to ring so much he quit his day job and became a full time flat rate publisher.  Later, he joined Callahan Roach and we know the current evolution of this original system by the Callahan Roach Products & Publications name today.  Because of Kimmons’ efforts, tens of thousands of contractors were able to turn a corner and start becoming retail contractors.  Few people have done as much as Jim to generate wealth in the HVAC industry.


Jim Norris

At one point in time, Jim Norris personally knew more contractors in the HVAC industry than anyone else.  He saved ACCA (the first time it was saved), returning it to fiscal soundness and raised the organization’s profile within the industry and on Capitol Hill.  Norris raised significant funds for ACCA’s PAC and used the funds to strategically influence legislation, which he considered one of the organization’s most important roles.  It’s not surprising that contractor influence in Washington reached its pinnacle under Norris.  Upon leaving ACCA, Norris took the helm at GroupMAC, one of the early consolidators.  When he retired from GroupMAC, he joined Excellence Alliance, an alliance formed to give contractors an alternative to selling to a consolidator, before retiring.  No one who knew him, ever doubted Norris’ commitment to contractors.


John Keeler

One of the early proponents of best practices and operational excellence, John Keeler was one of the industry’s first business and management trainers.  In a day before the Internet and organizations like the Service Roundtable, thousands of contractors benefitted from Keeler’s manuals and collections of contractor collateral, called “Keeler’s Unique Methods.”


Tom McCart

The first person to sell $1 million in residential retail sales was Tom McCart.  When Tom did it, the average system cost a fraction of today’s prices.  Moreover, Tom sold $1 million in a one season market where he had to generate many of his own leads.  Tom was introduced to the industry by Ron Smith and became a top industry sales trainer after Ron sold Modern Air and launched Service America.  Tom is a Service Roundtable Servant Leader and member of the Contracting Business Hall of Fame.


Vicki La Plant

In the early 80s, Lennox Industries started a revolutionary new program to partner with their dealers and select key dealers for special training.  The “Dealer Marketing Advisor” program was created by Vicki La Plant.  It not only improved the performance of hundreds of contractors, but brought dozens of top contractors to the industry.  After leaving Lennox, La Plant continued to help contractors as a consultant and trainer.  She was instrumental in the formation of the Joseph Groh Foundation, which helps people in the trade who suffer life altering events.  Vicki and her husband, John are each Service Roundtable Servant Leaders.


Harold Goodman

One of the most visionary contractors in the history of the HVAC industry was Harold Goodman.  Goodman specialized in tract home and apartment equipment installations in the robust Houston market.  Competing in this price competitive market, he recognized the potential for no-frills products that came without incentive trips, advertising programs, or anything else that added to costs.  Goodman started manufacturing flex duct and registers, then bought Janitrol, relocating the tooling to Houston.  When Goodman couldn’t find distribution, he built his own.  Eventually, the Goodman brand became HVAC’s top selling line of unitary equipment.


John Young

Another Ron Smith employee was marketing savant, John Young.  Young was Ron’s sales manager at Modern Air.  He later collaborated with Jim Abrams to found the Contractor Success Group, which spawned Service Experts and was eventually sold to Lennox.  Young and Abrams got together again to form AirTime 500, Clean Indoor Air, Plumbing Success International, and other companies under the Clockworks umbrella that were sold to Direct Energy.  Greater than his role in forming contractor alliances, Young is best known for his three-page winter replacement direct mail letter.  This letter, more than any other, persuaded a generation of contractors about the effectiveness of direct mail.


Maurice Maio

Another contractor known for marketing, but on the plumbing side, is Maurice Maio.  Maio returned to San Diego from college to take over the family plumbing business.  While it was a stretch to call the two-truck operation a business, Maio would soon make it one, eventually becoming one of the nation’s largest residential service contractors before selling to a consolidator.  A student of the industry, Maio adopted many of the practices developed by George Brazil, Frank Blau, and Mike Diamond and refined them.  He packaged his systems as Maio Marketing Systems and began training contractors from across the country on ways to market their companies.  He created his own flat rate system, which he offered to the industry.  Maio consistently raised the marketing bar for plumbing contractors.


Preston Bond

At Honeywell, Preston Bond created a commercial full coverage maintenance agreement and sales process, transforming commercial service work.  He was instrumental in the creation of the LINC franchise system, HVAC’s oldest continually operating franchise system.  Bond is a member of the Contracting Business Hall of Fame.


Earl King

Another individual to impact commercial service was Earl King who created the United Service Alliance (USA), the first business alliance for commercial contractors.   USA was a national force until sold to GroupMAC.  Throughout his career, King has always been willing to help contractors create and offer commercial maintenance programs.  He continues to be a featured columnist in the trade magazines and is a member of the Contracting Business Hall of Fame.


Tom Mutz

A financial genius, Tom Mutz created a contracting empire under the Unique Indoor Comfort brand.  Mutz would legally partner with contractors, taking a financial stake in their businesses in return for helping them become more successful.  He was one of the first contractors to successful execute a multi-market strategy under common branding.  Mutz showed how contractors could band together to achieve economies of scale and help each other with financial benchmarking.

(c) 2013 Matt Michel