Wednesday, December 31, 2014
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
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
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
Sunday, February 3, 2013
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?
Thursday, January 31, 2013
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
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