The Marketing Business

meloknee

The way I see it, it really doesn't matter what we do...carpentry, electric, drywall, etc., we really need to be in the Marketing Business. Obviously without phone calls, we don't work.

I'm wondering if others would care to share their marketing systems. Maybe list the things you do in order of effectiveness, or return on investment?

Thanks,
Mel

TxElectrician

One of the most effective things I do is introduce myself before I ask for help.

But that's just me.

rselectric1

Me too.

"Repairs" is all we know about you.

__________________
220...221...whatever it takes!

AJAX

Welcome to the site!

Is there a marketing method that you use that isn't working?

meloknee

Ajax, it seems that most marketing works for us. We are just trying to find the best return....money wise. Just trying to find out what is working for others.

Got a couple of new books...one is, "Duct Tape Marketing" and it has some good ideas in it.

BTW, we are in the Shenandoah Valley. Our company does all home repairs. We used to do mostly paint but now we have branched out into almost everything in home repair.

Thanks,
Mel

meloknee

I should clarify that we are not looking for just ONE magic bullet with our marketing, but rather an entire marketing system.

Mel

Mike Finley

Track every lead you aquire. Write down every phone call and how they got your number. Then track every appointment made. Then track every sale made.

Every quarter put them in a spread sheet and do some simple calculations.

Figure out your average lead aquisition cost.
Total amount spent on marketing / total leads.
Hypothetical number $150.00

Figure out your average appointment aquisition cost.
Total amount spent on marketing / total appointments.
Hypothetical number $200.00

Figure out your average project aquisition costs.
Total amount spent on marketing / total sold jobs.
Hypothetical number $300.00

Now with these numbers take each of your individual marketing methods and do the same thing. If you advertise in a newspaper, substitute your total marketing budget for just the cost of that newspaper advertising. Now instead of all lead, appointments and sold jobs, substitute only the leads, appointments and sold jobs that were generated as a result that newspaper advertising.


Hypothetical number $100.00 lead aquisition cost.
Hypothetical number $120.00 appointment aquisition cost.
Hypothetical number $160.00 project aquisition cost.

Now comapre to average numbers. In this hypothetical scenario your newspaper advertising is amost 80% more effective then average.

Do it to all your marketing methods and compare.

Throw out whatever is not working, spend more on what is and keep trying new methods and keep testing.

This is how YOU find YOUR best return which you are seeking. What works for others won't necessarily work for you and vice versa.

Example - remodeler won't have the same success with yellow page advertising as a plumber specializing in service work.

modterry

See the posts on Flyers etc.

1st :

You have to decide what your niche is,
What can you do to make your business unique - "What is your unique selling proposition?"
Who is your likely customer?
What do they spend on a one of your projects?

See Blog above by Mike Finley - great comments.

Different types of marketing work - some may not. There is not 1 thing that works.

Your budget may dictate where you start.

There are four ways to market your business:
1) Advertising - Shot gun approach. TV, Radio, Magazine, Newspaper, Billboards, Mailer Packs, Trade shows
Most expensive - The big boys use this to try to reach relationship marketing ( see below )

2) Direct Marketing: Targeted , aimed at a particular audience , demographic
Direct Mail, Telemarketing, Flyers distributed in certain neighborhoods, Newsletters, etc

3) Public Relations: 3rd party promotion
PR firm releases news about you, You write articles, get interviewed, Announcements, Promotions promoting your business
Branding happens here.

4) Relationship Marketing
Referrals, Clients, Vendors , Blogs, Relationships provide leads
Most effective close ratios here,
Least cost per lead / sale here.

One on one relations, referrals, seminars, cup of coffee with clients, asking for referrals,
Based on relationships, Customer gets to know your firm personally


The more you can develop relationship marketing the better off you are. Costs less, takes less.

There is not one thing that works for every body. Most firms that are successful do marketing from a combination of the four ways above.

Find out what works for your business.

There are some great examples of how companies are marketing here on this website.

Good Luck,

Terry

modterry

Business Plan
1) Business Plan - this has helped us greatly.
You would not build a home without a plan .
Why would you try to build a business without a plan

Ask: Why do you want to be in this business
What do you want to earn ?

Does not have to be that complicated

Bounce your ideas off with Advisors. I recommend you go to other successful people you know - People who won't just be "Yes People" to you.

You can start with How Much YOU want to take home.

You NEED to know Your Numbers:
(Mike was talking about Tracking - keeping on top of critical numbers in your business )

Business Plan:
1) Sales ( estimate your sales for the year / month )
- Minus Cost of Sales ( sales commissions, referral fees, direct marketing costs )

Less

2) Cost of Goods Sold
direct cost of Labor, Materials, supervision, project costs directly paid on jobs

= GROSS PROFIT
( this is the margin you try to strive for on each of your jobs as a % of your sales amount )
NOTE: don't confuse this with Markup


LESS

Overhead / Operating Expenses
Acctg, Rent, Auto , Legal, Supplies, Insurance, Salaries, Bookeeping, taxes

YOUR SALARY

= Cash Flow /

Out of your Cash Flow

- Debt Service ( If you owe any money )

= NET CASH Before Taxes (EBITA = earnings before Interest & Taxes )

- Taxes ( Corp / Business Taxes Owed)


= Net Cash for
Equipment , Expansion, Profit Distributions

-----------------------------------------------
Now you have done your business Plan - How do you make your Sales Goals

Now you Need a Marketing Plan for the Business:

Mike was talking about tracking: Here is an example:

You are a Siding Contractor

Your Business Plan calls for :

Sales of: $ 250,000 / year or $ 20,835 / month

You estimate your average sale is $ 5,000

You need : 50 Sales transactions / year or 4 + sales / mo

Say You sell 1 out of 3 Bids on average:

No of Bids you need to Make: 150 / bids year or 12.5 / month


MARKETING:

In order to generate 150 bids your various marketing Campaigns need to generate a response rate.

Campaign 1: You feel you can get a 3% response rate from Flyers delivered to a certain group / neighborhood, etc.

and 50% of those responses ask you to bid their project:

3% response / 50% want a bid = 1.5% = no of bids to flyers

You want 150 bids / ( 150/.015= 10,000 Flyers / year or 834 flyers out / month)

This Example Campaign you now have a specific number of flyers to put out.

You task as a Owner is to:

Quantify the Campaign:

How many flyers out?

Response Rate ?:

No of Appointments ?:

No of Bids from campaign ?:

No of Sales Contracts from Campaign ?:

Actual Ave Sales Amount from Campaign:

vs. Estimated Sales from Campaign:

Cost of Campaign Total
( Flyer Design, Printing, Distribution, etc )

Say you spend: $ 500 for 1,000 flyers
Delivered.

Your Company books 3 jobs at $ 5,000 each = $ 15,000

It cost you $ 500 for marketing

Now you can figure your cost / lead:

That is where good tracking comes from that Mike was talking about.

Hope this helps you design your business and your marketing.

Terry

suite1

As a marketer, referral marketing is best. What I do is fine someone or company that gets a lot of requests for my service then get that organization/company/person to recommend us.

Ex. If a interior designer gets 100's of customer requests for painting, the customers will usually use you because they were recommended by the interior decorator who they trust. You can also charge a fair price as well.

DavidMoore

You have got one of the best books available on the planet. I know John (the author) and plan to complete his certification program in 2010. Also, check out his website and blog. Very helpful every day.

Also read E-Myth and E-Myth for Contractors (by Gerber). Those couple of books combined with testing your own methods will take you a long way.

gtp1003

HO about taking it a bit farther than what has been posted from what im reading, how about prequalifying each customer that calls to see what are looking for so you 1 dont was time and 2 know what you expect when you get there.

Now marketing, lets say you have a roof you are doing that you would like to target 30 homes on the streets with names, addresses and phone number, this way you can personalize your contact, that method is three papers i have put together. I have a ton of marketing things but i will not post it just for giggles if you all can understand.Contact via email if that option is there.

TileArt

WTF?????

If you're not going to introduce yourself and claim superior knowledge of marketing and push people to email you for your "paper" or "manuals" or whatever the hell you're attempting to sell could you at least . . .


DO IT IN ENGLISH????????


Or at least with some semblance of proper speaking skills?


Thanks. Jesus.

__________________
Roger Northern Colorado Tile and Stone Contractor
_____________________________Fort Collins, Colorado
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bicycle

how effective has direct mail been for any of you?