A New Marketing Concept

hiteams

Hello All,

I’m new here, but have been absorbing the great insights presented by other contractors for many months.

I’m writing to get your insights and honest opinion on a new service I’ve been thinking about starting in 2008. This is not spam. I am not trying to sign anyone up. This is my way of getting honest critiques from guys who will “tell it like it is”.

A little bit about myself.

I have been doing remodel work for many years. I am one of you. I know the ups and downs … the hard work … and the struggles of making a company continue success. Recently, I’ve ruptured two disk. Basically, the pain doctor told me that I need to find other type of work. Instead, I have created several crews to do the hard work. But even so, I wish to create a new type of service on top of this.

The Service

The concept is basically, pretty simple. The logistics of making come to actually happening, is harder then it seems.

What I would like to do, is create a contracting team in each major city. I will be honest … the main purpose of these teams is to help each contractor get a lot of new customers.

The way it works, is like this.

A plumber joins a local team. In the team are several other NON-Competing contractors. Example: Other team members may be an electrician … insect company … painter … deck builder … etc.

There would be no other plumbers … thus … no competition.

Each time a team member gives an estimate or completes a job … they simply leave a referral sheet. This sheet is a list of all other team members. So when the customer has a need … they will simply use this referral sheet to call other team members that specialize in the project that the homeowner is considering having done.

In a way, this would be considered a new form of “word of mouth”.

The Numbers

Back to our example, using the plumber. A plumber may have 1 or more jobs a day. He may pass out 20 to 50 sheets a month (or up to 500 sheets a year). Let’s say that there are 50 contractors in a team. This would mean that a team member, would be referred upwards to 25,000 possible new contacts each year.

The referral sheet would be done in a way, that hopefully, the customer would keep permanently.

There would also be a website that they could go to.

Constructive Criticism

While I realize that there are a lot of questions unanswered … I would appreciate constructive criticism on the general concept.

There naturally would need to be a small monthly charge to keep it organized and promoted. How much of a monthly charge would depend on the number of team members. How much would you pay for something like this. Nothing? $5 a month? $50 a month?

Thanks for your feedback,

Barry

ProWallGuy

Sounds like a contractor version of BNI.

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dougchips

Barry sounds like a good idea.

Some random thoughts:

how would you find the trades people?

why would people promote the services of others without knowing how well their clients will be treated?

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hiteams

ProWall,

Haven't heard about BNI, but went to their website. Yes, it would be like a contractor BNI. Thanks for the reference to their system.

Doug,

At first, I would blanket the Home Improvement Industry, introducing the service. But even so, there would have to be a standard for entry. Possibly reference checks (and ongoing reference checks). Possibly, it could get to the point to where membership is by invitation only.

The above answers some of your second question. However, the real purpose is to introduce your customers to the other contractors on the team ... and of course, to have all the others, introduce their customers to you. An ongoing customer satisfaction level, would be the real test.

Thanks Guys,

Barry

Jason Whipple

You may want to consider two of every trade. What would happen if someone gets burried in work and can't get to the customer when needed?

Good idea though! Let me know if you want to test market Rutland VT. I have tons of connections in Albany, NY as well.

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Vinny

My first thought as well. It could work but your left with who does the organizing?

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hiteams

Jason,

Good suggestion (consider two of a trade), but what a nice problem to have ... having too much work, that you're having to turn it down

I will for sure contact you, when moving to a test market.

Vinney,

The organization, would be hired professionals working for BNI Contractors (or whatever the name would be). The organization of each local area would be a contractor, that would be paid for their time.

You guys are great. Thanks for all the questions and suggestions,

Barry

Brian

Barry,

I think it is an idea with potential. My concern would be quality control. If I am a part of a network, I'd want some reasonable assurance that the others are doing good work and satisfying the customer.

I have a few people I recommend, but we always check back with the customers to be sure everything went well. I don't want to keep recommending someone who isn't doing the job.

So if you came to me with your idea, that would be my big concern.

The good part is that once a customer trusts a contractor, they will likely trust his referrals. A strong network could be powerful.

Brian Phillips

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RobertCDF

I like the idea a lot as well and my concerns are like Brians. If I say "use this guy" and he never gets back to them, or is rude it reflects badly on me. Not something I want. But still a great idea.

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Robert Shaw
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mseneker

Hiteams,

Fusion Marketing is a term used to describe part of what you are writing about. Your idea to provide a service for the "Fusion Marketing" is interesting.

Look up what Jay Conrad Levinson has to say on Fusion Marketing. Interesting reading.

I "fused" with a ceiling grid contractor. He does my ceilings and I do his drywall. We both don't have to keep the extra talent on our payroll but can still bid jobs as a team. I've tried it with other contractors and found they sometimes price "us" out of the bid. I've cautioned them that I am a middle bidding contractor and would not appreciate middle bidding a drywall job and then get priced out by their high bid. I've turned down work when one of his customers tried to hire me direct, saying they thought they were paying a mark-up, which they were not.

Took me three years to find a ceiling contractor I could trust. He is not just a sub-contractor of mine. You would have a hard time telling his men apart from mine.

I would love to be on a list of trusted referrals. I have my own list and it feels great when I get a customer who told me three other subs told them to call me. Obviously, I tend to try and get in good with other contractors who come in front of me. I refer them, they refer me. We both make each other proud with the quality, price and timeliness of our work. They would have to prove and agree to that or I'd take them off my list.

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mseneker

Are you or do you know a member of BNI? I'm calling them tomorrow to talk about the organization. I would be willing to join a contractors only version.

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Pearce Services

I think you would need to establish a group leader, most likely the GC of the group, that would organize the meetings, resolve disputes, and remove tradesman that do not meet the codes of conduct.

Of course, you would need to give a voice to the tradesman to oust the GC, if he is the one not playing by the rules.

This guy would need free membership, and maybe some compensation if you did not get enough volunteers.

Rather than 2 of each trade (which creates competition), you could organize chapters as close together as required and recommend that they seek out another chapters member, should they need another tradesman.

hiteams

Brian,

Thanks for your help. One thing I'm starting to hear over and over is "quality" of the network. As you imply, if the quality of contractors is there ... it can be a very powerful force.

Robert,

Thanks for your imput. I agree that it would be tough to establish a good reputation with a customer ... only to see it go under with a bad refferal. I've got to really think about the best way to protect referral reputations.

Mseneker,

Fusion! Thanks for the name and help. I will be researching this topic. When I first thought of this, I was picturing a "loose" network, but after hearing you guys ... I see it will have to be a tight network of trusted contractors.

I do not know any BNI members.

Pierce,

Good thoughts to ponder. The strength of each local team, would only be as strong as the organizer. Thanks for your help.

Thanks to all of you,

Barry

par3144

I am a former BNI member for 5 years and was president for 2 years. Great Organization to have a sales force working for you for free!

You should also look in to "ActionCoach International" which helps organize groups and businesses. They help structure your team.

Pat

SelfContract

Just like a basketball game. Anytime you passed me a ball, then I will remember to pass you back one in favor (& not to other guys) !.. It sounds like an implied/oral contract to me.