Is This Really Considered A Lead Service?

frescollc

Hello everyone,

I had a vendor stop by my showroom on Friday and offer his services. He basically provides a list with the customer's name, current address, phone number, and the address of their new custom home. He also provides the builder's name, address and phone number. He provides this list on a monthly basis from info he has gotten from building permits. (120 custom home permits issued in Phoenix, AZ for May) He says he only provides these lists to 3 customers per trade, so theoretically the HO and builder would get an average of 3 estimates per trade.

He also provides a list of home builders who recently received their contractor's license. (150 in May for Phoenix, AZ) This list contains the company name, owner's name, company address, and phone number. His pitch is that this info helps me as a sub (granite countertops) build relationships with home builders when they are getting started. I know I've had builders tell me that they've been using the same subs for 5+ years so it's hard to get in good with them unless I cut my own throat with my pricing and I refuse to do that.

Each list costs $60 per month and is on a month to month basis with no contract. If I don't like the results, I just don''t buy one for the next month. I like this info because it gives me the option of using targeted mailings and calling on customers. Do you guys think this company falls under the definition of a "lead service" and do you think the value ($60/month for each) is there?

I just wanted to know what you guys thought and if you had been approached by a similar company yourselves?

Thanks,

Mario Jimenez

mmike032

Why dont you just go to the courthouse yourself and go through the building permits and call the HOs/ GCs that are building?

I do this on a regular basis, and it doesnt cost a dime except for gas.

Carport King

This really is a judgement call to you. Do you feel you can get work from this? Yes you can get it yourself but what is your time worth?

I would do it and do a mailer or call and if you get work from it continue with the service. You really must mail it for 3 months or more to see if it works.

This is just one more way to create leads and sounds inexpensive but at least you know the end user. Great target. Good luck

ChrWright

Sounds pretty cheap to me--as long as you have good supporting materials to position yourself as a quality alternative to who they're already using.

I wouldn't waste your money pursuing the new GC licenses too aggresively--for obvious reasons. Perhaps a post card introduction, short & sweet.

"Congratulations on your new license--take care of that new monkey on your back, or he'll sh&# all over you..."

I know from my perspective as a GC, I prefer working with the subs I've been with the longest for sure--but there are always situations from time to time where I have to try someone new. The key is just getting your name out there, and this could be a good way to do that.

A professional letter of introduction, some references & photos of your work, and a business card should do the trick. I'm not sure if I'd bother with the homeowners in your case.

How are you promoting yourself now? What are you already spending on marketing?

Best of luck.

__________________

Christopher Wright, CR: President @ WrightWorks, LLC/President @ Central Indiana NARI, Named to the 2010 REMODELING Big50
www.WrightWorks.net - Facebook - Twitter - Carmel Remodeling
Indianapolis Kitchen Remodeling Contractor - You Can Get There From Here

marc

I am a siding and window contractor and work ONLY for home owners. We do something simalar but we get a list of all the homes sold in the last month (Owners name, what they paid for the home, how much they mortgaged, address, phone number) We mail a welcome to the neiborhood letter and introduce ourselves and our services. We don't call simply because we don't have the time. I get this list every month with an average of 175 new homeowners. Costs us $75.00 per month for the list and we spend about $0.50 to mail them out. We hand adress every envelope and we dont put a return address on them. They bring us a job every few months or so. More than pays for the list and mailing costs.

__________________
Marc

Varg

Here in New Orleans, all the home sales are published in the paper. Makes it pretty easy to do some radius marketing around job sites and our homes. We drive by, see which houses are "tore up from the floor up" and drop a tri-fold brochure off.

__________________
Magnolia Builders LLC, New Orleans General Contracter - Houndstooth Media: Web creations and Marketing.

snciwz8

Marc,

Do you send out follow up mailers after your "Welcome to the neighborhood" letter or just the initial letter? Just curious?

marc

We should be sending out follow up letters or postcards but quite frankly I just don't have the time. We run a very lean and mean operation. We are doing approx. $2,000,000 worth of siding, windows and sunrooms with just me, my business partner and a production manager. Me and my partner run all of the leads, work all of the home shows, fairs, craft shows, boat shows, etc. and I also run the office and take care of all the print advertising, internet leads, accounts payable/recievable, data entry, etc. Our production manager manages all of the subs (4 siding crews, 2 window crews and 1 sunroom crew) He also schedules every job, does all of the material ordering, visits at least 2-3 jobs per day, makes 1-2 dump runs per day and he handles all of the permit issues including going to variece meetings, etc.

I wish the answer was yes but unfortionately the answer is NO we don't send out follow up mailers.

__________________
Marc

snciwz8

Good information, Thanks Marc,
I have a silly question, do you put your welcome letters in an envelope or do you fold them and put sticky tab to hold them closed?

Thanks

marc

We put them in a standard envelope that you would send a letter to your mom or aunt in. We handwrite the address and we don't put a return address on the envelope. We also use real stamps for this...not our stamping machine. If you get this, you have to open it.

We do something similar around our job sites but it takes a little more work. We will actually drive around and write down all of the addresses that we feel need work. If you have new siding and windows, you won't get this in the mail. We then go on whitepages.com and do a reverse search for the names. We then address it the same way by hand but we will put an ad that we have recently run in it. We simply tear it out of the paper or we send them a val-pak ad. We apply a sticky note to it that reads "check these guys out" and I sign it with just an initial. People don't have any idea that it comes from us but they do know that some one is noticing that their home may need some work. This works pretty well for us. We don't do enough of it because we just don't have the time.

__________________
Marc

snciwz8

Marc,

Thanks once again. I appreciate your input and I know from the sounds of it you are extremely busy. Good for you, that's awesome.

I am a new start up operation and truely have a "very small" budget, this is great stuff.
We do a little canvassing, somewhat helpful. But if you have any other inexpensive stratigies that could HELP.

I'll certainly put you on my Christmas card list....lol

THanks again Marc,
Pat

Kenny K

also you can canvass around the jobs if you have the time and pick up spme good leads

__________________
Replacement Windows and Vinyl Siding by Illinois Remodeling Company

Carport King

Marc it sounds like you have it all togeather but I would need someone to continue your follow ups. I do believe you are leaving a half of loaf still on the table that would be easy to clean up on with just a little more effort.

Just a part time school girl this summer could make your life easier and they could do this mailing and follow up for you. I believe that with a little more effort from her would bring you an awesome profit.

I find that if you take the time to step back and really look at things the smallest changes can make the biggest difference. Not only for your business but for you and your partner.

Can you outsourse going to the dump 2 times a day? No job site clean up companies in your area? Do you job site deliever your materials?

Just a few thoughts to think about and good luck it sounds like a great company to work for.Nice Job!

Carport King

You must sell to the homeowner market? If yes you just met your master!

I do the marketing for our company and it is my job to make the phone ring.For us it better ring 600-800 times a month or no bonus for me.

Please remember it needs to ring once. So maybe you just need 50-100 calls a month the figure means nothing. It is how it you get it to ring and at what cost. So put me on that christmas list also and let's enjoy the sleigh ride.

snciwz8

Hi Carport King,

Sounds like you're trying to scare me with a good time...LOL....

I have devoted way to much time on trying to make the phone ring. I now need the phone to ring or I will be knocking on doors for the next year or so. Would rather be in a house doing what I do best as opposed to knocking on doors.
I know there are people or companies I can hire to help me with that except , NO MONEY in the budget for them. So my partner and I are going about it ourselves. We live, breath and sleep what we do. We will make it, just need to start making it happen faster.

I would love to hear any suggestions you have. CAN'T WAIT TO HEAR BACK FROM YOU.

Thanks
snciwz8
Pat

Carport King

Thanks Pat give me your e-mail and I will send you out a package that will help you. Plus I have a new release of a pdf report that I am now finishing that will help you alot.

My package is all my marketing material and our 24 page magazine that will give you some ideas and inspire you that we use everyday in our company.

You have one thing going for you and that's the fire in your belly and the passion to be a success. I do remember those days. Thanks Glen

snciwz8

Hi Carport King,

Sent you a private blog.

My email is windowexpert@sbcglobal.net

Thank you so much.

snciwz8
Pat