Editor's Note: This article is the eighth in a series of twelve to lead you toward entrepreneurial excellence by our regular contributor George Hedley, owner of Hedley Construction and Hardhat Presentations.
I’m playing golf, and my cell phone rings. It’s one of my best customers who tells me he just signed a lease with a manufacturing company for a new 60,000 square foot building to be built in Anaheim, CA. He then asks me the magic questions: “Do you want to build it for me? If you’re interested, can you attend a preliminary design meeting tomorrow at 9 a.m. at the architect’s office? Are you in or out?” This is what I call "customer magic!" My marketing and sales system is working.
What's Your Marketing and Sales system?
Do you have a marketing and sales system? A system to get customers to:
- Call your company first
- Only call your company
- Want your company to do its work
- Only use your company
- Be loyal to your company
Do You Have a "Loyal" Customer Strategy?
A great marketing and sales system will consistently deliver profitable work via loyal customers who use your company exclusively. An effective loyal customer strategy will increase profitable sales, create profitable customers, earn business at your price and convert repeat customers to loyal customers. Is your loyal customer strategy working? Do you turn down more profitable work than you can handle? Are you making more money than your competitors? Is your flow of work steady and predictable? Are you in control of your sales volume?
Are You the Same as Your Competition?
The prosperous economy over the last twenty years has created stress on pricing and profits. There are too many competitors who compete with your company. Most companies, including yours, can and want to do more with their current resources. There is too much capacity for the total work available in any marketplace. This causes a downward price pressure and a very competitive work environment. The only way to get lots of work is to bid lower than you want. In order to increase prices, you need to offer something different than your competitors. But most contractors continue to offer the minimum per contract or plans and specifications. Ask yourself:
- Why should customers only buy from my company?
- Should customers pay more to use my company?
- Am I different than my competitors?
Construction has become a commodity. Most companies provide good service, good quality and good prices. It really doesn't matter which contractor customers hire because most operate the same. When you provide the same as your competitor, you have little chance to increase your profit margin and a slim chance to hit your bottom-line goals. This allows customers to chart your course. In order to get what you want, you must offer more than your competitors. What do you do to stand out from the crowd?
What Business Are You In?
Successful companies today are different than their competition. For example, Wal-Mart strives to sell for less. Nordstrom offers great customer service. Mercedes Benz provides the best quality products. These companies are market leaders. They aim for the edge of the triangle. Most contractors strive to be all things to all customers through service, quality and price. They aim for the middle and compete with everyone else trying to do everything for everybody. There is no money competing for the middle. In order to be effective with your marketing and sales systems, you must decide what you want to compete on: service, quality or price. Without a clear focus of what you provide and what makes your company different, you'll never hit your targets.
Why Marketing and Sales Systems?
I am amazed at the number of companies who don't market or sell. They don't have a marketing program, a systemized sales plan, an updated brochure or website, a customer referral system or a program to keep
