Half-flattered and half-saddened I looked at him sincerely, searching his grey-green eyes for pain but could detect none and asked, “What would you have done differently?”
“I’d a quit thinking that other broke people were going to float my business and gone after people who could pay for quality instead. I’d a marketed my fanny off!”
We laughed, and he ensured me his son (in attendance) was going to do just that. There was wisdom in his humor. He realized his “inaction” led to inactivity. He knew it now, destined to break that cycle with his son.
At the very end of the seminar which included a section on “Marketing to the Affluent” he brought his son by, hand clasped firmly but lovingly around the 20 something year old’s shoulder. “Meet your marketing department!” he said jovially as he got us to enjoin a handshake.
I came to find out that this company was very similar to many in the crowd of 400, but without the mentoring guidance of the elder generation. (More likely, it was the younger generation prompting the elder to “Get with it!”) Many seemed to…
Be “stuck” in their “We’ve always done it this way” marketing. They were now even more jittery with the “R” word in the economy. The cause and current effect are directly related. Sorry.
- Have forgone two MAJOR hits to their profit picture: a) No Customer Retention and b) Virtually no Maintenance Agreement programs.
- “Word of Mouth” as the Holy Grail of marketing.
- A feeling that they “couldn’t” raise prices and sustain business.
My thoughts on #4. If you position yourself as “cheap” you’re going to miss the higher-spending and ever-growing group because you lack value. They can afford quality. Cheap and quality do not comfortably co-exist outside of a commodity. Therefore, “Next contractor please.”
Understand that the affluent are very influenced by brands, exclusivity, and reputation. This means a couple of things. “Known” brings more money, gets referred more, is heightened by association. So in this group, you’re “known” for your position and whom you’ve worked for. So if you’re “The Contractor” in your area you’re at the enviable point of price elasticity (more money for the same job with no customer loss). A good place to be, and more like the Grail of Sales.
Also, a second marketing message within the above: When your marketing “matches” the upper requirements of the affluent, you also attract and become more desired for those seeking affluence. Should that include you, your wish can be granted by eliciting behavior that is consistent with the desire. In other words, “What recession?”
Simple Fix
Position yourself as the contractor with the most value and you’ll gain them. If you can afford to position yourself in near exclusivity, you’ll be in even better shape. Do NOT immediately say, “That won’t work for me” because of market size. We’ve got clients in several sub 50k population areas who “own” the mid and upper market, with 60% replacement margins and virtually “required” Agreement programs, hanging on to mid-teen nets.
They got there by being known, staying in touch, and being referred systematically. Marketing to the affluent (more cogent during a recession in case you were wondering) is exactly the same as your other marketing in that it MUST be systemized. Change lightly the message, and possibly the media; change none-at-all the matrix.
My new elder friend and his son walked off, still one arm on the shoulder. A comment he made rang in my ears on the plane coming home.
“I can’t go back and do what I now know I should’ve done back then. I can only hope my example is one not to follow, and my words of encouragement at this late stage are.”
To echo your words dear friend, “I’m going to help your son ‘market his fanny off.” And it’ll be my pleasure.
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