Steps to Counter the Economic Slide

Please choose the one that most accurately describes your feelings about the Contracting Service Profession:

1. "It's a pure commodity. My prices are too low and I still can't sell a job. No one will pay more for a job than the lowest going rate. In fact, I'm thinking about losing money on every job but making it up in sheer volume. It would be great if the phone would ring soon. Ooops, I have to go now, Judge Judy is on.
2. "It's a price-elastic commodity, with a tremendous upline. In the leanest times, my services are still required. Preventive maintenance is even more important to avoid or eliminate costly 'surprises'. If my fearful competition pulls back, I can win customers even more easily (including his). I can aggressively attract customers, turn them into clients, and hold them for years, simply and strategically.

During a recession, many business owners wish their services were commoditized. Though the recent boom created more millionaires than any period in history (who can still spend according to their created lifestyle) many "optional" services will be crippled or eliminated.

Yet, the contracting service businesses will likely see little real downturn in need. Many contractors will perceive a downturn, largely of their own making, and "choose" to pull back in their marketing, customer retention, training, and acquisition strategies. This will doubtless prove them "right" in their gloomy economic outlook.

Fearfully, these contractors will cut back on marketing and advertising. They'll quit contacting their customers as often, choose not to restripe the truck, or update the website, and pull their presence to a shadow of its former self. This creates an interesting scenario...

• How much would you pay RIGHT NOW to PROHIBIT HALF or more of your competition from advertising? I mean, consider the possibilities. Looks like that’s on the verge of happening. Or this…
• Remember how you were all worried about the shortage of ‘good technicians’ out there? Not for long. Due to construction cut-backs, they’ll be applying to work so often you may want to consider selling tickets. Choice hires are coming.
• Since customers may rightly cut back on some ‘big ticket’ purchases, preventive maintenance will be bigger than ever. Get ready.
• Likewise, they’ll be “cocooning” more, meaning in-home comfort and services to improve health and energy savings will be in bigger demand. This opens the door to…
• Set up additional income streams through alternative products and services. IAQ analysis, humidity controls, water purification and filtration, home security measures - - basically whatever services you can offer that improve the ‘at home’ experience for your customers, go for it… with a vengeance because you can.

Remember that the fearful contractor is NOT advertising, is NOT hiring, and is likely losing customers to the non-fearful contractor, who kept his head and refused to be intimidated.

Also understand that the flood of job-seekers has two potential downsides: 1) More low ball bidding, and 2) More ‘scam’ stories headed our way. (Desperate people do desperate things.) My point: Separate yourself NOW.

Rigidly control your customer base, enhancing the relationship, step-up credibility measures, increase your request for ‘ratings’ by your customers at sites that allow AND for testimonials on your website, to use in your other marketing. If anything, now more than ever is time to PROVE you’re the contractor of choice for even more reasons.

It’s time to choose. Will you participate and support the natural economic lemons of life… or will you make lemonade? Your reaction is your future.