My son is 16, which of course means that I have been downgraded in intellect to somewhere between a sponge and a dead moth. My “inclusion” in many of his activities is often restricted to no closer than 3 zip codes. I remember being a teenager too. So, imagine my elation when he suggested a summer trip and I got (sort of) invited!
What was his idea of a trip with Dear old Dad? A roller coaster tour. Yes, a tour of the best parks in Ohio, whose new state motto is, “Come Hurl in a Loop-D-Loop!” Sounded like fun to me. Let me back up a sec.
First, he’d never been a wanton, crazy thrill seeker. Second, I’ve scarcely mentioned a desire to go 100 mph upside-down in a spiral either. Third, Ohio? Are you nuts?
Turns out I was wrong about Ohio. The drive was beautiful. I mean, 'Get out of the car and take a picture' beautiful. Gorgeous green rolling hills, picturesque farms, Amish Cheese flowing out of Amish Cheese wells. Unreal.
So, we went to two terrific parks: King’s Island near Cincinnati and Cedar Point in Sandusky. These are not your normal amusement parks with people with questionable hygiene – and a low inventory of teeth to prove it.
These parks are immaculate. The rides are incredible and the focus of their incredulity is on “Roller Coasters”. If you’re thinking “up the clickety hill, down the other side, ‘Whee’, ride’s over,” you’d be criminally mistaken. They’re rocket launchers on tracks. They hurtle into outer space, narrowly missing other planets at speeds that actually put you into the future.
>> Click here to read if Adams still has most of his organs AND the marketing lesson in PAYING someone to make you go upside down at warp speed >>
Value Lesson: It may be worth noting that the average attendee spends $50 to enter, is totally on their own to navigate, figure out ride choices, and spends – on average – 90 minutes per ride standing in line. This means, in 8 hours, with eating, walking, and required bathroom visits, they can ride 4 rides, 5 if they forego food. (Not the worst idea.) My son and I rode 19. Our average wait? Under 2 minutes. Lunch? Free. How’d we accomplish such a thing?
Given that I only plan on doing this once, and Cleveland is 1070 miles from my house so I can’t really “drop by”, we did what’s called the VIP tour. Our personally-appointed guide knew exactly which rides did what. She also got us in through the “exit”, meaning no wait. Ever.
One ride, called “Top Fuel Dragster” was new to Cedar Park. It was so popular that the wait was – get ready – just under 3 hours. The ride lasted 40 seconds. Lest you feel that was being gypped to Madoff like proportions, please know a couple fun facts - -
It was 41 stories tall. Not a typo. You start off, strapped into a padded car that renders you paralyzed from the eyelids down. Then it shoots horizontally, from 0-120 mph in just under 4 seconds. When your eyeballs almost hit the people behind you, the thing turns 90 degrees straight up said 41 stories to give your thoughts time to catch up. But no, they over shoot and merely orbit with space junk among other thoughts, many of which are just two words, starting with “OH”. You turn around at a navigational satellite next to Ursa Major and head straight down 180 degrees – in a spiral – to make sure your spleen comes out smoothly (no one knows from where) and clears the horrified onlookers below. By the time it stops at over 1g, you know exactly what snorting Red Bull laced with LSD must be like. Before you exit, you check your pants for potential waste fluids, and stagger away.
People waited 3 hours for this. We rode it twice in 6 minutes. But I had the time of my life, albeit now sans spleen.
So the questions for you, oh seeker of the truth, are…
Q: Am I cheap?
A: Yes. But I like to call it “value oriented”.
Q: Am I easily sold?
A: You ever read these editorials?
Q: How much is the VIP package worth?
A: You tell me how much it’d be worth it to you to ride the rides, on a once in a lifetime trip with your child, building far more memories than standing in line having to go to the bathroom for the last half of the wait. Send your guess here.
This is about “price elasticity”. You think your drain cleanings are ‘x’ because that’s what people charge. You think your services should be ‘y’ because that’s what people charge. Price elasticity exists in all markets, for all people. You must locate the ‘value’ for them and charge accordingly. Next issue will explore that.
Part of my value – and one clearly known by the amusement park people – is that a vacation is typically not repeatable. The “best time” means making the most of that time, with price an often secondary consideration. I assure you, I never once considered price while spiraling upside down, out of control wishing I’d never heard of blue ice cream.
Finally, I don’t know about you, but time with my children is special and moving by faster than any ride at the park. Now where are those seat belts?
Questions to consider:
1. What do you charge for a “normal” service for the top 3 most common services you do?
2. What would customers pay extra for to make this extraordinary? Name 3 things.
3. What would they pay? Ask around. You’ll be surprised.
Monday, August 24, 2009
Tuesday, August 11, 2009
Love Hurts
I love contractors – seriously. That’s why you get to read exploits with the various good, bad, and ugly varieties out there, hopefully learning along the way. Today, we’ll look at a bad and a good, while I play the role of the ugly.
Now, this may be a shock, but the deep south is hot. This causes electrical panels to erupt, irrigation systems to work overtime, and hvac systems to burn their little bearings up. Contractors love it here.
A couple weeks ago, a tenant at our old office (we still own) called the property manager to say, politely, that she thought the ac vents were blowing hotter than the ‘bad place’. (No, not Cleveland.) The property manager suggested his “ac guy” take a look, and I agreed. Told him, “Whatever he says, I’m probably fine with it. Just get the system and her cooled down.”
After about 3 hours for him to actually make it out to the property, he checked the outdoor unit (without announcing himself to the tenant – take a note) and surmised that it was too small for the building. This was made more astonishing since I later found his company had done the installation. He also said the duct system (which they didn’t do) was “a mess”.
I waited for him to give me a suggestion, or options, but he said nothing else. So I just asked, “Then your only recommendation is to replace the system? That’s it?”
His response? “Yeah, that’s about it. If you’re interested, I can go back, do some more measurements and give you a quote.”
Let's see, it's 103 ̊; this is Alabama; it's late July, I have a tenant who is about to ignite, and his statement, in case you missed it, is: "If you’re interested, I can give you a QUOTE."
Not terribly impressed, I felt stuck, so I answered “Sure, I’d like a quote, but in the meantime, can you do SOMETHING, like make sure the charge is up, the system clean, or even let me rent a couple window units to help her out?”
“Nope, I don’t do that. Plus, I'm kind of shorthanded right now. I’ll try to get back by there in a couple days.”
Maybe I expect too much. But my blood pressure was just under the level required to boing your eyeballs out on cartoon like springs.
Mr. "Get a Quote in Days! Not Hours!” seemed a little lacking in the customer service department, and perhaps a couple pounds shy of coolant himself. Given this, I made my way to the dreaded Yellow Pages, called another company I had used in the past. Can’t remember now why I didn’t use them again. (Take another note.)
Says they’ll be there in about a half hour.
Wondrously, he’s early. The tenant lets him inside (note). He handles her very professionally, apologizes for her inconvenience (note #3), takes a look and calls me. “The unit probably is a quarter ton too small, but mainly just dirty, both of which are exaggerated by the heat. BUT, we’re gonna clean it up, reduce some flow to the storage room she’s hardly using, pump that to her office (note) and I recommend you install some solar tinting on the back of the building. I don’t do this but have a pro who can” (note)
Whoa. Not bad for the first 20 minutes. “How about the duct system?” I ask.
He replies, “Beautiful. All hard pipe, well-crafted. Not sure who did it but it’s first class.” (note)
Credibility of Contractor #1 goes subterranean. “Can you help her out a little now, and then go ahead and schedule whatever repairs will make the unit work for her?”
“Sure thing. I don’t have window units, but I have a bunch of desk fans I picked up at Harbor Freight and left her a couple. She seems appreciative. I’ll call the window tinter now and give him your info…”
“No need to,” I interrupted, “just have him do it and bill me”. (Please note, sales occur quickly with a trusted referral.)
One day later, Contractor #2 does the work, drops the temps in the office, re-calms the tenant, reclaims his fans. Calls me to give the update.
He then quotes on a Maintenance Agreement for the building. Done. Asks what else I need. He’s installing a new system at a warehouse as I write this. We’ll see how that goes.
Funny thing. A little turns into more, long as you keep the momentum with some customer service and good sense. Don’t make doing business with you too hard. Rivers of money are forged with the path of least resistance.
Questions for you:
1. Is solving your customers’ problems your first concern?
2. How much income do you lose a year if this scenario is repeated in your business just once a month?
3. Once your image is shattered, it’s hard to repair. How are you using service to keep a higher image in your market?
Now, this may be a shock, but the deep south is hot. This causes electrical panels to erupt, irrigation systems to work overtime, and hvac systems to burn their little bearings up. Contractors love it here.
A couple weeks ago, a tenant at our old office (we still own) called the property manager to say, politely, that she thought the ac vents were blowing hotter than the ‘bad place’. (No, not Cleveland.) The property manager suggested his “ac guy” take a look, and I agreed. Told him, “Whatever he says, I’m probably fine with it. Just get the system and her cooled down.”
After about 3 hours for him to actually make it out to the property, he checked the outdoor unit (without announcing himself to the tenant – take a note) and surmised that it was too small for the building. This was made more astonishing since I later found his company had done the installation. He also said the duct system (which they didn’t do) was “a mess”.
I waited for him to give me a suggestion, or options, but he said nothing else. So I just asked, “Then your only recommendation is to replace the system? That’s it?”
His response? “Yeah, that’s about it. If you’re interested, I can go back, do some more measurements and give you a quote.”
Let's see, it's 103 ̊; this is Alabama; it's late July, I have a tenant who is about to ignite, and his statement, in case you missed it, is: "If you’re interested, I can give you a QUOTE."
Not terribly impressed, I felt stuck, so I answered “Sure, I’d like a quote, but in the meantime, can you do SOMETHING, like make sure the charge is up, the system clean, or even let me rent a couple window units to help her out?”
“Nope, I don’t do that. Plus, I'm kind of shorthanded right now. I’ll try to get back by there in a couple days.”
Maybe I expect too much. But my blood pressure was just under the level required to boing your eyeballs out on cartoon like springs.
Mr. "Get a Quote in Days! Not Hours!” seemed a little lacking in the customer service department, and perhaps a couple pounds shy of coolant himself. Given this, I made my way to the dreaded Yellow Pages, called another company I had used in the past. Can’t remember now why I didn’t use them again. (Take another note.)
Says they’ll be there in about a half hour.
Wondrously, he’s early. The tenant lets him inside (note). He handles her very professionally, apologizes for her inconvenience (note #3), takes a look and calls me. “The unit probably is a quarter ton too small, but mainly just dirty, both of which are exaggerated by the heat. BUT, we’re gonna clean it up, reduce some flow to the storage room she’s hardly using, pump that to her office (note) and I recommend you install some solar tinting on the back of the building. I don’t do this but have a pro who can” (note)
Whoa. Not bad for the first 20 minutes. “How about the duct system?” I ask.
He replies, “Beautiful. All hard pipe, well-crafted. Not sure who did it but it’s first class.” (note)
Credibility of Contractor #1 goes subterranean. “Can you help her out a little now, and then go ahead and schedule whatever repairs will make the unit work for her?”
“Sure thing. I don’t have window units, but I have a bunch of desk fans I picked up at Harbor Freight and left her a couple. She seems appreciative. I’ll call the window tinter now and give him your info…”
“No need to,” I interrupted, “just have him do it and bill me”. (Please note, sales occur quickly with a trusted referral.)
One day later, Contractor #2 does the work, drops the temps in the office, re-calms the tenant, reclaims his fans. Calls me to give the update.
He then quotes on a Maintenance Agreement for the building. Done. Asks what else I need. He’s installing a new system at a warehouse as I write this. We’ll see how that goes.
Funny thing. A little turns into more, long as you keep the momentum with some customer service and good sense. Don’t make doing business with you too hard. Rivers of money are forged with the path of least resistance.
Questions for you:
1. Is solving your customers’ problems your first concern?
2. How much income do you lose a year if this scenario is repeated in your business just once a month?
3. Once your image is shattered, it’s hard to repair. How are you using service to keep a higher image in your market?
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