Minority Rule

An old adage: “When the word on the street is ‘buy’, it is definitely time to sell.” This supports the contrarian’s favorite point that the grand herd called “they”, are generally far behind, already approaching irrelevance, since the leaders have long since left the party.

Zig whenever “they” zag. It is true elsewhere.

Those rare folk who sold at the height of the market – deemed idiotic at the time – are now considered enlightened. The crowd moves in huge swells and sways, while leaders in thought and action pull away, immune to the self-appointed critics. The top 14% of the earners in the U.S. out-earn the remaining 86% combined, all of whom are certain “their” way must be right. It sure doesn’t seem that way…

Currently, about 40% of the population spends exactly what they earn or less – zero or negative savings. Another 40% eke out a living, with less than 10% of their income for ‘non-essentials’ including savings, recreation.

The next 15% up are considered the new mass affluent ($155,000 household income and higher, a group 23% larger than just 10 years ago. Yes, even now.) The top 5% generate over $500,000, some way over. Categorically, they’re considered “thought leaders, business leaders, community leaders” – and there’s just one word consistent in those descriptions.

Before I continue with the peep show (a marketing hint right there) let me back up a sec.

This has not been the most fun year for the contracting majority. You can’t pick up a newspaper or listen to news without being reminded. Those of us in business, out to slay the daily dragon, now get to hear the constant chorus of wails and moans in the background.

“They” begin to seep into our dreams, leaking from under the foundation, causing a less enthusiastic voice answering the phone, a less than committed upsell, a pulling back on the marketing reins, and a tail slowly tucking inward because “they” are all doing the same.

“They” are usually wrong. So accepting that and responding accordingly is Step #1 of the vastly more successful, tiny minority. In other words, they zag quite regularly.

They are deaf to the crowd’s advice. They are mute to chiming in on the “me, too” Pavlovian response to bad news. They’re blind to seeking crowd approval. (And yet, ironically, their self-esteem supremely well-intact.)

And in contracting, despite the fact that consumers are spending less and more resistant to the optional than ever, small numbers of very successful contractors tout the rarely discussed “good”. They draw it inside their ranks, becoming “bad news immune” and thus a magnetically more confident company. This too is contagious.

Supporting that –

□ Consumer Trends found out what we all know: “Nearly ¾ of the American public has tired of the recession news, some openly resisting same. Buying pattern increases indicate a renewed attraction toward durable, reliable, trustable.” Advice: Same for the past year – Good news is attractive. Reliably market your reliability. If you go silent in your marketing, your phones follow.

□ “A drop in new housing starts is bringing renewed interest in existing home-improvement, energy upgrades, environmentally-sound investing.” Advice: Pay attention to the word “investing”. Unlike the “norm”, now is not time to low ball every bid. Flaunt your higher priced upgrades that can demonstrate a sound investment. (Hint: Your Proposal Books and online consumer videos need updating.)

□ More good news: “Is the do-it-yourselfer dead?” HGTV saw massive drop in popularity of “flipping” and “do it yourself” shows in favor of maximizing value, with the subtext of professional trade contracting. (Holmes on Homes, Renovation Nightmares both illustrate “false economy” of unprofessional and DIYer.) Trends to watch: Shows for contractors supporting model customer service, smart marketing, image-enhancement. Advice: As in a recent editorial, some “normal” contractors send homeowners (me!) to a big-box to “save me some money”. If you’re a professional, you should either support professionalism or quit the profession. Fair enough? The successful minority shows the risks of DIY and unprofessional work on their websites, newsletters, and publicity.
□ Customer service is becoming the great “separator”. People are tired (and distrusting, see first bullet) of the low-image, slacker contractor – rudely handled phone calls, the follow-up that never happens, the unanswered after hours phone, the static and self-absorbed website all indicate “old” think. Consumer buying, repeat buying and referring all follows superior customer service. Advice: The majority falsely believe they’re “saving money” by cutting training and expertise.

Do the different thing, contractors. Follow the advice of the successful minority. Tap into that however, and whenever you can. Be willing to do what’s different from the crowd, most of who are complaining. That alone will get you noticed.

I believe that 2010 will widen the gaps in the “haves and have nots”. The “haves” will not have gotten there by following the masses, that’s a promise.

Questions for you:

1. What are you doing differently in your marketing? Sales presentations? Customer service? How is the “language” in your shop different from that of the “normal” contractor?

2. Do you regularly “shop” the competition to see how they either blend in or stand out? (Our Competitive Intelligence guide in your PowerPack is an outline in doing this, or you can do it yourself.)

Before You Hit “Delete” or Run out the Door…

We've all heard enough 'bad' news this year to last for several more. Yet, if you believe we still live in a great country, if you still have enough health to get through the day, and still have the love of family and friends among you, you can indeed be thankful.

And regardless of your income, the many blessings you have – and even enumerate in your conscious now – makes you a very rich person.