Is Another Million Dollars Hiding in Your Business Too?

Just finished up a Coaching Call that has me panting slightly, just like the coaching members who heard it. Longtime client Buddy Smith runs Russell’s, a neat and profitable $ 5M contracting business in Virginia. Though it was running well, Buddy’s mind began to wander.

He’d hear one side of phone conversations as he walked past the CSRs. “They seemed polite and professional” he said. He’d get the appointment set-rate spreadsheets. He’d see the sales close ratios that resulted. All seemed okay. Then one day it hit him,

“What if I increased the set-rate from the same number of leads, and even had the same sales ratio, my sales would go from…” and he tapped out the numbers. “Whoa” he thought. And the process to uncovering $880,000 in sales in one year, without an extra dime in marketing dollars or sales dexterity began. “It was amazing” Buddy said. And here’s how he did it.

Buddy pounced upon a theme we explore a lot in SMI and in coaching: “Stretching the topline.” The theory is simple but profound.

Most contractors focus on either lead generation or sales closing ratio. But there’s a “missing” link in there.

I often coach that there are two sales in every phone call. It’s not just the actual sale at the house, but the appointment that precedes it. If you don’t get the appointment, you’ll never get the actual sale. Amazingly, the contracting industry largely ignores this “first” sale.

Buddy’s idea was to “stretch” the number of appointments out of the same lead count in two distinct ways:

1. Record the calls to determine if where, and how often appointments were being missed.
2. Train his CSR s for maximum phone effectiveness for one goal: Book the call.

He figured if he could stretch the topline of appointments, he’d have to sell more. What he didn’t realize is the volume of appointments being lost by otherwise very adept CSRs.

Biggest Problems Were Also Easiest to Correct

In recording the calls, he found two problems that were “killing his leads before they had a chance to buy.”

First, his call volume by time of day peaked during lunch. This is precisely when the CSRs would take lunch, leaving them short-handed or depending on untrained call takers. “I could see on our data log that 3-4 calls a day were hanging up from too many rings or were too long on hold. This was over a thousand leads a year!”

Second, “giving away” information on the phone that didn’t land the appointment. “We had people call asking, ‘So how much is a pound of Freon, how much is your trip charge, or how much is a furnace?’ and being nice contractors, we’d often answer … and the customer would say ‘Thanks’ and hang up!”  He calculated this happened roughly 30-40 times a month, or another 400-500 possible appointments gone.

“Without call recording, I’d have never known these problems were vaporizing nearly 1,500 leads a year!”

He began training CSRs with top-quality scripting to help prevent these ; plus, he sharpened up:

1. Staffing during peak times, staggering lunch breaks.
2. Answering consistency. We have one greeting by everyone who touches a phone.
3. Call handling. Russell’s trained to eliminate the 'Frustration phrases' for customers “…which drive customers straight to the competition!” (Get a no-cost list of these at the end of this article.)
4. Appointment setting scripts. “We now know the key phrases to use that get commitments from customers.” (Another no-cost report at the end.)
5. Call ending. “This was great. We used to just end our calls with ‘See you Tuesday’ or whatever. Now we make sure to ask, ‘Is there anything else I can help you with?’ and we pull thousands of dollars of sales using this one technique.”

As a bonus, Buddy was able to change the culture of his call handlers and improve the image, while differentiating his customers. “I almost used to cringe hearing what we’d say on the phone to customers. Now – though we still have room for improvement – I feel like we sound as good as the best nationally-trained CSRs out there. And that’s a great feeling.”

Not just a great feeling, but adding nearly a million dollars in sales has helped his cash flow, company morale, staff incentives and commissions, while boosting the customer count for the company. Even more amazing…

“I feel like we have another million dollars in sales waiting for us next year!” And with Buddy’s electric enthusiasm, I feel he’ll find it.

How You Can “Find” a Million Dollars in Hidden Business

1. Call Recording: Buddy used “Call Source” but there are other competing companies.
2. CSR Training: Buddy uses Power Selling Pros. These are on-site and off-site “live” training sessions.
3. Alternative CSR Training: The CSR NitroPack. This is a pre-packaged CSR training that includes scripts, objection handling, upselling, transitioning phrases, how to hire the ‘right’ CSR and even tests to help grade your CSRs for maximum performance.

TWO NO-COST Resources to help you get started:

1. Common Phrases that Drive Your Customers Crazy, plus...
2. “The Missing Link in Your Contracting Business.”

Simply request the reports by sending a polite email to: coaches@hudsonink.com or call 1-800-489-9099 to get them.

Coaching Clients: Make sure you listen to the entire call. You’ve already been sent an audio link and workbook.

Happy Selling. This may be the best Christmas present you get!

- See more of Adams articles here

Trends, Bends, and a Box of Depends

It seemed like a regular convention. Hordes of people with “My Name Is” badges, some festooned with ribbon, looking semi-lost, clutching formless bags emblazoned with a logo you’d not be caught dead sporting outside these walls.

There was also a ‘normal’ seeming trade show, filled with eager vendors and tables of wares, each promising salvation if you had a few minutes and a credit card.

And of course the incredible speakers (more about hot trends later) who did their best to wow the crowd of the unendowed. All 550 attendees had plunked down around $2k to be there, largely under the influence of a master marketeer named Dan Kennedy.

He created this direct marketing crowd, much of its nomenclature, and has presided over this kingdom for nearly 30 years, still sharp as ever. He is perhaps the highest paid copywriter on planet earth, fees beginning at $35k per page with a royalty off sales.

All was pretty normal until his personal assistant approached me, handing me her cell phone number and saying, “Dan wants to meet you in his suite at 5:20 for 20 minutes.”

“What did I do this time?”

I paced the hall at exactly 5:15 to make sure I was on time. I’d already taken 24 pages of notes from speakers. Assuming he was going to ask me some tough questions, I roughly “sketched” a snapshot of my business, revenue flow, a tiny history. His assistant appeared, said “Walk this way” and resisting the urge to mimic her walk a la Young Frankenstein, we soon tapped on the door to the massive suite.

Let me back up a sec. I lied. This was not a normal convention. This is the Information Marketing Summit. There’s nothing else like it out there. The speakers are not household names (except to nutballs in this crowd) yet they’re credited with marketing movements like the Video Sales Letter, or the Product Launch Formula, or how Alex Mandossian has 900,000 followers… but no email list. (He generates over $1m in sales with exactly one employee.) This stuff ain’t “normal.”

I’m a member of this group – just like you have your groups – for one thing: improvement. My unkind observation is “if you’re not actively improving, you’re becoming inactively irrelevant.”

My notes contain meaningful movements, changes, bends, and trends facing marketing as a whole. What’s working, what’s not, what’s coming next. At Hudson Ink, we “reinterpret” these things for you, putting what we learn into products, services, and marketing coaching. My investment of time and resources is intended to pay dividends to you. (See excerpts from my notes at end.)

The door to Dan Kennedy’s suite opens. He motions me to a couch about 28 feet long. His room is slightly nicer than mine in the same resort. I sit. I stare. Sensing a twinge of unintended awe, he breaks, “So, how’s your business, your work?” I say something meaningless. He follows, “Hey, no need for notes or math in here. This is purely a social call. You’ve been a member for a while and run a real marketing business… bricks, mortar, employees… and have grown nicely. Plus, you’ve written me some nice notes, and won that contest we had. I just wanted to spend a few minutes.”

Pressure relieved. Nothing to recite. No pretense. We just talked about the changes in copywriting, strategy, sales cycles, and a little “creation” Hudson Ink seems to have tripped over that contractors are embracing. “Keep me updated on that” said the master.

Soon enough, 20 minutes had elapsed, and as I walked back down the long hall, I reconsidered his previously turned-down invitation to join his top level Coaching Program.
This allows for several multi-day visits with his own MasterMind group, a font of knowledge at the ready. The price tag (slightly more than a new Honda Accord) and time investment gives me pause. I have profit sharing to consider, and prudency, and stewardship.

And you.

If I join this thing, I’m assured to bring back a different level of marketing, one that forges new, fertile ground. There’ll be implementation of technique, a faster way to better results, and a nearly “unfair advantage” that we can both create for you and coach you to use in your business.

The Big Question:

So with the promises above, do I join this ultimate Marketing MasterMind Group, limited to 20 participants world-wide? Vote please:

“YES, Adams. Join this thing. You won’t have this opportunity forever. Do something with your life. And once you get so much smarter, I promise to buy all kinds of stuff (*wink wink*) to help offset your concern.”

“NO, Adams, don’t join this thing. What are you supposed to learn that’ll help me? Plus, who really wants to go to Cleveland 3 times in a year? Are you goofy? (Nevermind.) We can barely do what you advise now, so just cool your jets and save the dough.

Votes will be shared next issue!

SOME OF MY OVER NOTES FROM THE INFO MARKETING SUMMIT

Trends, Bends, and… Depends?

• Sales Cycles now require more “acclimation” period. The one-call, one-hour sales call for contractors now have multiple steps, phases, over 80% of your calls check you out online first.
• Consumers self-educate faster which has eradicated former “importance” of years in business, old reputation.
• Most Important Sale Trends Now a) Clean updated, optimized website, b) Fully optimized Local Listing (which we’ve been telling you for over a year), c) Willingness to “advise” instead of “promote”, d) Reviews.

Side Note to Above: Social Media marketing has taken a “back seat” in this crowd for businesses except for entertainment and opportunity marketing. Doing social “right” is the coming wave. Stay tuned.

• Customer Retention Marketing has grown up to include automated email “nurturing” pre and post sale. Having an “inventory” of push-button emails, texts, social posts was lauded as THE #1 marketing trends for automating better business results.
• Your Target Audience has grown up since the “graying of America” (those 55 years plus) has 40% of the population but a staggering 80% of the wealth. They’re also more educated, read more, are more loyal, and refer more often than the young half-broke price shopping malcontents. Target these people with marketing that is sensitive to them. (34% still use Yellow Pages by the way.) You can depend on the Depends crowd! :-)
• Automation and “Pre Done” Content is seen as the fastest way to results. (Last year, they “taught” us HOW to do video. This year, they were vending videographers with script outlines and ready-made images.) The tone of these videos – which are watched 4-6 times more often than your sales letter is read – are advisory before promotional. This is another trend our coaching members have been hearing about from Hudson Ink for over a year.
• The Sales Letter Still Rocks since it is way faster and less costly to create. Plus, if you do add video, it is the “architecture” for the script. I was glad to see that copywriters still rule the roost of “must have skills” for marketing success.

Maybe I can keep my job after all.

Adams Hudson

How to “Remember” Every Customer This Holiday Season

Do you remember what “remember” means? It’s not too hard to find out.

In the old days, if you wanted a specific definition for a word, you’d have to pull out a bound dictionary and flip through to the alphabet letter that starts your word. Now you can just enter the word-in-question in a search engine and up pops the online dictionary with the definition and, in some cases, how it’s used in a sentence.

I bring up this seemingly “unrelated to anything” illustration because I’d like to point you to one of the uses for the word “remember” from dictionary.com – “to bear (a person) in mind as deserving a gift, reward, or fee: The company always remembers us at Christmas.”

And that is where my point is headed.

Do you want your customers to remember you next year? Start by remembering them during this very busy holiday season. Lots of folks are rushing here and there, under pressure to please family and friends, spending more than they care to acknowledge, eager for a caring and kind word.

You can be the one with just that word. In the form of a holiday card. Mailed to the home. With a message that comes across as real, genuine and caring. You’ll stand out and get noticed because you’re the company that always remembers your customers at Christmas. Or Thanksgiving. Or the New Year.

The holiday card is a good counter to the principle that no “sale mail” should be sent from December 10 – January 12. During this time, people have had it up to their eyeballs with what folks are selling, and your message is quickly discarded.

However, if you make no contact at all, you’re leaving a sizeable gap in your marketing program. So that’s why simple, effective holiday cards are a great choice.  They enable you to send an inspiring message to your customers when it really helps to hear it.  They also allow you to express appreciation for their business – and keep your name in your customers’ top of mind awareness. 

The trick is to get your card to stand out from all of the other cards.  If it doesn’t, it’s a waste. We’ve been working on this for years and have some tips to help you.

1. First of all, the “regular” sized cards blend into the stack and may not get read. Go oversized so people will see it, usually a 5 ½” x 8 ½” is perfect. It’s large enough to be seen and it’s inexpensive. Good combo.

2. Next, the stock cards with a picture of an ornament or some cartoon Santa with overused holiday phrases may be very common, but that’s the trouble:  they’re common.  They don’t stand out or hold a customer’s interest. The message is either worn out or just plain goofy. Your message should be unique, inspiring and thoughtful. Since we were unable to find any good “contractor specific” cards, we created some you can review at www.hudsonink.com. There are 8 designs (2 Thanksgiving, 6 Christmas) that may give you some ideas.

3. For Postage, we recommend going First Class. Why? Well, these should go to your complete customer list, which means you’ll get back the undeliverables, allowing you to “clean” your list. If you go “standard” rate trying to save a few pennies, you’ll never know who’s moved, plus, it’ll take them far longer to get there and may miss the target date. So whatever you “saved” is lost in a hurry. Yet sending inexpensive Holiday Cards first class gives you a great “once a year” list cleaning. Makes sense.

Most of all, a great Holiday Card to your customer list gives you the opportunity to say “thanks” to the people who are keeping you in business. Customers do all of the buying and all of the referring; they pay for your employees … and they pay you. This is the time of year to say thanks with a nice holiday message. Plus, your competition probably won’t send one, so you’ll stand out even more!

A unique, creative oversized card that hits your customers at a time when they’re most receptive to thanks will get you remembered for retention, referrals and rewards.

Whether you choose our cards or have your own personal cards designed and printed, just make sure you send this important message to your customers:  Happy Holidays. And also to you.

Consistently Inconsistent

The Department of Motor Vehicles hates me. Soon as I walk in, amid the aura of inefficiency and sugary snacks, I sense a silent plot to send me away empty-handed to retrieve nonexistent paperwork. I feel like the new guy on the job site sent for a left-handed hammer. I imagine the scene:

“Mr. Hudson, you’ll need to bring back a form verifying that you came in here without it.”

“What form is this?” I ask nervously.

She barely contains herself as her cubicle mate’s shoulders begin to flinch in contained hilarity. “Well, it’s the form called, ‘The Form I Previously Forgot.’” She pauses to bite her lip. “And, of course, it’ll need to be signed by your dentist.”

I appear puzzled. She shouts over my shoulder, “Next!” and as I slink away, the entire department rolls on the floor, laughing uncontrollably.

Yet this week, it was different. After being dismissed for various invented reasons, I walked right into another branch office and surprise, surprise…

I found just a little inconsistency. Oh my. Let me back up slightly.

You may recall from a few issues ago, I was “kinda-sorta-not-really-shopping for another car” (which is the official description I gave my wife). Turns out, a car actually materialized in my garage. Since someone has to take care of it, I headed to the DMV for a tag.

I have my Bill of Sale, signed Title and a folder full of officially official documents. I await my turn, then Cruella Coupe DeVille calls my name. I dutifully hand over documents rumored to produce a tag.

She studies the stack, then points to something meaningless and frowns. I promise, this ensues:

“Mr. Hudson, this Title Release isn’t on official letterhead.” She peers over her pointy glasses, barely clinging to temples pulsing with denial.

“Well,” I begin, realizing I’d mistakenly handed her a document from the two previous owners, so then I cut to the chase: “The Wisconsin Title wouldn’t be signed to me unless it had been released.”

“That may be,” she mildly concedes while scanning the other documents, “but the date on the Bill of Sale doesn’t match the Title.” I thought I detected a small flame – like the last one left in a Bic disposable – leaving her lips.

“See, I agreed to purchase the car on the date shown on the Bill of Sale,” I said pointing to the date. “But, of course, they didn’t sign the title over until the funds cleared.” I thought this would do it, but she was going for the kill.

“I see one price shown as ‘Suggested Retail’ and then another one here says ‘Selling Price.’Which is it?” said the teacher from Hogwarts.

Barely containing my inner smart aleck, “It’s the ‘selling price.’ That’s what I paid.” Yet her next comment is a contender in the “I can’t believe you just said that” Hall of Fame.

“I think I’m supposed to charge you tax based on the higher figure (reaching for the calculator) unless you want to get all of this corrected.”

I was in awe. “You mean, you’re suggesting I pay tax on an amount I didn’t pay?” I fumed slightly. “Tell you what, I’ll just get these issues cleared up and come back.” She’d won. Control Freakanomics Consumes Idiot Taxpayer. Almost.

I left and immediately went to a different DMV branch, with the exact same documents. I handed them to a nice lady who appeared to have met competence and reason. She studied them carefully, matched numbers, perused dates, entered the information and 11 minutes later handed me my Title Application and Tag.

She only said, “Your transaction date is officially recorded as that on the Title, since that is the document of transfer precedence, not the Bill of Sale.” I nodded understandingly as I signed the receipt.

“How long have you worked here?” I asked, noting her efficiency. “Twenty eight years,” she said. “I’ve had practice. Enjoy your car. Have a great day.”

And that was that. How does this scenario affect you? Tremendously.

Confidence Killer

It’s been correctly said, “No confidence, no sale.” If you agree, then inconsistency shatters confidence. Think about it –

You get a good steak and good service one time; the next time it’s cold, undercooked and slow. Will there be a third time? Will you recommend without warning?

PLEASE NOTE: There is not one level of your service experience that should be left to chance. To whim. To the mood of the person on the other end of the line. Though we all love to hate McDonald’s, it is the consistency of the service experience that drives sales for them, Amazon, Apple, Disney, Nordstrom’s, Ruth’s Chris and a million other places we have and are usually met with a “level of expectation.”

I asked contractor Customer Service Expert Steve Coscia (www.coscia.com), “What keeps customers coming back to a contractor?” Without hesitation, he said, “Consistent excellence.” Now that’s a concise answer. Might want to use that as a sign above your CSR desk for immediate improvements in your customer service department:

Download these sample scripts excerpted from the Ultimate CSR NitroPack plus the “Most Important Link in Your Sales Chain” for Electrical, Plumbing and HVAC.

I asked Local Listing expert Lissa Monroe (the undisputed Contractor Listing Queen, www.locallockforcontractors.com), “What is the biggest failing for contractors who can’t get on Page 1 of Google and other search engines?” After a moment’s pause, she answered, “Inconsistency in their listing data.” 

As I thought of why I had previously been a fan of a local plumbing company and then a staunch avoider of same, it was because (as reported in these pages) my earlier experiences were pleasant and professional. (Note I said nothing about the price.) My last 3 visits were borderline rude, with a complaining technician and no follow-up call (that I had gotten before).

Somebody got lazy in: a) Hiring b) Training c) Implementation and it cost them.

Then I considered why I always use our electrician. It’s because of the ‘consistent excellence’ I get. If you want to laugh at someone, laugh at me because I just spent in the low thousands on lighting at my favorite retreat in the whole world. They know I’m particular, and they sent an equally particular tech (he painted exposed conduit on a tree to mimic pine bark, promise). I am very pleased. Mildly broke, but very pleased.

They followed up, as always, asking about the service experience. I’ll use them again. Recommend them again. They’re consistent.

Relating to the editorial on Nick Saban (see 9/19/12 issue), it’s about process. What is the GOAL of your process and how effectively do you practice it?

Hudson, Ink recently changed our Customer Retention Newsletter program. We’ve massaged and modified it for years. We’re a long way from perfect, but send Customer Response emails and calls post publishing. It’s our best and most reliable “report card.” We sometimes see negative things begging for attention. We always see room for improvement. And if you’re a “consummate improver” (my particular disease), then you seek to implement and most of all…

Make it consistent.

Your continued pursuit of service consistency is a barometer of your success.

Contractor Consistency Checklist

• Your Marketing Platform – Theme, look, branding, ‘voice.’ If it’s haphazard, random, what do you think your market feels your service will be?
• Your Phone Greeting – If it’s ‘whatever they say’ and not standardized, you send a message of inconsistency. Get one. Practice it.
• Your CSR Scripting – An ordered level of service response questions; ability to access repeated info from regular customers.
• Email Correspondence – Standardized emails that can be “adjusted” per customer, but never left to chance, whim, awkward wording, risk of typos or incomplete information.
• Technician Service Sequence – A standard approach, greeting, diagnostic query, paperwork, form completion, service completion and cleanup which triggers follow up.
• Installation Sequence – Same as above. But with ‘how to operate’ as part of the sequence.
• Follow-up Service Sequence – Customer “Happy Call/Email,” pre-written, pre-scripted as part of the transaction, not “as the CSR remembers.”
• Customer Retention Program – No Customer Retention is still the #1 marketing mistake in all of contracting. A consistent program of customer retention gives customers something ‘different,’ something to expect and, most importantly,something they’d lose if they went elsewhere.

If you question that consistency is directly related to yoursales, find how many times you consistently purchase from an inconsistent provider.

I hope this slightly longer than normal editorial will serve you well. Keep it for reference. Call your coach here to help you implement a program of consistency. (We can particularly help in the marketing platform and Customer Service.)

And you can rest assured, though the money goes to the same place, I will never enter that offending DMV branch again. Guess I’ll have to get another car to prove it…

Year-End Marketing Strategies – with a Holiday Flavor

Whoa – is the end of this year really around the corner? Maybe, maybe not. As Winston Churchill once said, “Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.”

Oh, and I’m sure that explained everything “very well.”

One point I’d draw from that pertinent pithiness: if you’ve gone on a little too long thinking and acting as if you’re a “start-up company,” now’s the time to move into the end of the beginning. You are, after all, rolling into another year. When you face the end of one year and enter another, you’re moving into the cycles of life and business during which all things happen (or don’t).

One thing that happens (or doesn’t) is that you keep the customers you’ve earned. Another thing that happens (or doesn’t) is that when a season changes, you sweep in and grab opportunity by its seasonal hand.

That’s where you are – because it’s where we all are.

As another well-known orator once said – in fact, he’s so well-known, he goes by the moniker Anonymous: 

“And in the end, it’s not the years in your life that count. It’s the life in your years.” For whatever stage of business, we could turn that around to … It’s not the years in your business that count. It’s the customers in your database. And more to the point … It’s not the customers in your database that count. It’s the ones that keep calling you their contractor.

Your Simplest Year-End Strategy

Customer retention marketing is the time-honored tradition of focusing on those customers who matter most – those who buy more, buy more often, give more referrals. And this end-of-year holiday season is the time to reach out to them, once again, to keep them in your fold when the calendar turns pages.

A simple and cost-effective way of keeping the name of your business in the minds of all of those potential repeat customers is sending seasonal “Holiday Cards” or postcards.  These are great because they are quick, to the point and serve as an inexpensive way of keeping your customers from wandering off to your competition.  And there are other things you can do too…

Simple Ways to Spread More Holiday Cheer

1. Change your Voice Greeting. Help maintain the festive seasonal spirit with a friendly greeting, a la: “Happy Holidays from ABC! How may I bring you some cheer?” 

2. Participate in media “giving events.” Make toy or canned good donations in your company’s name during your media charity events. Or, even better, ask a local media outlet to forward names of needy families. Agree to serve a family of your choosing and you’ll be on that media’s news for having stepped up. The good will pays your heart, regardless, but the exposure and recognition will pay your business.

3. Have an Open House to invite customers, friends and the media. Contractors don’t see this a lot – customers coming to you – but you can enjoy some real face time with customers, reinforcing your mission of your service to them, and they can see how you carry out your day-to-day operations with professionalism. Open houses also give you a chance to tell customers and prospects about services they may not know about. And they give customers a chance to say to their friends, “I’m going to my contractor’s open house today.”

Bottom Line: Now is the time! The holidays provide a great opportunity to connect with your customers and cement the relationships that will bring continued sales throughout the coming years.  That means you don’t have to be “selling” to sell your customers on why you deserve their business.  Do a great job of saying “happy holidays” and your customers will thank you with their future sales, referrals and loyalty. 

Can 11% More Profit Really Be This Easy?

There is a sales triad that correctly suggests to a buyer, “You can have price, quality or convenience. Pick any two.”

The wisdom and continued applicability of that maxim is evident when somebody at your organization pipes up with, “Just imagine how great our sales would be if we had all three.” Can’t be done.

A rational buyer perceptually gleans that price parallels convenience and quality. The higher of the former suggests the other two are higher. The inverse is also true. Case in point:

I recently shopped for leather luggage to compactly fit in my “new” 6-year-old car that is all engine and no trunk. I located 4-piece sets (for motorcycles) online priced from $79-$440. A big disparity. They were all real leather, copy claims were similar and some had “brand” names that meant nothing to me. However --

I found myself automatically moving away from both the highest and lowest priced goods, toward the upper middle. I “assumed” quality was commensurate with price, yet didn’t want to overpay. Many of our inner voices say, “If it’s that cheap, something must be wrong with it.”

Countless studies of 5-price tiers show bias toward the 2nd and 3rd highest prices. Flint McGlaughlin of Marketing Experiments (of which we’re members) found that if you don’t have formal tiered pricing, you can easily add 11% more profit:

1. Take your most chosen product option and add 11% to the price.
2. Create a higher and lower priced option sandwiching the above in the middle or slightly above in price.
3. Done correctly, sales conversions remain constant, and you will sell some of the higher priced options. There are many for whom “the best” and “most expensive” are inextricably linked.

(Note: We’re attending a 3-hour webinar in early November entitled, The Value Proposition Course, which goes deeper into this topic, upon which we’ll report. I’m also headed to Dan Kennedy’s Information Marketing Summit in Nashville next month. I have a feeling my brain may leak out of my ears.)

Okay, so the above is a bonus to you that should pay for your SMI subscription for a few years, but we’re not done yet. Since pricing has elasticity (which too many contractors refuse to believe), which adds more to that elasticity without creating sales friction: quality or convenience?

For eons, it was quality. Everyone touted it, discussed it, dissected it. And though it is clearly a reason for brand loyalty, that loyalty suggests that a purchase preceded it. Yet today, for the prospect, the answer is migrating toward convenience.

Convenience is the byword of instant gratification. Think of it. A search for 24 different sets of compact black leather luggage would’ve taken me days of grueling shopping and research just a few years ago. I did it all in 7 minutes in a chair.

Your prospect searches for “Heating Contractor in Milwaukee” and sees a RANK of “most active and most relevant to less active and less relevant” in .02 seconds.

In the Yellow Pages, this was alphabetical and/or based on “money spent” via larger to smaller ad hierarchy. Or you’d ask a neighbor. Now you see “Reviews” online; who needs the neighbor?

Your prospects want to be fixed now or they can call 4 other contractors. If they used Service Magic, Angie’s List or another online lead generator, it’s nearly a foot race to get the job. Quality is a “concept”; price is “relative”; speed is an absolute.

So, how do you portray and increase your convenience to and for customers? A few suggestions.

4 Ways to Raise Your Price and Image with Convenience

1. Be there. If your Local Listing (this is NOT your website) doesn’t appear on Page 1, you are not convenient. Current stats show that 94% of consumers stop searching on PAGE 1. How many pages do you scroll down to find a vendor? If your listing is past page 1, it doesn’t matter how cheap you are or how good you are, you’re being ignored by a majority of online searchers. (Click to email a coach about getting on Page 1. We can send you a report of “7 Things You MUST Do to Get on Page 1 of Google.” Currently, 84% of our clients are on page 1.)
2. Be transparent. Request and display your reviews. (Even if your “average” is 4 out of 5 stars, it shows credibility.) Show your testimonials. Display any awards, memberships, charities in which you’re involved. Rate your Service Window Success, such as “94% of our service calls handled within 24 hours.”
3. Prove and Guarantee. Basically, your proof must be overwhelming, and the guarantee supports that proof. Everybody says something like, “We’re fast and reliable!” but the modern method must be more forceful. “If we don’t make our time appointment window, we’ll give you a $50 Gift Certificate” (A discount on service). That reeks of convenience. Everyone says, “We help you save energy!” but now you must prove and guarantee with “If our system doesn’t save you 26% in energy from last year to this year, we’ll refund you the difference.”
4. Follow Up. Nearly every successful online retailer has found that a discount certificate offered within 72 hours of purchase has nearly a 1 in 4 chance of being redeemed. You are making it convenient to do business with you. Every service or installation should be followed up similarly. A move to a maintenance agreement following service. A “better” filtration option, an “upgrade” to warranty, basically an incremental sales bump immediately post-sale shows you’re willing to deepen the relationship and raise the convenience.

For all of the above, these can be displayed in your local listing, website, marketing copy, service vehicles, taglines, CSRs, techs, invoices, follow-ups. As you make yourself more convenient, you automatically make yourself more valuable. This means price resistance and competitive pressures ease.

I greatly encourage you to seek ways to build convenience into your marketing, pricing and selling strategy.

It's About Lead Generation, Pure and Simple

Lead generation seems to rule the day. True enough, it’s darn hard to sell without a lead.  That’s why Direct Response copywriters are highly sought-after marketing experts. The best in their craft weave words that flip “buy” switches, turning calls turn into cash… for their clients and themselves.

Top Direct Response copywriters can command up to $25,000 to write a sales letter, plus a percentage of sales generated. (Our fees aren’t quite there yet!) Usually these fees are paid by deep corporate pockets with millions to gain or lose, yet they still give mere mortals sticker shock. I understand.

But wait…

Shocker of the Day:

The amazing lead generation results of solid Direct Response ads have a dark side that no one in my field talks about much: if you only use Direct Response, your image will suffer.

In fact, all ad types have an “inverse”. If you only use TOMA ads, don’t expect a big lead count. If you have no Retention effort, don’t wonder why you lose customers. Balance is critical to your success.  So, if you agree on that point, you’re ready to find how to boost leads “on demand” by intelligent use of Direct Response lead generation.

Direct Response Ads are hard-edged offers.  They turn heads. They jolt the reader. If they’re doing their job right, the prospect gets pulled in – sometimes by asking, “How can they offer this?” Remember, the end of scanning is the beginning of selling. That’s done using these ingredients.

      You aren’t the target audience.  So stop talking about yourself.  Forget bragging  about your own self-serving virtues or knowledge.  Point your Direct Response ads at your customers.  Enter their subconscious. Address them personally.  Use "you" and “your” instead of "us" or "we" in every conceivable case.

      Make your headline powerful. It’s responsible for 80% of your readership, so make it count or lose the prospect. Powerful headlines can be immediately beneficial such as “How to Get a $157 ‘Super Tune Up’ Guaranteed to Save You At Least That Much in Utilities… For Just $89”.  They can be imperatives also, like, "Get A New Water Heater that'll keep your showers steamy all year … but please don't pay me a dime for 6 months!"  Now, doesn’t that make you want to take a second look?

      Write about benefits, not features. Tell prospects how they will benefit – and if measurable – to what degree they'll benefit. Then tell them when they'll benefit. You can even try a “damaging admission”, such as “We’re offering this because we’re having a slow season and we want to keep all of our techs on staff and busy.” Your reader must be able to see and feel the gain (or loss) becoming emotionally involved in the process.

      Inform your reader with meaningful specifics and reversal of risk. If you just use the same dumb phrases as everyone else, you're wasting their time and your money. 

Tell them specifically what they’re going to get and how you can guarantee it. Instead of “We’re fast, reliable, and have the best quality in town!” (which is like, a major snoozer), try "Over 93% of our calls are handled within 24 hours."  Instead of the worn-out "Satisfaction Guaranteed," try "You’re guaranteed same day service and satisfaction". Instead of “We can save you money on time”, try "You'll reduce utility bills by 17% or get a check back for the difference." Get creative and tell prospects how you'll be accountable for their comfort, gain, and the competitive advantage only you offer.

Well worded specifics keep readers’ attention and supercharge leads.

      Tell the prospect what to do. This is the "call to action," so give clear directions. If there are any special conditions to your offer, tell the prospect or you're asking for confusion. As an option to increase  immediacy of leads, impart a sense of urgency – such as a specified length of time or number of available units.  I’ll go so far as to say that a Direct Response offer without a limitation is not an offer.

Many contractors are scared to make offers that differentiate them from other contractors, which is great news for those who will. So use intelligent Direct Response for your next lead generating campaign. Direct Response can also be used in newspaper, as inserts, for radio and even television. It works great for service and upgrades. Use it wisely and profit accordingly. 

Readers can get free access to the industry's number one training resource, the Sales&Marketing Insider. Sign up here. 

Copy the “Old School” Success of Amazon

I recently wrote about Contractor Media Integration to help dispel the myth that online and offline are somehow separate. They’re not. The web is merely a means of message delivery, like any media. However…

There is one element of web marketing that remains profoundly different from other media. (It’s also “conveniently” left out of most every web media salesperson’s pitch.)

Not knowing it can be crippling to contractors. It even posed a lethal limitation to web-based sales giants like Amazon, eBay, Pro-Active and J. Crew. Yet, they quietly “discovered” a very old school way of exploding their profit that you’ve already known for years, but have probably been told to avoid…

As a Direct Response marketer (meaning, focused on sales and leads, not on “soft” advertising results), promotions have one of two goals:

1. Direct Sales – Asking for the order in the promotion.
2. Lead Generation – Getting a warm lead, prospect.

Now, if you want to tilt the response heavily in your favor, you will use the leads from Item 2 to make the offer of Item 1. (This is one way we can guarantee to outperform any previous marketing campaign or you get a refund. Yes, it’s that simple but most people miss the simple stuff in pursuit of the complicated.)

Profit Point 1: The target is the most important factor. (My most alluring promotion for generators will fail if wagged in front of people who’ve never lost power.) Having more contacts on this list is the bedrock to meteoric and consistent business growth.

Profit Point 2: You would do well to constantly build your “target list” through any means available, all year, to constantly “prime the pump” and never ignore a previous warm lead or customer. Identifiable targets are gold.

Profit Point 3: The “profoundly different” element in web marketing is that you have no definable target. Don’t gloss over this point, as it ties the lesson together.

All former media – mail, TV, Yellow Pages, radio, billboards, you name it – were “pushed” to a known audience. (Direct Mail was and continues to be the absolute king of reliable, controllable Push Marketing.) We pushed to some hopeful group, expecting a little interest and eyeball, then waited for the phone to ring. We chose the market.
With web marketing, they choose you. They choose the search terms, based on their needs, whims, and desires, instead of just staring at the television or opening the mail. You don’t have a target without knowing their thoughts or having their permission.

That’s why the most successful online marketers must rely on Pull Marketing.

Profit Point 4: You must master “Pull” marketing to build your list. This means becoming magnetic through the following methods, in order of importance:

a) Your local listing
b) Your own site’s “attractor factor” (SEO)
c) Your Pay Per Click campaigns
d) Your social “interactivity” to drive leads

Ordinarily, I’d stop here. The above is enough to rouse any contractor who’s sick of seeing his web-based lead generation remain as flat as Snooki’s brain activity during Scrabble. (Or doing anything for that matter.)

If you only pursued the 4 Profit Points, you’d soar above your competition, as we have seen many contractor clients do. Yet there’s a twist to the story.

What if you were primarily web-based and had already built a business using those principles? How would you grow the coveted list?

Amazon spent 8 years out of 11 losing money. Then they correctly figured out that they’re not in the “online retailing” business, they’re in the list-building business. Now they “retail” to that list. A lot. And they have burst through the logjam into fortunes previously unknown.

eBay spent 9 years parasiting its own list of auction junkies without much target growth and a dead stock price to show for it. Then they figured out they’re not in the auction business, but are in the list-building business for buyers and sellers. (Points 1 and 2, restated.)

Profit Point 5: To build your leads and sales, integrate offline and online.

The key to their success AND YOURS is realizing they had to grow their lists. They couldn’t rely on the glacial pace of “normal” growth of recession-weary consumers. They couldn’t keep pounding their well-worn house lists. (Sound familiar Mr. and Mrs. Contractor?)

They had to come up with a new way of lead generation to drive traffic to them. And this new method?

Profit Point 6: Direct Mail is back, in a big way.

Yes, dust off the pony, load up the saddle bags and start licking some stamps. They (and a parade of online giants) have rediscovered Direct Mail as a “gateway” to their sites, to build their list and to boost sales. New school, meet old school, and multiply. How?

Like this:

• A postcard gives a QR code for an offer, video or “to read more” online.
• A letter invites the reader to visit online or call, and gives the discount code in the letter. (Thus heightening the value of the letter.)
• A newsletter offers a discount for a service they read about, different recipes or archived articles online (which should include an “info capture” device for email addresses ).

The look of the cards/letters matches the landing pages. The online language references the mail piece. It is truly integrated and truly successful.

The “new” success of direct mail is being copied by such large mailers that – no matter what “mail death” news you’re hearing – commercial mailings are up 3%, direct investment in advertising mail is up 5.8%. (DeliverMagazine.com) These marketers don’t spend $48 Billion in a media that’s not returning dividends.

Summary

If media integration works for them, it can work for you. Please quit thinking of online and offline as separate entities. Integrate them. Don’t think of “our email list and our snail mail list.” Let online and offline offers be the same and offered simultaneously.

Retailers are adding tens of thousands to their email lists by using direct mail. Don’t believe the “word on the street” about other media. (How many sales have YOU made using Twitter?)

Focus on being in the list-building business for contractor services . Do it through all of your marketing, in a cohesive whole, consistently strong across the media. As you’ve always known, success starts with a solid foundation.

How to Multiply Your Leads

It’s always been the case. Since the dawn of time - or around the time my children think I was born - businesses have sought lead generation. The first heating contractor sold fire door-to-door; the first plumber offered ways to get rid of that musty smell in the cave basement. You know the rest: as soon as those first jobs were completed, the first collection agency began.  

The life-blood of business is lead generation. Our most commonly heard request in Marketing Coaching calls is “How do I generate more leads?” They’ve heard all sorts of advice; gotten all sorts of prices from various media, have seen a variety of approaches, and even get a sermon from me on the topic.

It doesn’t matter - they feel “stuck”, confused, or overwhelmed. So depending on the contractor, we occasionally list the steps, but just as often we teach how to do it for yourself (the “teach a man to fish” approach). Not long ago, we got an email…

“… kind of hesitated to ‘get started’. But I'd like others to realize they don't have to feel stuck.  Starting with a few changes can reap immediate benefits that can help them make other changes that will reap further benefits. It’s momentum.

Since generating more leads, I’m now a better sales person, closing a higher percentage. But the biggest factor is having more leads to work with. And I wanted to say, ‘Thanks for all your help.’”            Steve Scott, Comfort Technology, NY

That was very nice of him to say, but the most important word in his email was “Momentum.” Yes, that was a marketing lesson.

You see, he started off “stuck”. But Steve is the guy I mentioned a few articles ago who is getting 6-10 leads a week from a $54 ad. He closes half of those for a Maintenance Agreement. He also invests in Direct Response when the leads slow down, plus he sends all customers a newsletter – like clockwork – and follows up his leads, referrals, and sales regularly. He so “unstuck” now, he can’t even remember it. So, how do you get a dose of marketing momentum when the leads are down?

First, if you’re going fishing, it’d be nice to know what was biting right? How about where, when, on what, how often? Same thing here, so your very first clue to better lead generation is…

Track your Incoming Leads – Would you put your money in a bank that couldn’t tell you the interest rate? How about a watch with no hands? I mean come on – you’re investing in marketing for results, so think in terms of measurement.

Your receptionist can keep up with this in a number of ways. I’ve seen very effective companies use a “tick mark” system of noting an ad’s response that is then fed into a weekly results sheet for leads and sales.  I’ve also seen sophisticated contact management software that had a field for incoming leads per media type. Any method is better than no method. The essence of tracking is to find what works and how well it’s paying you back.

How are you going to figure an ROI if you don’t look at the R and the I?

Look who’s buying – Your customer list shouldn’t be viewed simply as one large category, but as multiple levels of information.  Avoid the frustration of making offers to the wrong group by taking your full list and dividing it to select the best targets. 

How do you determine your most valuable customers? Here’s a quick list segmentation method I like called “RFT”.

Recency: Those who have spent money with you in the last 24 months;

Frequency: Those who have used you with the greatest frequency in the last 24 months

Transaction size: Those who have spent the most with you in the past 24 months.

1. Rank the BEST candidates according to the above and determine how big a list you can effectively contact.

2. Assemble your RFT list for a PostCard offering $20 off ANY service call, PLUS a $20 gift certificate for referrals who get service work done within the next month (or whatever time period you determine). 

Oh, I can hear the cries from some of you already… “I’ve got to pay $20 for each new customer?!”  Actually, you’re already paying more than that.  The average customer acquisition cost is $275, so this is mighty cheap by comparison, and you only “pay” when they pay you.

The gift certificate can be for a lunch/dinner, which is a nice gift. (A wise restaurant owner will sell you blocks of 10 or so certificates for as little as HALF the face value to put more diners in the seats. They may have certain night limitations.)

Now, not only will you generate leads and nearly free referrals with the right offer, but you’ll determine the value of this list to help find commonalities for a much broader contact list later. Bear with me for a sec.

3. Make the call – Follow the PostCards with a call saying, “Did you get our money-saving PostCard in the mail?” (If the answer’s is “no,” check your records.) “Great, our technician will be in the area on Thursday and Friday.  Which would be a better day to stop by to evaluate any plumbing needs?”  This is an alternate-of-choice close and not pushy if said by a PLEASANT smiling voice. Modify for your tastes, but you get the idea.  

If your caller runs into a person who doesn’t need any work, can’t think of a referral, but says nice things, jot it down and request to use it as a testimonial.

From your customer list, a 1.3%-2.5% response is the “range” depending on quality of list and offer. Getting 50 leads from a 1000-2000 piece mailing is not a bad result for an hour to get the mailing ordered. (We had a direct response piece get 11%, but that was freakish, and not to be expected. Of course, we brag about it endlessly, like I just did again.)

This is a small mailing, to a high quality list. As you generate appointments, sales, and referrals, you’ll have made some money to keep the momentum going. Since you tracked your leads (Remember? You did, didn’t you?), you now have a “guide”…

Once the “commonalities” of your list are determined profitable, go get a list of similar demographics. A Mail List Broker (in the dreaded Yellow Pages or at www.amerilist.com ) can create a list based on the best respondents using combined income, age of home, education, and other parameters. This is a simple list to obtain.

In fact, this whole list is simple to do, doesn’t cost a bunch, and can generate a flood of leads when you need ‘em most… like now. Can you think of a reason not to get started?

Let your marketing momentum begin!

You May Not Judge a Book by Its Cover… But covers sell lots of books, colleges and contractors

Woe is me. I was the hero. I was the king. I was the father made of steel. As invincible as any spandex-wearing, building-leaping protector with fake but superbly sculpted abs. And then my children grew up.

They became people with actual opinions. And I became human and fallible, almost (!), with receding hair and all. Darn it.

We are entering a new phase in life; my cherished “little girl” has left the nest and gone to college.

I stand in her room full of whimsy, Viewing posters of musicians and past heartthrobs. A handsome teen vampire dude looks broodingly my way. I don’t approve of him either. I scan the lavender walls that made me initially cringe when painted while she was at summer camp. Upon returning, she “ooohed” with delight, swooning dramatically into a round plush chair. Only an echo remains. Even the heartthrob’s smile seems to have faded a bit.

Years later, we added an adjoining bathroom so she’d not have to share one with her decidedly less preen-prone brother. Plus, he left the toilet seat up. Forever.

Many evenings of prom-like perfection were achieved there, as teenage girls aplenty tossed, flossed and glossed themselves for exceptionally undeserving young men. (I’ve been male all of my life; believe me – we don’t deserve any of you!)

A misty reflection stands in the full-length mirror checking to see which shoes look best. “They’re both fabulous,” I whisper, knowing I’m answering the most deadly question a man is ever asked. Okay, it’s in the top 10.

Just before I get sad, I smile…

I smile at the independence of her thoughts, artistic pursuits and ability to mount “reasons for or against” faster than Congress approves their own pay raise. She’s also got a laser-like opinion on aesthetics.

I can ask her about the design of a car, the face of a watch, the arc of a boat’s hull or a pediment detail on a Greek Revival façade and the answer – fully formed – comes blazing back in acceptance or dismissal. She can be equal parts sweet vanilla or pure venom, each indiscernible until dispersed. You ask her opinion and you’d better have your seat belt on.

And using these powers of decisive independence, she virtually chose her own college. Yes, a multi-thousand dollar, 4-year life-path commitment 700 miles away, largely made without ever leaving this lavender room.

Say hello to a tidal wave of how your current and future buyers buy.

See, using the powers of prehistoric parenting, we dragged her up and down the eastern U.S. to visit schools “best-suited” to her (in the opinion of real and trusted college counselors). We “suggested” others, including our beloved alma mater and nearby University of Alabama that offered her a full scholarship. Yet, she knew what she wanted and these weren’t it.

So, she did what millions of thinking, independently-minded, focused people on a mission do: She went online.

She searched and researched “Graphic Design Education” like I research marketing behavior. She scoured discussion boards, social sites, the schools’ websites, student and parent reviews, plus everything from enrollment to weather to job placement. (I approved that last entry.)

Eventually, she gathered and presented mounds of convincing evidence about a school called “TCU” in Fort Worth, Texas. I thought Fort Worth was a really large ranch, surrounded by a split-rail fence, where steer walked around saying “Howdy” and doing stuff, most of which is ruinous to good shoes.

Yet, she convinced us to make a visit. And my, oh my…

It was like my daughter and TCU had met on eHarmony. They virtually snuggled and called each other pet names. I had to admit, this place was a dialed-in match for her, and Fort Worth is a beautiful, culturally-advanced jewel of a town. In a 3-day visit, we were completely sold, which is relatively difficult. Especially considering this –

We knew zero current students, no alumni, no teachers and had no “advisor” endorsement.

Yet, her “Book Cover Research” triggered a rather significant sale. Before this, I could barely spell TCU. Now I wear purple and scream “Go Frogs” for no apparent reason.

Let me clarify the money part: She got a seriously good partial scholarship (THANKS to good test scores and my new best friends in the Admissions Department). Plus, I’d saved 10 straight years for this occasion. Yet the “package” value remains, like many colleges today, firmly in the nosebleed section.

TCU ticked every box for her. They dispensed their every advantage online; they linked a world of strangers to become a welcoming spot for friends. They organized their best “features and benefits” for maximum findability and impact. (My daughter sometimes dismissed a school because “Their website was unnavigable; they looked unprofessional.” Talk about death by book cover!)

In short, we were “sold” almost before we arrived. We didn’t know the book, but we knew the cover well. By the time they told us the story, we were signing admission forms.

I come to my senses standing in her now-empty room. I know she’s happy. Very happy. And so is the once superhero, who is still prone to fly to TCU as needed, perhaps accidentally knocking the undeserving jerk from the dorm porch upon landing, since he’s not good enough for her. Ever. Some habits die hard.

Adams Hudson

Questions for you:

If someone was searching for your trade services online, without any prior knowledge of you, what would they find?

Are your reviews positive and powerful?

Does your online “book cover” present convincing evidence that your company is a great choice?

Does your Local Listing show up on PAGE ONE of Google? If not, why not? (Get your no-cost Listing Grade here.)

The Simplest Formula for Success: Keep the Customers You’ve Already Got

Your company’s current customers are the absolute #1 source of your future sales.  When you lose customers, you lose all of their future business and all of their referrals to your competition.  When you keep customers, you keep that pool of sales for yourself. 

The fact is, loyal customers spend 33% more than non-loyal customers.  And referrals among loyal customers are 107% greater than among non-loyal customers.  If the business that wins a customer stays in touch, treats him fairly, remains valuable and continues to build the relationship, that customer can’t help but use and refer the business!

How does this happen?  It begins with a relationship between you and your customer.  The relationship is strengthened by your good service and the company’s quality products.

With these elements in place, a solid marketing program makes the relationships between you and your customers even stronger.  And as a part of your marketing, a well-designed “customer retention program” will make a significant difference.  It can pay huge dividends in loyalty, upsells, resells, backend sales and referrals.

You must keep your company’s name in front of your customers.  With 4,000 ad messages a day, you can see how quickly an un-contacted customer can forget your company’s name.  Let’s look at a few tools that can keep a customer’s memory fresh…

§  A “thank you” note after a service or installation call is not just being “polite.”  It’s a part of a smart customer retention program that reinforces appreciation for their business.  The thank-you should come from the tech and/or the company owner/president.

§  Refrigerator magnets with your company’s name on them aren’t just “freebies” from your company.  They serve a dual purpose.  They hold little Jimmy’s artwork on the refrigerator gallery – while also keeping the name of your company in the customer’s home 24/7 where visitors can also see your company’s name.   

§  Low-cost Holiday Cards can be sent from Thanksgiving to New Year’s.  This retention effort is especially important during this time because any sales message sent between December 10 and January 12 is a waste of money.  Yet you don’t want to forget your customers during the holidays, and you don’t want them to forget you.  After all, these are the people who will enable you to be in business next year. 

Plus, with all the family gatherings going on, you certainly want your name to be at the top of your customers’ minds when a repair call is made.   Tip: Send them first class to clean your list during this annual effort.

§  Newsletters are the most profitable retention tool of all.  The most economical and efficient way to package “helpful, insider information” is through a good, strong Customer Retention newsletter program. 

Your newsletters should have information that is not solely about the business. This is because you must – repeat “must” – retain customers’ interest… and 2500 words on sump pumps will not do it.  In order to be effective and interesting, maintain a 60/40 split of “general interest” to “specific field interest” in your editorial split.  Call 1-800-489-9099, email freestuff@hudsonink.com or fax

334-262-1115 with your address or click here and request for a free sample.

The best newsletter campaigns give customers rich, interesting information that helps customers run their households safely and cost-efficiently.  Plus, they bring your company name and logo right into your customers’ homes.  It keeps them informed about new products and services while proving customer benefits.

All of these are worthwhile, because as you now surely know, your company’s current customers are the absolute #1 source of your future sales. 

How Simon Moves Eleven Million Dollars of Product

There are 9 automobile dealerships in the United States that sell McLarens. So don’t feel bad if you have never heard of them.

Yet how and how many of these $280,000 cars are sold is remarkable. It’ll make you wonder if the manufacturer or their customers ever heard of a recession.

I walked into the Dallas McLaren dealership as a fan, not a prospect. A salesman walks over and has an opening line like none I’ve ever heard. You may rethink the way you sell after this encounter.

A little background

Most “cottage industry” cars would use an existing engine, then fit their body and interior accordingly. Yet this 2-seater, largely hand-fitted in England, sports a 610 horsepower twin-turbo V8 of their own design. Its gearbox, unique suspension and carbon fiber tube can withstand a 140 mph force. The car is a living tribute to out-of-the-box thinking, near comical specifications (217 mph anybody?) and what man can produce with few limitations.

The first McLaren road cars, introduced in the 90’s were an instant sellout at $880,000. Now, this many years later, with owners like Jay Leno and Ralph Lauren, a used one is a million two.

Simon, the English-accented, impeccably dressed “McLaren Product Specialist” walked over casually as I was in the midst of pure automotive lust. I mentioned I was purely a fan, and hadn’t a grain’s pretense of purchasing. He smiled casually and said,

“That makes both of us fans, which is the first step toward ownership. Welcome to McLaren Dallas” as he extended his hand.

Simon understands that the first thing a prospect needs to feel is inclusion, not exclusion. As you read, look for at least one sales principle per paragraph. (There are 7, maybe 8.) Note them on the way to a stunning result.

Though I’ve expressed my unworthiness, within moments, I’m sitting in this sumptuous cockpit, resisting the temptation to moan as I fondled the carbon fiber console.

During my visit, we talked cars, adrenaline, horsepower and other man stuff while my impossibly-patient wife feigned interest. Simon never pressured, never looked at his watch, yet prodded the proximity of prospecthood.

Very deftly and knowing my lack of intent, Simon invited me to consider a test drive. I declined, but began to entertain the thought of it. (NOTE: All purchases, all decisions, all physical components begin as thought.)

“We don’t ever sell these on the first visit. So why don’t you come back every day while you’re visiting and maybe you’ll have it by week’s end!” he joked. Then he got serious…

“We’d love to have you as a customer at any level. That could be for a great referral, or staying in touch through email, or just allowing us to help you find your next car… whatever that may be.”

Simon wisely considers selling relational over transactional.

True to his word, when I returned, there was a voice mail thanking me for the visit. He also sent an email thanking me (note doubling up on the kindness and professionalism).

After my response to him, he included a link to a car I had mentioned on our visit that he’d located, though I hated the color and told him. “Duly noted!” he laughed and assured me of a follow-up. I have complete confidence that he’ll do it.

He also re-invited me when I return to Dallas to visit my daughter in school nearby.

Some of you may think this approach is too smooth, too soft, too elitist. Maybe you wonder if this could be effective, or if he’s just going through the motions.

In our last follow-up email, I jokingly asked him, “So, how’s my McLaren doing?”

“Oh, I sold that one yesterday to a man I’d been in touch with for a few months.”

“Wow. Glad you got that done! That’ll make a month!” I say, assuming that at 10 times the price of a ‘normal’ car, selling even 5 or 6 a year would be monumental.

Simon respectfully paused. “We’re on track to sell 64 cars this year, 40 of them by me.” If you’re wondering, that’s $11,200,000 worth of cars sold by one guy, earning roughly 2% of the gross, or $224,000. I gulped loud enough to have been heard from Alabama to Texas.

I probed the question of “How” with Simon, and his answer was shockingly similar to last week’s editorial about Nick Saban and his 3 National Championships.

“It’s a process” he said. “I love people. Love the product. Yet the process marries the passion between the two. I follow the same steps every time, regardless. Though you were not ever a prospect for the
McLaren, I know you are for something.”

Today, he sent me an email with a link to another car on the list. I made an offer. The process in action.