new sales technique ill be trying

[huggytree]

I talked with a electrician today who is very successful. He has 35 employees

He explained how he does 'service' calls. It fixes some of the problems ive been having giving people rough estimates over the phone and giving out how much i charge per hour. alot of people on this website have told me not to give out prices and rates on the phone....

when the call 1st comes in ask for a name/phone/address before anything else. this will get ride of the competition asking for prices (he said to listen for a pause)...Some of the cold calls im getting could be competition..there's tons of new plumbing shops lately...maybe 10-20% of my cold calls could be other plumbers....

then when they ask 'how much per hour' or 'how much to replace this or that' say 'There are too many variables to give you a price over the phone. We charge a 'Disptatch Fee' of $45. We will come over and give you a price to do the work. '................he says it works well and has never been a problem... to me its shocking....but im going to try it for a while and see.

when he shows up the door he asks to do a 'whole house inspection'...he goes everywhere looking for more work...asks tons of questions about their plumbing while walking around...he claims his average service call is $400 because of this....instead of $155-200....

he also told me not to shake anyones hand anymore...that everyone thinks 'where were his hands 1 hour ago'....ive NEVER thought of that one...I SHAKE EVERYONES HAND!!!....no more....he also talked about booties ,talking slower and making the whole experience about the homeowner(make is selfcentered around them).

He offered to let me spend a day with one of his guys...to see it work...i said HECK YEA....so ill be shadowing someone maybe next week to see how its done...ill take a notebook.

any thoughts?

[vangogh]

Interesting. I can understand the asking for contact info upfront. The one warning I would give is some people are highly sensitive to giving out information to businesses because they don't want to later get marketing calls. Most people will probably give you their contact information out of reflex, but I can see it backfiring on occasion.

The hand shake thing is interesting. I can't say I would be thinking where you'd been an hour ago. I'd assume you'd cleaned up since then, but I can see how many people would be wondering.

As far as the dispatch fee and speaking as a consumer if you can't give me some kind of idea how much you think the work will cost I'm not letting you come over. I'm certainly not going to pay you to give me an estimate since I know there's another plumber a click or phone call away that won't charge me for that. It's worth trying. He seems to be successful with it so maybe it can work for you as well. Just saying if I called you and you told me you'll come to my house for $45 to tell me how much my job will cost, I'd politely decline and call someone else.

[KristineS]

It's worth investigating further. If it works for this guy it might work for you, and it can't hurt to spend a day learning something new.

[huggytree]

Vangogh,

it goes to the fact that we all create our own customers..they dont pick us, we pick them

i also would never pay for an estimate....I never win those price shopper customers anyways...so it wont hurt my bottom line anyways...he claims 90% success

[Dan Furman]

I use a plumbing company that charges a service fee to come out.

Personally, I never ask an hourly rate / etc. Nor do I care. I figure a plumber will charge somewhere between $75 and $150 an hour. I just want the job done, not to nickel and dime anyone.

You need more homeowners like me. We're out there.

[Dan Furman]

Vangogh,

it goes to the fact that we all create our own customers..they dont pick us, we pick them

i also would never pay for an estimate....I never win those price shopper customers anyways...so it wont hurt my bottom line anyways...he claims 90% success

You have no business asking for one then, because you personally do not see the value in it.

You have this contradiction a lot - you have stated before that you shop on price often yourself, but don't like it when its done to you. I have to tell you, you will never find what you are looking for in terms of a happy medium then - you will always have this price battle that you hate so much. Because your mind is conditioned to have it.

I'm the opposite of you - I almost never shop on price. It's generally never even a consideration. I like what I like, and I'm willing to pay for the best that I can reasonably afford. Because in the end, in 99% of the things we buy, etc, the price really isn't that much different anyway. I'm not saying one must buy the highest price TV (etc), but make price the last thing you look at - get a nice TV first (when I bought mine, in the models/size I was looking for, I could have had a "decent" Vizio for about $1,100, or a beautiful Samsung for $1,400. I bought the Samsung without thinking twice.) I also go to nicer restaurants, I book nicer rooms on vacation, etc. I don't "blow" money, but I definitely do not mind spending it, either. I'll hire the better plumber who can come soon, despite the $50 trip/assessment charge... it doesn't faze me one bit.

I wasn't always like this - I became this way more after I was in business a few years. I am high end in my business, and I figured I should be that way in my entire life. And I noticed I got better clients the more/longer I practiced this. The attitude simply permeates into everything I do - my website, my writing, etc. Yes, I still get shoppers and cheapies, and I ignore them without a second thought.

Money goes and comes the same way. If you are tightfisted with a buck, expect to always deal with tightfistedness.

I promise you, this works.

[Spider]

I thoroughly concur with everything Dan said. Attitude is everything, and it attaches to and affects everything else, too. I call it congruity - you cannot be one thing in one situation and another thing in another situation.

We will be congruous in our lives - it is not possible being otherwise. Like water always finds its own level, a person cannot live on different levels without feeling uneasy and unhappy. Discordent values will mess you up, every time!

[vangogh]

it goes to the fact that we all create our own customers..they dont pick us, we pick them

Good point. I hope my post didn't come across like I was saying not to try this. I think you should. It's working for someone else and hopefully you can make it work for you as well. I just wanted to point out where it might not work, but I do think you should try.

With me and the estimate I don't need to know the exact price before having you come out. What I want to know is are we talking $300 or $3000. If you told me I can't give you an exact estimate until I'm there, but can give me the rough it'll be about $300 I have no problem having you come out for the estimate, assuming the dispatch fee is then absorbed into the price.

I do have to agree with Dan though. If you wouldn't pay for an estimate yourself it's going to be hard for you to see the value in it and convince others to see that same value. You have to really believe in the idea in order for it to work.

[huggytree]

I agree with all of you about the battle in my head over this....but like Dan says about himself...im getting to think higher end in my personal life.

Do i buy high end products because i see the value in it...yes all the time

do i sometimes buy a cheap product which is good enough..sometimes...

when i buy a car i buy the best w/ all options....when i buy power tools i buy the more powerful Milwaukee i can get....when i buy firearms I always pick the most expensive models....when i buy tv's/electronics i always buy the best Sony.....when i buy major appliances i buy Bosch (the stove was double $ of a normal stove)...i take highend vacations..i look for upper-middle range hotels(to get away from the noise).....

Im remodeling my kitchen right now....im spending an outragous amount...high end cabinets...best faucet/sink you can buy...im going all out...

The more $ i make the better stuff i buy....so id say im closer to my ideal customer than you all may think...

but on the other hand im building a 2 story barn for my business right now and i went w/ a lower/low-middle range builder.....i dont want perfection...but i dont want it to fall over either....money was a major issue.....i didnt use sidejobbers....i went with a member of my builder association

id say i used to be 50/50 expensive/cheap...now im probably 80/20...i make more money and would rather just get it done instead of shopping around to save $5

im becoming my ideal customer..i wouldnt want to pay for an estimate, but i also wouldnt be one of these price shoppers who get 10 estimates.....i only got 3 for my barn....when i hire people for working on my house i usually pick one of my builder friends and say come-on over and just do it..

The electrician told me that most customers dont ask about his prices...they just want it done...very similar to what Dan says about himself.

[huggytree]

i dont want to get off subject....

will these sales idea's work?
anything to add or subtract?

I start trying them out ASAP

[Dan Furman]

i dont want to get off subject....

will these sales idea's work?
anything to add or subtract?

I start trying them out ASAP

I *definitely* think you should try it.

[Dan Furman]

I agree with all of you about the battle in my head over this....but like Dan says about himself...im getting to think higher end in my personal life.

Happy to hear this - be high-end everywhere in your life. :)

But like you said, that doesn't always mean buying the best / most expensive. I always don't. Like with the barn you mentioned - there's a point where the best might be overkill for your needs.

[vangogh]

Dave I agree. You should definitely try. The worst case is it doesn't work and you go back to what you were doing or try something else. My points have just been to get you to think about possible objections. When you're prepared for that objection you have a better chance of coming up with something to say to overcome that objection.

I'm glad you're seeing the different ways you buy things too. With the barn it still about value. There isn't enough value in it for you to pay more, but it sill comes down to value. With the kitchen you're going all out, because you are getting more value at the higher price.

Definitely try the new sales technique. It's the only way to see if can work. If it doesn't work right away don't automatically give up on it either. It might be that you just need to perfect the technique or improve it past a certain level before it really pays off.

[huggytree]

i just checked out that electricians phone book ad....amazing....4 color, 1st in the phone book, easy to read in 15 seconds, everything is about the customer and meeting his expectations....not much about him.....i looked at all the rest of the ads and they were sooo cluttered and all about the electrician...this guy is definately creating his own customer base just as the guy who advertises 'im the lowest price in town' does. Im going to spend time examining all of his advertising and possibly use it next year in my phone book ads...i may go for it and spend $10k for phone book ads for 1 year as an experiment...right now im only at $1,300.

its a concept that i have been going into...saying less, but saying something more important...being different....

he is a great connection for me....i hope to become friends and share his knowledge...i always like to look for someone who is where i want to be and imitate them...its been a while since ive had someone i wanted to imitate....

the wife doesnt like the idea of asking the homeowner if i can give a free plumbing inspection when i arrive...she says it sounds like a con....i also agree...i should spend more time looking for issues and warning them though..

[vangogh]

That's great that you can see all that in his ad. That's what we're all saying about focusing on the customer instead of yourself. One thing about saying less and being cluttered. One of the elements of design is whitespace. It's all the empty space in a design. Some people think you have to fill all that space and so clutter it with everything they can. What that does though is make it harder to find the really important parts of the information.

It's ok to use less space. In fact when you use less space or create more whitespace it leads to your being associated with the upscale side of things.

Think of two retail clothing stores. Banana Republic and The Gap. Both are owned by the same company. Banana Republic stores are mostly empty. There's less product displayed on shelves. There are less shelves. The Gap will pack as much into the space as possible. Guess which store charges more for a shirt? Guess which store gets the higher end customer? I even think if you wait long enough the stuff that doesn't sell at Banana Republic eventually finds its way onto the shelves at the Gap.

[Spider]

One alternative view regarding making the ad all about the customer - Sometimes the customer wants to know about the company, don't you think?

If I'm looking in the Yellowpages for a plumber or an electrician, I want to know something about the company on which I can base a decision to call. If the ad is all about me - Well, I know about me. What I want is to find out about you.

How can I tell if you can fix my problem if you don't tell me about you and your capabilities?

[thx4yrtym]

Frederick,

I agree.
I want to know if the service company is licensed, bonded and insured.
I want to know how long they've been in business.
I want to see a business address, no post office box numbers!

Are they an authorized dealer for any of the major brands.

If I see all of the above and then an actual person answers the phone when I call, then if they state that there is a trip charge to look at the problem and give a written quote I don't have a problem.

If I like their attitude and the way they present themselves and the price seems reasonable, I probably wouldn't get another quote.

[vangogh]

I think people only want to know about the company as it relates to them. Mentioning that you're licensed and things like that are about the customer, because they answer the customer's questions. Focusing on the customer doesn't mean ignoring yourself.

You can still get some basic information about yourself while still being about the customer.

[huggytree]

in WI you have to be licensed to advertise and you must list your master plumber # on every form of advertising you do.

i clipped 2 of his phone book ads and also i have some handouts...im going to keep a folder on him and study it.

his ad:
Making your life EASY and your home BEAUTIFUL
WE WILL WOW YOU!
Full service electricians-Residential,commercial,industrial
No project too big or small

WE ANSWER THE CALL

"We absolutely love the electricnas from xxx Electric, the best service in town"

up front priceing guaranteed
lifetime work warranty
24 hour emergency service
happy customers for over 25 years

PHONE # and ADDRESS

thats is for a full page...they have a super hero w/ a tool belt and lightning bolt in his hand...he's 1/3 of the ad

He also talked to me about my $20 off coupon on the back of my business card...he gives out $25 gift certificates....he says that way its a gift, not a coupon

[vangogh]

I think that's a good ad. It covers the basic information you'd want to know about the company while the focus is still on the customer.

Take a simple line like"


happy customers for over 25 years

It tells you how long they've been in business, but the emphasis is still that past customers have been happy. Combine it with the testimonial in the ad and you have a nice recommendation in you ad.

Gift certificates instead of coupons. That's a great idea. Amazing what a change of one or two words can do.

[huggytree]

this guys success is all about small subtle things....everything he does and every thing he says is just a tiny bit different. its meant to attract the type of customer he wants.

someone who wants the job done right and is not worried about price.

I have a stack of paper work from him. Im going to spend time studying it all and implimenting what i can. Im going to pick and choose what fits my company best. Some of his idea's cant be done by a 1 man shop.

[Spider]

It would be interesting if you were to share what you gather from his material, Dave. I'd cerainly like to learn what you pick up.

[vangogh]

Small and subtle works. It doesn't hammer you over the head, but it's very effective. People do notice even if they can't necessarily point to what it was that affected them.

[handprop]

The goal of a phone conversation is to establish trust. So the question is what is the best way to do that for a one man shop in a plumbing business.

The advice I would give is to try and say as little as possible. Instead think only of trying to get the person on the other end of the phone to talk about themselves and you just be a great listener. Practice makes perfect and if you can, keep working at it and you will become a master. For the most part people just want one thing in life....they want to feel good. People love to talk about them selves so put them in a position where they can do that.

If a person calls and you give them a price you have just violated that rule and lost the chance to build trust. If you can build trust you will be their plumber for life because the reality is people don't trust plumbers, electricians, etc. Ever heard the term "My Plumber" people say that because they are proud they found not just a plumber but a friend......and what do we know about friendship????? It's built around trust, right?

You don't want to get in the habit of spending hours on the phone with someone but remember that a person that trusts you will spread word of mouth like a wild fire if you promote it.

I learned this in politics because if you think selling plumbing is hard try selling an idea, or a promise. Just imagine how hard it is to convince a person to leave their home, jump in the car, and go to the voting booth because of something you say. It's really hard in an environment where both political parties have failed to deliver as promised, the fact is people have no trust.

Once you have trust your job now becomes one of promoting loyalty.

What I would do if I was in your position is keep a notebook handy for every phone conversation and each time you get a call give yourself a grade on how you did and ask yourself some questions like "Did I talk to much" or "Did i make them feel comfortable and did I earn trust". Be honest with yourself monitor progress each stranger at a time.

The next time you go out practice talking to people in a gas station or places like that. Do this and you will discover a big change in business. You will also discover that the stranger will become a customer and he will not worry about price like a stranger would and also will take pride in paying right away. He also tends to pay a higher price, strangers are as cheap as they come and why not.....they don't even know you.

This is the most important topic you can master and for myself it's everything. The reason I have what I have is not knowledge but instead relationships built on trust and loyalty.

Mike