Just after Hurricane Katrina hit Louisiana, the Plumbing, Electrical, HVAC service and repair industry went CRAZY trying to rebuild. This meant a lot of business for contractors in the area, however, along with the boom followed the chaos that came shortly after. The quality service providers were being squeezed out by “everyone and their brother” coming to the area to stake their claim as well. Unfortunately, the area was quickly inundated with low-balling, fly-by-nights installing inferior products, parts and materials. Of course guarantees were nonexistent.

Within no time, systems began failing left and right and where were the so-called “contractors” that installed these systems? They were nowhere to be found.

Don’t let this happen to your clients. Let them know the pitfalls of working with unknown contractors and going for the low bid. You get what you pay for. Let them know why systems won’t last that are poorly installed with inferior materials, parts and workmanship.

People don’t mind paying more if they know it will last. Peace of mind is a HUGE motivator for buying. Use it.

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Let’s face it, in today’s fast-paced world, conducting business is getting harder and harder. Do I Blog? Do I post on Facebook and Twitter? Do I get graphic wraps for the vehicles? Do I get a state of the art warehousing system? It NEVER seems to stop. Just when you think you’ve got it nailed, you’ve got to learn something else; the latest and greatest that’s going to take your business to the next level and beyond. The problem is if we aren’t careful, we can spend untold hours on something that will yield less than desirable results.

The bottom line is you’re in business to make money and when it comes to making big profits, we need to go back to the basics. It’s all about making sales…period. Phil Knight and Ron Rice didn’t need fancy graphic wrapped vehicles or a team of CSR’S to build the Nike and Hawaiian Tropic empires, they only needed a trunk. They got to where they are today by knowing how to sell.

There are many issues that bring about success for a business, however, the most critical issue is what employees are doing with the valuable customers leads they are given. Everything from the frontline employees to those servicing clients to service after the sale, how employees interact with customers has the greatest impact on a company’s success.

In the contracting industry, one of the most misunderstood and under trained aspects of a service technician’s job is making sales. They spend countless hours and money on an education to become great mechanics, but sales training is where they learn how to make the education pay off. There’s a reason why so many contractors don’t make the profits they long for, their employees aren’t selling. They only know how to slash prices.

In short, go back to the basics. Give customers great service, offer them products that will make their lives better and thrill them beyond their expectations. Make them happy, and they’ll make you happy.

You’ve built the basket, now learn how to put the right eggs into it. In this industry, one of the most common complaints we hear from business owners is how difficult it is to locate and hire top people. In just about every industry rag you’ll find articles with suggestions for hiring and unfortunately, they rarely come from recruiting professionals from the contracting industry. The truth is there are no inside tricks to recruit the best of the best and advertising is generally a lost cause. The Golden Rule for recruiting is: If you want to attract top talent, offer an opportunity they’re attracted to. It doesn’t get any simpler that this.

The bottom line is top employees go where the money is. Does this mean they are only money motivated? Not usually. It’s because companies where employees are earning $100-150K or more per year have the best to offer their employees. The best pay, benefits, culture, management, training, equipment, vehicles, marketing and advertising…and the list goes on. It seems most people in the industry are convinced there’s a shortage of technicians; I can’t disagree more because A/C units are getting repaired or replaced and plumbing systems are being upgraded. It’s not as if consumers are desperate for service; there are usually hundreds of contractors to call in most areas, so there is no shortage.

Consumers are, however, in search of excellence contractors. It’s just as difficult to find a quality plumber, electrician or HVAC professional as it is a good mechanic. Shoddy work, leaving filthy jobsites and poor service are commonplace in the industry. Is there a shortage of technicians? No. Is there a shortage of excellent technicians? Yes. What’s the solution? Training…that is excellent training. Do your employees know how to deliver five-star VIP treatment? Do they know how to thrill customers beyond their expectations to have referrals flooding in? Do they know how to offer options and upgrades with polished, value-building presentations that motivate prospects to buy without hesitation? The majority of technicians don’t have these abilities and this is where the problem lies.

Many business owners believe the only way to increase profits is to throw lots of money at different advertising sources and to add as many trucks as possible. All this does is multiply all of the problems right along with the stress. The most important aspect for determining your success relies on what your employees are doing with the valuable leads you’re giving them.

Phil Knight and Ron Rice are the masterminds behind the Nike and Hawaiian Tropic empires. They didn’t have state of the art warehouses, or a team of CSR’s or fancy graphic wrapped vehicles to build their fortunes, they only had a trunk. They got to where they are today by knowing how to sell. Unfortunately, in this industry, most employees know very little about selling and that’s why so many contractors experience such low profits. In short, recruiting top people is as easy as 1-2-3.

1. Get Training
2. Get Profits
3. Get Top People

Evolved in what way? They took the initiative to learn the buying habits of consumers. When the game changes, so do the rules. Only this time around, there were fewer victors. Not only were astute business owners prospering from selling their products and services, but they amassed even more fortune from their acquisition endeavors. Since many contractors were going out of business, aggressive entrepreneurs were scooping them up and turning them around.

One of my clients sent out over 200 letters a week to contractors around the country to buy companies. In one case, he purchased a company that had been in business for over 35 years. It sold for five thousand dollars. Believe it or not, the previous owner was thrilled because he was in bankruptcy and this way, he wasn’t left penniless. In just one month, the new owner profited twenty four thousand dollars.

So, how have buying habits changed? Consumers have become more cautious about how they spend their money. Are they still spending money? You bet they are. Realize that selling is mostly based on emotions. We like to think we buy logically, but we always make purchasing decisions based on the way we feel about something. This happens over and over again. We go shopping for a vehicle, a “transportation” type vehicle to go to work and back, and we’ve set a firm price limit. However, once we see that beautiful red convertible at twice the price, we enthusiastically sign on the dotted line. And why not…don’t we deserve it?

Believe it or not, people are still spending money like it’s growing on trees. This is one reason why, over the last seven years, credit card debt has sharply risen over several trillion dollars. Now, if you are still skeptical and believe people are not spending money, I’ve got some hard evidence. I went to a NASCAR race here in Southern California back when things were really tough. You know, when real estate prices were falling like lead bricks and gas prices were over four dollars a gallon. That was when the entire country was in panic mode and doom and gloom encompassed its borders.

Here’s a picture of a fraction of the turnout.

The next three pictures are of consumers purchasing memorabilia of their favorite drivers and what were their attitudes towards purchasing? They acted like packs of wild hyenas gorging on the Serengeti; they couldn’t buy fast enough. Mobile stores like these filled the parking lot four aisles deep and as far as the eye could see. What’s surprising is these pictures were taken during the race. Don’t forget that typical races last four to five hours!

This shot is my favorite. This is only one of a dozen ATM locations around the stadium.

Realize that people are spending money, but they’re buying on emotions. One of the greatest needs human beings have is the need to be happy. Even when times are tough, they seek happiness and in many cases, they buy just to alleviate the sorrow. Once you know how to thrill your customers beyond their expectations, you’ve got raving fans and just like the NASCAR fans, they’ll be more than happy to spend their hard-earned money even when times are tough.

The next picture, even though it doesn’t pertain to spending, I just couldn’t leave out. I think you’ll agree it’s priceless.