Why Buy For You or How to Differentiate

The first question I always ask a customer/business is "Why should I do business with your company"? or “What makes you unique?”

When is the last time you asked yourself "Why should I do business with my company"?

What's new

Does your customer know how healthy your business is

When is the last time you told your customer you love them?

When should you... Before your competitor does

When is the last time you looked at your business plan? (you do have one don't you)

Failing to plan is planning to fail

Before the spring summer busy season...

Let's evaluate

• where we are,
• where we have been, and
• where we are going.

Yogi said "if you don't know where you are going you will probably end up somewhere else"

“Why should I buy from you?” More often than not, I receive one of the following responses:

• We have the best product.
• Our company offers more.
• We have better service.
• We have been around forever.

Although you may think these are reasons to choose you, they aren't.

First, your competition makes identical claims.

Second, there is absolutely nothing specific or quantitative about any of the above statements.

Finally, there is nothing that supports any these statements.

Prospects don't care what salespeople or marketing departments think are important. When they see proposals or hear statements that contain these phrases, it has no positive impact on their decision because there is nothing unique about them. All things being equal, they will choose either the lowest priced competition, or the solution which they trust the most. This is why it’s so hard to oust a current vendor - better the devil you know, than the devil you don't.

Before you can answer “Why should I buy from you?” you need to know how you are uniquely different than your competition. In order to do this, create a side by side spreadsheet comparison.

You should evaluate the following:

• Company
• Are you big or small?
• Are you safe or innovative?
• What’s your niche’?
• Do you have an extensive product line?
• How does your guarantee compare?
• Product
• Specific Feature(s) - Is there any one particular feature(s) that’s unique? Or, when you consider all the capabilities as a whole, does that make our product unique?
• Durability – How long is its expected life span?
• Productivity - Is it faster or more efficient?
• Operating Costs - Will you save energy?
• Standard Options – What does your product include?
• Price – Are you more or less expensive?
• Ease of Use – How long does it take to learn how to use your product?
• Size and weight – Is it heavier / lighter?
• Noisy versus quiet – What kind of environment is it going in?
• What is the warranty?
•  
• Service
• Is it included or additional?
• Is it local?
• How about glass replacement
• What is the average response time?
• Are they using OEM or remanufactured parts?
• Do they specialize?
•  

I've managed to come up with numerous areas where you can potentially differentiate yourself. This list is by no means exhaustive, and your side by side comparison will probably be different for each competitor.

Once you have completed a comparison, you then need to determine your strengths and weaknesses versus your competitor. I think you'll be amazed at how many ways there are to distinguish yourself from your competition. This simple exercise will help you better understand how and when to set up your competition, as well as, who your best prospects are.

"Compete with value or die with low price"

Assuming you've done your homework and you know your unique capabilities, you still don't want to answer your prospect’s question immediately. Why? It doesn't do any good to spout off your differences, if your prospect doesn't consider it a positive.

The next time you're asked Why?, simply respond with, “I'm not sure you should buy from me. Although we have a great product/service, it’s not always the best fit. Let me ask you some questions, so we can both determine if our product/service makes sense.” Not only do you keep from putting your foot in your mouth, but you also just earned significant TRUST with your prospect. In addition, you're only providing information that your prospect deems as relevant.

After you have done a comparison, verified what’s important to your prospect, then it’s time to demonstrate or share how you're different and worth the investment. If you can't actually demonstrate your difference, then you should provide support material that backs up your claim (testimonials, referrals, quantitative data, polls, etc.).

The better you demonstrate and/or articulate why your prospect should buy from you, the better you'll be able to differentiate yourself from your competition and ultimately win more business.

The days of aggressive sales closer's may be numbered

Surprise! The greatest impact of a mis-hire on your company could be to your reputation, and not in lost sales revenue.

The days of aggressive sales closer's are numbered. Companies and salespeople who go into the home and use high pressure(old fashioned) sales tactics, will, more than likely, result in exposure on the likes of Facebook/Twitter, Google or Angie's List, in a nano-second.

In the good old days, yellow pages listed only the essential information: Company name, address, phone number etc. Never a word about the reputation or integrity of a company. Today, with a click on a computer or cell phone, potential new customers will be directed to existing comments and a company's good, bad, and ugly reviews.

High pressure sales tactics and gimmicks  that may have worked in the past, can and will, now be exposed and reported to thousands of potential customers within minutes. It takes just one sales pitch to offend or seem too good to be true. Perhaps a potential customer is offended by the salesperson's lack of sensitivity or gimmicky attitude.....With the click of a mouse, or in the blink of an eye, impressions of your company/product are typed, then out  into the world of electronic social media for the masses to read, believe, and form an opinion.

I don't think the full impact of this advertising medium has sunk in yet, but it is here to stay and in the future I will discuss ways to use it to our advantage.....

Successful Microblogging for Your Contractor Marketing Strategy

Tips for Successful Microblogging for Your Contractor Marketing Strategy

Many know that microblogging is a useful social media contractor marketing strategy. However, the challenge lies in how to use it effectively with newsworthy content and updates on a regular basis for optimal results.

Our clients come to us for tips and advice on running an effective social media marketing campaign for their home services contractor business. After their online networks and profiles are created, most contractors are left clueless when it comes to maintaining and leveraging their social media presence. The key to a successful social media marketing campaign lies within the constant communication with the online community; these “tidbits” of information are referred to as microblogs.
The now popular concept of microblogs and microblogging has been around since 2005, though it didn’t really become popular until 2007 and 2008 with the impact of sites such as Twitter and Facebook. The fact that microblogging can occur from virtually any Smartphone these days, it’s a quick and easy contractor marketing tool if you understand a few basics.
First, the primary difference between a typical blog and a microblog is its length (hence the prefix ‘micro’). A typical blog is anywhere from 250 to 600 words, whereas a microblog is usually less than 140 characters, or 20 to 25 words.
Twitter is the most common and popular microblog social media platform, with Facebook a close second. On Twitter, a microblog is referred to as a ‘Tweet’, whereas on Facebook, it’s referred to as the well-known ‘Status Update’.
As mentioned previously, the challenge for many home service contractors is coming up with audience pleasing and newsworthy content to increase their contractor marketing business, but it doesn’t need to be difficult.  If you think just a little bit outside the box, you’ll have no problem coming up with successful microblogs for your contractor marketing campaign.
Examples of social media updates for contractor marketing microblogs include:

1. Links to important industry news.
2. Updates regarding any promotions or incentives your business might be implementing.
3. Awards or certifications received by your business.
4. Events or conferences attended by you and your business
5. Brief tips or recommendations for your target market.
6. Brief excerpts from some of your current blog posts with a link back to that blog post.
7. A link to a newsworthy video or presentation.

In today’s world, to keep up with and stay ahead of the competition, it’s important to incorporate microblogs into your marketing campaign to boost your contractor marketing business. Use the examples provided here to create useful and powerful microblogs to promote and attract new contractor leads for your business.

 Chris Marentis

Energy retrofits

Energy retrofits may get a boost from something called the Home Energy Score. Under the plan, a home energy audit would score a home on a scale of 1 to 10 and provide the homeowner with a list of recommended energy improvements and the associated cost savings estimates.

The plan is currently in a pilot phase with 10 testing locations throughout the country, including United Cooperative Services, a Cleburne, Texas, utility with an existing home energy audit program that completed nearly 2,000 assessments in 2010. In 2011, UCS plans to score more than 250 homes using the Home Energy Score tool. “I think energy usage is going to be a huge selling point going forward,” says Marty Haught, senior vice president, Communications & Public Relations. “We wanted to ... make sure our members are equipped to deal with high energy costs in the future.” UCS analysis has found that households completing an energy audit used 100 kilowatts less, on average, than the co-op’s overall membership.

Based on findings from the pilots, the Department of Energy will refi ne the program and plans to launch Home Energy Score nationally in late 2011.

Show me the money

Show me the money.....As funding slowly loosens up, it will help to know what options you can offer your customers.

Credit card: Though convenient, especially for small repairs, Kathy Shertzer, oc ce manager and gatekeeper at DuKate Fine Remodeling, in Franklin, Ind., warns remodelers to be wary. Fees tied to mileage and other perks add up fast. “When we reviewed our overhead, it was easy to see we didn’t need to be accepting credit cards,” Shertzer says.

Unsecured/revolving credit: Offered by GE Money and Wells Fargo, this type of fi nancing has been widely used by replacement contractors for amounts up to $25,000. In exchange for fees for administration and promotion, qualifi ed contractors can oa er 24-month no-interest loans and other options. The lender vets the consumer’s credit and pays the contractor at project completion.

Construction loan: Consumers typically need credit scores of 720 to 750 to qualify for a loan that replaces the existing mortgage, covering up to 80% of the estimated post-construction property value. The lender requires plans, specs, and a construction budget, and parcels out payments to the contractor based on a completion schedule.

Second mortgage: While a traditional second mortgage is based on current property value, a “home improvement second mortgage” bases the loan amount on the value of the home after the work has been done. Paid in a lump sum, the loan becomes a second lien on the property.

Home equity loan: This is a one-time loan borrowed against the equity that consumers have in their home. A Home Equity Line of Credit (HELOC) is a revolving line of credit with an adjustable interest rate. It’s more dic cult to get lines of credit now because of the recent drop in home values in many markets.

203(k) rehab loan: Backed by the Federal Housing Administration, this loan goes toward the cost of purchasing (or refinancing) and remodeling an existing home. The loan amount is tied to the value of the property after renovation and the loan-to-value ratio, traditionally 80%, may go as high as 110%. Although luxury products are not covered, many types of improvements qualify.

The consumer must hire a certified consultant, chosen from an offcial list, to check the contractor’s work. The contractor is paid in several draws tied to progress.
Although remodelers have complained about slow payment, payment always comes.

Reverse mortgage: Available to homeowners age 62 and older, this FHA-backed mortgage makes payments to the homeowner, and the loan amount is added to a property lien. The loan is repaid from proceeds on the sale of the home when the homeowner dies or sells or leaves the property.

Andreakos, of Bullfrog Builders, has worked with clients using this type of fi nancing and cautions that “It’s a tough pitch. You know, the owners have to talk to the whole family.”

The Energy Loan : This unsecured installment-based loan from Fannie Mae ranges from $2,500 to $20,000. Many projects are eligible, provided at least $1,000 worth of work is for energy improvements.

Fannie Mae–approved contractors send homeowner applications to one of three approved lenders — ViewTech Financials (Calif.), AMC First (Pa.), and WECC (Wis.) — to get underwriting approval. When the customer signs a completion certificate, the lender pays the contractor. Lenders are paid fixed transaction fees by Fannie Mae, not by the contractor.

Energy Improvement Mortgage: A type of energy-ec cient mortgage, an Energy Improvement Mortgage (EIM) is used to include the cost of energy improvements in the mortgage for an existing home without increasing the down payment.

The additional amount is based on a home energy rating that ties the value of the energy-efficiency measures to estimated monthly energy savings. EIMs are oa ered by federally insured FHA and Veterans Aa airs programs .

Webinars/Online Sales Training

Webinars/Online Sales Training:   The Fear and Reality

Webinars/Online learning, once a novelty, is now firmly established in the business/corporate training world. Yet many Remodeling Contractors are still not tapping into this method of educating salespeople. As it turns out, many of the most common concerns Owners and sales managers have when it comes to virtual training programs are rooted in a negative experiences with the earliest versions of e-learning technology,  Three of the more common concerns and misconceptions about online training - and the truth about e-learning today.

Fear: "We're not ready to replace our live, instructor-led training."
Reality: Online learning is best used to reinforce - not replace - instructor-led training. When concepts are introduced in a classroom or at a weekly sales meeting and later reinforced through multiple short sessions online, behavioral changes occur more rapidly than with live instruction alone.
You can use e-learning solution as part of a two-pronged approach to sales training that includes weekly or biweekly webinars, and live training in small groups, "There needs to be a lot of reinforcement or opportunity for [reps] to study on their own." Now reps are learning constantly, and new ideas stay top of mind.

Fear: "Constant training can be a constant distraction. We'd rather get it done all at once in a full-day or multi day seminar once or twice a year."
Reality: Attention spans are shorter than ever. After 8 to 10 minutes, the average person's attention starts to wander, Yet most training programs still mirror our education system, where students sit in hour-long classes all day. The result: Our brains get overwhelmed, our attention goes in and out of focus, and much of what is delivered is quickly forgotten.

For this reason, Contractor Strategic Coaching designed its training to be delivered in short, 8- to 10-minute segments, an approach that appealed to the average remodeling contractor You may have attended many seminars where you come out "pumped up and ready to go for the next 24 to 48 hours." Then he gets back into his work routine and goes back to his regular habits. In contrast, the short-burst approach to training is driving behavioral change in his reps through constant reinforcement.
Fear: "I don't want to relinquish control of sales training to a computer or get locked into a cookie-cutter approach to training."
Reality: E-learning solutions can actually give sales managers greater flexibility and control of training curriculum and rep development. With a library of topics to choose from, managers can pick and choose the topics that work best for them and their teams. Or they can push targeted content to individual reps, giving them the information they need when they need it.

"When it comes to sales training, you have your learners, your vacationers, and your prisoners," "E-learning will help the last two types turn into learners."

For more information,      Bob Perry 239-357-4037    bperry941@aol.com

Contractor Strategic Coaching 
"Helping the Improvement Industry Improve"

3 ways people and organizations change:

There are three ways people and organizations change:

Shock: 60% - A trigger event which is sudden and painful. This   includes sickness and downsizing, anything that creates a physical emotional and/or psychological response. These are the reactives and this is how most people and companies change.

Evolution: 20% - This is often where a company or person doesn't actually do anything. They put off and procrastinate, so that when change occurs, it is more often than not, too little, too late.

Choice! 20% - Here's where you want to be. Those people, individuals and organizations that regularly plan a course for the future. They make proactive, ongoing changes and are on time with changes. An adjustable and flexible person or company thrives in a rapidly changing environment.

Remember what Einstein said "The definition of insanity, Keep on doing the same thing and expect different results"