Here’s another quote from a heated debate about negotiating price on the Contractor Talk forum.

“IMO, the Ultimate Salesman, regardless of his scale or particular clientele, has one characteristic that carries over into just about all of his daily dealings, whether personal or professional. That characteristic is that he does not get into pissing contests. If he does, all of his credibility and professionalism go right out the window.”

Sure, you need to read the whole thread to understand the context. But the root of the issue raised in the quote is something seen in business on a day to day basis.

It takes a powerful person to excercise restraint in the face of criticism or personal attack. We should all try to develop that kind of power every chance we get.

A very wise person once told me, “there’s a difference between strong and tough.” In business, in parenthood, in friendship, in crisis…it would do us all some good to live by that lesson.

Technorati Tags: Construction Marketing

In a recent article from Associated Construction Publications - Reed Construction Data, Joe Dysart takes a thorough and in-depth look at construction marketing on the web.

Dysart reveals a heavy-duty list of online resources, and explores some testimonials based marketing ideas that are quite sophisticated.

Observes Paul Gillin, author of “The New Influencers: A Marketer’s Guide to the New Social Media,” “Blogs, discussion boards and other forms of interactive media are the most cost-effective customer feedback mechanism ever invented. You won’t get a representative sampling of your customers, but you will get your most passionate customers.

Dysart makes an excellent point in noting that “tranparency” is king online these days, I liked some of the “testimonial” style approaches he suggests.

Although I don’t think it’s the best fit for most construction companies to create a forum-like online community, I do think some of the other ideas he lists are quite interesting.

For example, zuberance.com:

“Another service provider driven by the keep-it-positive philosophy is Zuberance (www.zuberance.com). Rather than soliciting individual testimonials, the company specializes in building an entire cyber-community around your website, which is filled with naturally occurring “evangelists” – people who are truly jazzed about a company’s goods or services and feel compelled to tell the world about it. (Think Apple fanatics.)”

“Zuberance’s governing principal: Devote your energy to providing as many online/offline tools to enable these evangelists to express themselves positively about your product or service.”

Although I don’t think most construction companies are going to acheive “Apple fanatic” status in their proponents, I do think the idea of a new form for testimonials deserves notice.

People are tired of your standard testimonial. Everyone knows that even someone as untrustworthy as Charles Manson could have created an impressive list of testimonials on whatever twisted website he would have were he still alive. But what would a “trasnsparent” online public do with him?

I read Seth Godin’s blog every day. I suggest anyone with an interest in improving his or her marketing should do the same.

This post entitled “How Much Extra for Nice?” hits the nail right on the head.

It doesn’t matter if you’re a builder, or a baker, or a candlestick-maker. You should create a culture of “nice” all around your business.

Do you train your employees to always attempt to be nice to your clients? You should. It’s what a marketing master would do.

You see, nice is free. Nice is easy. Nice takes almost no extra effort. In fact, it takes less effort than being guarded and suspicious. Because…you don’t have to guard. Or be suspicious.

Just be nice!

What a beautiful idea, don’t you think?

Check out Mike Finley’s creative and impactful new marketing idea. (Imagine having come up with this postcard for your marketing campaign!)

In case you’ve been living in a cave and missed the story, this is a picture of a strip of beach in Galveston, TX that got slammed by Hurricane Ike.

Apparently it’s a real house that was built specifically with the intent of withstanding a Category 5 hurricane.

Kudos to Mike Finley from the ContractorTalk forum for coming up with this unique idea!

Here are some more photos of the house:

Very sad about the rest of the area being destroyed. Hopefully something can be learned from this shining example of what it takes to build a house that withstands these devastating forces.

Technorati Tags: Construction Marketing

Is your market like the middle Tennessee market?

Residential construction is flat, and a lot of homebuilders and remodelers are feeling the pinch.

But commercial construction is humming along quite nicely.

Pinnacle office building near downtown Nashville, built by Brasfield & Gorrie.

Beware the man who strives above all else to appear unwavering and void of emotion.

Human beings are emotional. And the economy is a human infrastructure.

Yet most of the experts who make a living by advising others about the future of the economy use false comforts. People want to think the market is rational and measurable. But that’s dangerous and unreliable, just like the human emotion that drives the economy.

Warren Buffett skyrocketed himself into the financial stratosphere mostly by following his Rule No. 1 “Never Lose Money.”

Stop loss investment tools are a good way to manage the inevitable emotional nature of the world of investing.

And that’s how we need to look at it from a construction perspective.

Here’s a recent Business Week headline concerning “Builder Sentiment”….

“Builder sentiment rises from record low”

Check out the article. What can we learn from it?

Well, first, we can learn a little bit about the emotional tides and undercurrents that swirl about to create the total economic environment.

Second, we can use our knowledge of the emotional and fickle nature of the market, and decide to do our best no matter what the conditions around us.

The emotional nature surrounding the market is not something we can control or predict. The only thing we can predict is that there will be ups and downs. Currently we are in the midst of being in somewhat of a downturn.

So, we ask ourselves…if builder sentiment were higher, would the market get better instantly?

What about the same question regarding consumer confidence? Consumer confidence rules the economy, right? So, can an attitude change improve the economy? Maybe. But not on an individual level.

However; worrying, being indecisive, and waiting are all destructive activities. The answer lies in being productive and working toward a bright future. Expect the best and prepare for the worst…and later on you’ll be happy you worked so hard.

So, what to do next?

Personally, I’m going to spend my time focusing on learning about and applying the things that have lead to success during downturns in the past.

[Grizzled Old Veteran - What Would Dick Winters Do?]

In many ways, the boom times prevent success in certain areas. For example, it’s difficult to buy cheap real estate during a boom time. So why not build your empire now, when there are good deals to be had?

In addition, when times were fast and furious, don’t you ever remember wishing for a little bit of free time to work on getting your business to run more smoothly, instead of just putting out fires?

Now is the perfect time for business improvement, education, and development. Get better at what you do. Use this time to your advantage. Get stronger. Better. Faster. Smarter.

Be one of the builders who makes it through this tough economic time. Then someday you can be that grizzled old veteran who can tell stories about the hard times you’ve gone through, and how you survived.

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All marketing is about people.

And people can be “creatures of emotion, creatures bristling with prejudice and motivated by pride and vanity.” (How to Win Friends and Influence People.)

Nearly every day I see people react to their frustrations and annoyances of the others around them with sharp criticism and rebuke.

I am human, I do it too. But whenever I can, I try to learn from the wisdom of Abraham Lincoln, who said,

“Don’t criticize them, they are just what we would be under similar circumstances.”

And this is a very true sentiment. But what are we to do when we see someone do something that we know is wrong, when we know we have the solution to their problems?

The answer isn’t simple. But here’s one rule to live by:

Always remember that sharp criticism may inevitably lead the person you criticize down a path of resentment and perhaps even retribution.

You see, people fear condemnation as much if not more than they crave approval. And when criticized, a person will justify his behavior fiercely.

So how can we use this knowledge of human nature in our marketing?

The first thing to do is to always remember these principles when discussing or writing about your competiton. Any negative criticism you engage in about your competiton can make you look small, and even conniving.

Secondly, you must always be wary when you comment on your prospect’s “existing conditions.”

Some contractors, when surveying a job in the beginning, are tempted to go on and on to the client about what a disaster their existing structure is, and how badly the guy who built it screwed the pooch.

But I am here to ask you to think twice about your critical comments.

I’ve seen more than one job lost after a heavy dose of criticism in the name of “construction expertise.” But tread lightly.

For example, I know of a guy who did an initial remodel consultation for a potential client.

He walked around the house and just lambasted the poor quality of the structure, and pointed out all the flaws he could see.

And what happened?

His words struck such a dramatic cord, the homeowner ended up selling the house and moving! And the house was only 3 years old.

It could have been a nice project, with a good margin. But sharp criticism ruined it.

So, lets take a lesson from our good buddy Mr. Lincoln. Lets hold back on the criticism. There are better, more effective ways to influence people.

Check out these awesome resources on influence.

Influence

Influencer

Crucial Conversations

Technorati Tags: Lincoln

Does it make sense to use online and/or direct response marketing techniques as a building contractor?

The truth is, every business is different. And only you can answer that question for your business. But here are my thoughts on the subject:

Referral marketing is obviously the cream of the crop if you have the choice. The leads come prequalified and, often times, pre-sold by the friend or neighbor who referred them to you.

Who wouldn’t want to stick with a “referrals only” marketing system?

Here’s the problem: How does your “referrals only” system work when the market goes flat?

If your answer is, “yes, it works great”, then kudos to you. If your answer is, “I’m not getting leads like I did two years ago”, then maybe some other marketing tools are appropriate.

Listen to Construction Marketing expert Michael Stone’s advice on referral marketing:

“Let’s be clear. The lack of leads so many are experiencing is due to working by referral only. Referrals should not make up more than 20 - 25 percent of all your business. If referrals are over 25 percent of your business, when the economy hits a little bump in the road you will see a drastic decline in calls into your company and sales…. Let referrals be the icing on the cake.”

And yet I hear folks say all the time that referrals are the only way to go. And that using other marketing techniques is a waste of money.

Well, the truth is that most direct response techniques can be done at a minimum of expense. Especially if you have some free time on your hands.

The marketing strategies that make sense for a construction business (or any service business, really) can be broken into four quadrants:

Construction Marketing Jumpstart Guide for Contractors

Browse around on this guide. See if you can come up with a few marketing techniques or ideas you can use right away to get some exposure for your business.

And let us know what you think! Leave a comment below….

Technorati Tags: Construction Marketing Guide

Radius letters. Pardon Our Dust letters. Neighborhood postcards. We’re in the neighborhood letters….

Whatever you want to call them, construction letters are a great way to reach out with your marketing without having to spend time “kissing babies.”

Once you get your system down, your construction letter can become almost fully automated.

But, if you don’t have a lot of experience in this area, how do you get started?

Well let me begin by saying there are two things that are more important than everything else when you’re putting together a construction letter as a direct mail piece.

1. The List
2. The Copy

The List

It may seem obvious to you, but plenty of construction companies spend more time worrying about pictures and ads to put on their mailings than they do focusing on drilling down a highly targeted list.

And your list will make all the difference.

You can take the simple route and just target a neighborhood where you’ve had multiple successful projects in the past. But I would suggest you dig deeper than that.

For example, try looking at some more specific details of your past clients. What do they have in common?

You can check the public data to see if perhaps most of your past clients had recently moved in to their homes before they called you. This data is available if you wanted to target recent move-ins.

Or perhaps a good portion of your past clients were in a certain range of income level. This type of information is available from list brokers.

Brainstorm about how you can find the most targeted list before you send out your letter.

Next up?

The Copy

Copywriting skills are some of the most important skills you can learn to advance your marketing.

When writing a construction letter it’s important to think about using persuasive copy to influence your prospect to act.

Direct response methods work well here.

Put simply, this means you need to have a unique, valuable offer, and a call to action.

The biggest mistake most beginners make when writing a construction letter is to simply spend all their white space on the page writing about themselves and their company. This is not productive when it comes to getting a response from a mailing.

You must take the time to get into the mind of your prospect. Figure out what she looks for, what worries her, what’s most important to her.

One method is called “Problem - Agitate - Solve”.

Hone in on your prospect’s problem, use descriptive words to agitate and paint a picture of life with this problem, then position yourself as the solution.

This formula will give you a good start for ad copy that converts prospects into buyers.

Another great formula to use is called AIDA, or Attention, Interest, Desire, Action.

With this technique, you do the following: Use the headline to get your prospect’s atttention. Then tell a story to generate interest. Next build desire for your services by painting a picture of success. Then describe in detail what you would like your prospcet to do next, or call her to action.

There are a number of great copywriting techniques that work well for construction letters. Now go out and try to get some new business with these techniques.

Here are some copywriting resources for you:

Copywriting

Bob Bly

Copywriter Nashville

Technorati Tags: Construction Letter

OK. So we have been talking a lot about marketing ideas that work, and others that don’t.

Here’s a list of random construction marketing ideas to help you brainstorm. Find something that works for your business. You know best. Whether it’s hard nosed selling or positioning yourself to be there when the client decides to buy, you can create a custom marketing plan that works well for your business.

1. Go door to door in neighborhoods where you already have projects. Think like a neighbor.

2. Use print ads, media ads, truck signs, yellow page ads, and online ads to drive traffic to your website.

3. Create a valuable product to give away in order to establish a relationship of trust with your prospect.

4. Help people for free with your knowledge and advice. If you can be truly helpful and valuable within your area of expertise, people will be hard pressed to find anyone else who gives them so much value. They may even end up begging you to do projects for them (it’s happened to me more than once).

5. Go to events where you will meet people in your target market outside your expertise. For example: You’re a contractor. Don’t waste time at builders association meetings. Go to unrelated events. Join recreational groups, small business groups unrelated to construction, service based organizations, leadership activities, or charity events. Get out there. Be outgoing and get to know people. Ask them questions about themselves, and you will no doubt run into people who need a contractor. Start with the relationship first.

Try these:

• Check your local paper business section for weekly events in your area.
• Join MeetUp.com and find interesting local groups to join.
• Look in your local Business Journal for activities.
• Go to chamber of commerce meetings.
• Join personal development groups like Toastmasters.
• Go to your kids’ school functions and extracurriculars. Get to know all the other parents.
• Introduce yourself to the owners of all the restaurants where you eat. Be sociable and keep in contact regularly. These folks know tons of people in your market.

6. Organize homeowner seminars. “How to remodel your house within your budget.” Do it for free. Invite other relevant speakers. Incorporate a local charity. Get the word out using press releases.

7. Go talk to interior designers, cabinet and countertop companies, plumbing supply houses, lighting stores, and anywhere else where homeowners shop. Get to know the business owners well. It won’t take long before you get some referrals.

8. Call or go visit your past clients. Ask them for referrals in a friendly way. You are not desperate, you are simply a professional doing some networking. Tell them how much you value their business. Paint them a mental picture of your ideal prospect. Ask them who they might know who fits the bill. People who feel like you appreciate them are often glad to connect you with their friends and associates.

9. Do radius (”pardon our dust”) mailings in the areas around your current jobsites. Offer an incentive to respond to the mailing within a certain time frame. You could use a coupon, offer a break on labor or materials mark-up, or offer free services or consultations to get people to call now.

10. Just make it a habit to talk to everyone you come in contact with throughout your day, instead of staring at your shoes. You are the guy who smiles and says hello every time. A smile can go a long long way in life, and in marketing.

Have more ideas? Leave a comment below.