How should a builder market to designers and architects?

Jeremy Hartje of James Hartje Construction Inc. in Santa Cruz, CA, asked this important question:

My dad and I have a small residential construction company, six field and three office employees. I'm currently conducting a small networking and outreach campaign with a focus on architects and designers. Our goal is to establish a good reputation with designers so they send more bids our way. I'm just about to send out a letter asking them to share a brief lunch meeting, which I will provide the food, so I can give a quick presentation on our company. My question is, what do you think these designers and architects want to hear? What should I make sure to include in a brief presentation to this audience? Any thoughts or ideas on this question or networking in general would be appreciated.

To answer his question, I posted it on the The Society for Marketing Professional Services (SMPS) Listserve and asked some architects and designers I know for their own opinions. Here are some of the early responses.

Tara Krovich at The Whiting-Turner Contracting Company wrote:

We have found that the best way to better network with the architects in our area and build a relationship to where they feel comfortable feeding us information and inviting us on their teams is by...building that relationship. I don't think a presentation is the best approach. I think taking one or two individuals from the architecture firm out to lunch (making it less formal) and simply sharing with them the information on your company and the type of experience you have, then gaining information on them, what they are looking for, the markets they are in, etc. Don't drop it after this meeting. If you hear of a project of interest, send it to them - and that will open the door for them to reciprocate the favor. It is all about relationships when it comes to architects/cm's, so it just is a matter of having patience and taking the time to build it.

Juliette Brown, Marketing Program Specialist, Western Region, at Honeywell Energy Services said:

First big thing I see: tell him to NOT send out a (junk mail) invitation letter to firms.

At minimum, he should personally call a/the principal at each contractor/architect firm and directly propose a lunch meeting; if he really wants their business, he needs to prove it - and sending out a form letter doesn't put him on the right foot from the get-go.

Conversely, Tim Richards, Chief Financial Officer at WESTAR Architectural Group/NV Inc. In Las Vegas, replied:

I believe you will receive a warm response from architects. We are always looking for opportunities to collaborate with other firms. We hook up with consultants all the time and would love to partner with a construction group. I am actively marketing to construction and engineering groups all the time. . . ."

You will see more responses over the next few days and I will post further follow-ups, hopefully distilling a consensus or, at least, a toolkit of response which will allow you to discover an informed conclusion. Here are my thoughts:

Will a direct marketing/lunch and learn approach work? Possibly, if seen holistically, and not as a one shot magic bullet. A natural way to go about this process would be to connect directly and first with architects/designers with which you have a great relationship already, and ask them the same question, They may help you in networking within your own community and suggest relevant groups, associations and activities. You might also obtain some testimonials which would lend credibility to your marketing materials/messages.

Finally, if you serious about this approach, you should plan a campaign (testing each phase as you proceed) perhaps using a variety of media including permission-based e-letters, phone communications, informal meetings and association events over time, all in harmony and truly correlated to what your business really is, and how it truly relates with architects and designers.

If all of this seems like a lot of work, you are right, but you may find surprisingly immediate results by consulting with the architects and designers you know now in planning and co-ordinating your marketing campaign.

P.S. You may find some additional insights in this contractortalk.com thread on the same topic.

Direct mail, email, and faxing

In a previous posting, Gordon Clotworthy, CEO and President of The Information Refinery, speaks about the advantages of direct mail and the dangers of both email and faxing. His business of course offers a list brokerage, so he is selling the data for direct mail (and phone solicitation) marketing. I have no doubt about his integrity, however, if the context is purchasing or renting list data from a broker or other third-party. In these cases, you must not even consider using the fax, and email will be of limited value and effectiveness.
The circumstances are however entirely different if the list is yours and you have permission to market to your audience. In other words, you can use emailing and faxing to great effectiveness and value if your readers want your materials. Then your cost per lead drops to an impressively low level, and your response rate will skyrocket.
The challenge is building the list -- of course, you can start with current and former clients. Inbound inquiries from your website are also useful. Effective Internet promotion however requires patience and lots of 'give' before you can expect anything in return. It took almost eight months for this blog to start 'working' from a marketing perspective -- generating some inbound inquiries that can go onto our newsletter and (where appropriate) to the sales team. I sense the real value of this list -- and it is now growing rapidly because of high Google keyword rankings -- will be measured in the next six months to year; and its true potential will only emerge in about two to three years.
We also use the fax and email when we are working with highly qualified referred leads -- and our message is specifically relevant to the referral.
For example, in Canada, we use the fax effectively to sell advertising to clients on referred supplier lists for feature reports. These lists are customized, small, and used only for the specific feature/project. (U.S. fax rules are challenging, however. In these cases, while we are satisfied we are in compliance with the 'prior business relationship' provisions in U.S advertising fax control legislation, we always call ahead and invite anyone receiving our call to opt out of receiving the fax before we send it.)
Obviously, fax and email permission marketing are not instant solutions or quick fixes. And that is why they are both effective for businesses with patience and a good reputation, and perhaps frustrating for people seeking instant relief to their marketing problems who want to see clients once, take their money, and be done.
So, essentially, I'm advocating that email and fax will far outperform direct mail (and at much lower cost) if you have earned the right to use these powerful marketing tools -- but you will only earn that right by delivering real, proven value, and build relationships founded on trust and integrity. If you don't have these yet want to build your list 'fast', call or email Gordon Clotworthy. You'll pay more far more per communication (allowing for postage, printing, mail preparation and list brokerage costs) but you will comply with the law and Gordon should be able to guide you about what is the best strategy for your business.

Michael Stone's e-letter, some words about direct marketing lists

Michael Stone speaks with Gordon Clotworthy of the Information Refinery, http://www.constructionlists.com

Michael Stone's Markup and Profit eletter is a wealth of free information -- He provides much of this stuff publicly on his blog and website, but has wisely chosen to restrict some of his best suggestions to the e-letter (that way he starts building the relationship with you for his other consulting services). Unlike most eletters and websites, however you don't feel that the whole thing is about selling you something -- you'll be able to implement his advice without paying him a cent. This of course is the essence of "Permission Marketing" (see also Seth Godin's useful free blog). Again, I'm stretching copyright here (and will immediately remove these observations on request) but don't think Michael will mind because this blog, which also works on the Permission Marketing principals, is generating and sending significant traffic and positive references to Stone -- ultimately good for his business. This attributed exchange will also presumably help The Information Refinery, which provides mailing list and contact data services.

To wrap up our series, "Getting Your Phone to Ring", we interviewed Gordon Clotworthy, CEO and President of The Information Refinery in Mahwah, NJ. The Information Refinery (http://www.constructionlists.com/) has been in the direct marketing business for over 23 years, and is the #1 source in the world for construction-related marketing lists.
CPR - It's great to talk with someone who understands direct marketing and construction. Can you give us the rundown on direct marketing options for contractors?
Gordon - There are four basic approaches to direct marketing - postal (or snail mail), email, telemarketing and faxing.
Direct mail is by far the best method of direct marketing. It's affordable and, with a well-designed mailpiece and a well-defined list, it can prove to be the most economical and effective method for both immediate sales and future sales.
CPR - Where do you get your lists from?
Gordon - We manage over 100 construction related response lists which for all intents and purposes cover the entire marketplace. We also have strategic partnerships that provide us direct access to all of the consumer and general business-to-business lists and data bases available. Due to the high volume we purchase on a daily basis, we are able to obtain lists at the lowest possible price and pass the savings on to our customers and clients. We also have the ability to merge various lists together and append data in order to build a list that meets the best meets the target audience.
CPR - How many ways can you define a mailing list?
Gordon - There is a great deal of information that can be selected to develop the best possible mailing list. For example, you can select homeowners based on their income range, age of their home, time they've lived in the home, whether or not they have children, the ages of their children, the value of the home, single parent or married, handicapped . . . the options go on and on.
For example, if you specialize in bathroom remodels, you may want a list of homeowners within a certain area with an income over $100k living in a home that's over 20 years old. If you build new homes, we can provide a mailing list of apartment dwellers, with two or more kids and with whatever income level that suits your project.
CPR - How expensive is a mailing list?
Gordon - You can get a decent consumer list, sliced and diced to meet your target market, for about $65-$70 per 1,000 names, minimum of 3,000 names. For a few dollars more you can use the names over and over - in a year, for a very nominal fee, we will clean and refresh it for you.
For $10 more per thousand, we'll include phone numbers in case you want to follow up on your mailings with a telemarketing program.
Buying a mailing list is like shopping in a grocery store. You can buy prime steak which you know will be delicious, or you can buy a lesser grade and grumble all through dinner about how bad it tastes and how tough it is. But hey, you saved a whopping $3.00 on dinner for two, forget the fact that no one really enjoyed the food. You get what you pay for.
We see people shoot themselves in the foot every day. They come to us for a price quote and then shop it all around. They then come back and say they can get the list for $5.00 less per thousand elsewhere.
Unfortunately it usually is apples and oranges. The lesser price list is not even close to the quality list we quoted them on. So what happens? They "save" $25 bucks on their list purchase of 5,000 names and then gripe and moan about the dismal failure their mailing was. But hey, they saved $25 bucks.
Ask your mail list provider how deliverable the list you plan on purchasing is - will theyguarantee deliverability? When was the last time the list was "cleaned" by the post office? (On average, one third of all businesses and consumers move or make a change to their address each year.) If a mailing list isn't kept current you'll end up wasting up to 1/3 of the total cost of your
mailing and more importantly your response rate drops through the floor. We guarantee our lists to be at least 93 percent deliverable - some lists are guaranteed 100 percent deliverable.
CPR - What about commercial names?
Gordon - We have a database of over 13 million businesses. If you want to know owners of strip malls in your city, we can provide it. Facility managers, property managers, owners, we have it. Decide what kind of commercial construction you want to do and we'll match it to the prospects most interested in what you have to offer. Think out of the box. If you can pick up work from
strip mall owners there will always be work to do. If you are a painting contractor and gain the business of a few good sized apartment complexes you know that the end of the month and the beginning of the month will be booked solid.
One of the great things about direct marketing is that when you start the process, you begin to expand your thinking and realize other ways to tie your ongoing search for new business together. You develop plans. And plans always work better than just throwing precious money here and there because "it sounded like it would work".
CPR - What makes your business different from others?
Gordon - I come from the same background as Michael - building my business from the ground up. In my case I've had my share of trying to meet payrolls and working 16 hour days seven days a week. Those experiences helped me develop our corporate philosophy. I've known Michael for some 20 years or so and it didn't take me long to realize we think alike. We know the importance of each and every client and we treat them all with the same respect and desire to do what is best for them.
We actually consult with our prospects and clients. We let them know all of their options and guide them into making the right decisions. If someone wants to do something that we think might be a mistake, we let them know. We're the furthest thing from "yes" people you'll find. Our goal is to serve our clients best needs. Not to sit back and let a customer buy the wrong list just so we can make a sale. It's what separates us from our competitors. Every client matters to us, that's simply the way we like to do business.
CPR - What about the other avenues of direct marketing?
Gordon - Everyone thinks email is the greatest thing since sliced pizza, but it's not a great marketing approach. It can be dangerous - if you do it yourself and get complaints, there is the risk you'll have your website shut down. If someone offers to sell you email addresses, those are spam addresses. You can't buy or sell an email address, because they are owned by the person who holds them.
Currently we are discouraging our clients who wish to do email marketing. It's just not effective anymore and although everyone is under the misconception that it doesn't cost nearly as much as a postal campaign they are dead wrong.
Here's why, the vast majority of the emails sent aren't read because they end up directly in a spam folder. Because of viruses and scams people just don't want to risk opening emails from someone or some company they do not know. When you sit down and actually calculate the costs and the sales derived, you'll find that your cost per sale compared to a postal campaign are off the chart.
However, if someone is hell bent on doing it we'll grudgingly oblige. We take their message and do the email broadcast for them. Our email lists are from those who've agreed to receive advertising, and we follow all the laws. But, as I said before, it's not effective and you won't be happy with the results.
CPR - Do any contractors actually do telemarketing?
Gordon - Yes, usually large companies who've been in business for a long time. They realize the need to use all avenues available. Companies will buy a list of people in a neighborhood around a job they are working or a list in their service area and put their telemarketers to work. Our lists are cleaned through the "Do Not Call" database so they comply to the laws, but the telemarketers still have to follow federal guidelines.
CPR - What about faxing?
Gordon - Don't do it. Unless you have prior agreement from the party you are faxing you are breaking the law. You can get a $500 fine for each fax complaint. There are lawyers who advertise hoping to reach people and companies who've received junk faxes so they can go after the company involved.
CPR - How about lead suppliers,
companies that promise to send you qualified leads?
Gordon - I'm not impressed with them. If you want to know more about them, we have a number of those businesses listed on our website http://www.aecsalesleads.com/. Unless you are getting a 1 on 1 lead - a lead that is given to you or at most two others - it just doesn't make sense. If the lead provider is selling it to a slew of other contractors in the area, by the time you call that lead, they are sick of hearing from contractors. You might be the 20th contractor who's called them that day and you can be sure they don't want to talk to you. But you still have to pay for the lead.
That being said, I see a glimmer of hope on the horizon. A new site has just started and they will be working on the premise of providing leads on an exclusive basis. And get this, the leads are free. It's based on a reciprocal concept. The site is in beta format but you can find details here: http://www.leadpatch.com/
If you spend the money you'd spend on a lead supplier on direct mail instead, you'll get better leads. Your potential customers will know who you are when you call. You aren't just another contractor, you're that guy on the postcard who builds beautiful jobs. When a lead comes in, be sure to ask how they heard about you. Keycode your direct mail pieces so you know which are effective and which aren't. You want people to hear your name from a number of sources. And remember to use testimonials. When you can say, "We do great work - but don't ask us, listen to what Susie said", you'll go much farther. The bottom line is that there are a lot of avenues for advertising, and the successful company does a mix of all of them.

There is much excellent information here -- and this is a fraction of the content of one week's newsletter. Again, I think you can obtain much value from Michael Stone by signing up for and reading his newsletter, but you'll get even more by contacting him and paying for his services. (I'm not selling any consulting services myself -- at least for the next five or so years and, for my own business, this blog primarily is used for follow-up service and support to existing clients, and to help on our own staff recruitment and training, so consultants and services referenced here don't need to worry about competition at this end.)

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