Readers' Question:

Late last night, I received the following email from a reader.

. . .as you can see by my email address I own a garage door repair business......

It has been three years now of success even in a down market... We owe this success primarily to our online marketing methods coupled with some really great closing techniques....... however we seemed to have hit a plateau ... Although we capture a lot of sales online it seems as if our traditional marketing skills are lacking .... We learned the hard way that Yellow Page ads just don't cut it any more to the tune of a $20,000 loss and have since been disabled by fear in the paid advertising arena...

Upon reading about Bestline Plumbing I wondered if their model would work for us as well...

What are your thoughts on this?

My response: (As I haven't received permission, I won't disclose the email writer's identity.)

I think Leoonard Megliola can teach you useful marketing approaches. So, much closer to your home (If the the top ranked Garage Door Service on Google is yours) , can Glen Kohlenberg of Absolute Aluminum in Florida.

(Just checked further, if you are in (a California location), you are far away from Florida, of course, but why can't I find you on Google ... are your online methods working the way they should, and have they been developed fully?)

Leonard has used flyers; Glen developed a co-op magazine, where he had affiliated businesses and suppliers pay much of his marketing costs.

Would I copy them absolutely, quickly, and without testing, however? I'm not certain. The reason is you need to find the model right based on your own experience and your style of business.

Paid advertising is indeed scary because most models require you to spend a significant amount before you know whether things are working. Leonard's flyer model is effective in his neighbourhoods, Glen's model requires a fair bit of co-ordination and may be challenging to replicate.

How are you marketing online?

Indeed, readers of this blog can find inspiration in the marketing success of some contractors frequently referenced in these pages. They appreciate that one size doesn't fit all, and that marketing techniques and methodologies need to be tested over time, and often changed. They generally do this in a pragmatic and logical way; without completely ditching the 'old' approach, they experiment with alternative methods, and if one works, they adapt it to their systems.

This is a challenge because you need to mix enough commitment to give a marketing idea a proper trial (usually first efforts don't work so well), with enough flexibility to change -- this is why fixed annual Yellow Pages contracts are, in my opinion, deadly -- you tie your budget for one medium and, worse yet, one that is in decline! (However if you are currently using the Yellow Pages successfully, don't ditch them without forethought and confidence that you can do something better -- I would seek independent consultation on making a smaller Yellow Pages ad more effective and then allocate the money saved elsewhere, though. Don't buy what the Yellow Pages rep sells you without a great degree of caution.

(Through an unrelated Internet group I have a friend who has just taken a job as a Yellow Pages representative in Canada. It will be interesting, as time progresses, to gather insider perspectives from the Yellow Pages organization.)

You can download the Bestline Plumbing Manual by visiting the Wordpress edition of this blog at http://www.constructionmarketingideas.com, and viewing the sidebar.

An accidental discovery

A screen shot of Adam Hudson's "squeeze page". The free offers are worthwhile.

Sometimes in business you find really interesting things by accident. Yesterday evening, I uncovered some really great resources (and lessons for my own marketing library) from Adam Hudson, including two well-written free papers, "Double Your Yellow Pages Leads" and "51 Can't Miss Contractor Marketing Tips". He also offers a bi-weekly newsletter.

In reading through these materials, I felt somewhat humbled because they are both well written and easy-to-implement.

For example, consider his concluding points (48-51): "Top Smartest Marketing Moves for the Year."

1. Design Yellow Pages ads for lead generation. Hudson says "this is most contractors (77%) number one expense. Either cut the expense or increase its lead-pulling ability with an exceptional ad."
2. "Identify every lead source". Hudson advocates you "simply ask and note for each call: 'And how did you find about us?' or 'Did you see our ad in the ."
3. He says you should construct a simple marketing plan. "Start marketing costs per sales and choose your marketing 'type'," he writes. "Moderates 4 - 6 per cent. Conservatives two to four er cent. Less than 2 per cent is asking for stagnancy or decline." (These numbers are interesting to me as I've asserted in a previous posting that if you are spending less than five per cent on marketing, you will be in trouble, and the top range is 25 per cent. The discrepancy can be explained in my including sales with marketing -- pure external marketing expenses might more accurately fit within Hudson's criteria.)
4. Hudson also says you should start a customer retention program. "This is the costliest oversight for contractors," he writes. Start one and you'll stand out from your competition, who'll be forced to 'copy'. Copiers are never leaders. Be a leader. Use a newsletter that is full of customer benefits . . . " he writes.
   

In his paper, "Double Your Yellow Pages Leads" Hudson accurately notes the declining influence of this traditional media,with a critical observation that an increasing number of phone users only have mobile phones, and don't receive the book. The more important issue, of course, is that the Internet search has replaced the phone book for new business searches -- and your best lead source now is not the Yellow Pages, but truly effective rankings on the search engines.

Hudson's challenge: I noted that I found his useful materials by accident, and this important fact may shape your perceptions about the rapidly changing directions in marketing. I'll share these observations tomorrow. Some consultants, such as Michael Stone, advocate drastically reducing or totally ending your Yellow Pages allocations, and most start-up contracting businesses, I think, will do far better with Internet rather than Yellow Pages marketing initiatives.

In the meantime, I recommend you get over your fear of responding to his (in my opinion) unsubtle marketing "squeeze page' and sign up for his newsletter to receive the free reports. They are certainly worth reading.

Intelligent internet collaboration

Ed Fako submitted this video to a video posting site.

Edward Fako of Right Way Roofing Company in Carpentersville, Illinois, had a problem -- the local Yellow Pages directory failed to include his company's ad in the most recent directory. While many contractors find the various Yellow Pages variants are a waste of time and money, some still find the old-fashioned printed book still a crucial source of leads (it depends on the book, and the market, I think). Fako is in the latter category.

Fako decided to develop a direct mail piece using the walking fingers to let people know that he is still in business, if not in the directory, and use direct mail to reach homeowners in his area. But he wanted feedback, and started a thread on Contractortalk.com.

The results are intriguing. Some posters don't like the idea one bit, and others support him entirely. Through the various responses, the contractor now has insights and resources to make an informed decision about his idea.

(I don't like the Yellow Pages tie-in in the marketing materials -- as I believe it too closely associates his business with a rapidly declining brand -- but think other ideas, such as the gift card and roof magnet in the mailing make sense. I suggested he check with his lawyer regarding trademark issues, and test carefully. In fact, he might want to include BOTH a fridge magnet and gift card in the mailing).

The discussion and open debate have provided marketing insights and resources for everyone who reads the thread. Ed, of course, must still make his own business decisions. Nevertheless, this approach is far superior than keeping a big secret -- or trying something out int he wilderness of idea-land, and hoping it will work.

Branding 101

In Canada, Tim Hortons has fine-tuned its brand, successfully. You can do the same for your business, at little or no cost.

If you want a fairly priced soft drink, or healthy food, you know the last place to go is a professional baseball or hockey game. Part of this is cultural; part of it (depending on location) are monopolistic rules within the sports facility. So what if you break the rules, constructively?

You serve healthy food at a baseball game -- or, in Canada, you serve good coffee at regular retail (not 'gouge') prices.

Tim Hortons does the latter at Ottawa Senators games. They offer the only fairly priced concession in the building. Does that help their brand? Absolutely. (And can they make money at their concession? I expect so, though they don't show me their books.)

So, how much does it cost to ensure your site is clean and tidy at the end of each shift? Or, if you are a residential contractor, to leave a small gift of thanks at the end of a job? For that matter, how much does it cost to simply return your phone calls or email messages promptly? Or to pay for a simple, not overly forced, uniform or tidy shirt or T-Shirt for your crew?

More impressively, how much does it cost to link your brand with one that communicates fair value and service? In Canada, Tim Hortons coffee coupons or gift cards are truly inexpensive and a gift of one of these won't be considered an unethical 'bribe' even to the stickiest purchasing authorities.

So, here is some simple free advice. If you are advertising in the Yellow Pages, consider reducing the size of your ad and put the money you save into the simple things to make your client relationships more rewarding and more respectful. If you are not, consider the observation that the suggestions in this posting require virtually no money; just a little thinking.

The end of the (conventional) Yellow Pages

For most business-to-business and full-service residential contractors, Yellow Pages have always been a dubious investment. Besides the cost, you don't really get the clients you wish -- you find price-shopping bargain hunters, inviting many proposals; often when they really know in their heart (from previous relationships or referrals) who they want to use.

But in some businesses, the Yellow Pages have been vital and essential -- especially in emergency situations -- plumbers, roofers and other infrequently used but urgently required trades have found the listings to be central to their marketing process.

You'll notice that I am using the past tense here, because the Internet is rapidly eroding these traditional advertising models and, even where directory-type advertising remains valid, soon you won't have to deal with the biggest weakness of the conventional printed Yellow Page advertisement.

It is this -- you are stuck with a sometimes huge monthly bill, regardless of results, for a fixed format ad that you can't change or modify during the directory cycle, no matter what.

This is okay, I suppose, if the ad is working for you, but wouldn't it be much better to be able to control the volume of response and pay only for leads -- or even better -- actions that result in profitable business.

Online search engine advertising is powerful and effective for these reasons. Post the ad in the appropriate keywords, and pay only when advertisers click on your message. Great. Google will soon offer some advertisers another option -- pay for your ad only when they buy! But this will likely be available for items you can order and pay for online, and I don't think most plumbers or roofers will ever work this way.

As well, while the online model is effective and the search engines are improving localization, it is still relatively hard to fine-tune your geographic interests so that you only attract interest and response within your local service area on the Internet, especially if that area is quite small.

However, the final nail in the coffin for traditional Yellow Pages advertising may soon be on its way. New services allow publishers to offer a 'pay per call' service where advertisers only pay for their printed directory listings if customers actually call the special number (which ultimately rings through to your regular business line) when they see a directory ad relevant to them.

In other words, this model is like the 'pay per click' on the Internet, but here callers use the phone, just like the Yellow Pages.

Wow. No more wasted print advertising, and you have immediate traceability and accountability. And while I wouldn't recommend you turn the line off, if you get too busy I suppose you could disconnect without too much trouble.

While this service is new and is only experimentally available in some areas, I would really reconsider your Yellow Pages costs. One idea: Take 1/3 or even 1/2 of your Yellow Pages advertising budget, and allocate that money to the Internet with a high quality website, and good keyword search term selection. I think you will be impressed with the results.