Buying, marketing and selling -- an explanation of why the best contractors are often the least successful at marketing

Readers here may recall this rather fascinating piece of literature I received in the in-box a few weeks ago.

You are an idiot. Remove me from your sophmoric (spelling as sent by Arthur House/ed) trash!

You should attend my seminars - and maybe you should have attended my construction marketing classes at FIU (Florida International University/ed)

But you probably are not MBA material. What a bunch of crap you spew!

Respectfully;

Arthur T. House
207-338-5285

www.arthurhouse.com

What provoked this rather amazing observation?

I had tried to turn my e-letter and blog into a selling tool for a truly ill-conceived Construction Marketing Course, something you would actually pay me to receive. House, with some legitimate teaching credentials, thought this laughable, and wrote his response. (Incidentally, no one took me up on the original offer -- perhaps two people tried the email address in my marketing piece, on a list of about 10,000 names, but they certainly didn't say 'yes' to my proposal.)

Yesterday, Susan Simion provided a clue to what provoked House's negative outburst and the lack of positive response when I actually tried to sell something here.

What makes people almost buy? What makes them get most of the way there, then drop out of your shopping cart at the last second? What makes them stare at your landing page, wanting what you have to offer, and yet, ultimately, close the page and move on to something else?

It turns out there’s a hideous troll hiding under the bridge. Every time you get close to making a sale, the troll springs out and scares your prospect away. Get rid of the troll and your copy will start converting better than it ever has before.

The ugly, smelly, dirty, bad-mannered troll is prospect fear. And it’s sitting there right now, stinking up your landing page and scaring good customers away.

She goes on to describe a variety of marketing tools and techniques designed to entice you to part with your money, only to find the entire experience disappointing. It seems the online (and real) world is full of scams.

One of the classics around is the variants of the "Google ATM" offer, in which people sign up for a "Work at Home" opportunity to make big money passively by running Google Adsense on their websites. (Like all good scams there is a grain of truth underlying the rip-off. Google Adsense provides great passive income for really well established and successful websites, but you certainly aren't going to get rich quick with a new home-made endeavour, and Google doesn't charge a cent -- certainly not $70 or so a month -- to set you you up in the business.)

Once burned, twice shy; twice or more burned, you are totally turned off by most marketing and sales conventions. You don't want to do that sort of stuff, do you?

So you don't. You build your reputation for quality, to the point that clients call you, refer friends, and you feel great about your work. Periodically, telemarketers break through your resistance, offering seemingly irresistible leads services or advertising opportunities. You "bite" only, always, to end up disappointed. You vow, to yourself, that you will never stoop that low; you will never waste money on marketing and sales, and you will continue to rely on word-of-mouth.

Then your business dries up. You are desperate. And perhaps you listen a little more closely to those marketing guys who call you (and who you listen to, because no one else, certainly not clients) are phoning you these days. Maybe, just maybe, it will be different this time. But it isn't. And you are worse off than before.

Maybe you think you are an "idiot".

You aren't. But you will have to get around some fundamental resistance whenever you go out to seek business, rather than passively wait for it to come to you. Susan Simion certainly has part of the answer in her blog posting, and this resistance explains why, whenever I try to "sell" using this blog, I end up disappointed. Similarly, you can see the consequences whenever you go out against competition in the marketplace, trying to entice people to respond quickly to your advertising or marketing messages. Fear, and bad experiences, build resistance and make it harder, much harder, to break through.

There are answers, however and here are some worthy of consideration.

You can use word-of-mouth in making your marketing choices, much like you like word of mouth referrals for your own business.

This is where forums such as contractortalk.com and your local industry associations are really helpful. Members share their best experiences, and biggest problems, and (with this information) your risk of disaster is much lower than if you go out cold.

You can certainly work with your current clients,and learn from them, about what they read, like, and care about. This gives you ammunition in deciding your best course of action.

You can set up a plan, budget, and disciplined approach to marketing expenses. And within this budget, you can try different approaches, gradually gathering a group of tried-and-true methods that are effective in most conditions. Then when someone calls you with a brilliant construction marketing idea, you can elect whether or not to reallocate some of your budget or (more likely) decline the unsolicited offer, unless you only need to pay in arrears, if the great idea is truly successful.

These ideas work, I'm sure. But what about this blog? I can't get you to buy anything from me here, right? No, but I've told my wife that in 10 years I will be a highly paid Construction Marketing Ideas consultant. (If you click on the Construction Marketing Ideas consultant link, your email browser will open, and you will be free to write your own "idiot" email -- or ask for my insights into your biggest current marketing challenge, free.)

Years of accumulated experience, insights, and knowledge, coupled with practical understanding of what works and what doesn't, will achieve the results no get-rich-quick scheme can achieve.

She remarks: "But you are giving everything away for free."

Yes, with good reason.

Fear and the brand

The Tower of Terror is probably the most popular ride at Disney's California Adventure. It is a wild "elevator" ride in the Hollywood Hotel -- at one point, the doors open and park visitors can hear the screaming riders from high up.

If you play the video from the previous California Screamin' posting, you'll see images of one rather wild roller-coaster ride. The idea of this type of entertainment is to give you a thrill: Doing something scary that you know is safe -- even for your kids. And from a marketing perspective, that is the magic of branding, or more accurately, the branding experience. It also is a key element of success in marketing construction services.

To explain: On Friday, as I considered whether to risk riding what seemed to be the scariest rides imaginable (like a really fast roller-coaster with a 180 degree loop), I thought: "Has there ever been a fatality at a Disney site when a ride failed?" My reaction as I boarded the ride -- "This stuff is so safe that there is no real risk."

It turns out there have actually been some accidents and crashes (mostly fortunately minor in nature) over the years at Disney park attractions. You can find out additional details at Rideaccidents.com. But I didn't know this when I was there; I sense most Disney patrons have similar perceptions. In any case, most people consider the rides safe enough for the risk (certainly thousands of people fly or drive to Disney sites each year, and I expect there are enough plane and car accidents along the way to top the Disney accident frequency.)

Consider other elements of the Disney experience: You don't find the low-lifes that hang around many amusement parks and carnivals; all employees of course are briefed and trained (and I'm sure screened) for client suitability; the fun is tightly scripted and controlled, and once you've had the experience, you know what to expect.

There are changes every year, but the basic rules remain the same. You pay a flat rate to enter the park for the day, ride as much as you like (but usually get only one shot at the really good rides unless you are willing to endure a truly major wait), and you can spend as much as you like on extras including food and souvenirs (but Disney does not impose the irritating restrictions on your bringing your own food on site to save costs.) In other words, the experience, while not inexpensive, leaves you feeling you've been treated fairly.

Of course, Disney has turned it experience into corporate programs for training and motivation at the Disney Institute. I'm not sure if these services are worthwhile to most construction businesses, but you can see here how they are able to leverage their brand in new and interesting ways.

Fair enough. But what do amusement parks have to do with construction businesses? The answer is in your ability to overcome the fears of your current and potential clients of the bad experiences they either have heard or experienced in the past. If you are an architect or engineer, are you dealing with people who have had bad luck with sloppy design, missed schedule, or less-than-perfect trade relationships? If you are a general or sub-contractor, have you met people who have been burned by incomplete jobs, messy sites, and offensive employees? And if you are a residential contractor, do your clients have experience (or fear) of work not completed right, on schedule, and with massive inconvenience to their lives?

If your work shares any of these less-than-wonderful qualities, your brand is mud. You can spend a fortune on advertising and marketing, and end up with very little: Sure, a few new clients (or suckers) might arrive through expensive promotion, but your marketing cost will magnify because you will lose many potential clients as bad word-of-mouth spreads faster than your marketing can overcome.

Conversely, if your work is good enough to attract unsolicited repeat and referral business (to the point, in good times, you didn't need to advertise because you relied on repeat and referral business), you have an excellent brand. You now need to leverage and develop it through marketing, both to current and potential clients and new customers.

Here, advertising really will work for you and if you are truly successful, you will budget in the range of five per cent and 10 per cent of your sales volume for advertising (and additional funds, if you wish to use a direct sales force). Simply ensure your pricing is able to sustain this marketing cost -- but don't worry, businesses with solid brands (that is great reputations) can charge more for the same services as their competitors.

Consider Disney. They don't offer many coupons, discounts, special savings or the like -- especially for short-term visitors. Disney has built a brand based on safe, fun, family entertainment. The story may be partly mythology -- as I strapped myself into the roller coaster seat, I (falsely) thought no one had actually been injured on a Disney roller coaster. But I had been sold by the brand, and felt secure that when the ride ended I would be safe, and would want more of the same.

Your objective in developing your construction industry marketing is to achieve the same goal: A brand that attracts repeat and referral business, because clients perceive your service is really safe, fair, and enjoyable.

Fear,. Greed and Emotional Selling

This disturbing image, lifted from an intriguing blog Bits and Quotes, captures both fear and greed --undoubtedly powerful emotions, but when, and where, is it proper and effective to use these in the selling and marketing process?

When, if ever, should you use the twin emotions of fear and greed in your marketing and selling initiatives. Gurus Ford Harding and Sims Wyeth debate these points in some fascinating blog postings.

To make things more interesting, they extend the basic twin emotion set to "FUD - Fear, Uncertainty and Doubt" (Wyeth) and "GOG -- Greed, Opportunity and Glory" (Harding). Wyeth argues the that tackling the negative emotions is the way to go -- followed by the positive. Harding suggests that you need to look at the situation of your prospective client and then advance the solution based on the appropriate emotions reflecting the real situation; and be wary of ethical extremes especially when working with unsophisticated clients. Neither addresses the (very real) market segment of engineers in our industry, who seek and expect the marketer to use logic rather than emotion in making proposals.


At first impression, I favor Harding's approach, though the one-two-punch of raising fear then offering a greedy solution is close to perfect in the world of marketing, if the prospective client's actual circumstances match that profile (that is, something really scary is happening or about to happen, and your solution really will solve the problem and make your potential client rich, successful and famous.) Alas, this one-two punch is also the stuff of the con-artist since circumstances are rare where fear and opportunity validly coincide in truly stark and immediate contrast. There may be many valid fearful situations, but do you really have the magic bullet that will truly solve the problem and allow your potential client to rise to glory with your support?

When you have a potential client in that situation, you may need to take a highly risky approach yourself -- eschewing short term income/security for a longer-term relationship. Consultant Bill Caswell won that status with me when, as this business approached what appeared to be its final downward spiral two years ago, he arrived on the scene with a commitment that we would not need to pay him anything unless we were successful -- and the amount we would pay would be in line with regular consulting services; not some overpriced contingency-fee rip-off. To execute that approach, you need to be comfortable with both the the integrity of your potential client and your ability to patiently weather the storm -- as things rarely resolve as quickly as you would like.

Not mentioned in this debate is the potentially more important -- but truly long term -- issue of the quality of your personal relationships coupled with the competence of your work. In the marketing matrix, if you and your team of employees are enjoyable to work with, have smarts in your field, and are sensitive your clients real needs and emotions, you'll receive and sustain business with other, healthier emotions. Like love.

Fear, courage and perception

In Tjolotjo (now Tsholotsho) Zimbabwe, I learned to test the limits of fear -- and survived.

In April, 1980, I learned the most important lesson of my life. Most people are afraid, and most of the things we fear we need not. Success in life occurs when we transcend our fears and, even better, when we see beyond others' fears and take risks which we know are less risky to us than most people perceive.

Those of us who take the leap of faith from employee to entrepreneur appreciate the risk of giving up "job security" for an uncertain future -- only to find, if we are determined and somewhat capable -- that our security actually is higher than most employees. (We after all can dismiss everyone but keep our job, if we have to.)

I suffered as a child, beset by fears; fears of social relationships, speaking, most sporting activities; even walking in the woods alone. So I sought escape in my own private space. Someone suggested I should collect stamps. Perfect -- a solitary activity. I looked at the little pieces of paper from distant, unimaginable lands, and wistfully thought, "what would it be like to go there."

As university ended, and I faced the possibility of an uncertain future -- the daily newspaper I had the good fortune to be hired at for summer work told me I would not have a permanent job -- I decided to travel. "Go to Europe," someone suggested. But that seemed boring to me. Then I noticed an overland adventure trek in Africa. It went to some really strange and obscure places like The Central African Republic and Rwanda, and I thought, "Why not -- this is about as far away as I can go."

So I went; travelling on the back of a Bedford truck from London, England through the Sahara and the Congo jungle, on a three month journey to Nairobi, Kenya. We bounced along the rutted roads -- I didn't connect socially with my t ravelling peers, of course, but I had never been away from home so long, and never so far.

When we arrived in Nairobi, I had a choice -- to head straight home, or carry on. And in perhaps one of the most fateful decisions in my life, I decided to trek on southward, using public transport. By train, plane, hitchhiking, and sometimes walking, I made my way south, through Tanzania, Zambia, Botswana, and arrived in Rhodesia. Wow. A strange place; a land 'rejected' by the world, a war, military convoys, complex racial and political issues, and more. I stayed a month, then briefly visited South Africa before returning home.

Two years later, after a stint on a small newspaper in Alberta, I returned, with one goal -- to see the end of the war in Rhodesia.

Again, I experienced life at a higher level than I could have dreamed; working on a local newspaper, meeting people, exploring, learning, grappling with history, economics, social issues and more.

But it wasn't until near the end of my time in Africa, in April, 1980, that I had the key flash of insight that would change my life. I'm not afraid, I realized, to go where others wouldn't go. To see, to experience, to live. The people around me were afraid, for good reason. They were in the middle of a civil war. But even most of the people in the midst of the war didn't get it -- blinded by their own fears and prejudices.

On Good Friday, after the peace settlement had been reached, and the warring armies laid down their weapons in preparation for the hand-over to independence, I decided to take a local (black) bus to Tjolotjo (now Tsholotsho) in the centre of the war zone. Whites around me said: "You're nuts. You can't do that." But the black people within Bulawayo said it would be okay.

I hopped on the bus, and enjoyed the raucous, wild ride, with cheering and relieved people going home to their tribal village area. No one had ever seen a white civilian on their bus so they accorded me a place of honour, besides the driver. When we arrived in Tjolotjo, I headed to the local bar. Time for a night of drinking in what had been a hotbed of guerrilla activity.

As the night wore on, I received the (expected) propositions for sex from prostitutes: I declined; then the sex would be 'free' (I also declined, probably wisely considering Aids was just starting to spread in Africa), then someone said: "This war is over, but we must start another one, to defend our tribe". And I held a can of Raid in my hand and was set to spray it, when a tiny little guy, a runt of a person, tugged on my shirt, and suggested perhaps I shouldn't do that. I realized he was right.

An hour later, I looked for my camera. Someone had stolen it. So I stood on a table and said: "I expect to have my camera back later tonight." Then I went back to drinking.

I staggered out of the hall about midnight, to see a police van pulling up. Four guys were hauled out of the van, including the agitator who had called for a new war. "Please have mercy on me," he pleaded. They had found the camera, and the guys who had stolen it. Seems many off-duty police officers were in that bar (it had been a police outpost, after all), and it took only a few minutes for the word to get out and for the police to find the culprits.

I continued the evening, drinking a little more, with the White District commissioner and police chief, celebrating the the changes and insights, crashing that night on a police bunk.

The next day, the Bulawayo Chronicle rightfully fired me for violating every rule in the book (it is one thing to go drinking, but to stir up trouble at a police camp while identifying my place of employment is of course valid grounds for dismissal.) But I didn't really care, or mind. I had seen what I needed to see, and learned what I had needed to learn. I could stand up to tyranny, overcome hate and prejudice, and celebrate the freedom from fear, with a healthy dose of common sense and patience.

Things of course have not gone well in Africa since my departure -- war, hate, poverty and disease now 'rule' the land. Tjolotjo has seen its share of horrors, including a 1983 massacre and more recent economic and political challenges. And I realize not everyone has the good fortune to enjoy love, a secure upbringing, and the intelligence to experience and enjoy life.

However, I learned in Africa that fear sometimes needs to be "checked at the door", and that most of the time taking a leap of faith -- after careful thought and consideration, of course -- and heading into the unknown can bring huge rewards. We need to look beyond our assumptions, our narrow frames of reference and see the bigger picture. Then, regardless of the economy, we will prosper, both as business people and human beings.