Because

"Because"

You should believe me because you will discover the most important marketing word here.

Returning from Construct Canada

The Toronto Construction Association booth is not surprisingly a centrepiece of Construct Canada (as the event is in Toronto). The TCA holds its annual Christmas Lunch fundraiser at the show's conclusion -- and attracted close to 2,500 people at a cost of more than $100 per plate.

While we are fortunate to be able to trade services with Construct Canada for booth space, the three-day annual trade show is undoubtedly one of our biggest annual marketing expenses. Hotel rooms for four employees, meals, travel costs, and a mass of incidental expenses man this is a major budget item/expense.

Is it worth attending? You can look at the question from different perspectives. Alas, at present we don't have a truly robust lead measuring and valuing system for trade shows. Many businesses do and of course if you can directly quantify your cost per lead and correlate it to the profitability of the resulting sales, you will know if the trade show is truly valuable. (I'm hopefully solving this problem in a non-bureaucratic way by asking the sales reps who attended the show to provide their leads reports and expense information right away. They aren't straight jacketed by some corporate CRM data gathering system, but obviously need to be accountable that they indeed have gathered/developed leads, and know which ones to serve.)

On other levels, however, undoubtedly the show is worth attending:

Competitive assessment and intelligence gathering: We can see our competitors and 'read' their business health (and sometimes snatch a good idea or two from them).

Connecting and renewing acquaintances and relationships: Undoubtedly one of the most important elements of show participation, especially when you've been in business for a while. These brief visits and conversations help future relationships, build respect, and community, and of course are easy to co-ordinate in the show environment.

Internal staff communication: We effectively had an environment for a four day working sales meeting; with informal conversations, some more formal discussions and sessions, and consistent feedback, both in the trade show setting and outside, at the hotels and after-hours. I gathered some insights into potential business challenges which I can address in the next few weeks and months.

Trade shows undoubtedly can be expensive. One building products manufacturer told me his cost per lead is in the range of $75.00 (I'm hoping to get similar quantitative data in time for the 2010 show based on current year data). Obviously, this expense isn't too great if you are getting tens of thousands of dollars in business from each lead. But even after we quantify our numbers for this year (it will take a few months, of course, to see which leads convert to sales), I realize the subjective advantages of show participation make participation at this event worthwhile even if the lead cost is significant.

Notably, the show organizers told me that the show, which they founded in the late 1980s, grew through the early 90s recession. It truly met a need in hard times, and helped businesses find new clients and opportunities when they were scarce, indeed.

An elegant idea

Jon Goldman speaking at Construct Canada. He has an impressive collection of ideas -- some of which I will share in future blog postings.

Here is a story that will brighten your day -- and perhaps provide the marketing answer you are seeking.

Hopkins and Porter, a Potomac, MD, contractor planned a special celebration for its 25th anniversary. The company sent a letter to its former clients, offering them one free hour of handyman services in exchange for permission to putting a lawn sign at their home.
The campaign cost $2,000 -- and netted $375,000 in sales -- marketing consultant Jon Goldman told a Construct Canada seminar today.

Goldman said 32 per cent of the people who received the letter responded. Many took up the offer of the free handyman service -- but many purchased additional services, and referred their friends.

The thing that I really like about this idea is its impressive simplicity. You don't need to be in business for 25 years to make it work (Hopkins and Porter's website says it celebrated its 30th anniversary in 2007 -- I will check to see if they repeated the story last year.) "Every business has an anniversary; it could be five years, three years, even one years, and this would work," says Goldman.

Goldman says marketing makes the most sense when you pick the "low hanging fruit" and that fruit is, of course, your previous satisfied clients and referral contacts. Give them a reason to connect with you again, and you'll get even more business, and quickly.

Here's the good news. If your business had been doing well in good times, relying on word of mouth and referrals, you can implement this type of strategy quickly, easily, and profitably.
Smart marketing need not be expensive nor difficult to co-ordinate.

Real networking is real generosity

Recently, I've read several posts about networking including Ford Harding's useful post asking how big you think your network should be, and Mel Lester's observations about the value of lasting relationships in his most recent blog entry. You may also find some real value in reviewing Bob Littel's Netweaving site.

Since I am among the most socially awkward people in the world, networking, at least in the conventional sense, is not an easy thing for me. The way I solved the problem is to offer to contribute my talents and skills in the business communities most relevant to the business -- in this case, writing and advertising. Using the Netweaving concept, there is only one rule: The networking initiative is 100 per cent focused on the other person's interests -- not our own business needs and objectives. In other words, it is all about generosity, not taking.

In case you are wondering if this is an expensive and slow way to do business, especially in hard times, you are partly right. Great networking can be slow. But it shouldn't be expensive. Your 'give' is your insight, connections, time, and (sometimes) free services -- it isn't cash. If you want fast results, try canvassing, telemarketing or (perhaps less painfully) offering supplementary services to existing clients.

The last thing anyone (including you) want is to have some sales person pounce on you at a so-called networking event, making small talk, collecting and handing out business cards, and posing the blunt question about whether you need some product or service. The reverse also applies. Who really cares about you -- and how likely are potential clients to be interested in what you have to offer when you make perfunctory small talk, and just ditch people who can't help you?

With the reverse philosophy, networking become fun because your entire effort and exercise is focused on helping others achieve their objectives.

Almost inevitably, of course, the principal of reciprocation takes hold and the people you help offer to help you in return. Here the real 'win' occurs when you honestly don't need anything in return -- your polite decline (while doing still more good for the other person) really cements the relationship. Then, when a situation arises in the future where you have a valid reason to call on your contact, you'll be regarded with overwhelming courtesy and respect. Of course you don't abuse this -- but you enjoy the fruits of your labour, because the networking 'give' is so genuine that it doesn't feel like you are putting any effort into the process. The other people simply want to do business with you because you've demonstrated your competence and respect for their needs.

Where is the best place to network? I will answer it this way -- you should be in an environment where current and potential clients hang out, and your contribution to that group should be where you have strengths, talents, and ability to contribute wholeheartedly and with real commitment. In my case, some of my strongest networks are through the Society for Marketing Professional Services (SMPS) and the Greater Ottawa Home Builders' Association. In both cases, my contribution is writing and contributing to the association newsletter (in Ottawa, we have produced the internal association newsletter for 18 years). Since I'm a much better writer than socializer, this form of networking is relatively easy for me to do, and the research and writing of relevant articles allows me to call on association members at all levels, to give them useful and positive publicity. Not surprisingly, they almost always return my calls.

The really good thing about relevant associations is they have various committees suited to a diversity of interests. If you like social activities you can be on the social committee; if you are a political activist, you can participate on the action and policy groups. If a committee or activity doesn't exist, you can almost always suggest something. Don't just volunteer for 'anything' -- you don't want to be assigned to a 'warm body' task; you should do something you really like.

Networking isn't a fast way to wealth -- but if you focus on sharing and giving in areas you enjoy, in an environment of current and potential clients, you will ultimately reap great rewards. And since you enjoy the activities where you are making the contributions, you won't mind being patient -- you are not suffering an ordeal while you wait for results to materialize.

We're at Construct Canada -- or, more accurately, the Home Builder and Reno Expo -- at the Metro Toronto Convention Centre South Building, today through Friday. This event -- in fact a co-ordinated grouping of events -- is the largest Canadian construction trade show and meeting place in the annual calendar.

If you are in Toronto, I'll be around our booth #117 from 10 to noon or 1 pm today, most of tomorrow (Thursday), and the Friday show hours.

If you are a U.S. reader of this blog, you likely will care little about Canadian politics, but a story developing north of the 49th on the political level may provide some insights for your business. (And in case you are wondering, I also care very much about U.S. politics, especially since we are about to relaunch Washington Construction News, and the "Washington" here does not consider Seattle to be its biggest city.)

Okay, here is the story. In Canada, we have a multiparty democracy. In fact, four parties have seats in the legislature (called the House of Commons). In the most recent Canadian election, held just a few weeks before the recent U.S. vote, voters re-elected the incumbent government, the Conservatives. (In Canada, 'Conservative' would roughly equate to Republican).

The Conservatives won more votes than in the previous election, but did not win a majority. Three other parties could, if they wished, vote down the government, and defeat it. The Conservatives won more votes than in the previous election, but did not win a majority -- in other words, everyone could theoretically gang up on the government and defeat it.

After winning the most recent election, the Government decided to rub its victory into the faces of the opposing parties -- proposing changes to eliminate the election financing subsidy for registered parties. (Ironically, the Democrats, in rejecting this option in the U.S., raised enough funds to blow away the Republicans.)

The other parties in Canada however don't have the financial -- or popular -- support of the U.S. Democrats. So, royally pissed off about the threat to their survival with the proposed elimination of this financial support, they decided to gang up on the ruling party.

Wham. They set up a coalition government proposal -- in other words, by teaming up, they had more votes in the House of Commons (roughly equivalent to the House and Senate in the U.S., yes, Canada has a 'senate' but it is a different thing entirely) than the governing party. And that means they can bring down the government.

So, now the decision rests with the Head of State in Canada -- unlike the U.S. president, the Governor General is usually a ceremonial office holder -- but rarely, under our constitution, she has incredible authority. And now she has. She can bring down the government and allow the opposing parties to group together to run the country.

The story is still unfolding, so its resolution is uncertain, but here are the lessen you can learn and apply to your business right now:

• Everyone has a breaking point. You need to watch for that point. It can create opportunities, or problems, depending on where you are. If you wish to push the stress factor through the roof, consider the consequences. When you are selling, know that there is a point where persistence will be seen as pestiness, where commitment will be seen as obnoxiousness -- and where you, if you are waiting in the wings, you can snatch a client you wouldn't otherwise expect to win.
• We all work under rules the game. When conditions change, the rules remain the same -- until someone decides to change the game. Then you have a choice: Do you play by the new rules, or do you walk? (Or do create the new game?)
• You can do great things by defying expectations, by reaching beyond your perspective, and by learning alternative approaches to solving this problem. So, as a Canadian, I will soon resume publishing the local construction newspaper in Washington, D.C. I respect U.S. values, business principals, and democracy. What happens, however, when you choose to view democracy from a Canadian perspective?

If you are looking for a simple answer to all your business problems in this blog posting, you will likely be disappointed. But if you look beyond the obvious, you will find your answer. Consider this question: "What is a Canadian doing publishing the local construction industry publication in Washington, D.C." In answering it, you will likely solve your marketing challenges.

Online Networking is not real networking -- Tim Klabunde's solution

In the past year, I've had the fortune of meeting with Tim Klabunde in Washington through our mutual involvement in blogging and the Society for Marketing Professional Services (SMPS). Tim and I share some fundamental values -- that effective business development occurs when you put your short term interests aside, and focus on sharing, giving, and developing relationships that go beyond your immediate focus and requirements.

Tim has shown these qualities at the highest degree with his imitative in coordinating on linkedin.com Washington DC Design and Construction Network. He writes about this process in his Cofebuz Blog posting: Online Networking is Not Real Networking.

Now that the network has grown to more than 200 participants, he is taking things to the next stage, creating off-line opportunities to connect, share, and communicate.

Can you make similar connections and build relationships within your own community?

Referral and finders' fee systems -- Bobby Darnell's approach

In a previous posting, you've read how Feazel Roofing in Columbus, OH, offers a $50 finder's fee for consumer referrals. Do finder's fees work for more advanced stuff, especially for advanced commercial or consulting assignments?

Bobby Darnell of Construction Marketing Consultants in Atlanta GA says that, in seven years of business, he has obtained about 10 per cent of his business volume through finders fee referrals. He offers a sliding scale of incentives, based on (1) the amount of work you do to provide the lead and the strength of the direct referral and (2) the value of the business you help generate for him.

He has granted me permission to make his lead finding system available, which you can download here.

Darnell says most people using his lead rewards program have contributed a single lead. The only potential conflict he had occurred when someone submitted a lead for a contact Darnell had already been working with -- in this case, he simply provided documentation proving the prior relationship.

Lead finders or 'bird dogs' are common in many industries, and good salespeople cultivate them. Obviously, if you are sharing leads for compensation, you should conduct yourself with integrity -- if you are working for a business, I think your boss should know about this sideline, especially if it relates in any way to your day job!

A good question when an organization has salespeople is whether the lead compensation system should operate in place or adjacent to your regular sales compensation systems. If the lead compensation is modest (for example the $50 to $100 'cost' at Feazel Roofing) this isn't a problem -- but if you go the full scale with a major lead for a big project as outlined in Bobby Darnell's system, clearly the lead cost has to come out of sales compensation, or you will blow your sales and marketing budgets.

Should your salespeople be able to set up their own bird dog and lead-finding systems without company involvement or approval (paying their leads suppliers directly out of their own pockets)? I'm not sure this is such a good idea -- it invites ethical and co-ordination challenges.

On the other hand, if the relationships are there, and the sales representatives openly discuss the process with their management, presumably everyone is well served by these arrangements.

Do you have any thoughts and experiences about bird dog or lead compensation systems?

What advertising works?

I started a thread on contractortalk.com with this observation:

We sell advertising for a living, but I know much advertising in the contractor community doesn't really work. Maybe you can help me serve our clients better by sharing your success stories: Tell us where your (paid) advertising is successful, and why.

Your best examples would be a copy of your actual ad(s) or a detailed description (if it is radio or television, perhaps an audio file, Youtube or similar link would help), a description of your cost per lead, and other aspects you think important in assessing why the ad succeeds (including how long it took you to get results, and measure them).

If you are concerned about competitive confidentiality, you can 'bury' some important details. If competition concerns you, maybe you would share your success offline with other relevant non-competitive forum readers. It is likely your competitors know and see your ads, anyways, but I understand some of the measuring data might be sensitive.

(I may 'lift' some of your suggestions for our own advertisers -- even if it means sending them to other media/services. Of course, even if the advertising dollars are redirected, it still makes good business sense for us to do this. Would you return for more (or refer friends) to a business that always puts your interests in first place, even if it seems the business is acting against its own self-interest?)

If there are few or no responses to this posting, I think there is validation that advertising should be used cautiously and sparingly -- especially if you are trying to dig out of a recessionary slump and don't know what advertising works, and why.

After a few days, you will read some interesting responses but you probably won't find the magic bullet of inspiration. This could be because successful advertisers are keeping their stories to themselves, or because, well, not many people on the forums have found a way to advertise successfully!

Well, when you read the thread, you'll see there isn't an overwhelming response. This is because most successful contractors continue to find most of their business through referral and repeat clients -- and when they 'dabble' with advertising, they usually end up quite disappointed.

I'm certainly not waving the magic wand here -- though we earn 99 per cent of our income from advertising sales, in practice, most of our revenue is from supplier support advertising for editorial features (which 'works' as intended, in both senses -- the company profiled in the editorial feature gains truly useful and revenue-generating publicity, and the advertisers show their support for their current clients, a wise move). Ads can support established businesses with their branding and, if you have significant resources and patience, you will find they draw profitable business.

Trouble is, the most challenging time to start advertising is when you suddenly realize you 'need' new business, like at the start of a recession. You need to be careful here. I'm continuing my search and research for useful answers to the question.

The $50 offer

The $50 referral form from Feazel Roofing in Columbus, Ohio.

Look at this referral form from Feazel Roofing in Columbus, Ohio. Nothing fancy; the person providing the referral can receive a $50 cash payment and the person receiving the referral receives a $50 discount.

The really intriguing thing about this form, however, is the provision to allow individuals making the referral to sign over their $50 cash rebate to the person receiving the referral -- thus turning a hard cost into a soft incentive! Clearly, this reduces the referral program costs while inducing a sense of sharing and self-sacrifice/respect from the referring person: great for relationships, and for enhancing the referral's influence.

Raising the flag

Andy Critch holds his self-made Stanley Cup, which he brought to the Game 3 of the Stanley Cup Finals in 2007, a Senators BBQ cover, and, behind him, the flag which we purchased and he is about to mount on the site crane. Johnathan monk is taking his picture. The crane is near the Ottawa Airport's flight path -- so many people will see the flag -- from above.

Johnathan Monk and I visited the site of a new school project in Ottawa to see the raising of an Ottawa Senators flag on the site crane. Our company paid for the flag -- a $400 investment -- all because Andy Critch of EllisDon mused out loud to his barber that he really wanted to raise a flag in support of the Senators, but he couldn't find one large enough to do the job.

Waiting my turn for the barber, I piped up: 'We'll get you a flag", and so started a month-long saga.

You can't just go into any souvenir shop to purchase nine foot flags. And of course you can't just custom make a flag with a hockey team's logo without following some procedures; like getting the team's permission. And if you want to put a flag on a construction site crane, you also need to get permission from the building's owner, the contractor, and others. All in all, from beginning to end, it took us about five weeks to get the clearances and the flag made before Andy could hoist it today.

Why do this? How can helping a contractor raise a hockey team flag help out in marketing? If I worried about the 'return on investment' here I probably wouldn't have started the process; but I realize that sometimes it is simply fun to do something a little different, to stretch the rules, to build relationships, and to make connections.

And the flag process certainly succeeded.

We'll have some really good photos taken by Johnathan for the January 09 issue of Ottawa Construction News.

And, yes, EllisDon and the school district granted permission for us to produce an advertiser-supported feature about the project later, so ultimately, we'll make some money on the process.

Marketing 101: Connect, share, and have fun.

Reader's question: How to properly implement a successful marketing campaign

Marina Park in Kirkland, Washington. (Public domain image from Wikipedia)

I have been bestowed a new responsibility and challenge this week, I am doing sales and marketing for my families construction company my uncle has been in the business for over 40 years and his GC company has be up and running for he past four years. I started off being the first employee I did laborer duties for a few years then opted to move back to my former profession (auto sales) for the past 2 years but with the sharp decline in that industry I am back in the construction field and I asked to be able to use what I learned selling cars to help his struggling GC company.

For the past four years finding work has not been a problem with great referrals and repeat large accounts but recently work has been increasingly harder to find. We have done quite a bit of decks, rot repair, mold and flood damage since we are located in the rainy Seattle area mostly working for apartments and condos we have worked with a number of management companies and consultants for HOA.

My job is to find the work, I have pulled up all the apartments in the surrounding areas thinking it maybe a idea to get a foot in the door for maybe turn arounds, emergency repair, decks, or even full remodels. I am looking for advice on how to approach soliciting jobs from these type businesses. I am getting together some literature and company info for an evidence manual to bring validity to my presentation.

Being a novice to marketing but not to sales I know putting together a consistent presentation and method is key for success, I am looking for any input on how to put a plan together so I can properly implement a successful marketing campaign.

Any advice would help.

Brian Grospe

Erein Services
Kirkland Washington

Brian:

I hope in switching from the auto to construction sector, you haven't gone from the frying pan to the fire when it comes to finding business in the current economy. Regardless, your challenge will be to uncover sufficient unmet needs and business in a marketplace where your competitors are also scrambling for work.

In practice, marketing is primarily about branding, and branding is primarily about winning trust, and the best place to start is always your current and previous client base. You need to work from this base to build the connections for the relationships which will take you to a higher level.

So the first thing I would do is look up your uncle's current and former clients. One method that works for many people is to offer to do a free inspection and maintenance check-up with the commitment (for any job done in the last year or two) to make good on anything that isn't quite right. This gets you in the door and in contact with your clients; often other work and needs will be uncovered in the process. You may also be able to plug in some connections to HOAs, neighbours, condo board reps and the like, all of whom will be able to give you business or referrals. (You may have to do some free fix up work, of course, but the cost here will be far less than the good will created by standing by your services. And of course you can use common sense and not rush to call back the really finicky clients who you don't want to see again anyways!)

You may want to allocate some (small) resources to building a simple website (you can use a free blog template to do this if you don't have any budget). E-newsletters can work well; especially if you fill them with useful advice and maintenance tips. Remember any form of advertising requires many -- some say nine to 13 -- impressions for you to be able to measure any value; and obviously this can be a budget-stretcher if you have no previous experience or metrics to follow (which is why it can be risky to spend money on advertising now, if you haven't done it previously.)

Involvement in a contributing way to HOAs and associations representing management companies (you can find which groups your current/previous clients belong to) may be productive, especially if you can win introductions from your existing or previous clients. The art here is to forget the selling and focus on what you can do to provide useful services/value to the group. Your current/former clients may be happy to support your membership application and vouch for you at the association meetings/gatherings -- this gives you instant credibility with their peers and opens doors relatively quickly.

Will 'shoe leather' and dialing for dollars work; ie conventional outbound selling approaches? Possibly, but the big weakness here is that unless you have an offer or circumstance where the price for the service can be transferred to a third party (ie an insurance company), you are going to risk getting dragged into unprofitable bidding wars or "low price gets the job" so-called opportunities. You may wish to check to see if there are repair/support programs sponsored at the state/county level where you can access public funds to help out (this may be more available later as government stimulus programs kick in.)

Discretion, respect, and communication

Occasionally I come across a significant story that is too hot to handle. Usually it involves sex. And usually the story involves some level of indiscretion which causes harm and hardship far beyond the inappropriate behaviour.

Today, I learned one of these stories I won't report on it because the specific details won't do anyone any good. But I can say one basic marketing lesson can be observed here: Generally, what you do in the bedroom should stay there. Be responsible. Respect the moral code. And if you dare violate it, remember that you can be haunted by the consequences.

Employee marketing

The team at the most recent planning meeting, in October. I expect the gathering will be larger at the semi-annual review next May.

A few weeks ago, I asked Chase to assist in the job posting/advertising process for new associate publishers. Our business model is free of many geographical constraints; we can produce viable publications in virtually every part of the U.S. and Canada, but the key is to find local publishers with the right set of skills and initiative to handle the self-reliant responsibilities.

(Some competitors try to handle this selling responsibility through central phone rooms; others contract with people on pure commission; we believe the much better approach is to pay a fair starting salary to local people who really like to work independently, but still wish to connect to the growing business.)

His most recent initiative has resulted in two finalists ready to move to the key stage in our recruiting system -- the paid, working assignment. But (and this is the great thing), he has modified the assignment's design to make it more meaningful and valid in measuring the potential of our possible new employees.

This kind of initiative, interaction, and communication, to me, is the essence of good working relationships -- and is a vital part of your business marketing and brand development. After all, for most business owners reading this blog, upwards of 75 per cent of your business originates from repeat clients and referrals -- and these occur because of the way you and your employees relate and serve your current clients. Do you want 'drones' who talk corporate-speak, or are you more likely to succeed with employees with initiative, spirit, and the ability to speak their mind and contribute their own thoughts to the business?

Of course, no business can survive long if it allows everyone to simply design their dream job and do it, without supervision or control. Employees need some rules of the game; some consistent practices and guidelines, and they must communicate frequently and routinely. This is where regular meetings are not only important -- they are essential.

Thanksgiving

The U.S. is celebrating Thanksgiving today.

For many in the architectural, engineering and construction industries, this has been a year where thanksgiving must be at the spiritual rather than economic level. but in the longer picture of history -- in the bigger picture of life -- this year could be one of the best years to truly appreciate and respect the people in your life who have shared, helped, and given love, support and inspiration.

We all have much to be thankful for, and many people worthy of our thanksgiving.

Brand cohesion -- what really matters

This graphic is from the posting The No. 1 Rule / Brand Consistency in Attitude Design Journal, and gives the designer's perspective about brand consistency. However, I don't believe you should sacrifice independent thinking and imagination among your employees to force consistency.

Some marketers fight seemingly endless battles to achieve brand consistency. They wouldn't like very much the way we do things at our business. Take this blog (and that of our employees/contractors), for example. Rather than putting the blog in our own domain name (which I've registered some time ago) you'll still see the blogspot.com designation. And Chase is doing his own thing, with his own account.

You'll find other gaps, inconsistencies, and variations -- the logos aren't always exactly where they 'should' be and employees in this organization aren't muzzled to follow the party line and speak corporately as 'one'.

This reflects a deliberate policy. These branding elements are simply not as important as the value achieved to the brand by empowering employees and contractors here to think creatively, respect clients, and respond with their own solutions when something isn't quite right.

Note: I am certainly not advocating blind 'anything goes' freedom -- you need business controls, especially over your accounting and financials, and owners should never abrogate responsibilities here: (We have a great accounting team, but, in addition to ensuring the regular reports are completed on schedule, I can find time, always, to sign the cheques, and to review the bank statements.)

Equally, employees are expected to show up for the regular weekly meetings and they need a good reason not to be there. (Medical emergencies and vacations are good reasons; a client appointment is not -- unless the employee has tried to reschedule and simply cannot vary the time.) Independent contractors of course are not under similar controls -- a sign of this business's health, however, is how many contractors show up for the meetings without being told to attend!

Nevertheless, outside of these common-sense controls, the rules around here are simple: "Do what is right, with respect for our clients and the community."

Brand consistency, eh. I'll take it we have it right if a client, experiencing a problem, finds we resolve it promptly and fairly; when an employee senses that something isn't quite right, and solves the problem without running to the boss; if everyone works well together, in harmony, yet with the freedom to think for themselves. These values, I think, create the real brand.

Consistent, maybe not, but effective, yes.

Radio ads?

In Columbus, I asked Mike Feazel at Feazel Roofing how he finds most of his clients for his mutli-million dollar roofing company.

He said about a third is from repeat and referral clients (next posting I will share his referral form).

A second third is from "everything else" -- Internet, newspaper ads (a dying resource, he says, which works when he can get highly discounted rates) and publicity (he is called frequently by local media when they need comments on roofing issues).

So where is the remaining third? Radio ads. Yes, radio. Hundreds of thousands of dollars worth of ads each year on local radio stations appealing to the middle-adult, middle of the road demographic.

"Our market isn't the super rich," he said. "It is the working people who need roofs repaired."

Feazel knows he has a competitive edge with radio -- it only works if there is enough continuity, saturation, and time -- in other words, if you were to try to engage in a competing radio campaign, you would have to budget enough to spend upwards of $20,000 a month for six to nine months -- without worrying about results.

Obviously, this won't work for the little contractor struggling to get by. Most smaller contractors rely on repeat and referral business as the primary source of clients -- but Feazel says this doesn't work if you want to grow the business to a really substantial level. You've got to advertise, he says.

This posting, therefore, is relevant to only a small number of this blog's readers. That is fine with Feazel and contractors at his level -- when the barriers to marketing entry are high, you don't have to worry too much about the competition.

Canvassing in Columbus: How to knock on doors

Joseph Needham puts a brochure in a door as he shows Rob Sangster how to canvass in a Columbus, Ohio neighbourhood. (Below) Feazel Roofing President Mike Feazel in his office. Feazel wants to hire a team of 25 canvassers/salespeopole.

I felt a little like an FBI surveillance agent today, sitting in the back seat of a car, camera in hand, as I observed canvassing consultant Joseph Needham show Rob Sangster, working on contract for Feazel Roofing, how to knock on doors.

On a blustery, windy day, just two days before Thanksgiving, the job seemed thankless. Sangster, a former NHL Hockey draft pick originally from Ontario, met his wife in Columbus while on the then-farm team for the Vancouver Canucks. Now he has a part-time hockey practice business, but wants something more for his family.

Feazel Roofing president Mike Feazel, following an Internet search, decided to contract with Needham to help set up an ambitious canvassing-sales program with the goal of putting 25 reps in the field. Sangster is the first -- he may well lead the team -- once advertisements appear in local newspapers and candidates attend information meetings in a local hotel.

This is not a 'typical' canvassing assignment, but Feazel Roofing is not a typical roofing company. Feazel says about a third of his business comes from local radio ads -- he estimates his budget is upwards of $200,000 a year. He roofing company is the most prominent roofing contractor in Ohio -- and is expanding its 'storm division' which enters markets after major wind or hail storms, where roofing services suddenly are in demand. (The company does a little commercial work, about 10 per cent, but avoids new construction -- "there's no profit in that type of work," Feazel says.

So when Needham received the call from Feazel, the assignment reflected a very different challenge than just fulfilling an order for his $350 canvassing training disk, or his more simple $10,000 to $15,000 budget canvassing training and set up model. (For this amount of money, you would build a system starting with a single canvasser, growing to three to five, each of which should bring in enough leads to provide at least one sale a day -- the sale could range in value from $1,200 to $10,000 or more; perhaps averaging about $5,000, Needham says.)

Feazel wanted Needham to remake the story, to rebuild the picture, and to change the model of business. Needham generally trains canvassers to be lead generators -- Feazel wants them to be sales reps as well. In Feazel's model, canvassers will carry ladders in their cars and if the homeowner really wants an on-the-spot inspection, he will be able to get out, go on the roof, and make a proposal. (This certainly wouldn't work in Ontario and some other markets -- unless the roof estimator had safety harnesses and other gear, no way should he be on the roof.)

We rolled into an upper middle-class neighbourhood of relatively new houses, recently hit by a hail storm. Needham pointed out two roof shingle types; one is definitely better than the other, and the better one can withstand the storm, and thus the homeowners wouldn't need a new roof.

The other type, less expensive to build, had real problems -- and many of these are not obviously visible. The damage is also covered by insurance, and because it relates to a catastrophe, individual homeowners don't need to worry about their premiums rising if they file a claim.

So the trick is to drive through the neighbourhood, assess whether the roof is the 'right' (cheaper) type, and then knock on doors, to see if they would like a free inspection, and if anything is found wrong, to prepare a proposal for repairs that would be covered by the home owner's insurance. (And if you agree to put a sign on the lawn, you can have a $250 credit towards your insurance deductible costs.)

This type of situation, Needham says, is a perfect example of where canvassing makes business sense. Homeowners really can use the service -- and since they are not out-of-pocket in any major way -- gain real benefit by allowing the canvasser to present the case. (Some homeowners say they've had an insurance adjuster review the property and say there is no damage: Feazel and Needham show canvassers the counter-argument -- that the insurance adjuster represents the insurance company, not the homeowner, and if they find problems on the inspection, they'll go to bat with the insurance company to get approval before proceeding with the job).

Sangster, of course, felt the pain of the door knocking. Cold. blustery weather is not the best time to canvass, Needham acknowledged. If you want to set up a canvassing program, it is often best to do it in the spring. And you are going to have to work hard and creatively to find canvassers -- probably going through 21 or more candidates before you find one that 'sticks'.

Canvassers need to be able to stomach rejection and the obvious stigma associated with door-to-door work. (Needham says few women are interested in the job, but he has had a few interesting experiences with women in the houses he canvasses -- a subject probably best not reported here in great detail.)

Good canvassers, usually earning a modest wage with a bonus for each appointment they set, can earn $30 to $40,000 for part time work (four to six hours a day) for the warmer months of the year. Some graduate to work in sales -- canvassing is certainly good practice for a sales career.

In the middle of the day in Columbus, few people were home. Sangster met one homeowner who said she would use the company the insurance company recommended. (Needham had an answer to that objection). Needham, meanwhile, found a homeowner who welcomed an appointment. He took down her information and called the order into the office.

Later in the afternoon, as Needham drove with me around various neighbourhoods, he explained that he fell into canvassing when, after obtaining a degree in psychology with a minor in sociology, he needed work, so went to a roofing company near his home in the Battle Creek, MI, area. The company owner suggested that instead of getting on a roof installing shingles, he might be better suited to going out and bringing in the business. And he did -- achieving astounding results.

Eventually, word got around, and Needham discovered other roofing contractors wanted to know his secrets, so he began work on the canvassing manual. Now, he says he sells 30 to 40 of them a year on the Internet.

Needham emphasises that he trains canvassers never to go where they are not wanted. If a 'no soliciting' sign is on a door (or entrance to a neighbourhood), he'll stay away. Canvassers must be presentable and non-threatening -- no pierced faces, or scary scars!

Is this a magical formula for everyone? Obviously not -- You need the systems, processes, and organization to handle the leads, (or the willingness to stomach the rejection and tension involved in canvassing yourself), and obviously this type of canvassing works rationally when there is a visible exterior problem or qualification for the service (it would be harder, if still possible) to canvass for interior renovation and maintenance work.)

Needham asked if I would like to go to a door with him. "No way," I said. "I can't think of anything I would like to do less (personally) than to knock on doors. In fact, I abhor canvassers when they knock on our door at home."

But in researching construction marketing, in assessing the options and choices, it is my interest to understand how things work, whether or not they reflect my personal values and interests. Here, Feazel Roofing's Mike Feazel and I share the same values. "The biggest mistake some people make in marketing is to impose their personal interests in their marketing -- the issue here is what matters for the clients." I agree, in part. I also believe that you should always align your work with your interests and strengths; and if you realize you need some expertise, talent and strengths more suited to a task, you should hire or contract for these services.

Columbus canvassing

Today, I'm heading for a brief visit to Columbus, Ohio, to observe how consultant Joseph Needham trains a local roofing company in the art of door-to-door canvassing. The journey into the U.S. heartland just before Thanksgiving will also give me a much clearer picture -- on the ground -- of the state of the economy, and the direction contractors need to take to survive challenging economic conditions.

Independent contractors, employees and construction marketing

You need to understand the basics of marketing before you can either hire or contract out the services to others.

When should you 'contract out' marketing services, and when should you do things yourself? This is an easier question to ask than to answer. Clearly, using outside providers has real advantages: You pay for what you need, and your independent contractor suppliers can effectively cross-fertilize innovations from several clients.

Conversely, when you hand over these responsibilities to outsiders, you could diminish your responsibility/control over one of the key elements of your business operation. You really can't escape your responsibility to attract and retain profitable business -- without it, you of course are doomed.

The simplest answer, I think, is to start by having enough overview knowledge of the issues, practices, and methodologies of marketing so that you can understand who is competent and who is not. This blog helps and you may find worthy marketing introduction programs with your trade associations or groups. (If you really want to get deep into the topic, consider joining your local Society For Marketing Professional Services (SMPS) chapter.)

Then, you can determine where you need to get some outside help or whether you should add resources internally. You may elect to hire a marketing co-ordinator or decide to focus your staffing on business development and sales. (The two functions are complementary but you'll find that, improperly co-ordinated, your marketing and sales staff may not see things through the same perspectives!)

One cautionary note: Be wary of any outsider 'selling' you any type of marketing or advertising services. Remember, they be better at selling what they have, rather than what you need! Be sure that the services offered fit within your vision and budget.

I think, however, that as the business owner you will always need to have primary responsibility for marketing and business development. So if your resources are limited, do the parts of the work that you enjoy the most and find existing employees or outside contractors to help out -- until your resources allow you to bring on additional employees.

The Construction Exchange

One of the most interesting aspects of The Construction Exchange is its member-generated image library. Brad Torres writes:: "The Bagger 288 built by the German company Krupp is used for strip mining operations. It is 312' tall, 705' long and weighs over 13,500 tons. This piece of equipment comes with a price tag of 100 million and a 10 year lead time (five years to design and five years to assemble). The most amazing thing about it though is that it only requires 5 people to operate according to the article that I read. It also has the capability of removing over 240,000 tons of material each day."

Bobby Darnell referenced me to a site worthy of permalinking in the special place for forums and relevant sites -- The Construction Exchange (constructionexchange.com.) Lots of interesting information here, including connections, images, and even jokes.

A news article in the Santa Rosa, CA Press-Democrat observes:

The niche social networking site, which beta launched in August, is the brainchild of Santa Rosa-based Western Water Constructors, a 49-year-old construction company specializing in water treatment plants.

While construction companies aren't known for launching Internet start ups, its 33-year-old vice president and 28-year-old IT director had a vision.

"We wanted something that catered to our industry," said Josh McGarva, vice president of Western Water. "Our industry is known for being overly competitive. We wanted a place where people could share ideas, and be more collaborative."

This site certainly is worthy of a permalink.

The larger vision:

Last night, I watched Glengarry Glen Ross, a classic (for anyone interested in construction and real estate sales) movie which plays on the stereotypes and attitudes of hard-rock sales representatives of the old style: The 'closers' who will manipulate, cajole, trick, cheat, do whatever needs to be done to get a sale.

On Tuesday, I'm heading to Columbus, Ohio, to visit with canvassing consultant Joseph Needham as he shows a reputable local roofing company how to organize door-to-door canvassing projects.

Readers here know how much I personally abhor blatant, in your face, and intrusive marketing like canvassing and telemarketing; and how the stereotypical sales attitudes of Glengarry Glen Ross are far from my value systems.

Then why do I spend time watching videos like Glengarry Glen Ross, and more significantly, why am I ready to spend several hundred dollars on plane fares, hotel, and rental car services to see door-to-door canvassing training in action?

The answer is simple: If the goal here is to provide Construction Marketing Ideas, then preconceptions and personal prejudices must take second-place to learning and recognizing that alternative approaches to marketing have value and utility, and can be effective in different circumstances.

The question is, can these 'harder' approaches to marketing be integrated within the softer, brand-focused approach -- based on referral and repeat business relationships -- that I advocate? Or will the decision to use assertive marketing strategies threaten or destroy your well-established brand and reputation?

I believe the answer is you can use both styles, provided you are careful and practice some simple segmentation.

As an example, I'm working now with a traditional (and very successful) salesperson who guns for the close. He isn't quite as blatant as the guys in the Glengarry Glen Ross video, but certainly takes a transactional approach to his business.

So, I wasn't surprised that it took him only a day after I clued him in on a well-developed personal relationship that he initiated communication with this well-connected individual, presumably to draw out leads and make some sales. Sensing the potential damage this could cause to the relationship, founded on giving, sharing and mutual respect, I phoned my contact and gave him a heads up about the sales rep, suggesting he be cautious in sharing leads and personal references just yet.

But I certainly am not closing the door to the new representative's initiative -- in fact, we are paying several hundred dollars for leads which would work well with his style of selling: The difference is these leads are based on commercial data, not personal relationships. He can go to bat for our business with these leads without damaging established relationships, and bring in truly worthy sales (and cash) for both himself and the business as a result.

The power of follow-up inspections

The "Mary a Plumber" images from Bestline Plumbing's website may not convey the image of a business with high-brow sophistication and inspiration (and the company's website is certainly not state-of-the-art). But Bestline's owner Leonard Megliola certainly has the basics of effective marketing in his business -- he shares freely his ideas, expresses a strong and vibrant personality, and reaches out to current, previous and potential clients in a manner that attracts profitable business. We can all learn from him.

Leonard Megliola, president of Bestline Plumbing in the Los Angeles area, challenges other contractors and sub trades to think differently about marketing; in the process, he has adapted and implemented some solid and really resourceful practices.

One of his methodologies, also recommended by the late Sonny Lykos, is the follow up service/warranty inspection call. Clients are advised when his company does work, that his staff will inspect the job and make things right if they aren't up to standard.

His employees complete the inspections, as promised, and obviously take responsibility to fix any deficiencies. But these visits have much more marketing power than you can imagine. Clients have other things they need done; they have friends and acquaintances which also need plumbing services, and the good-will created by the follow up service just adds to the marketing value of this initiative's marketing value.

Here is part of his contractortalk.com posting on the topic:

This is how this campaign works and it is too simple. You send 100 letters, to customers you did large jobs for. These could be room additions, new homes, foundation walls, copper repipes, furnaces, roofs, roof valleys, sewers, new drain installations, electrical wiring, roofs. etc.

Your letter tells the customer that you want to inspect only one or a few items. Don't make the letter confusing.

Your letter tells your customers, you gave them a guarantees, and you want to inspect the integrity of your work (list only one or two items), glued joints, copper joints, fire-box, foundation wall, roof, gutters, storm caps, structure integrity, mold, water drainage, wiring, drainage,. etc. The letter tells the customer that you will inspect the job, for free, and if there is a problem, you will repair the problem for free.

People love this idea. We send out 100 letters and the phones start ringing the next day. Guess what happens when people are so happy with us. While inspecting our jobs, these people need more work. Almost every customer needs something and we are closing very large sales on 50% of our inspections. This week, we sold three floor furnaces, drain jobs, a copper repipe, and a huge clean-up job in an attic, removing blown-in insulation, that was contaminated with animal waste.

The first thing we do, when we arrive at the customer's home, is hand them a handful of ink pens and a few business cards. We carry a camera and take pictures of everything. If we find nothing is wrong, smile, and thank the customer. When you find something wrong, give it your best to do what is right. This past Monday, we inspected 6 jobs in less than two hours.

I prefer not to mention the amount of money sold from inspections, but it is more than most will believe . . .

Checking your jobs should be something that you are willing to do just to provide good customer service and build your business. Posts tell me that it is obvious that few to no plumbers actually call their customers a year later and say, 'hello, this is Acme Plumbing. How is everything working? The reason I am calling is because I would like to let you know that we appreciate your good business and we would like to make sure that the work we did is still working fine, ........and on and on.

Thank you for being a great customer. We (company name) would like to thank you for your business.

Most likely, you are aware that the piping (furnace, or whatever) has an Original Owner Lifetime Guarantee and we would like to honor that guarantee. In order to honor your guarantee, (company name) we do periodic inspections to check the integrity of the of the piping installed and to make sure that our work does not cause any physical damage to the occupants or to your property.

Bestline will be performing you inspection between Monday July 21 and Friday July 25, between 9 am and 4 pm. We will be calling to schedule a firm appointment, or you may call us to schedule an appointment before or after the dates we have suggested.

This inspection is absolutely free and there rare no obligations of any type.

Thank you very much.
Sincerely,
Jack
The Big Boss

I can't think of any strategy that is more effective and less expensive marketing-wise than this follow up inspection system. (This obviously only works when the contractor has a direct relationship with the client, either residential or commercial -- you might have challenges doing this if you are working purely as a sub for general contractors, and I can imagine the challenges of GCs and subs working out who pays for what when these follow-up calls are arranged. On the other hand, you might have no trouble arranging with the GC to provide this follow up service in your own name: After all, if you really will honor the warranty then this is one load off the general contractor's worry-list.)

See also how the late Sonny Lykos used this technique to great effect in this posting: "The Marketing Budget"

Marketing: Question and answer

The question:

Hi Mark,

I'm a big fan of your writing. It has proved invaluable as a resource to me and the company I work for. Thing is, I'm kind of at a standstill right now. I work for a company that fabricates steel framing - floors, walls and trusses, and we've been pretty prevalent in the industry to the point where we are now considered one of the (if not the) market leaders in Ontario.

When I joined the company two years ago, we were running at about $2.5mil turnover, which now has been increased to over $5mil through E-mail newsletters, improved product literature, architect/engineer visits, press releases and trade shows among other efforts. I have literally had no budget for this - it was approved on a case-by-case basis. My boss does not agree with print marketing, nor does he feel that trade shows bring us much in terms of exposure to new potential clients, so we've ceased those.

I'm constantly racking my brains for promotional ideas that are cost-free (or at least minimal cost) and give us maximum exposure, but as sales coordinator too, I have to balance my time. Should I just demand a budget from my boss, or plough on? I'm obviously doing something right, but I feel that forward momentum will be finite if we carry on under these circumstances. I also feel that my own progress is being hampered somewhat. We've just moved into a new facility which has obviously compromised working capital to a degree, but the resources are there, I'm sure of it. Is my boss being cheap? What can I do?

Thanks for any help, feel free to publish (minus the name) if you think there is any mileage in it.

My answer:

You are doing much right here, and so is your boss. At this scale of business, however, a marketing plan and budget are appropriate and rational. You may wish to draw up your own budget/plan. Keep it simple -- one or two pages max, with target objectives, (lead conversion etc) and reasoning. Does your business have an organized planning/meeting cycle? If so, you can rationally include this into that process. (If it doesn't and you are flying by the seat of your pants, I wish I could offer more support but that it is outside of my power/mandate!)

Your boss is probably right about print media, even though my business continues to earn 99 per cent of its revenue from print advertising! The reason we succeed is because of our relationship-centric approach. Your business, based in Ontario, may be highly suitable for a special supplier-supported feature. It won't cost you (or your boss) a cent, and while we will encourage your suppliers to support the initiative, they will be treated with respect. As you may know, this blog in fact started as a client service initiative. the resulting feature becomes a really useful link off your website, and attachment to relevant emails -- in these contexts, print converted to online is both effective and economical. And you won't need budget approvals.

Nevertheless, print media and trade shows can be very expensive. One manufacturer told me a couple of years ago, that he couldn't measure any lead generation from expensive glossy architectural magazines, and his cost per lead for trade shows was about $75.00. He said he was shocked when he tried online lead generation methods, such as AEC Daily, and discovered his true cost per lead dropped by an order of magnitude, to $7.50. He got these results b doing some sponsored advertising/section referrals from that website -- I'm not pushing it or recommending it to you carelessly; I've not used this site/service myself, nor have I validated these numbers with more recent results. But you can see that some of the verticals for AEC marketing online may be helpful and useful, and, yes, you will need a small budget to develop them.

Finally, check with your boss and which trade associations you belong to. Most of them have some marketing resources and services, and you may be able to connect with (non competitive) peers to gather ideas and insights. While it may be a budget stretcher to attend relevant conferences, I've found some relationships developed this way have been exceptionally profitable for my business. But you can also connect by phone and video link if necessary and that is less expensive. I hope as a marketer you are also engaged with trade associations at your client level; I know of few ways to more effectively develop relationships and widen your influence. Again, you'll need some budget resources here and your boss will need some patience; it can take a while for the relationships to fully mature into business trust -- but when things happen and go right, the payback is immense. (I'm still amazed how much business I've received in the past few months either by receiving or sending a few phone calls or emails from these association connections).

If you have construction marketing questions, please feel free to email me at buckshon@cnrgp.com or phone 888-432-3555 ext 224.