MyConstructionBiz.com Blog
News, tips, links and other timely information.
| Monday, Aug 18, 2008 |
| Q&A from the August 7th Seminar - Getting Your Phone to Ring Part 6 |
| By Dan Baumann |
| Monday, Aug 18, 2008 10:18 |
During our seminar on August 7, 2008 the audience asked many great questions. Below are Dan and Michaels responses to those questions. Members can view the recorded class and download the audio or video files. Getting Your Phone to Ring Q&A Audience Question:
Q: What is your opinion of the on-line yellow pages ie Yellow pages.com. Is it worth the investment of $100.00 per month for 12 months
A: On-line Yellow pages are important. However I would be leery of all the promises that are made about getting you high rankings. What are they saying you're getting for the $100 per month Audience Question:
Q: How often should you send a newsletter?
A: Newsletter's are a lot of work to put together. Once you have a format and system together and the first one is out the door it will take a lot less time to put together the next one. Find someone that can help you. You could do a simple one page on-line and mailable newsletter each month or do a larger 4-6 page on-line and mailable newsletter 4-6 times per year. Even simple post cards mailed out each month would keep your name in front of people. That's the key - Stay in front of people! Audience Question:
Q: We are having issues with ending up in spam and junk folders and our emails aren't even being seen. Any tips on how to work around this?
A: Doing bulk email is tricky. Many emails are flagged as spam if you use certain words in the subject line and the body of the email. The absolutely best way to do it is build a Double Opt in list where people give you permission to send information to them. It takes time to set up but if you can add 1 name a day you'll have 300 by the end of the year. Aweber and Constant Contact use double opt in systems. We've been getting between 80% - 95% deliverablility using double opt in. You can also ask in your emails that people put you on their allowed list. It's not as hard as it sounds but like anything else, it takes time. We'll be doing training on this in the very near future. Audience Question:
Q: I have a newsletter that I send out every week that is called Tuesday Motivation. Every Tuesday morning in send out a motivational piece to over 2400 emails. Is that good to do?
A: Where did the names come from? What is the delivery rate? If the information is relevant for the people you're sending information to then it's OK. Are you making the emails short and simple to read?
Q: I get the emails from everybody I meet. I'm getting about 16% of the views and 11% website clicks. It's very short and sweet, people are now starting to respond saying thanks because it may have help them get though the day. I was thinking about asking people to send me their best quotes, I will list them and their business at the bottom.
A: How are you sending the emails?
Q: Through I contact
A: Is this a Double-Opt in system?
Q: Not yet I just started the new system that alloys me to do that. I was kinda scared of the double opt. People wouldn't sign up. Audience Comment:
Many of your local colleges will take on small companies as a marketing project for the semester. Talk to some professors! They love it! They do a lot of research for you. Some small designs, even some calls...etc. Audience Question:
Q: Any tips for doing Home Shows? What is best way to get noticed there? We have done several and have done poorly.
A: Answer:- Have FUN with them! One of the main goals you should have when you go to a Home Show is to build your mailing list. Yes there are other benefits but list building should be your main focus. Find fun ways to build your list. I was at a Green Show recently and one company was giving away very nice cloth shopping bags. To get one they had to sign up with their name and email, write something on a white board 'why green is so great' and then pose for a digital picture. I stood and watched this for about 15 minutes. It was the busiest booth at the show and there were 20 to 30 people in line at all times. They were having FUN, people loved it. Audience Comment:
Contractors should market landscape design/build companies if they want to be building gazebos etc....we need contractors for this now!!! People are investing in their personal spaces outdoors to feel good now! Audience Question:
Q: With regard to after-job Open Houses, how does it work, logistically with getting permission from the homeowner? Do you need to offer them money to "use" their home?
A: There are lots of ways to do an Open House. The best way to do it is to make it part of the sales process with agreement that the project will be an Open House on completion. Most people will agree to do this if you've build a good relationship with them. If we have time, we'll discuss this more at the end of this meeting. Audience Question:
Q: What do you do if you are a small company with little money for advertising? I have purchased leads on-line. The leads are not always the best ones. What would be my first step?
A: Forget the leads on line. They are one of the most expensive ways to advertise there is. Focus on the things you can do. Go door to door and hand out your business card. Tell them your name, company name and also that if you could ever be of service, please call you. A short stop will probably get you a lead in about every 22 to 24 houses. Don't be long winded, just short and to the point. - Get your former customers to give you a good review on Angie's list
- Post an ad a week on Craig's list (stay in the free sections)
- Go to HUD and get certified to do Aging in Place work.
- Contact a good hardware store about doing installations of little stuff for their customers. Those will lead to bigger jobs about 40% to 60% of the time in the next year.
- Read the stuff on MyConstructionBiz.com website on advertising and promoting your company.
Audience Question:
Q: Would "customer surveys" or case studies help to promote your business and if so, then how can we work our name into the case study?
A: I have never liked customer surveys. If you do a good job, you will get a good referral. You don't need anything else, you know if you screwed up on a job. On the other hand surveys can be a good way to build customer testimonials. You can do surveys in person, via phone by a impartial 3rd party, by mail or via the internet. One service to consider would be an on-line survey using SurveyMonkey.com Audience Question:
Q: We are a design-build remodeling contractor and have had two customers post to Angie's list about us. Now Angie's list is aggressively pursuing us to advertise with them. My concern is that, we are not a "handy man" company. While we don't usually turn jobs down, we are not staffed to be running around fixing sticking doors. My question is whether or not Angie's list would be waste of the limited marketing dollars we have?
A: First you need to get at least 10 to 12 more customers to post something good about you on Angie's list. That makes you almost bullet proof for any negative posts. Second, I would not advertise on Angie's list unless they can prove to you that other construction related companies have done so and are getting good leads from the ads. Get some references and call them. Make them prove any claims and don't buy the advertising unless they do. The leads that come from Angie's list are seldom because of ads, they are an indirect referral from past customers who have posted good stuff about a company. You need to rethink your "limited marketing dollars" idea. Your budget needs to be at least 4.5% to 5% of sales when things get tight as they are right now. You have to get in front of more people as fewer numbers of them are buying. If you don't you will join the roughly 20% to 30% of all contractors that are going to fail between now and April -May next year. Almost all of them have cut back their advertising budget and that is the same as putting a noose around your neck. I have been through similar cycles of ups and downs in construction now some 8 different times over the last 50 years. Each time the cycle goes into the down mode, a whole bunch of contractors have to learn the hard way that you can't cut back your advertising. |
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| Thursday, Aug 14, 2008 |
| Getting Ahead in Construction |
| By Michael Stone |
| Thursday, Aug 14, 2008 04:49 |
I got an email from a contractor the other day in response to an announcement about one of our free online seminars. He said: Sorry, just can't spare an hour at 8 am to listen in to a live call, I have a job to go to and a living to make. Not going to subscribe either. Since I can't check out your seminars (members only), I have no real reason to gamble a hundred bucks to find out if they're any good. I am sure he believes he is taking the right approach to his business. He probably is a very good person and wants to take care of his family. For that, I'll give him all the credit in the world. However, let me point out that this attitude is exactly what I have talked about before. The difference between being a businessperson and being a mechanic is all in how you think about your business and how it should be run. Thinking like a mechanic relegates you to a life of "working for a living". You virtually eliminate any chance of ever getting ahead. Thinking like a mechanic almost guarantees that you will have no money (and in most cases no chance) for retirement, because you are equating activity ("a job to go to and a living to make") with accomplishment. We have heard from many people about how good our classes are. Not one person who has become a member has complained about the value received for the money they paid - rather, we have been complimented on how much content is available, and how valuable it is. If you aren't making the money you want to make with your construction-related business, you have two choices. You can continue to do the things you have always done and hopefully keep going. Or you can get in and learn new approaches to your business and in all probability, start making good money. The choice is yours. |
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| Monday, Jul 14, 2008 |
| Insurance Costs |
| By Michael Stone |
| Monday, Jul 14, 2008 09:57 |
After our class on Purchasing Insurance for a Construction Company last Thursday morning, I had a number of people ask me about the language they would need in their contracts to transfer responsibility of job liability insurance to the home owner for their job. I also had a similar question about transferring workers comp insurance costs to the owner. Don Bury sent
us some language that I posted in the forum. I'd like to hear your opinions on it. But before you take that language and roar off into the sunset with it, please consider the following: - We are not attorneys, nor are we in any way giving you legal advice here. Use this information at your own risk. Have your attorney check the language, and make sure it's legal or safe to transfer these costs directly to your owners.
- It has been my experience that trying to transfer overhead costs, or in some cases job costs, back to the owner is little more than a ruse to "keep my price down." This isn't an action you need to take unless you are trying to sell price. That doesn't work as all to many contractors find out the hard way.
- If you simply sharpen your sales skills (and you can do that by reading our book, "Profitable Sales; A Contractors Guide" the need to try and "keep your price down" goes away. The savings on these issues is not enough to financially affect the sales price of your work. If it is, then you need to watch Don's class from last Thursday (Learn How to Save Money on Your Business Insurance) so you can reduce your insurance costs.
- And finally, we come to the most important question of all. What are you being paid for if not to take care of all the details on the job for the customer? Why would you want to send them out to purchase insurance for a job you are going to do? That is your responsibility and rationalizing it by saying you are trying to save them money is nonsense.
You can also learn more about reducing insurance costs at Don's website. Thanks, Don, for taking the time to respond to our questions. |
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| Tuesday, Jul 08, 2008 |
| What's So Special About MyConstructionBiz.com? |
| By Michael Stone |
| Tuesday, Jul 08, 2008 03:57 |
Someone asked me the other day about our new web site, www.MyConstructionBiz.com. Why should they join? There are dozens of other web sites out there, some of them apparently offering heaven and earth, for free. Why should they pay for our site? Well, with all due modesty, I can tell you that out of the box we will be one of the best sites available to the construction industry, a place where you can gain additional knowledge and skill in running your business without flashy banner ads or other commercials. Dan Baumann has established himself as a top online educator of design software for many years, but he knows more than just the design side. He has run a remodeling company, made payroll, dealt with the issues that all construction-related business owners have to face. Dan's passion is technology, and his ability to facilitate online classes and create videos, along with his knowledge and experience in the construction industry, will allow us to bring information to you in a variety of formats to meet your needs. I've taught a variety of classes in 44 different states and several Canadian provinces over the last 28 years on topics including sales, estimating, marketing and advertising, markup, margins and profits, etc. I wrote the popular construction business management book, "Markup and Profit; A Contractor's Guide", considered by many to be their business bible. Last year, my book "Profitable Sales, A Contractor's Guide" was published, focused on helping you make the sale. I have coached, one-on-one, hundreds of fellow contractors, with over 90% of those businesses becoming more profitable, more stable, and resolving ongoing issues satisfactorily. Having nearly 50 years in the construction industry, I can say I have been there and done it, gang. Devon Stone has an MBA in business management and, as an apprentice electrician, spent many of her teen years helping her father wire new homes. After spending many years in management with a major truck manufacturer, she has also freelanced as a computer programmer and has been closely involved in the construction industry (thanks to her association with me) for the last several years. Here are some other items to consider: Charter members (those who sign up early) will get some great bonuses, including a free copy of the Markup Calculator software, a free copy of Don Bury's book "The Buyers Guide to Business Insurance" (more about Don Bury later), and a special one-hour live class based on my "red paper" focused on helping businesses deal with creditors. This was previously only available to coaching clients. On our site, you will find a paper that I wrote, after taking notes for almost 30 years, titled "What Your Spouse Should Know About Your Business". This paper lays the cards on the table regarding the information your spouse needs to step into your business if you are either incapacitated or gone to meet your Maker. As the old saying goes, "There are only two things for sure, Death and Taxes." We can't stop either one, but it helps to be prepared. We will be adding more papers, previously only available to coaching clients, over the next few months. At least twice a month, we will bring a free online seminar on a subject pertinent to you. We provide an outline and all you have to do is make notes. If you can't attend the free seminar, members will be able to watch them afterwards on their own schedule. You are getting the best information available to run a construction company and you don't even have to leave your desk to get it. How much better does it get? Our first class is on July 10, led by Don Bury. Don is a recognized expert on what contractors need to know to purchase insurance for their company. Don's experience in the insurance industry has shown him how to help contractors reduce their insurance premiums, and every dollar saved on insurance is a dollar gained in profit. On our site, you will have the ability to listen to and ask questions of some of the best contractors in the nation. Two of them have already agreed to spend time with us on August 5 to talk about what they do every day to be sure the phone keeps ringing. Can you afford not to hear what they have to say? This will be the first of our indepth training classes beginning this fall at a discount for members. It only gets better from there. The first class alone is worth far more than the initial investment required to become a member. You can rationalize all you want, or you can jump on board with us and start turning your business into a profitable adventure. Michael Stone |
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| Wednesday, Jul 02, 2008 |
| Site Update - We're Close to Going Live! |
| By Dan Baumann |
| Wednesday, Jul 02, 2008 11:31 |
This is so exciting. We've been working hard on this site and are close to making it live. Watch for announcements starting after Memorial Day. Michael and I have a lot of information to share with you. After so many years of putting the information out to you in little bits, it will be cool to have a platform where we can deliver huge amounts of information that you can access at your own pace. Our Mission
Hard working contractors deserve a balanced lifestyle. We want to see you make more money and have more free time. Our Mission is to build an on-line community of like-minded professionals willing to help each other. You're not alone. There are many who are willing to mentor and offer advice and ideas What's the real problem?
Contracting is an easy business to get into but it's a tough business to be successful at. They didn't teach you how to run a contracting company in school. You have to figure much of it out as you go. But you don't need to do it alone. The Answer!
Education and Networking and a willingness to put the knowledge gained to work in your business. MyConstructionBiz.com Delivers
Teaching you time tested and proven techniques you can use in your business right now. If you have questions, problems, successes, money saving ideas or you just want to hang out with a bunch of other Contractors that want to make more money and have more free time, then you're at the right place. Here's some more information about what in store for you here. Profits are a good thing. You deserve your fair share. To Your Success Dan Baumann |
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| Wednesday, Jun 25, 2008 |
| New Website Coming! Read All About It. |
| By Dan Baumann |
| Wednesday, Jun 25, 2008 11:32 |
Welcome to our new website! As you can see, we're hard at work adding articles, webinars, and resources for you. In the coming weeks we'll be adding many new items and tweaking the site. Our official launch of the website and the opportunity for you to join and gain access to the content will be coming shortly. Keep checking here for the latest news. We'll be sure to keep you updated on the launch and the specials we're planing to offer to the first members. We don't have all of the details yet. If you want to be informed of any news about the site, please enter you're name and email in the box at the upper right of the screen. Remember, This site if for you. We need your thoughts. If there's a topic or a particular issue you'd like us to address, please - click this link now and email us what you want. We look forward to hearing from you. Thanks for stopping by & we'll keep you posted on our progress Dan and Michael |
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