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The Economy

5K views 23 replies 7 participants last post by  Dave Mac 
#1 ·
There has been a lot of comment about the economy and its impact on us as contractors. Houston's economy has continued to grow, but we have seen some signs of general uncertainty.

Through mid-June our leads were up over last year. Through July our sales were up over last year. However, the slow down in leads caught up with us in August. We've had one of our worst sales months in years.

I say the above to say this: when our leads started slowing down we increased our marketing. And now our leads are picking up again.

My point is, marketing drives leads, leads drive sales, and sales drive profits (or owner's salary, depending on your perspective). I thought that our slow down was an aberration and would not last long, but I did not want to count on that. So we kicked up our marketing to another level.

None of us have control over the economy. We do have control over how we market our business, where we do so, and how often. We need to constantly monitor our results and make adjustments. Sometimes that means spending more money, sometimes it means shifting money to other marketing.

There are a lot of ways to increase marketing in a tight economy. And a lot of them do not require a lot of money. But they do require perseverance and consistency. It may be a cliche, but when the going gets tough, the tough get going. There are lots of ways to get going-- customer retention, proximity marketing, signage, and improving one's sales skills.

We all have a choice to be reactive or pro-active. The choices we make ultimately determine our results.

Brian Phillips
 
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#2 ·
Brian you makes some good points as usuall. July was one of the worst months I have ever had for leads. Aug has really been great thanks to Referalls and repeat clients, but man, all I have been doing is reading and studing marketing, I have always been under the impression, do good work after about five years referalls will take care of you NOT, we currently spend about 5% of our gross on marketing, Im ready to double that, just trying to figure out exactly whear. So far

two trucks are going to get lettered, (finally)
going to get a web sight (finally)
Proximity mailings, this one is really going to be a regular consitent thing.
Few adds in some papers and chuch bullentin.
Looking into newspaper inserts??????
Folow up calls on all estimates, cost nothing and hopefully will help in closing rate.

Currently all I do
10,000 flyers a month

I wake up everymornig and ask myself one question, what can I do today to help grow my buisness for tomorow. Its really getting fun again.

I would love to here some thoughts on a marketing plan and ideas of whear and how to spend the money, all criticism is welcome, looking for all the help I can get.


thanks
dave mac
 
#3 ·
I wake up everymornig and ask myself one question, what can I do today to help grow my buisness for tomorow. Its really getting fun again.
That's a key. It's easy to get complacent when thing are going well. I fell into that to a certain extent. When leads are flowing, we just go with the flow.

Business is dynamic, it is always changing. Sometimes we don't notice the changes because they are slow and they don't immediately impact us. I heard lots of stories about the slow down in other areas, but I didn't see it. So I didn't change. Or at least, I didn't change as soon as I should have.

That's what I love about business. No matter how much you know, or think you know, there is always more to learn.

Brian Phillips
 
#4 ·
We already reached our goal for the year, but our leads and total jobs/time booked ahead are way down.

Pesonally have done what Brian just talked about, but on a level we can afford. Advertising in a local magazine, door hangers, joining a BNI group to increase leads, mailing to our customers whether they gave us the job or just received an estimate, even working a local chamber of commerce event, are all things we did this month.

Hopefully it will pay off in the next month. Here's the ad we are running for both Sept/Oct. (attachment)
 

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#12 ·
I agree on the follow call also... how many times I have heard "thanks for the follow up" I think some guys just drop the proposals and if they don't hear from the client thats it no deal and they move on...

If I don't hear from someone in a reasonable time frame I will make a follow up call and see if they have made up there minds, still waiting for other proposals etc...
 
#15 ·
Very true. Gotta stay positive. Got 1 job in a neighborhood in city close by. Customer liked my work, so he wanted estimate. Got the job. Another neighbor down the street came by and wanted quote. Got the job.

Another neighbor came over yesterday and wants quote next week.

Not working for peanuts either. People still do appreciate quality.
 
#20 ·
Biker he has 6 routes with 5000 in each route 30,000 households, he does a differnt route each week, I dont know the listing in the phone book, but around here their are lots of companys doing them, I usually see someone doing it and Ill stop them and get their names and numbers, I have often thought about starting a flyer delivery buisness, if you get 8 per flyer, an get say 9 people to commit that .72 per house, I can do my self easy 175 house's per hour, that $126 gross per hour.

her is his websight CTadvertisingnc.com


Ps
Biker thanks for the heads up on Brians manuel, Im down loading as I type, I have already read the entire marketing section, great stuff, and we get to pick his Brain right here as well, got love the internet!!!
 
#23 ·
Thanks for the info. I downloaded the manual this weekend also. But worked yesterday and today, plus went to a cookout, so I haven't even read it yet. Taking Monday off, maybe I'll read some of it then.
 
#21 · (Edited)
Brian,

Yea I like the idea of the solo flyer, it doesnt get lost in the pile, I have actually contacted another company that only put about two or three flyers in at a time, in the same areas, the cost is a little higher to start with, but as you said roi probally will be higher, thanks for the tip.

yea just ran my sales from flyer delivery from january to july they suck, here they are I spent $6,440, and I sold a total of $43,733 gross sales.
Time to make some change


ps A little side note about flyers, is they can be a little misleading in tracking the numbers, a example of this is we got a lead from a flyer in may, and did a small $1,800 job for this lady. well now in Sept that flyer lead turns in a repeat customer, and now we are getting ready to do a $9,000 job for her, but under my tracking system she becomes a R client, but it was all because of the flyer.


thanks
dave mac
 
#22 ·
ps A little side note about flyers, is they can be a little misleading in tracking the numbers, a example of this is we got a lead from a flyer in may, and did a small $1,800 job for this lady. well now in Sept that flyer lead turns in a repeat customer, and now we are getting ready to do a $9,000 job for her, but under my tracking system she becomes a R client, but it was all because of the flyer.
That's the one tricky thing about tracking leads. I use the same system as you, and it can make analysis misleading as you say. That's one reason I don't go strictly by the numbers. I have several ads that have poor ROI, but there are in my core area and contribute to the overall ad campaign there. The cost is minimal and it keeps out name in front of customers.

Brian Phillips
 
#24 ·
Biker

If your interestead in doing a lot flyers, and you cant find a company that does that type of thing, I would suggest hiring a highschool kid, or a stay at home mom that are looking for a part time gig. If the neighborhoods are close, I cn usually do 200 an hour in the car, so I usually allow for 150 or 175 for someone else to do it. I really feel Im getting lost in the pile with the service Im using.


dave mac
 
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