November 5, 2007
How To Get Your Construction Business Moving In a Slow Economy
If your construction business is slow or struggling right now then you will want to sit down and read this! I am going to tell you how to get your phone to start ringing and how you can fill up your scheduling white board.
What is Marketing?
- Product - What you have to sell
- Price - What you charge for your work
- Place - Where and with whom you do business
- Promotion or Advertising - How you convey your message to the buying public.
A book could be written on all the variables for price and place, but for the sake of getting your phone to ring, let's focus on the last one, promotion and advertising.
The definition of advertising is "a paid form of non-personal message communicated through the various media to your buying public. It is a marketing tool and is designed to influence the purchasing behavior and/or thought patterns of the reader."
Who's purchasing behavior and/or thought patterns do you want to influence?
For most construction-related business, it would probably be a waste of time and money to influence the purchasing behavior of homeowners living in rundown neighborhoods with falling property values. In order for your advertising to be effective, you need to determine who is your target market.
But …before you do that the first thing you need to do is pinpoint exactly what you do best. Figure out exactly the type of work you do that brings you the highest profit, and stay focused on that work. In my research, I have found that most companies do one to two things very well and up to three things profitably. After that, the profitability of the construction company declines in direct proportion to the number of different types of services that you attempt. You need to pick the top 2-3 specialties in your construction business that bring you the most money and stay with them.
After you pinpoint what you do well, the next thing you need to do is to determine who needs to have that type of work done. Take your time to determine who is your “Perfect Customer”. Do they make a certain income level? Does their home have a specific value? What neighborhoods do they live in? Did they just purchase the home or have they been at that address for a long time? Is their home fairly new or is it over 40 years old? Time spent establishing your ideal customer will pay you back big dividends. Put the demographics together for your “Perfect Customer” and will now become your target market.
Does Your Company Name Create an Image for Your Prospects?
Once you have established your target market, now you will need to make sure your company image matches. When a customer reads your company name, it should tell them exactly the kind of work you do. Dave’s Construction doesn’t give the customer any information. But if you change the name to something along the lines of Dave’s Upper Class Kitchens and Baths you have a name that clearly describes what it is you do and it leaves an impression.
The next thing you need to do is to create a business plan. A business plan is your construction businesses blueprint for success. You can't build a job without prints – why would you run your busienss without a plan. Once your business plan is written now all you have to do is follow your plan. Your business plan should contain a few different contingencies which take into account slow seasons, busy seasons and the slow housing market situation and a variety of other "what if" scenarios. Do a good job on your business plan and map out the future for you and your company.
Now It’s Time To Begin Advertising
Now it’s time to start on your advertising so you can let your prospects know you are in business and ready to help them. Remember that your advertising campaign must focus on your customer's three basic fears. Don't talk about yourself, your great quality, your customers, the jobs you have done. Prospects are focused on “What's In It For Me?”.
Your prospects want to know that you’ll:
- Perform the work they want done
- Show up on time and finish the job on schedule
- Do the job at a fair price
Honestly, that’s all they care about. They don't give a rip about you or your company initially. Their world is all about them and their families. Think about it….you are the same way when you make a major purchase - it's all about your needs and desires. If you don't focus on the wants and needs of your customer and answer those three fears, they simply won't do business with you.
Don't try to write your own advertising copy unless you have been well trained in all facets of the advertising game, stick to what you do best and hire the pros to help you write your ads. You’re not going to save any money by writing ad copy that doesn't get your phone to ring, you waste it.
Get rid of the word FREE on your advertising unless you are offering a free report or some information. It only attracts people who are looking for something for nothing. Those are leads you don't need.
When the economy tightens up as it does about every six to eight years, many construction businesses respond by cutting their advertising. Stopping advertising to save money is just like stopping your watch to save time. It doesn't work!
When the economy tightens up, you must increase your advertising. You need to touch more prospects because fewer are buying. You also need to advertise year round if you want maintain a steady stream of business year round.
The lack of leads many construction businesses are experiencing right now is due to not effectively marketing and advertising their businesses properly. Remember that referrals should make up no more than 20 - 25 percent of all your business. If your referrals are over 25 percent of your business, then when the economy goes in to a downturn you will see a fairly drastic decline in sales and calls. You need to advertise and stay with it.
Spread the word
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