Presentation on theme: "TEN COMMON SENSE STRADEGIES TO GROW AND IMPROVE YOUR BUSINESS Presented By Lane Post Welcome to the 2015 President & Founder Pacific Drain & Plumbing,"— Presentation transcript:
TEN COMMON SENSE STRADEGIES TO GROW AND IMPROVE YOUR BUSINESS Presented By Lane Post Welcome to the 2015 President & Founder Pacific Drain & Plumbing, Arrow Pipeline Repair, Inc Park Center Drive, Vista, CA 92081
1330 Park Center Drive Vista, CA Your Full Service Plumbing & Drain / Sewer Specialists Your Sewer and Underground Utility Specialists
Common sense is often the least common of all the senses
Place your bets…..
Notice how house ALWAYS holds a small advantage over the bettor
25% failure in first year, 55% failure by 5 th year And 71% failure by year 10!!! Joint research by Entrepreneur Weekly, Bradley University, University of Tennessee, and the Small Business Development Center Research date February 5, 2015
Source, Joint study done by: Entrepreneur Weekly, Small Business Development Center, Bradley University, & University of Tennessee Research Research Date: February 5th, 2015 Survey taken 2014…….14,405,210 businesses polled
Small Business Failure Rate Plumbing, Heating, AC Failure Rate
Number 1 cause of business failure is incompetence…..46% a. Lack of planning b. No knowledge of pricing or emotional pricing c. Expansion too rapid d. Wasted advertising budget Number 2 cause of business failure is unbalanced or lack of managerial experience…..30% Lack of experience……….only…………11%!!!!
It’s a marathon not a sprint…..stay focused on the big picture!
3 EASY STEPS TO OVER NIGHT SUCCESS! Room :30 am SOLD OUT!!!
Honesty, character, passion….What would mom say?
Seriously, library books? Why not……? Think outside the box.
Business Card Statistics Data Number of business cards printed daily 27,397,260 Number of cards printed in the US annually 10 billion Company sales increase for every 2,000 cards passed out 2.5 % Percent of business cards handed out that will be thrown out in less than a week 88 % Source: CNN, Businesscard ABC, Freelance Folder Fact: A colored business card is kept 10 times longer than a plain white. If 88% of cards are thrown away……..then 12% are kept.
2. Honest & Upfront Pricing
Be upfront, honest, and helpful….everyone lives within a budget. Nobody likes surprises.
Every happy, satisfied customer is a future advertisement and referral for your business!
Bet you can’t remember his name…… 3. Personality
I do remember that girl for some reason…
Personality trumps price!! Personality = honesty, competence, and trust.
People buy from people!!
Boston Dave the most popular plumber in San Diego!
4. Communication & Accessibility
Your customers have the same options…..
Don’t wake your competition up, offer to do their job for them.
When was the last time you WROTE or RECEIVED a personal note?
Thanks for the call, we’ll be at your house tomorrow at noon.
If you won’t respond one of your competitors will!
Treat your customers right, be flexible, go the extra mile, build your reputation on value & customer service.
Your Networth = your Network 5. Networking
Expand your network, increase your business. Let others promote your business for you!
Plumbing Heating Cooling Contractors Encinitas Business Exchange North Coast Business Group North County Referrals North American Real Property Managers California Real Estate Inspectors Association North County Business Network BNI I Refer Carlsbad North San Diego County Association of Realtors San Diego County Apartment Association Contacts and Coffee The Pizza Group The Fun Networking Luncheon 13 X 40 = X 10 = /2000 = 2.6 X 2.5% = 6 ½ %!! Networking pays off!!
Get involved in your community, trade groups, service clubs, hobby clubs, church.
Any group, any category, anyplace, expand your circle.
Who can fix this? 6. Internet Marketing
You can’t fix this & you don’t know ANYONE who can. How do you locate someone experienced & capable to make repair?
Number 1 answer…….Ask a friend! NETWORKING!!! Number 2………Google Number 3………Yelp Number 4………Angie’s List Number 5………?????? NETWORKING!!!
What about Yellow Pages?
R.I.P. RIP Yellow Pages and good riddance! The Yellow Pages are DEAD!
Approximate one time cost of $2500-$3000.
Hosting cost is approximately $10 per month.
2-3 jobs per day…..Approximately 70% of NEW customers come from Yelp.
Encourage Yelp reviews, start an “Atta Boy” rewards program.
Angie’s List is subscription based but well regarded.
Use social media to promote your company.
Niche marketing: Specializing in a service or product ignored or under represented by the market. It’s a focused, targetable portion within your primary market. 1.Specialized equipment. 2.Special license or certification. 3.Restrictive insurance requirements. 4.Undesirable or high risk work. 5.Ignored by competitors. Look around, be curious, stay away from the crowd, think outside the box. 7. Niche Marketing
Specialized equipment: Small diameter pipe cutter. Cost less than $25, Charge per cut $
Specialized equipment: Small diameter lateral cutter for branch re-instatement. Cost less than $15, Charge per cut $
Power Cutter 200 Robotic cutter for large diameter pipe (manhole access) And SLC installation…….Municipal application. Municipal contracts exceed $5,000,000.00
Backflow installation and repair 1.Backflow certification. 2.Commercial fire line install & emergency repair. “To boldly go where no man has gone before.”
Trade Group: San Diego Golf Course Superintendents Association THINK OUTSIDE THE BOX!!
INACTIVE ACTIVE EXPIRED INACTIVE EXPIRED
8. KNOW YOUR NUMBERS!! There’s only 2 ways to increase your net bottom line profit: Increase revenues or decrease expenses. KNOW YOUR NUMBERS!!
InSinkErator disposal costs $100 from supply house Your shop needs a 20% profit margin on all materials. 20% of $100 = $20 You sell disposal for $120 = 20% gross profit margin WRONG!! Your markup was 20%......Your gross profit margin was only 16.7%!!!
8 of 10 contractors make this mistake and it costs you $$$
Fantastic, easy to understand videos Type in Markup vs Gross Profit Margin
Q. 400 jobs every day in Indianapolis Your company does 30 jobs each day… Where are the other 370 jobs? A. Your competitors have them!!
Total number of jobs completed in 1 given day.
We can only do so much, EVERYONE draws a line, EVERYONE hits the wall!
Reasons your competitors need help 1.They won’t take after hrs, weekend, holiday calls. 2.They don’t have the capacity to tackle the job. 3.They don’t have the technology or equipment. 4.They don’t have the license or insurance to qualify. 5.They don’t do that type of work. 6.They don’t work in that geographic area. 7.They’re on vacation, ballgame, family emergency, 8.Weak work ethic. 7% to 8% of all revenues come directly from our competitors. Approximately $600, per year!
Start a CODE BLUE program Protect your referral ! 1.No selling 2.No business card or marketing material. 3.Ask for permission not forgiveness. 4.Communicate with your referral source.
Handymen hit the wall all the time, everybody needs help. Who is on the periphery of your industry?
Join your local PHCC or trade group, meet your competitors they NEED your help.
Hiring It’s always cheaper & more efficient to hire the experience you need than to train. When you need experienced help RIGHT NOW it will come from within the industry (your competitors). Employees leave for many reasons, salary is 3 rd, 4 th, or 5 th.
Acquisition Offer your competitor a job Buy a closed/shut down business Request business phone numbers
Best Seller list 1996 by Thomas Stanley 10. Perseverance Stay the course Stay focused Keep your eye on the bigger picture!
11. Always deliver more than you promise 1.Clean worksite, tools, truck. Show you care! 2.Reward your referral base. 3.Give back to your customers & community. 4.Share with your employees. 5.Go the extra mile.