OK, now this is a wild thought but thinking outside of the box…
We all talk about paying Service Magic or other sources for referrals and many end up as dead ends but they still require payment.
Has anyone ever worked up a way to offer to pay the potential client to give them an estimate? Sounds far fetched but….
Is there a way you can market to Mr and Mrs Homeowner that you will give them a $50 gift card to somewhere or even $50 in cash to come and bid on their job?
I realize there is alot to work out on this process but I am open to think about it. With what I am spending on other ad sources with very little return, I might be more open to at least paying the person I want to work for as opposed to a third party who doesn’t care whether I get the job or not as long as they get their money.
Thoughts?
Replies
I see all the time offers from roofers and the like that they'll give you a certificate for a free box of steaks or some such in exchange for letting them do their pitch.
Generally smells a little bit to me (even if the steaks are fresh).
i have also thought along those lines , but what i thought of doing is do the job, then take all the recicable material from the job and present to the client a certificet for the worth of goods and a list of cherities to chose and apply the money to the one of thier choice. i do plumbing so $ may be different then say some other trade.
Excellent way of immediately narrowing down your leads to price shoppers. And that's if they really have a project and budget in mind in the first place.
Well, we have no leads right now so I guess its not that much of a loss.
Could be.Send me a $25 gift certificate and I'll email you the specs for an addition that I never plan to build.If I find two other bidder to do the same I can take the wife out to a nice dinner. Just sounds crazy to me.Maybe a "$100 gift certificate for every signed contract, remember, don't give the coupon until AFTER signing the contract!" That's as far as I'd think of going.
I personally have never done this, but I know vacumn cleaner and encyclopedia salesman that have. I would think you might have to be a strong closer!
I always found it was easier to target aneighborhood with flyers. I wanted to talk to the homeowned, so I made sure I was in an established neightborhood. The problem as I see it, I was selling roofing, siding and replacement windows. The thing is I was a specialized replacement contractor first, then expanded into other areas.
frammer52--- i have some door hangers made up--2 seperate ones--- one targets roofing specifically--and one is focused more on misc. general carpentry on 3 seperate occasions this year----- i went out and simply hung door hangers in my target neighborhood I track everything--- money spent on door hangers, time spent hanging them-- what streets covered etc.---- odd numbered side of the street gets general carpentry hangers-- even numbered side of the street gets the roofing hangers counting ALL costs-- including the time spent hanging the hangers, doing estimates and the actual production work---it generates between $80-100/hour. I get about 3 calls per 200 hangers hung-- the roofing hangers are slightly more profitable--- but I get slightly more calls from the carpentry hangers- and I am trying to develope more of that side of the business I WILL tell you this------- nobody calls the day you hang the hangers--- but over the next few eeks- the calls trickle in.---- i did this a few years ago also--and one guy held the hanger over a YEAR before he called-- I ended up doing 2 seperate jobs for him totalling over 2 weeks work for 2 men most people won't do this, though-- go out and hang the hangers-- it's work-and it's speculative work--- but let me ask you this If someone offered you a job that payed $80/hour for 2000 hours in 2010--simply walking though interesting neighborhoods looking at old houses and hanging door hangers----- would you take it?-- I know I would! If I would do it for 2000 hours a year-- why not 4 hours a week? I am going to do it at least one more time this year-- just to check if my results stay consistent-- if so-- I am almost certainley going to find a college student who wants to make $100 a day one day a week hanging door hangers for me next spring/summer. I am already planning out different street/routes i want covered--and i want to cover the same areas Every 5-6 weeks i also want better door hangers than I got last time------ when I re-ordered they gave me thinner card stock- and they are kind of light and flimsy in comparison so some of my older ones and so bad to hang on slightly breezy days.stephen
Stepnen, back in the day, 80's early 90's I used a lot of doorhangers and made a point of talking to at least 3 neighbors at every job site. Always worked out for me.
Of course my altime best method for leads, believe it or not, was to go to a coffee shop for breakfast and another for lunch. The amount I spent was very minor in comparision to the leads!!! Problem is, I ate too much!
stephen,
Have you ever had any negative reply or response to your door hangers? Just curious as some of the HOAs around here really frown on them.
I like the idea just have always been afraid to do it.
Mike
Mike, go where there aren't HOA's.! See how easy to solve that problem!
pay for referrals that lead to paying work, not for an opportunity to GIVE them an estimate.
contact your previous satisfied customers with the referral deal
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I already do that. But just looking to draw in a new customer base.
Personally, I'd be suspicious of that kind of selling tactic, if I was the client.
Confidence sells, IMHO.
But, I appreciate your otb thinking.
k
We used to have a remodeler here who did something pretty close to what you're describing. It was always something different, free steak knives this week, weekend cruise the next followed by a genuine grandfather clock. They were very hard sell, had a terrible reputation, went through qualifiers like cheap candy and eventually went out of business.
Just as some historical background and the reason I asked the original question.
We tried a similar method a few years back. Sent out $10 Starbucks gift cards to 50 local archys in the hopes of getting our names out there to the guys designing things. Sent a professional marketing card with them and offered to meet them for coffee and we would buy indicating they could keep the card for future use.
Out of 50 we sent out, TWO called us to thank us and ONE actually wanted to meet.
More out of the box thinking buit didn't really work all that well.
Mike-- it's a numbers game.
when i get done with this post-- I am actually going to write an estimate for a prospect that called because of a door hanger I hung about 3 weeks ago. i am still not entirely comfortable with hanging them- i pick and choose WHERe I am gonna hang them-- some neighborhoods are a good fit for me- some aren't. One morning this past summer- my son and I spent 3 hours hanging them.-- I don't want to irritate anybody--so i made sure we didn't short cut across lawns etc.-------after we hung them- my son and I talked--and we figured----- not walking on the lawns-----meant we only hung about 40% of the hangers we COULD have hung in the same time.
It's a numbers game---- By Far-- most people are not at home--and won't see you walking on the lawn.--- so far----- we get 3 calls for estimates out of every 200 or so hangers we hang.-- A couple people may see you short cut the lawn----but what are the odds they are potential customers??? slim--- on the other hand---- short cutting the lawn means we could hang at least TWICE as many hangers in the same time--- so -we pizz off 3 people-- but we hang 800 hangers in the same time!--- that's 12 calls for estimates that will eventually come in----and at a minimum 4 will be sales( actually I have been way over a 50% closing ratio on these---- but so far I don't have enough data to feel totally firm with my numbers long term. I want small lots---- 40 ft. to 80 ft. of frontage is ideal. I want volvo neighborhoods-- not Lexus neighborhoods. I don't want to talk to anybody when I am hanging them--- if somebody is on the front porch- I walk on by--don't even approach the house( because I hate it when people bother ME at home)-- somebody out in the yard-same thing-- i don't want to bother them.
If the yards are too big-- I can't hang enough of them to make it worth my time.- If it's windy- I don't hang them because I don't want my hangers flying all over the neighborhood--- if it's a rental nighborhood-- I don't hang them- not worth the effort. I want neighborhoods where the husband and wife are both working, volvo= disposable income-but not too much, I want houses preWWII, mature landscaping,nice lawns,well maintained-----and if possible Monday morning is THE ideal time to hang them. gotta run,
stephen
Interesting Stephen...I like how much time and thought you have put into it.
Thanks for the input!
Mike
stephen,
I like your targeted aproach. I've thought about going a step further on the exterior stuff and trying to personalize it to the home owner and the house. A lot of times we can see obvious stuff from the street that the home owner doesn't and bringing it to their attention might get some clients. Wording it so you don't come off like a stalker may be tough but something like "I am a local contractor and while passing thru the neighborhood I noticed (fill in the blank) on your home that you might want to take a look at."
Putting that with other marketing material may take more time but it would give them something to think about and more of a reason to call. Haven't tried it yet and with the cold coming it'll have to wait till late winter/spring.
BB
Stephen, it would be interesting to note your ratio if you are cutting across the lawns. If you found out that you got five calls instead of three, for four hours work, I'd cut them everytime!
blue------ that is my rationale as well.
so far I figure shortcutting more than doubles the amount of hangers distributed--and thereby doubles the calls .
Last batch I hung was about 3 weeks ago--- hung 186.-- recieved three calls--- one within a few days--and the other 2plus weeks later---- made a presentation yesterday--- i have no idea if it will be a sale-and have a presentation today at 10:00 AM for a prospect with 2 seperate projects. I am still in the info gathering stage on all of this. for 20 plus years I worked primarily in my own neighborhood within 8-12 blocks of my house------ but a hail storm in 2007--- means most roofs in my typical market are replaced-- so I have to branch out into other neighborhoods. I am selectively targeting 3 seperate neighborhoods---and I am somewhat expanding my range of services offered. this fall and winter I am primarily gathering info and devising routes.-- I expect to put this into action on a bigger scale in the spring. I also have info on a service that for $45 will print and mail a promo to the 50 closest homeowners to any specified house--- so I do a project at 1680 brown street--- and for $45 I get a custom mailer sent out to the 50 closest homeowners.- i will probably do that as well in the spring I am also re-thinking the employee thing-- I don't want to work WITH anybody--- but If I could find a presentable youngperson who cand dependably work independently--- for $8-$10/hour x 20 hours a week or so------ he/she could likely hang so many flyers I couldn't keep up with the sales calls and resulting work. We will see--- I might budget a few thousand dollars to try this in the spring.
stephen
stephen,
Is that mailing service just local or do they do it nationwide? I ask as we are working in a high end negihborhhod now that I would like to send mailers to and generate some exposure.
Mike
Mike- sent you some info- Stephen
Another option is inserts in a local weekly newspaper. Often very cheap to do this.
As I stood before the gates I realized that I never want to be as certain about anything as were the people who built this place. --Rabbi Sheila Peltz, on her visit to Auschwitz
Inserts in a weekly newspaper here--- was prohibitively expensive. Essentially I would have been paying for coverage in particular areas I DID NOT want covered Blue's suggestion for a door hanging service sounds interesting,though.
stephen
It's been some years since I did it, but IIRC it was a nickle a shot at the time. Probably doubled since then. And I'm sure that other papers are much higher. Of course, it all depends on whether there's a paper whose distribution matches your needs. (Some papers can give you a choice of areas covered, BTW.)
As I stood before the gates I realized that I never want to be as certain about anything as were the people who built this place. --Rabbi Sheila Peltz, on her visit to Auschwitz
my latest figures would be between $35-$45 per thousand---- it would cost me several thousand dollars per month to hit the zone I want each week--and I only want to cover a very small portion of that sone----- so I would be paying to cover an area about 5 times the size i want to cover however- for someone like Blue-- it might be ideal.
stephen
I'm sure you could find a door hanging service. They'll charge you per piece and somewhat supervise their hangers. I like the 45$ service. Is that a nationwide service?
I'd hate to see that started in the trade. It's bad enough that we all sometimes spin our wheels doing free estimates.
It really gets my goat that we (contractors) have such a bad reputation for not returning calls. If you look at the other side of the coin I would venture that 95% of clients that I give an estimate to and not end up getting the job never extend the courtest of a phone call to let me know. That's after spending 2-10 hours looking at the job and putting together an estimate etc.
I own a design / build custom homebuilding company.
Our business does not lend itself too well to flyers, but I did have ideas that have worked. Explaining may help or inspire others.
We design / built three very nice homes, completing them at different times during the year. I approached all three homeowners and asked if they would not mind if we hosted an Open House after all was finished and just before they moved in. Along with asking, I offered some credits toward cost, mostly it worked toward upgrades and extras.
The clients were more that willing, and one stayed at the home helping us with the avalanche of visitors. All three Open Houses were successful. We ask visitors to provide contact info, and indicate areas of interest (new home / plan work / finding lot). The card doubles as a drawing entry for a $100.00 gift certificate to a very popular gourmet Mexican restaurant.
It seems a direct mail copy of the card or flyer add-on, with questions about interest could be incorporated, with entry for a similar prize to those who return mail the card.
The card helps me to follow-up using the interest entries. Typically, I follow-up with emails, before the more invasive phone call.
The key is advertising in advance. We ran ads in newspapers in a 45 mile radius, and the last time we bought radio time on a local station. We start advertising 2 weeks before the event. We also must be willing to work on a Saturday and Sunday at the Open House. The Chamber of Commerce also helped us in promotion of the events.
We had the first event catered with gourmet snack food, but opted for self catered in the two events that followed. Turn out was much better that expected. Credit to the clients varied between $1,000.00 and $2,000.00, and we had approximately $2,000.00 in additional expenses per event. So far, the 3 Open Houses have generated $1.7M in projects, with at least 10 inquires from people who plan to build in a year or two.
We have also identified a commercial lot on the main drag through town. Companies like Armstrong, KraftMaid, Dal Tile, Bruce Floors, etc. will provide free displays and deep discounts for dealers with showroom space. I recently paid $1.49 per SF for some 20 x 20 tile from Emser Tile. It has a retail / MSRP of $3.49 per SF, and the best price my client could get was $2.89. A showroom dealer's price from Emser is $1.09. Times and work is slow here, but that does not keep me from having dreams and goals.
Christmas is coming. A couple of years ago I helped a friend in the backyard improvement business with a flyer / mailing that directs folks to a Christmas gift for the whole family. He hooked up with a local lender willing to provide small project financing, and had application packets on hand and electronic copies for emailers when inquiries were made. It proved successful, and he has repeated the venture. See attached.
The Chamber of Commerce ran a no cost ad in one paper, and included our picture with a happy client. We now seem to have some degree of celebrity. I have been approached several times by people I do not know, but who know me from the promotions.
We also run an ad every week in the local paper. It generated an appointment for a new home this week. Did I metnion that the radio ad generated interest from the station in periodic interviews related to homebuilding? The sent an inquiry today.
Stir up the nest of potential clients any way you can, they are out there.
Edited 10/19/2009 5:07 pm ET by txlandlord
tx,
Great input...thank you.
We did something similar at a large house we just finished but had a low turnout. I think the economy has prevented many folks from even "looking".
It sounds as if your advertising budget may be more than mine but the concepts are still good. I like hearing what other guys are doing.
Thanks!
Mike
Good info Txlandlord. Thanks.
I need some beer money. Can you give me an estimate?
Not trying to bust balls here, but.. whats wrong with walking on the lawn? That's how it gets mowed/raked as well as played on. I'm pretty sure the mailman walks on my lawn everyday :)
Now.. parking on the lawn is a different story :)
Some homeowners get resentful if someone walks on the lawn. Its a reality. I don't care if you park on mine....
Piffin
I was thinking something along those lines. Say if I get a job from a referall I will give you X dollars.
Would you share how you did yours.
I don't pay for referrals generally. I have done a gratuity on occasion or otherwise shown my appreciation, but no 'program' in place.
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OK Thanks for the reply
cjeffrey,
I have a standing offer to anyone I know that if they refer a job to me that I actually build,I will give them 1% of the total job value. Not alot of money but can be a decent amount for larger jobs. PLus if its one of the subs I use, they know they wil get the trade work as well.
1% is not a lot of money but it may help someone to refer us.Does it work very well for you, do you get many referrals from it?
Ongoing good relationship with other subs may be good as well.
Its not alot true but when someone is just handing someoe else one of my cards yet could make $750 or 900 from it, they like it.
But honestly I haven't paid out alot as I get referrals but then I might not get the job for some reason or another...cost is usually the reason.