August ♦ 2017
In This Issue...
If Everything Is the Same, Price is the Deciding Factor [Tom Grandy]
Reports that Can Save Your Company [Dave Ramsey]
The First Two Minutes [Tom Grandy]
Planning For Profit: Workshops locations available [Grandy & Associates]
Profit University Audio Series: Defining the Four Marketing Circles and How to Use Them [Nancy O'Hare-Zika]
If Everything is the Same, Price is the Deciding Factor
by Tom Grandy
Kenny Chapman recently presented an outstanding live webinar to our Advantage Members. During his presentation he made the following statement. "If everything is the same, price is the deciding factor. If nothing is the same, price is never the deciding factor".
I am going to give you a moment to read that statement again, then encourage you to think about the ramifications as you ponder how you sell products and services.
What kinds of products are sold on Amazon? Right…commodity items. Why do millions of people buy on Amazon? Answer, since the item they desire to purchase is a commodity item (meaning lots of organizations offer the same exact item) the deciding factor is price......right! Since Amazon has been around for many years it has established the reputation of being the "least expensive" place to buy an item online. If you happen to be a Prime Member (which I highly recommend) most items are free shipping as well. Face it,if you want to physically purchase an item based on price, you go to Walmart. If you want to buy online you go to Amazon. Again, why? "If everything is the same, price is the deciding factor."
Think about what your company offers. If you are a plumber, HVAC, electrical or any other trade’s contractor the basic equipment you sell is pretty much the same as other contractors in your industry or town. If you offer basic equipment based on price, that item just became a commodity, so guess what? The customer’s decision on who to purchase from is now based on price, period!
"If nothing is the same, price is never the deciding factor." Think about it. How do you compare two items that are totally different in color, function, and/or benefits. Bottom line you can't so the buying process has now shifted from being a commodity decision (based on price) to deciding if the offering meets and exceeds your expectations. The offering can become unique (no longer based on price) in lots of different ways. Let me list just a few:
- Description of Installation Process - Keep in mind most customers know little how you will physically replace their equipment. One quote might say "Replace old XYZ with brand new ABC." That is simple and to the point but very commodity (price) based.
What would your reaction be if you read or the sale person explained the process like this:
- Our truck may be parked in your driveway or in front of the house, your preference
- Before entering your home our technicians will place booties on their shoes (so we don't mess up your carpets.)
- "Clean" drop cloths will be placed from the front door to the point of installation
- ABC equipment will be professionally installed by one of our factory trained certified technicians. All technicians are required to have at least X number of technical training hours per year.
- After installation the equipment will be thoroughly tested to ensure its proper installation prior to leaving.
- The homeowner will be totally briefed on how the equipment is operated with written instructions provided if necessary.
- The old equipment will be properly and environmentally disposed of at no cost to you.
- Once installation is completed the entire area will be vacuumed with the objective of leaving the area as clean as it was found if not cleaner.
- All your equipment information (date installed, make, model, serial number, etc.) will be entered into our state of the art computer system.
- When maintenance is performed or future repairs are made, all records will be maintained as part of your complete equipment history.
- ü You will be notified the month BEFORE your warranty expires to allow us time to make any repairs (if needed) while your equipment is still covered.Happy Call - A few days after the installation has been completed you will receive a phone call from our Customer Service Representative to be sure everything is running properly. If you have any questions we encourage you to write them down so they may be answered at the time.
- Our technicians take full responsibility for each installation they perform. Should there be a problem, necessary tweaks or adjustments needed to the equipment, the same technician that installed your equipment will return to your home. We believe in personal accountability!
- One last item. We are fully insured so in the unlikely event of an accident our employees and their work are fully covered.
Ok, which quote was unique and which one seemed professional to you. Same equipment but one is being offered based on price, the other provides extra value for the same equipment......and likely at a higher price with increased profit!
- Price Includes Additional Benefits - Become totally unique by offering additional benefits others do not. What about changing out smoke detector batteries or if you are a plumber, throwing in a set of stainless steel hoses for the washing machine (originals only last 3-5 years). I remember a competitor getting the contract for siding and trimming an entire house because he was going to "recondition" the customers awnings. Translated, he was going to paint them! You get the idea; offer something other contractors (selling the same equipment) do not offer.
- Offering a Variety of Add-On Options - It's amazing how many customers would have purchased one or more add-on items if someone had taken the time to explain their benefits. Better yet, include some of these add-on items in the original "Best" price (we will talk about Good, Better, Best options in a minute)
- Extending Warranty on Labor - Consider extending the warranty on YOUR labor, free of charge. Face it, if there were a problem with the equipment that your technician caused you would go fix it, free of charge, right? So why not extend the labor warranty.
The last point: A commodity sale basically says "This is the price…do you want it or not?" However, if your offering is unique, you need to offer choices. Offer Best, Better and Good in that order. Always start with the gold offering that covers everything. Then take away a few benefits on the Better offering and finally offer the Good option, in case price is a major problem. Most find the average customer chooses the Better option......but not all the time. Providing one option creates the "take it or leave it" environment. Multiple offerings (that are unique) provide choice. Hey, this is America......we want choice!
Do all of your employees fully understand the company policies? If not, give some thought towards purchasing this month's Website Special which is our Company Policy Manual. It contains hiring and firing procedures, drug testing policy, vacation criteria, and much more. It arrives in the form of Microsoft Word on a CD. Cut, paste and/or change at will. Normally this valuable tool is $129.95 but this month it’s only $99.95. Order Today!
Like all our products if you are not 100% happy simply return it for a full refund no questions asked.
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Reports That Can Save Your Company
By Dave Ramsey
Cash flow issues are one of the big reasons small businesses fail. And these types of problems are directly related to an owner not staying on top of the numbers and having poor accounting practices.
The good news is you don’t need a crystal ball to forecast what lies ahead for your company. By learning how to read a few financial reports, you’ll know where your company is headed.
Don’t worry — you don’t have to be a rocket scientist to understand them. Once you learn the basics, you’ll only need a few hours a month to get a handle on things. With that in mind, here are six financial reports you need to check every single month:
P&L (profit and loss statement)
Also called an income statement, the P&L shows revenue minus expenses and either your net profit or loss. I still read my company’s income statement every month because it gives me a quick snapshot of how each area of the business is performing.
This simple document shows what your business is really worth. It lists all your assets and liabilities. In this statement you’ll see what you own, who you owe, and revenue owed to you.
This report shows who owes you money, how much they owe, and the age of their debt. You know how I feel about debt, so I advise not extending credit to anyone. If you feel you absolutely have to, keep it short-term — no more than 30 days.
This is a quick summary of who you owe money to and the amount you have to pay. If you owe something, pay it! It’s never a good idea to hold your money until the last second. My company clears bills every Tuesday, and that allows us to negotiate further discounts and build incredible goodwill with suppliers and vendors.
This is still the best way to verify that your bank account balance is correct and that there are no errors. If you’ve ever kept a checkbook register for your personal account, this one will be a breeze. It’s just a turbo-charged version of the one at home that shows the checks you’ve written, deposits and your balance.
Simply put, this is a record of all your open purchase orders, including quantity. The PO is a simple way to quickly review what has been purchased and the cost of each item.
Set aside a few hours each month to read and address these financial reports. It’ll be one of the best investments you’ll ever make!
* Small business expert Dave Ramsey is CEO of Ramsey Solutions. He has authored numerous best-selling books, including EntreLeadership. The Dave Ramsey Show is heard by 13 million listeners each week on more than 585 radio stations and multiple digital platforms.
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The First Two Minutes
By Tom Grandy
No time is more important than the first two minutes after you (or your employees) ring the customer’s doorbell. Yet in my own home I’m always surprised how few service technicians bother to introduce themselves properly.
It is so sad because these clueless techs are probably hardworking and technically skilled employees. But when you don’t present yourself correctly it gets the job “off on the wrong foot”. Teach your technicians (and yourself!) these simple 5-Step Introduction Sequence.
1. Ring the bell and step back three feet from the door.
2. When the door opens, smile at the customer and look them in the eye.
3. Introduce yourself with your first and last name, company name, and
why you are there.
4. Hand the customer your business card.
5. Introduce your co-workers using their first and last name and explain
what they will be helping with in the client’s home.
Simple, right? And yet few technicians actually follow this sequence. So insist that your employees use this 5-step Introduction Outline with any customer they don’t know personally. If a tech has been working with a client for years then obviously the transaction will be much more informal.
Post this 5-step Sequence in your office and tape it on the dash of all company vehicles. Reinforce it by role-playing in company staff meetings.
This information was provided by Steve Toburen, Director of Training for Jon-Don's
Web Site Special
Do all of your employees fully understand the company policies? If not, give some thought towards purchasing this month's Website Special which is our 96-page Company Policy Manual. It contains hiring and firing procedures, drug testing policy and vacation criteria and much more. It arrives in the form of Microsoft Word on a CD. Cut, paste and/or change at will. Normally this valuable tool is $129.95 but this month it’s only $99.95. Order Today!
Like all our products, if you are not 100% happy simply return it for a full refund, no questions asked.
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Planning for Profit: Workshop locations available on our web site
Planning for Profit seminars are two-day workshops held around the country and are in-depth trainings on how to significantly increase profitability.
You will learn exactly what you have to charge per hour to cover costs while generating the profits you want. The program will also create month-by-month, department-by-department cash flow budgets, set proper residential and commercial maintenance agreement pricing, and let you bid jobs for profit (based on your cost of doing business).
Attendence to these events are limited and space is still available. Learn more and register today!
If a workshop isn't scheduled for your area, we encourage you to talk to your Distributor to see if they will be sponsoring a workshop in your city!
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Defining the Four Marketing Circles and How to Use Them
By Nancy O'Hare-Zika
Short Presentation Description:
Marketing is anything that contains your logo and/or carries your name. This very practical presentation will provide the “how to” in each of the four basic marketing circles. There will be a description of what “Brand” means and define and create brand equity for your business.
Listen to a sample of this months' program! The Profit University Audio Series features a new trade focused audio presentation every month. These programs are designed to provide the trades contractor relevant information that can help their business immediately. Get more information on this program or sign up for a monthly subscription today.
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