Archives for March 2019

By Tom Grandy

Some of you may remember an article I wrote a few months ago about a company that paid far above average wages but ended up with techs that were very efficient, seldom missed work, and were appreciated by the customer. I want to share another firsthand account that confirms all of these things.

Back in the late 1990’s we had our basement remodeled. The construction company we hired had all the trades under one roof. The workers were unusually skilled and very easy to work with. Several years later a tornado removed part of our roof. The next day that same company called us to see if we needed help. Needless to say the answer was yes. They ended up remodeling the upstairs and replacing the roof. Again, it was a great team of men several of whom had worked on our home before.

This past summer there was a massive hail storm in our town. We were out of town at the time but when we got back we noticed many of our neighbors were having their roofs replaced. Ours “seemed” ok but we called our construction company to request their roofing specialist inspect for damage. Their roofing specialist, one we had worked with before, inspected the roof and confirmed we not only needed a new roof but guttering, siding, and window trim as well. The insurance company inspected our home with our roofing specialist right by his side. The insurance company checked off on the work and our construction company got the job.

The work involved several different trades each of which did an outstanding job. I spoke to several of the workers and found out the following:

• Years with Company – Nearly everyone had been with the company for many years, most for 15-20 years or more.

• Pay and Benefits – The company is non-union but pays wages and benefits equal to or above union wages … without the employees having a pay union dues.

• Enjoy Working for the Company – All the guys loved working for the company. They felt like family and participated in many company paid outings and gatherings.

The point is pretty obvious. Paying above average wages and benefits while providing a company “family” atmosphere not only attracts the best techs in the area but tends to retain them as well. Having a stable, highly qualified, workforce tends to cause jobs to be done on time and within budget. It encourages customers like us to call the company any time work needs to be done. Remember, the techs on the job “are” the company from the homeowner’s viewpoint. It only makes sense to invest in employees that will make the customer call you over and over again. Paying top dollar for quality workers doesn’t cost you money, it makes you money.

One last comment. This company is NOT the least expensive in the area. We did not select them based on price. We selected them based on the quality of work they provided and friendliness of the workforce, office, and field employees.

by Tom Grandy

The Sight and Sound Theater in Lancaster, PA presents 11 two-hour live shows each week depicting a different Biblical Story each year. Shows are presented March through December. The theater has 2,069 seats and all shows are sold out months in advance. The average seat costs $75.00. Now do a little math. 11 shows a week times 43 weeks times 2,069 seats times $75/ seat. If my math is correct those numbers equate to annual gross sales in excess of $73,000,000. In addition to the actual play they also have a few “add on” sales as well. The theater offers behind the scenes tours once a day. They conduct five daily tours, all at the same time, with about 30 people on each tour. I won’t bore you with the math but trust me, those behind the scenes tours generate an additional $2,000,000 plus in gross annual sales not to mention the gift shop income! With that kind of continuous success there just might be a few key business principles the average business owner could learn from them.

I have had the pleasure of attending two presentations over the past few years. The last program I attended was Noah. Since this was my second show I signed up for the behind the scenes tour fully prepared with the Notes section ready on my iPhone and a long list of questions to ask. Before the tour began I received permission to take notes as well as a few photos. My objective was very specific. I wanted to glean as many business tips as possible to pass onto our readers.

If I were to share all the notes I took this would be a book rather than a series of articles. The following format will be used. I will share how the Sight and Sound organization handles different aspects of their business and then I will make a few comments and/or observations. Hopefully this will serve to move your company forward in some practical and profitable ways.

Mission Statement
The company didn’t just decide to present Biblical Stories in order to generate as much profit as possible. They had a very specific reason for creating the company which is summed up in their Mission Statement. The mission of the Sight and Sound Theater is:
“Our purpose is to present the Gospel of Jesus Christ and sow the Word of God into the lives of our customers, guests, and fellow workers by visualizing and dramatizing the scriptures through inspirational productions, encouraging others, and seeking always to be dedicated and wise stewards of our God-given talents and resources.”

Now a mission statement isn’t of much value if it’s not conveyed properly to all the employees until it becomes part of the underlying culture. That culture, conveyed through the mission statement, must be clearly presented to the customer both in word and deed. The Sight and Sound organization has done an amazing job of accomplishing this in a variety of ways.

Initially, it is clearly conveyed to potential employees through the hiring and training programs. Each potential employee clearly knows before they even apply for a job what the mission of the organization is. Once the mission is clearly understood by the employee it is purposely conveyed to their potential and actual customers. Potential customers will see the mission statement on the website and/or through the company’s marketing efforts. When potential customers become real customers by attending a show the mission is then resold, over and over again. All customers are able to view the Mission Statement as they enter the building as it is physically posted in various places for all to see. Each behind the scenes tour is led by the theater actors who provide a detailed explanation of the mission and vision of the Sight and Sound organization before the tour begins. Each person on the tour is issued a badge on a lanyard. Guess what? The Mission Statement is actually printed on the lanyard! Few customers will leave the grounds without fully understanding why the Sight and Sound Theater is in business.

Ok, how about your business? Do you have a mission statement? Do you know why you are in business? If the answer to the above two questions is yes, that’s wonderful. Now that you know why you are in business the question shifts to your employees. I don’t just mean your key employees; I mean all of your employees. Do they know what your mission is? If they do, how is that mission statement conveyed to your customers? If you and all your employees can’t easily answer the above questions then it may be time to take a couple steps back to clarify why you are in business. This could be a wonderful catalyst that initiates a discussion towards clarifying the vision and direction of your company for years to come.

The next post will continue by taking a look at the Sight and Sounds hiring and training practices. The process is truly amazing with lots of food for thought in terms of how their principles may pertain to your business.

We have work crews working on our house for the past two weeks. Most of the work was outside but we also had some inside work done, too. This was a company we had used multiple times over the years. They have experienced people that do outstanding work. This past week we had a two-man crew working inside the house. The company is located about 35 miles away so it takes about 45 minutes to travel to our home. Most mornings they showed up about 7:30 AM. We knew the crew from past work and liked them a lot both personally and professionally. The first morning, however, right after they arrived one of the crew members asked if he could use our bathroom. What do you say? Sure, no problem. However, the “daily routine” then became arrive at our house at 7:30 AM, go directly to the bathroom (without asking) and stay from 2-10 minutes! My wife was a bit upset but said nothing…..so proud of her. The final straw was when a new crew member arrived and went straight to the bathroom without introducing himself or even asking if he could use the bathroom. THAT upset my wife, but again she said nothing.

Now I realize it’s a 45 minute drive from their location and they probably had breakfast before leaving. However, there is a gas station not 200 yards from our home right around the corner. They passed it every day! If the standard procedure is to use the bathroom when they arrive in our town, would you not think they could have stopped 200 yards before entering our home?

I realize in the scheme of world events this is a very small thing. However, when you are in the trades industry “any” unnecessary word or action that could potentially upset a customer needs to be avoided. Sure, there are times when anyone needs to use the bathroom unexpectedly. In that case, ask the homeowner (politely) if you may use the bathroom and by all means never use it again without asking.

Little irritations can add up to lost customers. The rule is simple, think before you act. It just might save a customer!

by Dave Ramsey

As a small-business owner, setting goals is a vital part of your job description. Good leaders understand the importance of having a vision that will keep their companies moving forward. Whether your goals focus on sales, hiring, or increasing income, they won’t work unless they each have five important attributes. Each goal must be yours, in writing, specific and measurable, and they must have a time limit.

Like most entrepreneurs, you probably want to increase sales this year. That’s a great idea but that alone won’t get the job done. If you want to increase sales by 10 percent each quarter this year, that’s a goal that can work. You can break that goal down into small portions and time frames — all the way down to step-by-step daily activities necessary to accomplish the goal.

Cast a vision
Establishing goals for your business is vital, but it won’t get you anywhere unless you share them with your team. Not only does this improve unity and communication, the sharing process allows the members of your organization to create individual goals for themselves.
Remember, there’s a good chance many of your team members have never formally set professional or personal goals for themselves. This process can motivate them to succeed for the team and themselves.

Hit or miss?
When it comes down to it, all goals end up as one or the other. But if you increase your sales by eight percent, rather than the targeted 10 percent, does that make you a failure? Absolutely not! Even if you missed by two percentage points, the important thing is you had a vision that moved your business forward.

Goals are there to move you forward and push you and your team to achieve things you might not have thought possible. Even if you technically don’t achieve the goal, the process of moving forward was a success.

So make your goals, make sure they all have the five attributes we talked about earlier, and share them with your team. Encourage them to set their own goals too. By doing these things you will begin the process of creating powerful momentum that will propel your business into the future!

When a service technician is sent to someone’s home they normally have some idea of what the problem is. Armed with that knowledge most techs say hello to the customer and simply ask where the piece of equipment is that they were called about. There is nothing inherently wrong with that approach, however the overall objective of the call is to educate and inform the customer about what their real needs may be.

Prior to charging into the repair process the tech might want to ask a simple question of the customer. “Mr. or Mrs. Jones, I am aware that you called about your XYZ. However, do you have any other areas of concern I might shed some light on while I am here?” That can open up a very meaningful conversation. If you are an HVAC tech simply knowing one area of the house is hotter or cooler than the rest can open up all kinds of meaningful and profitable solutions. If you are a plumbing tech, knowing the customer runs out of hot water frequently can open up an opportunity to solve the customer’s problem while increasing the gross dollars generated by the call.

When a tech exceeds the customers’ expectations they often become Customer Cheerleaders for your organization not to mention the loyalty factor. Taking a couple extra minutes to ask about specific concerns the customer might have will create happy customers while generating more sales for the company with additional commissions for the tech. Asking just a couple quick questions can turn an ordinary service call into a win-win for all involved.

by Tom Grandy

Ok, the title is a bit misleading. The sales process is important and anyone in sales needs to know at least the basics of the sales process. Agreed, however, the closing rate is also heavily dependent on follow up, or the lack of it.

I was the general manager of a trades company for many years. Sales people would come by the office on a somewhat regular basis. Some were scheduled while others simply “dropped by”. Each would make their sales presentation, usually taking a significant amount of my time. At the conclusion of their presentation they would leave, often without asking for the sale. More than a few times I was actually interested in what they had to offer but a seemingly strange thing consistently happened, they never called back! I guess the assumption, from the sales person’s perspective, was that if I was really interested I would call them. Wrong! Remember I was the general manager, like many reading this article. My days were structured much like yours. I was putting out fires all day long. Sure, I should have contacted the sales person if I was really interested but I was busy, really busy. After a few days, or a week, I would simply forget about the product or service. The potential sale, from an interested customer, was lost. Why, lack of follow up.

Let me define follow up from my perspective. Follow up is the consistent, planned contact with a potential customer that is only concluded when the customer responds in one of two ways. The first acceptable conclusion comes when the customer accepts the offer and the work is scheduled. The second is when the customer “tells” the sales person they either have selected someone else or they have decided not to have the work done. It is not concluded when the sales person “assumes” the customer is not interested and stops making contact.

When an individual, distributor, manufacturer, or association has expressed an interest in using our services we have an unwritten but fully understood rule. We continue to make contact until they either schedule a program or onsite overview, or they decide not to use us. No, we DO NOT pester the potential customer. At the conclusion on each contact we simply ask a straight forward question. “Joe, or Sally, when would be a good time to touch base with you without bothering you?” That simple question reveals a lot about their interest level…..and their answer often surprises me.

Not Interested – If the company or organization is not really interested they will, in a nice way, suggest that they get in touch with me if they are interested. That soft no is highly acceptable. If the interest is not there I don’t want to waste their time or mine.

Setting the Next Follow Up Call – If they are interested they will simply respond by saying “Why don’t you call me next Tuesday, in a couple of weeks, or months from now.” At the conclusion of the call I make notes in our customer database about our conversation and then “schedule” the follow up call. The notes are recorded because I talk to dozens of people each week. The notes serve as a reminder of our last conversation which I can review prior to my contacting them.

The Surprise Response! – We all know “assuming” can get us in trouble but most of us do it anyway. As a trained salesperson it’s easy to become confident about where the potential client is within the sales process. When I ask the question about when a good time would be to call back I have often assumed the customer would say a few weeks or perhaps I should touch base in a month or two. Guess what? Sometimes I am wrong! Instead of putting me off for a couple more weeks they sometimes respond with. “We have actually been discussing this or that. Why don’t you give me a call next Tuesday.” I then assure them I will call back as scheduled. When I hang up the phone I take a deep breath and break into my happy dance with the knowledge that the sale is about to be closed.

Like your company, Grandy & Associates is seldom the customer’s number one priority. It’s not that the customer isn’t interested; it’s that they are busy with 28 other things that are more important in their world……but have nothing to do with us. I can honestly tell you that well over 90% of the work we schedule comes because we followed up as opposed to the customer taking time out of their busy schedule to call us.

Follow up calls also say something else to the customer. First of all, the follow up calls tell the customer you are interested. If the customer has received three bids, the company that calls back is indirectly telling them they want to do the work. On the other side of the coin, if you don’t call back the customer assumes you are either not interested and/or are too busy to do their work.

How do you feel when you get a follow up call from a contractor? You probably feel “special” since the vast majority of the trades industry does NOT follow up. When the sales person calls back as scheduled customers are often amazed! That one bit of integrity can often close a sale.

As long as the customer allows you to continue to make follow up calls within the time periods they specify it means they are still interested in having you do the work. Remember, the squeaky wheel gets the grease so be sure you are a polite but squeaky, wheel.

Let me close with a couple important comments.

Do Not Leave A Voice Message – If the customer is not there, or is unavailable, DO NOT leave a voice message. Messages are much too easy to ignore.

Do Not Leave Your Name and Phone Number – If you are in sales and making follow up calls, chances are you are talking to dozens of people a day. If you leave your name and number and the customer actually does call back (which is seldom), it is often difficult to remember who that customer is and what their specific needs are. Not recalling details right off the bat can make the sales person sound uninterested. The customer is thinking “Gee, he asked me to call him back and he can’t even remember who I am!” It’s best to review their file before you talk with them so all the details are fresh in your mind. If the person on the other end asks for your name and number simply say “I am going to be in and out of the office the rest of the day. When would a good time for me to call back?”

By the way, follow up is not limited to sales. The same principle applies to collections. If the customer has not paid their bill there is a reason for it. Normally the foundational problem is that the customer has more bills than money. Who gets paid first? Right, it’s the company that routinely follows up!