Download - Overcoming Common Problems…
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Overcoming Common Problems….
To Increase Sales and Profits
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Scott Siegal BioRoofing contractor for + 25 years. Owned and
operated 4 roofing companies doing all types of roofing work from minor repairs to million dollar projects including historic restoration.
Former President local Roofing Contractor Association Conducted over 250 roofing contractor seminars sponsored by CertainTeed, GAF, NRCA and numerous distributors and local trade associations.
Currently President of Maggio Roofing and Certified Contractors Network with members in the US & Canada.
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Most Common ProblemsThe “Fly by Night” Low Price Competition
• Most Common Complaint• Professional roofer competing
against a non-professional • Only overhead may be their truck• No insurance • Price is cheaper, but disappears or
fails to perform a professional job
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Juggling Act• Are you wearing too many hats
within your company?– Salesman– Manager– Project scheduler– Customer service– Revenue collector– Purchasing agent
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Peaks & Valleys• Every trade has cycles• Result is too much work,
difficult to get it all done• So little work that can’t
get a job no matter how low the price
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Too Little Profit• Working all year only to find that
there’s not enough left on the bottom line to make it worthwhile
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Frustrated?Is all this pressure with
the roofing business worth it?
Low Priced Competition,Juggling Acts, Peaks and Valleys,and not enough profit createStress and lack of peace of mind
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Average GAF Residential Roofer• Average Gross Profit: 23%
• $178.43 is the average cost of a lead
• Average marketing budget is $48,119.42
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Reasons For Too Little Profit• Income vs Profit
– Don’t confuse money in your pocket equals profit– Income is the money paid for work performed– Profit is the money the business makes– Goals need to be set for both income and profit (or
you will end up working for a paycheck…maybe)
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Contractor Myth # 1• The customers main concern is price
– Consumers only see price as important when value is not shown
– Higher the value, less price is considered
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Myth # 2Jobs are sold, not bought
• Most consumers have to find their own contractor (either through the internet or referral)
• Contractor responds by preparing a bid and sending it to owner
• This process is bidding, not selling
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Selling • Professional contractors
– Develop prospects from a marketing plan– Cover leads professionally– Make a professional presentation to solve
a problem– Provide reasons for selecting him/her over
others– Provide reasons to act now without high
pressure
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Good Selling programs…Help overcome the 4 most common
problems– Overcome low-ball competitor – sales plans
differentiate the professional from the low ball competitor. A sales plan will help to explain the differences between the two, so the owner understands the value and is comfortable paying a higher price
– Overcoming juggling too many balls – The sales ball is the easiest to pass off to another in order to lighten the owner’s load. Hiring salespeople requires development or acquiring an estimating and sales plan, a training program and a plan for lead generation
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• Overcoming peaks and valleys– A direct marketing/sales approach is
required to develop leads when there is no business due to seasonality or other reasons
• Overcoming too little profit – A professional sales presentation can
justify a higher price
Good Selling programs…
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The “Selling Puzzle”
Presentation
The Power Buying Motive
Proposal
Basic Buying Motives
Leads
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Marketing & Lead Management
Inbound Leads vs.
Outbound LeadsLeads
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Are You Raising “Lead Babies”
• Do your salespeople generate their own leads?
• Do they wait for you to hand them leads BEFORE they do anything?
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I’m A Salesperson…It’s Not My Job To
Generate Leads.
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It’s a numbers Game• Salespeople should be cold calling
around existing leads• Run more appointments!• Leads are the life blood of a roofing
business
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Basic Buying Motives
Basic BuyingMotives
• Fear• Gain/Loss• Pride• Imitation
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Basic Buying Motive• Fear/Concern – Motivated out of fear for
something (leaks)• Financial – Buys for either financial gain or
to avoid loss. Purchase in the off season for a discount or avoid high season prices
• Self- esteem- Pride in their home (perfect home in the neighborhood whose lawn is perfect, paint is perfect, driveway is sealed)
• Joneses – Keep up with the neighbors
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ThePowerBuyingMotive
Power Buying Motive• This is separate from
basic buying motives• This is the motivation
for selecting the specific contractor at a higher price and REJECTING the non-professional
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ThePowerBuyingMotive
ConfidenceConfidence
Confidence• Survey asking consumers
why they rejected or purchased projects
• They either lacked confidence in the contractor, so they didn’t buy or they had confidence and they did buy
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How to build Confidence• In you – Think of yourself as a
doctor, not a contractor– Ask questions and diagnose the
problem– Dress appropriately – 1st
impressions matter– Vehicle should be clean– Show up on time
Presentation
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• In Your Company –– Pictures of jobs– Testimonials– Insurance certificates– Training certificates– Licenses– List of satisfied customers
How to build Confidence
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• In the product– Warranties– Knowledge of the product– Why you reject other products– Clean presentable brochures/samples– Computer apps– Convert features into benefits
How to build Confidence
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• In your proposal – Use a professional proposal– Silent salesperson– Multi-page
How to build Confidence
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Proposal & Price
Proposal
Proposal should be presented to complete buying party
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• Four basic styles– Business card – some write the price on the back of a
card– Boiler Plate – form on which the contractor checks off
choices that define the job– One liner – This is a custom proposal for a project that
has been typed and usually consists of one line, usually a feature that doesn’t explain the benefit
– ESP (Effective Sales Proposal) – Designed to provide feature and benefit of the product and service. Anticipates how the owner thinks and what questions he might have so that he has the information needed to make a buying decision
Proposal
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What Can CCN Offer• Networking Best Practices• Training Boot Camps
– Sales– Production– Admin
• Proprietary programs– Sales App for Ipad– Video email– Lead generation programs– Much more
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Certified Contractors NetWork800.396.1510
www.contractors.net