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Business Solutions for Maximizing Profits May 2005
In This Issue

Measure
Track
Train

A View from the
Other Side

Seminars / Conventions

Business Forms

 NSPG News

Freebie of
the Month

The freebie of the month is a web site or product that we feel gives you something worth looking at or using that costs you nothing. 

IrfanView is a small, fast, and easy to use program that every serious computer user needs. If you use pictures in your business, like job photos, you need an easy to use tool like IrfanView to quickly edit, adjust, and convert your files to look their best.

It displays or plays back almost every type of media, including images, photos, music, and video files.

IrfanView also doubles as a lightweight photo editor. Performs limited red-eye removal, color and gamma tweaks, image resizing, and format conversions.

There's even a useful set of batch operations--great for renaming files or applying an image change across a set of files.

If you have a favorite internet freebie, please pass it along and we'll include it in a future newsletter.
nspginfo@nspgweb.com


Phone 800 841-8542

Coming Soon

• Schedule
Dispatch
• Job Cost Service Invoice
• Flat Rate Integration
• Automatically Graph Nine Benchmarks

 

 


Ever Wonder Where Did the Money Go?

 

 

Wrench Magnet for improved customer retention
Van Magnet

 

 

Wrench Magnet for improved customer retention

 


House Magnet

 

Harrison Publishing Price Update Service

For over a dozen years, NSPG has been providing the tools that allow contractors to increase profits and minimize business hassles. With our simple-to-use-tools, you can make being a  business owner what you always wanted to it be - successful, profitable and rewarding.
Measure, Track, Train
Over our years working in the business and more than a decade working with other companies, we have seen many companies that fall prey to a series of problems that prevent them from truly gaining control of their business.  Here's how the typical sequence goes with their sales process.
  1. We work with clients to determine their costs & selling price.
  2. They don't believe the selling price that their actual costs yield even though say they do.
  3. They don't define and measure the small pieces of their service call process to determine where the problem is. They just assume that price is the key to success or failure.
  4. They don't do training on how to deliver the price, give options, and show value.

Phase 1 is fairly straightforward.  The business owner runs the numbers in Numbers Cruncher. He is shocked at the results and calls us for help. He sends us the Numbers Cruncher file and together we review the entries and results. By the end of the review we arrive at Phase 2.

The Selling Price that Numbers Cruncher shows is (usually) higher than what they currently charge.  After some effort, they agree to charge enough to cover their costs and make a small profit.  (Some businesses even insist on charging less than it takes to make a profit because they think that their customers will not pay a fair price for their services). 

Without examining their sales process, they change their prices and expect business to automatically improve (Phase 3).  And, if they have good control over their sales process, it does improve overnight.  If your techs are not trained to highlight the benefits of dealing with your company, they will not be able to sell effectively regardless of your price (Phase 4). 

Many business owners complain that their sales plummet when they work in the office.  This is a sure sign that their techs need to be re-trained to highlight the benefits of your service in the same way that you do. This takes time and costs money, but you will never succeed without setting up your sales process as a series of small tasks that can be learned by all of your employees.  And the pay off from this organization and training is not only higher sales, but happier employees and customers.

A simple and understandable breakdown of the sales process makes the most difficult part of service work easier to deal with. Most technically competent people are not natural salesmen. Training makes it easier and less stressful

For all companies, a periodic breakdown and review of the sales process is a must.  That process is made up of many steps starting with answering the phone and runs through to the customer satisfaction survey after the job is done.  After each step is defined, all employees must be trained and retrained in performing their part of the process. That multi-step process must be reviewed periodically to be sure that it is being followed and is actually working for you.

There are many resources available that can help you learn how to best set up and implement your business processes.  Organizations like Nexstar (see below) are dedicated to just this type of training.  You can even call Mike Conroy here at NSPG for some advice on how to get started.

Profitable Prices and Flat Rate Price Guides will help just about any business, but proper implementation is a must to maximize your profit potential.  Give us a call, and we'll help you get started.

Measure Monthly, Adjust Quarterly
 & Achieve Annual Profit Goals


A View from the Other Side
I just finished having a replacement furnace and central air conditioner installed in my house.  The experience was such an adventure that I thought I'd share it with you.  I will present the process from the consumer's standpoint to reemphasize the need to reevaluate your sales processes and training on a regular basis. 

Price Quotes
I decided to follow the conventional wisdom and get three price quotes from area companies.  The companies I chose were the original installer of the 20+ year old system, a company that has a good reputation in the neighborhood for quality service, and a company that advertises at all of the local school functions. All of the businesses I called are well respected and have been around a long time. I assume that they have developed their business processes over time based on years of experience and will be able to handle anything I need.

The first call went to the local advertiser.  I thought that I'd give them a shot since they were supporting the activities that my kids are involved in at school.  I called them in the middle of a Thursday afternoon.  The phone was answered quickly and professionally.  I explained what I needed and they dropped the ball.  "I'll transfer you to the salesmen's voicemail box.  Explain what you want and they'll get back to you".  Since I had no experience with the company and hate voicemail, I hung up. 

The second call went to the company that had originally installed and serviced the system.  Again, the call was answered well.  They took my information and told me that the salesman would call me the next day to scheduled the sales call.  He called the next day. I'm optimistic.

The third call went to the company with a good reputation around 4:40 in the afternoon.  The call was answered after many rings.  After my explanation, I was told to call back tomorrow because "None of the girls are in now".  No contact information is collected.  If I did not have strong recommendations on this company, including a direct recommendation from within NSPG, I would not have called them back.  The next day I called back and "the girls" were in.  They quickly scheduled the estimate.

As a replacement for the first company, I called the number from the web site of a well known area company that supplied a third manufacturer's systems.  Was told to call their other office which was closer to my location.  Again, no contact information is taken.  The other location quickly answered and scheduled a sales call. 

So, three out of four calls could have ended with no contact information collected.  I had to call a second time to two of the companies just to give them my information. If I had not been motivated by factors out of their control, they would have lost any chance at my business.  The third company that dumped me into voicemail lost my business.  I'm sure that they don't even know that they're wasting their advertising dollars by their inefficient phone processes.

Only one company out of four took my information on the first call.  If I had been like most consumers, they probably would have gotten the job by default.  No one likes to chase you for your services.

What can we learn from this? 
The big lesson from this exercise is that anyone who answers your phones MUST get the potential customer's contact information first.  It doesn't matter if you can schedule the sales call right away. If you don't get the information, the customer is gone.  He may call back, but why risk it. 

So you say that your system is designed properly. Are you sure that your phone people are following that design?  Training and reinforcement of the value of the process is paramount.  You could be losing business and never know it.  You're paying big bucks for advertising, so each lost customer costs you money.

Some other lessons learned from this experience:

  1. Local advertising works.  I called a company that I never would have chosen through other means.  They dropped the ball, but the ads worked.  A $50 ad in a band or track program gets them exposure to several hundred potential customers.
  2. Word of mouth recommendations are worth more than any advertising.  A reputation for good work can sometimes help overcome problems with your sales process.
  3. We're all too busy keeping our business running to "waste" our time and money on review and training.  Are lost sales costing you more than review and training could ever cost?
  4. The consumer does not know anything about your business.  When he calls, he wants to get your attention right away.  Unless you're the only game in town, he's going somewhere else if you don't meet his expectations.

Tune in Next Month for the exciting saga of The Estimates.

The Next Money Masters™ will be at the Adam's Mark Hotel near Buffalo, NY on June 24 & 25, 2005

This Money Masters will includes the high quality Nexstar seminars, a visit to successful Nexstar member Roy's Plumbing, and the opportunity to talk with other successful Nexstar members.

Registration deadline: June 9, 2005

Friday:
7:00 - 8:00 a.m. Breakfast & Registration
8:00 - 12:30 Money Masters Seminar
12:30 - 1:30 Lunch
1:30 - 5:30 Tour Roy's Plumbing
6:00 - 10:00 Dinner & Entertainment
Saturday:
7:00 - 8:00 a.m. Breakfast
8:00 - 12:00 Money Masters Seminar
12:00 - 1:00 Lunch
1:00 - 3:00 Seminar, Nexstar™ Showcase


NJ State League Convention

I'll be at the next New Jersey State League of Master Plumbers Convention at the end of June in Atlantic City, NJ.

I'd like to invite anyone in the area to stop by and say hello.

Mike Conroy

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