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DESERT CONSULTANTS. California Contractor’s Exchange Day One: Quality and The New Consumer . Desert Consultants.
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DESERT CONSULTANTS California Contractor’s Exchange Day One: Quality and The New Consumer
Desert Consultants • Desert Consultants is a full service marketing, advertising, and training organization with one goal: Accelerate your sales and profitability using “real world” tools, training, and resources.
2009 was a CRAZY year… • Looking back on last year, ask yourself if you. . .
GREAT NEWS: We survived a TOUGH market! • “The Wave” ended…big time • Increased competition as more and more dealers entered the retrofit game • Customers took LOTS of proposals • Products became increasingly similar • More difficult than ever to differentiate yourself at the kitchen table • “Shade Tree” competition drove prices DOWN!!
But . . . • Did your business grow as much as you’d like? • Were you able to sell as many jobs as you’d like? • Did you have more leads than you could handle? • Were you able to hang on to your best employees? • Did you differentiate yourself from the competition? • Get one step closer to your dreams as an owner? • DID YOU PUT MORE MONEY IN YOUR BANK ACCOUNT?
Market Reality • 40% of home improvement businesses that start in 2010 will be gone by the end of the year • 80% of the home improvement businesses that started in 2005 will be out of business by the end of the year • 85% of the remaining businesses never net more than 2-3% • 85% of these businesses never have gross revenue in excess of $800,000/yr.
The Service Economy is Dead. • Most contractors were contractors first, and businesspeople second (how hard can it be, right!?) • Doing a good job at our trade defined the business • But “the cheese moved”—all of a sudden we’re in an Experience Economy What if YOUR definition of a “Quality Contractor” isn’t the same as the CUSTOMER’S?
The Experience Economy is HERE • Technical competency is the baseline • Consumers expect retail experiences that connect to their needs, as well as perform an important service • Your businesses has to quickly evolve to deliver QUALITYat every level
Quality Drives Experience • Survey your customers • Leverage the power of people “Green” • Does your sales strategy differentiate you? • What are your 1%-ers? • Are your people committed?
1: Start with the Consumer • The typical consumer isn’t just a “fix it and forget about it” purchaser— • The current consumers are typically: • Married • Dual income of 75K+ per year • Home owner • Conservative shopper • Environmentally aware • Interested in IAQ solutions • A researcher
Female Consumers • Women are the primary decision maker in 85% of all household service needs! • 70% of surveyed women learn the most about a new product from someone that already owns one. • Female consumers are ten times more likely to give a referral than a male consumer • Issues such as home care, personal safety, cleanliness and references are very important • Women don’t gossip, they advertise
Consumer Consciousness had Changed • Awareness and social values have changed the way people spend money • “Values-driven” commerce has propelled vehicles, food goods, and zero/low energy home improvement • How have you aligned your business with these values?
2: The Business of “Green” • In the year 2000, “Green” commerce was a $230 BILLION DOLLAR market…The NY Times called it “The biggest market you’ve never heard of” • A 2010 survey by the Natl. Home Builders Association found that 20% of customers would spend an additional $5K to meet energy efficiency goals • 46% of respondents who plan to spend up to $10K on home improvement were “eager” to add energy saving products
3: Re-defining Quality Sales • We can no longer be “sub” contractors • “Whole Home Solutions and Benefits” is the future of the home improvement industry
Evaluate the Sales Experience You Create… • Imagine your sales and customer service model from a consumer perspective… • “Can do” at every level • Courtesy, professionalism, respect • Care for the home before, during, after service • Quality People: background checks, industry affiliations • Options and the resources to help them buy • Easy-to-understand sales process • Follow through and 100% peace-of-mind
4: “And One More Thing…” • What is your 1%-er that sets you apart from every one else?
The New Business Reality • If you cannot differentiate yourself from the competition at many levels you will always be seen as a commodity service and command commodity pricing! • Let’s capitalize on the AMAZING opportunity in front of us and make 2010 a success!!