Why survive when you can thrive? The five main factors keeping mechanical contractors from big profits
Areas Covered <ul><li>Massive growth in mechanical contracting has resulted in heavy market saturation </li></ul><ul><li>C...
Mechanical contracting has grown dramatically the last 50 years <ul><li>The HVAC industry in 1947 took in an estimated 1.6...
Worldwide mechanical contracting is estimated at over $1 trillion <ul><li>50 years ago there were only a few hundred provi...
A breakdown of the U.S. mechanical contracting business market Establishments by value of business done 2002 Source: U.S. ...
Let’s take a closer look  at the individual market shares <ul><li>Only 20,669 contractors are grossing more than $1 millio...
Unfortunately, this means many contractors do not survive… Source: Dun & Bradstreet Business Failure Report, 1998 Live,  W...
Being an ‘industry veteran’ doesn’t guarantee existence Source: Dun & Bradstreet Business Failure Report, 1998 Live,  Win,...
“ Those who do not remember history are doomed to repeat it”  –George Santayana <ul><li>Historically, the number of contra...
Meanwhile, there are other dangerous trends brewing that must be navigated wisely <ul><li>Manufacturers are producing smar...
Bad news in payroll… <ul><li>In 1997, HVAC and plumbing contractors payroll was $25.7 billion which represented  29%   of ...
Capital expenditures are almost doubling every five years <ul><li>In 1997, HVAC and plumbing contractors spent a little ov...
Rental costs are also almost doubling every five years <ul><li>In 1997, HVAC and plumbing contractors spent a little over ...
Every five years the cost of materials is increasing  7% ! <ul><li>In 1997, HVAC and plumbing contractors spent $33 billio...
The construction side of the business is also changing for the worse <ul><li>The ratio of highly skilled versus much less ...
This combination means trouble for  your business <ul><li>These practices are resulting in an outbreak of low priced, so-c...
Your dreams and financial future are under attack! <ul><li>When customers and prospects do not recognize the value of your...
By waging ‘bid wars’ you might as well be doing business in the stone age <ul><li>Your sales efforts are stifled because y...
The mechanical contracting industry has grown physically and technologically <ul><li>Once a very segmented group of trades...
As the cost of doing business rises your profits are decreasing <ul><li>Every five years, you are forced to pay out a grea...
A lethal combination of trends have created a buyers market <ul><li>Technological advances have made it easier for more pl...
The now expansive contracting industry requires expansive thinking now! <ul><li>We’ve learned that potential and existing ...
Savvy contractors will find ways to change their customers’ buying criteria <ul><li>By changing the way customers perceive...
Let’s look at one example of how this concept can work… <ul><li>A carpet cleaning company was constantly being underbid by...
The buying criteria has now been changed <ul><li>When the prospects are quoted a price they say, “Well, I can get my carpe...
“ The first one to deploy a new idea in an industry has the impact of an  atomic bomb” – Jay Levinson  <ul><li>The existin...
Your industry is much more complicated than carpet cleaning <ul><li>To employ these concepts you need to rethink your curr...
You have to get the word out…but what are the best and most efficient ways? Let’s explore the options…  Live,  Win,  Thrive
Traditional advertising and marketing is a common choice <ul><li>Unfortunately traditional advertising, marketing, and sal...
The clutter factor <ul><li>In 1996 the average consumer received 3,000 messages a day </li></ul><ul><li>Now in 2005, the a...
The Internet is contributing greatly  to this phenomenon <ul><li>In 1995, there were only 5 million people on the Internet...
The proliferation of media has reached epidemic levels <ul><li>As recent as the late 1970’s, New York City boasted four TV...
Billboards are so numerous that  they are now ineffective <ul><li>As of 1991, there were  450,000  billboards plastered on...
The clutter factor has made the average consumer immune to traditional advertising, marketing, and sales methods <ul><li>T...
Not only are the old ways ineffective but they are costly and time consuming <ul><li>A major motion picture company spent ...
Traditional methods take too much time <ul><li>The average professional ad, marketing, or sales campaign takes 12 to 18 mo...
It has become impossible to separate yourself from the pack using  traditional methods <ul><li>You need to alter the  BUYI...
To be successful in the 21 st  century, businesses must modernize their marketing and sales methods <ul><li>Mechanical con...
The power of research <ul><li>Rule number one when presenting your products and services is to provide information that is...
Remember, you need to separate  yourself from the other guys… <ul><li>Everyone in your industry is pitching how great thei...
The power of bad news <ul><li>A great presentation is loaded with bad news </li></ul><ul><li>Why? Because  bad news motiva...
You must find the trends that will motivate your buyers <ul><li>You have to find the market conditions that support the ne...
Successful businesses have discovered the most effective way to present themselves <ul><li>Research is the most powerful t...
Another key to being successful is identifying your target market <ul><li>Not all current clients and prospects are equal ...
Once a target market is identified, you must market accordingly <ul><li>Identifying a target client profile is useless, un...
The 60/30/10% rule <ul><li>Devote  60%  to current clients; existing clients should generate the largest percentage of you...
Acquiring new clients is important, but  existing customers should also  grow your business Know how to grow strong, warm ...
The dominant companies keep their customers satisfied <ul><li>Over a ten year period a single, commercial contractors’ cus...
The five basic truths about  world class service <ul><li>Make the customer feel unique </li></ul><ul><li>Make the customer...
Any successful business is a people business <ul><li>Warm customer relationships come from: </li></ul><ul><li>Consistent f...
Modern marketing and sales techniques can guarantee success for your business <ul><li>You need to arm yourself with a powe...
Create complete customer satisfaction through extraordinary service <ul><li>Your entire organization must be cultivating a...
Now you need a good plan <ul><li>Not even a simple vacation goes well without a plan </li></ul><ul><li>An overly complicat...
The seven critical elements of your marketing plan should be: <ul><li>The benefit to your customer </li></ul><ul><li>Your ...
Developing a well defined strategy is a huge key to long term success <ul><li>Define your long term goals and overall impa...
Learn to work and plan  smarter…not harder <ul><li>The best strategists develop policies, procedures, training, and tools ...
The mechanical contracting industry has seen dramatic growth in the last 50 years <ul><li>A 15,000% increase in business d...
What’s your piece of the pie? Establishments by value of business done 2002 Source: U.S. Census Bureau 2002 Live,  Win,  T...
Trends within the industry are making tough times even tougher <ul><li>Manufacturers are making smarter  units that are mo...
The cost of doing business  is skyrocketing! <ul><li>Payroll, capital expenditure, rental equipment, and material costs ar...
These trends have created market saturation and ‘bidding wars’ <ul><li>When customers see no difference in value, service,...
You need to change the way your customers perceive your industry <ul><li>By changing the way your customers and prospects ...
Traditional forms of advertising, marketing, and sales are costly, ineffective, and time consuming <ul><li>The clutter fac...
The ten things mechanical contractors can do to substantially increase their revenues 1.  Create a seven sentence marketin...
Ten things continued… 6.  Identify your best customers 7.  Identify your ideal 100 prospects  8.  Be in service to your cu...
You have a lot of work ahead of you… so why go it alone? <ul><li>Training without a coach or consultant has been proven to...
Companies that provide coaching to employees, benefit from improvements in: Source: Manchester USA, 1998 Live,  Win,  Thri...
Employees who received coaching, benefit from improved: Source: Manchester USA, 1998 Live,  Win,  Thrive Working relations...
Mechanical contractors now have a powerful new resource to create big profits There is a solution… Live,  Win,  Thrive
Introducing LWT LLC   <ul><li>LWT LLC is an expert sales and marketing team that specializes in the mechanical contracting...
LWT will develop a killer presentation specifically for your business <ul><li>LWT has obtained the exclusive rights to lic...
LWT will help you develop a marketing strategy that guarantees success <ul><li>LWT will work with you to develop a seven s...
LWT is a certified ‘Guerrilla Marketer’ <ul><li>LWT uses the concepts developed by the highest paid consultant in the worl...
Let LWT’s team of professionals do the  hard work for you:  <ul><li>Develop a proven marketing strategy </li></ul><ul><li>...
LWT will work with you exclusively  within your region <ul><li>You now have the unique opportunity to be the  first and on...
Join the team that will show you how to create the business of your dreams! LWT LLC  Dan Rumsey 237 Tramway Dr. Lake Tahoe...
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The five main factors keeping mechanical contractors from BIG profits.

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This is an Executive Briefing done to market LWT, LLC (a sales and business consulting firm) to plumbers, HVAC and mechanical contractors.

Published in: Economy & Finance, Business

The five main factors keeping mechanical contractors from BIG profits.

  1. 1. Why survive when you can thrive? The five main factors keeping mechanical contractors from big profits
  2. 2. Areas Covered <ul><li>Massive growth in mechanical contracting has resulted in heavy market saturation </li></ul><ul><li>Construction and manufacturing trends are resulting in a proliferation of mediocre contracting companies </li></ul><ul><li>These two factors have created a bid-based industry with little or no importance put on value and service </li></ul><ul><li>Traditional methods of advertising, marketing, and sales are no longer effective </li></ul><ul><li>The power of research, bad news, and strategy vs. tactics </li></ul><ul><li>The ten things mechanical contractors must do to succeed and thrive </li></ul>Live, Win, Thrive
  3. 3. Mechanical contracting has grown dramatically the last 50 years <ul><li>The HVAC industry in 1947 took in an estimated 1.6 billion in 2004 dollars </li></ul><ul><li>Now this segment of mechanical contracting is a $240 billion business </li></ul><ul><li>This represents a 15,000% overall increase in revenue </li></ul>Source: U.S. Bureau of Economics 2004 Live, Win, Thrive
  4. 4. Worldwide mechanical contracting is estimated at over $1 trillion <ul><li>50 years ago there were only a few hundred providers </li></ul><ul><li>In 1997, there were 84,876 HVAC establishments doing business in the United States alone </li></ul><ul><li>By 2002, there were 87,501 HVAC establishments in the U.S. </li></ul><ul><li>That averages to almost 600 new contractors per year! </li></ul>Source: U.S. Census Bureau 2004 Live, Win, Thrive
  5. 5. A breakdown of the U.S. mechanical contracting business market Establishments by value of business done 2002 Source: U.S. Census Bureau 2002 Live, Win, Thrive
  6. 6. Let’s take a closer look at the individual market shares <ul><li>Only 20,669 contractors are grossing more than $1 million a year </li></ul><ul><li>That’s less than 24% of all companies </li></ul><ul><li>A whopping 76% of all HVAC contractors are grossing less than $1 million each year </li></ul>Source: U.S. Census Bureau 2002 Live, Win, Thrive
  7. 7. Unfortunately, this means many contractors do not survive… Source: Dun & Bradstreet Business Failure Report, 1998 Live, Win, Thrive
  8. 8. Being an ‘industry veteran’ doesn’t guarantee existence Source: Dun & Bradstreet Business Failure Report, 1998 Live, Win, Thrive
  9. 9. “ Those who do not remember history are doomed to repeat it” –George Santayana <ul><li>Historically, the number of contracting businesses that fail have remained fairly steady at about 1200 per year </li></ul><ul><li>Statistics show that older businesses have a much higher rate of failure than newer businesses </li></ul><ul><li>However, these numbers have been steadily worsening and are not expected to improve in the future </li></ul>Live, Win, Thrive
  10. 10. Meanwhile, there are other dangerous trends brewing that must be navigated wisely <ul><li>Manufacturers are producing smarter units that are more easily installed and serviced than they were 10 to 15 years ago </li></ul><ul><li>The relative skill level and training required for a service technician has been drastically reduced </li></ul>Source: Empire Research Group 2005 Live, Win, Thrive
  11. 11. Bad news in payroll… <ul><li>In 1997, HVAC and plumbing contractors payroll was $25.7 billion which represented 29% of their gross revenue </li></ul><ul><li>By 2002, the same contractors were paying out $35.9 billion which represented 31% of their gross revenue </li></ul><ul><li>Clearly, mechanical contracting companies can expect to pay more and more, resulting in less profitability </li></ul>Source: US Census Bureau, 1997 & 2002 Live, Win, Thrive
  12. 12. Capital expenditures are almost doubling every five years <ul><li>In 1997, HVAC and plumbing contractors spent a little over $1 billion on capital expenditures besides land </li></ul><ul><li>By 2002, the same contractors spent almost $2 billion on the same expenditures </li></ul><ul><li>Obviously, mechanical contractors can expect to see capital expenditures increase in years to come </li></ul>Source: US Census Bureau, 1997 & 2002 X 2 Live, Win, Thrive
  13. 13. Rental costs are also almost doubling every five years <ul><li>In 1997, HVAC and plumbing contractors spent a little over $1 billion for renting machinery, equipment, and buildings </li></ul><ul><li>By 2002, the same contractors paid a bit over $2 billion for the same rental costs </li></ul><ul><li>It seems inevitable that contractors will be paying greater and greater sums of money in rental costs </li></ul>Source: US Census Bureau, 1997 & 2002 X 2 Live, Win, Thrive
  14. 14. Every five years the cost of materials is increasing 7% ! <ul><li>In 1997, HVAC and plumbing contractors spent $33 billion on materials, components, supplies, and fuels </li></ul><ul><li>That number represented 37% of their gross revenue </li></ul><ul><li>By 2002, the same contractors spent $51.8 billion on materials, components, supplies, and fuels </li></ul><ul><li>That number represented 44% of their gross revenue </li></ul><ul><li>Clearly, mechanical contractors can expect to pay more and more for these necessities </li></ul>Source: US Census Bureau, 1997 & 2002 Live, Win, Thrive
  15. 15. The construction side of the business is also changing for the worse <ul><li>The ratio of highly skilled versus much less trained workers has increased more than 10 times in the last 15 years </li></ul><ul><li>A company with 3 to 6 marginally skilled personnel can control a workforce of 15 to as many as 30 less qualified employees </li></ul>Source: Empire Research Group 2005 Live, Win, Thrive
  16. 16. This combination means trouble for your business <ul><li>These practices are resulting in an outbreak of low priced, so-called ‘competition’ </li></ul><ul><li>Your customers and prospects are perceiving no difference in value, service, or quality </li></ul><ul><li>They of course then gravitate towards the lowest price…can you blame them? </li></ul>Live, Win, Thrive
  17. 17. Your dreams and financial future are under attack! <ul><li>When customers and prospects do not recognize the value of your high standards and quality, there is no loyalty </li></ul><ul><li>When price is king there are no profits to be had </li></ul><ul><li>A business that does not profit does not stay in business </li></ul>Live, Win, Thrive
  18. 18. By waging ‘bid wars’ you might as well be doing business in the stone age <ul><li>Your sales efforts are stifled because your customers feel that, for the most part, their needs are satisfied </li></ul><ul><li>Your customers and prospects are only interested in what you can do for them </li></ul><ul><li>Based on what they know, they feel all contractors are the same </li></ul>Live, Win, Thrive
  19. 19. The mechanical contracting industry has grown physically and technologically <ul><li>Once a very segmented group of tradesmen, it is now a $1 trillion industry </li></ul><ul><li>There are now 87,501 contractors in just the U.S. </li></ul><ul><li>Less than 24% are grossing over $1 million yearly </li></ul>Source: U.S. Census Bureau, 2002 Live, Win, Thrive
  20. 20. As the cost of doing business rises your profits are decreasing <ul><li>Every five years, you are forced to pay out a greater percentage of money for less and less productivity </li></ul><ul><li>Your capital expenditures and rental costs are almost doubling every five years </li></ul><ul><li>Materials, components, supplies, and fuels are 44% of gross revenue and increasing in price at the alarming rate of 7% every five years </li></ul>Live, Win, Thrive
  21. 21. A lethal combination of trends have created a buyers market <ul><li>Technological advances have made it easier for more players to enter the game, i.e. heavy market saturation </li></ul><ul><li>Quality and service have become a non-factor resulting in the lowest bidder getting the job </li></ul><ul><li>The average customer or prospect sees all contractors as being equal </li></ul><ul><li>This vicious cycle has all but taken profit out of consideration for most providers </li></ul>Live, Win, Thrive
  22. 22. The now expansive contracting industry requires expansive thinking now! <ul><li>We’ve learned that potential and existing clients are only interested in price </li></ul><ul><li>They are not perceiving any difference in service, value, or quality </li></ul><ul><li>These preconceived ideas held by your customers are known as BUYING CRITERIA </li></ul>Live, Win, Thrive
  23. 23. Savvy contractors will find ways to change their customers’ buying criteria <ul><li>By changing the way customers perceive your products and services you can take control of your market </li></ul><ul><li>Prospects will see your company as the only viable choice for their mechanical contracting needs </li></ul><ul><li>Other industries have been utilizing this concept for years and it has changed the face of their respective trades…in their favor! </li></ul>Live, Win, Thrive
  24. 24. Let’s look at one example of how this concept can work… <ul><li>A carpet cleaning company was constantly being underbid by mom and pop operations in their region </li></ul><ul><li>They trained their sales force to educate their customers thus changing the buying criteria from being only the lowest price </li></ul><ul><li>They would start out by saying, “ Let me tell you about the four most important things about getting your carpet cleaned.” </li></ul><ul><li>#1 Technicians must be ICRC certified </li></ul><ul><li>#2 Technicians must have 300 hours of training otherwise they can destroy your carpet </li></ul><ul><li>#3 We’ve studied EPA findings about indoor air pollution and thus you must get your carpets cleaned correctly </li></ul><ul><li>#4 Smaller companies are always going out of business so when they mess up your carpet you have no recourse </li></ul>Live, Win, Thrive
  25. 25. The buying criteria has now been changed <ul><li>When the prospects are quoted a price they say, “Well, I can get my carpets cleaned for half that down the street.” </li></ul><ul><li>The sales people will say, “They advertise that price but you can’t get qualified technicians to come to your house with the proper solutions, etc. You just can’t do it.” </li></ul><ul><li>“Plus what we quote you is what you will pay. Those other guys have all sorts of hidden fees and surcharges that you won’t see until you get the bill.” </li></ul><ul><li>When the customer calls the competition they are educated and they start asking questions that the competition can’t or won’t answer </li></ul><ul><li>The educated buyer sees no choice but to go with the original provider </li></ul>Live, Win, Thrive
  26. 26. “ The first one to deploy a new idea in an industry has the impact of an atomic bomb” – Jay Levinson <ul><li>The existing buying criteria for the mechanical contracting industry is based predominantly on price </li></ul><ul><li>By changing and educating the way your customers and prospects think, you can gain control of your market </li></ul><ul><li>Will you be the first contractor in your region to instigate this powerful idea? </li></ul><ul><li>Can you afford for your competition to beat you to the punch? </li></ul>Live, Win, Thrive
  27. 27. Your industry is much more complicated than carpet cleaning <ul><li>To employ these concepts you need to rethink your current sales and marketing strategies </li></ul><ul><li>You need to reposition your company and sales force as the experts in your field </li></ul><ul><li>Your whole organization must work together and be on the same page so that your strategy has the maximum effect </li></ul><ul><li>Your intense market saturation requires an intensive sales and marketing program </li></ul>Live, Win, Thrive
  28. 28. You have to get the word out…but what are the best and most efficient ways? Let’s explore the options… Live, Win, Thrive
  29. 29. Traditional advertising and marketing is a common choice <ul><li>Unfortunately traditional advertising, marketing, and sales methods simply do not work anymore </li></ul><ul><li>The main reason is what is widely known as: “ The clutter factor ” </li></ul>Live, Win, Thrive
  30. 30. The clutter factor <ul><li>In 1996 the average consumer received 3,000 messages a day </li></ul><ul><li>Now in 2005, the average consumer receives 30,000 messages per day </li></ul><ul><li>How many of the messages (ads, slogans) that you heard/saw today can you remember? </li></ul><ul><li>How many of these will you act upon? </li></ul>Source: Empire Research Group 2005 Live, Win, Thrive
  31. 31. The Internet is contributing greatly to this phenomenon <ul><li>In 1995, there were only 5 million people on the Internet in the United States </li></ul><ul><li>Now in 2005, there are 180 million consumers connected to the web </li></ul><ul><li>Almost every conscious person is on the Internet and certainly ALL of your current and potential clients </li></ul><ul><li>Do you have a pop-up blocker, and how active is it on a daily basis? </li></ul>Source: Empire Research Group 2005 Live, Win, Thrive
  32. 32. The proliferation of media has reached epidemic levels <ul><li>As recent as the late 1970’s, New York City boasted four TV stations </li></ul><ul><li>Now in 2005, they have 4,000 TV stations and they are all running ads and infomercials 24 hours a day! </li></ul><ul><li>How many TV and radio stations are available in your part of the world? </li></ul>Source: Empire Research Group 2005 Live, Win, Thrive
  33. 33. Billboards are so numerous that they are now ineffective <ul><li>As of 1991, there were 450,000 billboards plastered on the side of Americas’ highways </li></ul><ul><li>Between 5,000 and 15,000 are erected each and every year </li></ul><ul><li>Of all the billboards that you passed on the way to work today, how many can you remember? How many will you act upon? </li></ul>Source: Wikapedia 2005 Live, Win, Thrive
  34. 34. The clutter factor has made the average consumer immune to traditional advertising, marketing, and sales methods <ul><li>The average consumer receives 30,000 messages daily </li></ul><ul><li>The Internet has conditioned everyone to ignore traditional ads </li></ul><ul><li>The proliferation of media is one of the largest contributors of commercial clutter </li></ul><ul><li>Billboards are just one of many examples of how traditional forms of advertising have become counter-productive </li></ul>Live, Win, Thrive
  35. 35. Not only are the old ways ineffective but they are costly and time consuming <ul><li>A major motion picture company spent $5 million on average to promote a feature film in 1992 </li></ul><ul><li>As of 2001, they were spending $15 million to get the same effect </li></ul><ul><li>That’s three times the amount in less than ten years! </li></ul>Source: Empire Research Group 2005 Live, Win, Thrive
  36. 36. Traditional methods take too much time <ul><li>The average professional ad, marketing, or sales campaign takes 12 to 18 months to develop </li></ul><ul><li>Now factor in that it takes an additional 12 to 18 months for a good program to show significant results </li></ul><ul><li>That’s 3 years or more before all that money you spent comes to fruition if it even comes to fruition at all! </li></ul>Source: Empire Research Group 2005 $$$$$$$ Live, Win, Thrive
  37. 37. It has become impossible to separate yourself from the pack using traditional methods <ul><li>You need to alter the BUYING CRITERIA for your products and services </li></ul><ul><li>You want to educate your existing customers and prospects </li></ul><ul><li>Traditional methods are not going to get the job done because of the “clutter factor” </li></ul><ul><li>Traditional methods are much too costly and extremely time consuming </li></ul>Live, Win, Thrive
  38. 38. To be successful in the 21 st century, businesses must modernize their marketing and sales methods <ul><li>Mechanical contractors rely on the newest technologies for their products and services </li></ul><ul><li>So why do they insist on using out-dated advertising, marketing, and sales methods? </li></ul><ul><li>Let’s look at some new ways that other industries are using to capture market shares and retain existing ones </li></ul>Live, Win, Thrive
  39. 39. The power of research <ul><li>Rule number one when presenting your products and services is to provide information that is OF VALUE TO YOUR PROSPECTS </li></ul><ul><li>Information that goes above and beyond the products and services you are offering will be considered extremely valuable to your clients </li></ul>Live, Win, Thrive
  40. 40. Remember, you need to separate yourself from the other guys… <ul><li>Everyone in your industry is pitching how great their products and services are and how they have the lowest price </li></ul><ul><li>But in order to seize control of your market you must educate your buyers </li></ul><ul><li>Teach them (through research) what they will GAIN by using your company </li></ul><ul><li>Teach them (through research) what they will SUFFER by not using you </li></ul>Live, Win, Thrive
  41. 41. The power of bad news <ul><li>A great presentation is loaded with bad news </li></ul><ul><li>Why? Because bad news motivates ! </li></ul><ul><li>Your prospect, when learning a great deal of bad news, will suddenly feel the need to take action </li></ul>Live, Win, Thrive
  42. 42. You must find the trends that will motivate your buyers <ul><li>You have to find the market conditions that support the need for your company </li></ul><ul><li>Market conditions (research) are tremendously more motivational than product information (sales pitch) </li></ul><ul><li>You need to put your buyers in pain because pain is what really creates change </li></ul>Live, Win, Thrive
  43. 43. Successful businesses have discovered the most effective way to present themselves <ul><li>Research is the most powerful tool for educating prospects </li></ul><ul><li>Bad news motivates and the more pain you can show your prospects the more likely they are to take action and become clients </li></ul><ul><li>With the right presentation you can take control of your market and seize a larger segment of the business in your region </li></ul>Live, Win, Thrive
  44. 44. Another key to being successful is identifying your target market <ul><li>Not all current clients and prospects are equal </li></ul><ul><li>You need to identify your A, B, and C list customers </li></ul><ul><li>Clients not making your C list are probably costing you more money than they are worth </li></ul><ul><li>Do you need the added aggravation? </li></ul>Live, Win, Thrive
  45. 45. Once a target market is identified, you must market accordingly <ul><li>Identifying a target client profile is useless, unless you know how, when, and where to use this data </li></ul><ul><li>Fortune 500 companies have found through experience that their profits are best generated by following the 60/30/10% rule </li></ul>Source: Empire Research Group 2005 Live, Win, Thrive
  46. 46. The 60/30/10% rule <ul><li>Devote 60% to current clients; existing clients should generate the largest percentage of your profits </li></ul><ul><li>Devote 30% to your best prospects; your goal should be to convert your targeted prospects into clients </li></ul><ul><li>Devote 10% to the broader market; this includes everyone not in the first two groups </li></ul>Source: Empire Research Group 2005 Live, Win, Thrive
  47. 47. Acquiring new clients is important, but existing customers should also grow your business Know how to grow strong, warm customer relationships Live, Win, Thrive
  48. 48. The dominant companies keep their customers satisfied <ul><li>Over a ten year period a single, commercial contractors’ customer lifetime value is $55,000 and up </li></ul><ul><li>This does not include the value of referrals and recommendations </li></ul><ul><li>It is costing you three times as much to find and sell new customers </li></ul><ul><li>Each of your customers have a significant dollar value </li></ul>Empire Research Group 2005 Live, Win, Thrive
  49. 49. The five basic truths about world class service <ul><li>Make the customer feel unique </li></ul><ul><li>Make the customer feel singled out </li></ul><ul><li>Make the customer feel that you want to be of service </li></ul><ul><li>Make sure you stay in constant contact </li></ul><ul><li>Make sure you exceed the customers expectations </li></ul>Jay Levinson 2001 Live, Win, Thrive
  50. 50. Any successful business is a people business <ul><li>Warm customer relationships come from: </li></ul><ul><li>Consistent follow-up </li></ul><ul><li>Knowing your customers’ name </li></ul><ul><li>Giving more than is expected </li></ul><ul><li>Eye contact and smiles </li></ul><ul><li>Asking and listening alertly </li></ul><ul><li>Individual contact </li></ul><ul><li>Knowing personal data </li></ul>Jay Levinson 2001 Live, Win, Thrive
  51. 51. Modern marketing and sales techniques can guarantee success for your business <ul><li>You need to arm yourself with a powerful and specialized presentation that is packed with compelling research </li></ul><ul><li>By identifying your best prospects you will maximize your marketing efforts </li></ul><ul><li>The 60/30/10 formula works for everyone, from 1000’s of small companies to Fortune 500 industry giants </li></ul>Live, Win, Thrive
  52. 52. Create complete customer satisfaction through extraordinary service <ul><li>Your entire organization must be cultivating and growing warm relationships with your customers </li></ul><ul><li>Invest in the ‘people business’ </li></ul><ul><li>All your profitable customers should become lifelong clients </li></ul>Live, Win, Thrive
  53. 53. Now you need a good plan <ul><li>Not even a simple vacation goes well without a plan </li></ul><ul><li>An overly complicated plan will just be confusing and hard to keep in play </li></ul><ul><li>All you need is a seven sentence marketing strategy </li></ul>Live, Win, Thrive
  54. 54. The seven critical elements of your marketing plan should be: <ul><li>The benefit to your customer </li></ul><ul><li>Your positioning in the market place </li></ul><ul><li>Your target market </li></ul><ul><li>Your weapons </li></ul><ul><li>Your budget </li></ul><ul><li>The tools and techniques you will use to reach your audience </li></ul><ul><li>A month by month implementation timetable </li></ul>Live, Win, Thrive
  55. 55. Developing a well defined strategy is a huge key to long term success <ul><li>Define your long term goals and overall impact </li></ul><ul><li>Define the ultimate accomplishment or position you want in the market </li></ul><ul><li>Define how your tactical efforts will support that outcome </li></ul>Source: Empire Research Group 2005 Live, Win, Thrive
  56. 56. Learn to work and plan smarter…not harder <ul><li>The best strategists develop policies, procedures, training, and tools that can be easily implemented at the tactical level </li></ul><ul><li>They have a strategic objective for each tactical effort that is made </li></ul><ul><li>A great leader looks at all his/her resources and deploys them with the maximum effectiveness that they can each achieve </li></ul>Source: Empire Research Group 2005 Live, Win, Thrive
  57. 57. The mechanical contracting industry has seen dramatic growth in the last 50 years <ul><li>A 15,000% increase in business done over the last half-century </li></ul><ul><li>There are now an estimated 88,300 mechanical contracting establishments in the U.S. </li></ul><ul><li>Less than 24% of these companies are grossing $1 million yearly </li></ul>Source: U.S. Census Bureau 2004, U.S. Bureau of Economics 2001 Live, Win, Thrive
  58. 58. What’s your piece of the pie? Establishments by value of business done 2002 Source: U.S. Census Bureau 2002 Live, Win, Thrive
  59. 59. Trends within the industry are making tough times even tougher <ul><li>Manufacturers are making smarter units that are more easily installed and serviced </li></ul><ul><li>The ratio of highly skilled versus much less trained workers has increased more than 10 times in the last 15 years </li></ul>Live, Win, Thrive
  60. 60. The cost of doing business is skyrocketing! <ul><li>Payroll, capital expenditure, rental equipment, and material costs are now making up 75% of gross revenue </li></ul><ul><li>These factors are all increasing exponentially </li></ul><ul><li>This disturbing trend is expected to continue </li></ul>Source: US Census Bureau, 1997 & 2002 Live, Win, Thrive
  61. 61. These trends have created market saturation and ‘bidding wars’ <ul><li>When customers see no difference in value, service, and quality they gravitate towards the lowest price </li></ul><ul><li>When price is king nobody profits </li></ul><ul><li>A business that does not profit does not stay in business </li></ul>Live, Win, Thrive
  62. 62. You need to change the way your customers perceive your industry <ul><li>By changing the way your customers and prospects think about your industry, you can take control of your market </li></ul><ul><li>You need to reposition your company as the experts within your trade </li></ul><ul><li>Your whole organization must work together for these concepts to have their maximum effect </li></ul>Live, Win, Thrive
  63. 63. Traditional forms of advertising, marketing, and sales are costly, ineffective, and time consuming <ul><li>The clutter factor has made people immune to traditional forms of media and sales </li></ul><ul><li>The cost of traditional forms of advertising and marketing has tripled </li></ul><ul><li>The time it takes to develop new campaigns is between 2 to 3 years </li></ul>Live, Win, Thrive
  64. 64. The ten things mechanical contractors can do to substantially increase their revenues 1. Create a seven sentence marketing plan 2. Create and implement a presentation that’s full of bad news and educates rather than ‘sells’ 3. Reposition your company and change perceptions 4. Change the way you think about marketing 5. Find your niche market Live, Win, Thrive
  65. 65. Ten things continued… 6. Identify your best customers 7. Identify your ideal 100 prospects 8. Be in service to your customers 9. Build lasting relationships with clients 10. Become a giver, give back to your industry, customers, and community Live, Win, Thrive
  66. 66. You have a lot of work ahead of you… so why go it alone? <ul><li>Training without a coach or consultant has been proven to be only 22% effective </li></ul><ul><li>However, when coaching or consulting is involved, that number jumps to an incredible 82%! </li></ul>Source: Empire Research Group 2005 Live, Win, Thrive
  67. 67. Companies that provide coaching to employees, benefit from improvements in: Source: Manchester USA, 1998 Live, Win, Thrive 23% 32% 34% 39% 48% 48% 53% Cost reductions Retaining employees Reducing customer complaints Customer service Organizational strength Quality Productivity
  68. 68. Employees who received coaching, benefit from improved: Source: Manchester USA, 1998 Live, Win, Thrive Working relationships with clients Organizational commitment Conflict reduction Job satisfaction Working relationships with peers Teamwork Working relationships with immediate supervisor Working relationships with direct reports 37% 44% 52% 61% 63% 67% 71% 77%
  69. 69. Mechanical contractors now have a powerful new resource to create big profits There is a solution… Live, Win, Thrive
  70. 70. Introducing LWT LLC <ul><li>LWT LLC is an expert sales and marketing team that specializes in the mechanical contracting field </li></ul><ul><li>These professionals possess over 30 years experience in the mechanical contracting industry </li></ul><ul><li>LWT LLC knows the obstacles facing your business and has developed a sure fire plan to help you achieve your dreams </li></ul>Live, Win, Thrive
  71. 71. LWT will develop a killer presentation specifically for your business <ul><li>LWT has obtained the exclusive rights to license a revolutionary presentation known as a Unique Positioning Program (UPP) </li></ul><ul><li>The UPP is designed to reposition the way your clients and prospects perceive your industry </li></ul><ul><li>Your presentation will be loaded with millions of dollars worth of research (bad news) that is included at no additional cost to you </li></ul><ul><li>Your Unique Positioning Program will be custom tailored to your business for your clients and prospects </li></ul><ul><li>LWT’s expert team will then train you and your entire organization to deploy your presentation effectively and generate high-profit sales leads immediately </li></ul>Live, Win, Thrive
  72. 72. LWT will help you develop a marketing strategy that guarantees success <ul><li>LWT will work with you to develop a seven sentence marketing plan </li></ul><ul><li>They will help you identify your niche and target markets </li></ul><ul><li>They will help you identify the clients that have the best potential for big profits </li></ul>Live, Win, Thrive
  73. 73. LWT is a certified ‘Guerrilla Marketer’ <ul><li>LWT uses the concepts developed by the highest paid consultant in the world, Jay Levinson (The father of Guerrilla Marketing) </li></ul><ul><li>Guerrilla Marketing is all about profits, service, and adding value </li></ul><ul><li>Guerrilla Marketing has helped 1000’s of small and medium businesses as well as many Fortune 500 company’s increase their profits and retain clients </li></ul>Live, Win, Thrive
  74. 74. Let LWT’s team of professionals do the hard work for you: <ul><li>Develop a proven marketing strategy </li></ul><ul><li>Develop a killer presentation (UPP) </li></ul><ul><li>Define your best prospects and clients </li></ul><ul><li>Train you and your entire staff to most effectively use these tools </li></ul><ul><li>Provide follow-up coaching to insure that your whole organization remains profit minded </li></ul>Live, Win, Thrive
  75. 75. LWT will work with you exclusively within your region <ul><li>You now have the unique opportunity to be the first and only contractor in your region to acquire LWT’s services </li></ul><ul><li>LWT will annually license it’s services to you and you alone within a fixed mile radius </li></ul><ul><li>This exciting feature will enable your business to separate itself from the competition and dominate the market in your region </li></ul>Live, Win, Thrive
  76. 76. Join the team that will show you how to create the business of your dreams! LWT LLC Dan Rumsey 237 Tramway Dr. Lake Tahoe, NV 89449-4470 phone 1-800-687-1266 fax 1-925-955-1675 [email_address] Live, Win, Thrive Live, Win, Thrive

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