The Five Ingredients to a Sale (Part 2)

by Shana Fong on June 21, 2011
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Source: ACCA Contractor Excellence

The first part of this article covered the first ingredient in detail, so this part will cover the remaining 4 – who you represent, your product, the price, and time.

Who You Represent
This ingredient is quite often missed, as we quite often assume (wrongly) that as we are talking to a particular customer, it must mean that the customer is happy with the company – why else would the customer be in contact with me?

In every business, there is competition, and with competition comes comparisons. Your customers will want to compare your company (who you represent) with other companies selling a like product or service. You need to be able to sell your company to your prospective client.

So how is this done?

Remember the main steps to a sale as outlined in the first part of this article? Which of these steps is the best one to highlight your company.

The answer is: Service!

The best way to incorporate this vital element is to flow directly from the trial close. For example, if you have just completed a world class feature/function/benefit presentation of your product, and asked a question like, “So, on a scale of 1 to 10, where 10 is that you want to go ahead with this now, where are you?

Your customer may answer, “Well, subject to the price being right, it could well be a 10.” So, now you can follow up with, “Before I get you some great numbers, allow me to share with you the most important reason so many people do business, and continue to do business with us here at World Class Business.

Then share your service program with them. Do this with a “Why Buy Here” book. This is normally a 3 ring binder with plastic sleeves, holding documentation about your services and business. It could contain copies of letters from satisfied customers – an “evidence manual” if you like. You could include photographs of the service team – make it personal. If any of you would like help in putting something like this together, please contact me. You could take it a step further by filming your team and your facility and either play it or e-mail it to your client.

In this industry, your clients know that it is not just a matter of if; it is a matter of when they will need to use your service operation. They need to know that they will be looked after when this happened and they also need to know who will be looking after them. This will make both parties feel good about who they are dealing with. And, this one step will set you apart from your competition, because your competition is not doing this – they are all about selling the product and not the business!

Product – As I said in part 1, this is probably the easiest of the 5 ingredients to master.

The reason I make that statement is that you will normally have your presentations well rehearsed in order to either satisfy a concern or create a need and want to purchase.

The main steps to a sale for this ingredient are the interview, selecting the product or service, and the feature/function/benefit presentation.

If the interview is done correctly, you will know what your customer is looking for, his or her rough budget, and their “hot buttons.” Hot buttons are benefits, and normally come in the form of safety, performance, appearance, comfort, economy, and durability.

Once you find out these hot buttons, you can now tailor your presentation to match what the customer wants.

Remember this – customers will normally buy what they want – this may not necessarily be what they need.

Our job as salespeople is to help customers to buy. That is different from selling. Let them know about your product or service, give them options and allow them to make an informed decision.

Price.

The steps to use to sell the price of the product are:

All of them!

Why? Because very rarely is a sale about price. It is all about value. If a customer does not see particular value in your product or service, then in order for you to still make a sale, you will need to cut your price.

Where will customers see value? They need to see it first and foremost in you, so make sure you follow the guidelines I went through in part one. You need to make sure you select the right product or service to present to the customer – something to fit his budget, and more importantly, something to fit his wants and needs – this is where the interview and product selection come into play.

The feature/function/benefit presentation is hugely important in building value – remember that customers buy benefits, not features, so make sure you don’t talk about a feature without talking about what that feature will do for your customer.

The evidence manual will build value, too – the more value you build, the less important the price becomes.

Once you have the value built to match the price – you have sold this vital ingredient.

Time.

Why is time an important ingredient?
You have to sell your customer that now is the best time to make this purchase. You do this by talking about any specials or sales you have going on at the moment. You need to create the sense of urgency – this could be done by explaining what could happen if your customer put off the purchase until a later time – how much could it potentially cost? Customers are more afraid losing something, so use this fact to create urgency.

To recap – you need to sell yourself, the business you represent, the product itself, the price of that product, and the fact that there will never be a better time than now to make this purchase.

If you miss the sale, look back to see which of these 5 ingredients is missing – it will be one or more of them.

Sales & Lead Generation: Webinar & Tips from Sales expert

by Shana Fong on June 14, 2011
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Join Efficiency First for their next webinar to learn how to improve your close rate, increase average project size, and more.

Sales & Lead Generation
June 16th, 2011 @ 12:30pm EST/9:30am PST

Is your conversion rate from audit to retrofit not as high as you want? Are you relying solely on a government funded program’s marketing campaign to get you through? Is your average job less than $8,000 per home? Then this is the Webinar for you. Learn from sales professionals about increasing your lead generation and improving your bottom line. Learn how to build relationships with lead generation sources including real estate professionals, single measure contractors, etc. Qualifies for 1.5 BPI CEUs.

EF Members: CLICK HERE TO LOG IN TO YOUR ACCOUNT & REGISTER FOR THE WEBINAR.

Non-Members: CLICK HERE TO REGISTER & PAY A ONE TIME FEE FOR THE WEBINAR.

How do your skills compare to Home Performance Industry needs?

by Shana Fong on May 10, 2011
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The Home Performance Resource Center is offering a Career Self-Assessment quiz to help you better understand whether a career in home performance is a good fit for you.

According to Efficiency First:

This tool assesses your preferences and skills in five areas: physical aptitude, social and technical problem solving, basic construction knowledge, sales skills, and work environment preferences. The skills and preferences that are assessed through the Career Self-assessment align with the profiles outlined in the profile page and informational pages within the Career Resources website. This tool enables participants to assess their fit in the Home Performance Industry and help them match their skills with key skills needed in this industry. The Self-assessment takes users an average of 20 minutes to complete. When users have completed their Self-assessment they will be issued their results in real time. Users can also email their results to themselves and other interested parties.

Click here to take the quiz.

The Five Ingredients in a Sale

by Shana Fong on April 26, 2011

Source: ACCA Contractor Excellence

Most salespeople have been trained on certain steps to a sale. It may have been a 10-step selling system, maybe a 12 or 13 step selling system – they are all pretty much the same, as selling really hasn’t changed since the beginning of time when Eve was sold on taking the apple from the serpent.

The main steps to a sale are as follows:

  • Meet and Greet
  • Interview – build rapport – investigate
  • Select a product or service
  • Present that product or service
  • Demonstrate that product or service
  • Trial Close
  • Service & Parts
  • Negotiations
  • Close

Let’s now discuss the ingredients.
There are five ingredients that every sale must have. In other words, you as a salesperson must sell these 5 things. They are:

You – you must be able to sell yourself first and foremost. Not many people will buy what you are selling if they don’t buy you first. Yet if you sell yourself, a lot of people will buy whatever you are selling!

Who You Represent – Why buy here? You must be able to sell your customer on buying from your place of business. There are other vendors out there selling similar products with similar prices, so why should they buy from the company you represent? A professional salesperson will honestly believe that they are representing the very best company in the field, and therefore believe in that company. Selling that company then becomes easy. If you don’t think you represent the best – change companies!

Product – You need to be able to sell the product – this is probably the easiest of the 5 ingredients – use the presentation step in the steps to a sale above to do this. As with your company – if you don’t believe you are selling the best product, do something about it.

Price – If you can’t sell your potential customer on the price of the product, go back to the product itself – have you done the best possible presentation of the product? Remember that customers buy benefits, not features. Build value in the presentation and demonstration stages to help sell the price.

Time – Customers need to hear that there will never be a better time to buy this product or service than right now – you need to sell them on this fact by creating urgency.

I am going to discuss each step in more detail – this article will cover the first one, and the others will be covered in more detail in a subsequent article.

Selling You
Your customers will judge you initially using 3 of their 5 senses. They will look at you, smell you, and listen to you.

So, how do you look? Did you shave today? Do you need a haircut? What do your clothes look like?

How did you look when you went on that very important date with someone you wanted to impress? What did you do to prepare for that date?

Here’s what I think – you went to extreme lengths getting ready, chose your clothes carefully, asked other people for their opinion, showered, shaved (guys as well!), clipped fingernails, ironed clothes (yes, that contraption that plugs into the wall and hisses), polished shoes, and put on some “smell nice.”

Why did you do that? Because you were trying to sell yourself – that’s why! You knew that the person you were hoping to impress was going to look at you and assess you. You knew they were going to smell you and assess you. You knew that they were going to listen to you and assess you. You also knew that in order for any relationship to develop, you needed to pass these tests, so you went all out to impress. Anything less just wouldn’t do.

Here’s what else I think – you don’t go to these lengths each and every day for potential customers. Why? Probably because you think you are a good enough salesperson that you can still win your customers over without having to go to so much trouble. You see we are a lazy bunch, us salespeople. We like to do as little as possible in order to gain as much as possible.

What would happen if we made the very best first impression every time, every day, without fail, no exceptions? Are you willing to even give it a try? What is the worst that can happen? Absolutely nothing different than now, right?

How else can you sell yourself? Use the steps to a sale above – the first couple of steps are crucial. You must conduct a professional meet and greet – introduce yourself, allow the client to establish eye contact with you – maintain a sincere smile – have a firm, professional handshake – control your voice.

Conduct a professional interview/fact finding/rapport building session. Allow the client to do most of the talking – the more they talk, the more they will like you. This is not a time to sell, it is a time to allow the customer to get to know and like you. This needs to be a conversation like you are talking to a friend – not an interrogation.

Work hard on selling yourself – all the ingredients are important – I happen to believe that this is the most important of the five, you sell yourself and the world is yours.

EGIA, BPI, and Efficiency First are proud to announce the Business Performance Makeover Contest!

by Shana Fong on April 6, 2011
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EGIA, BPI, and Efficiency First are inviting Home Improvement, Home Performance and Energy Efficiency Contractors from across the country to enter for a chance to win a yearlong “Business Makeover” bundle of prizes consisting of a wide range of business services worth up to $50,000 or more. The prize package may include:

  • Website design
  • Payroll and accounting services
  • Marketing and sales consulting
  • Manufacturer and distributor networking
  • Building science training
  • Software
  • Tools and equipment
  • Business development consultation
  • Energy efficient services and products

The winners will be announced on Earth Day 2011 (April 22). The actual prize packages will be determined based on an extensive evaluation of the contractors’ business and other criteria.

The Business Performance Makeover Contest will be conducted nationwide to find two contracting firm owners that want to dramatically grow their businesses in 2011. Owners of home improvement, home performance and home energy efficiency-related installation companies will enter to win online by answering questions about their current business and 2011 plans for growth. An advisory board comprised of industry professionals and contest sponsor organizations will assist EGIA, BPI, and Efficiency First staff to select the two contractors with the greatest potential to demonstrate business growth. The winners will be a traditional single-measure home energy efficiency contracting firm and one comprehensive home performance contracting firm.

Learn more and register at www.egia.org/contractorcontest2011

Join us at ACI!

by Shana Fong on March 11, 2011

We’re less than three weeks away from ACI National Home Performance Conference, our industry’s biggest event. If you were at the conference last year in Austin and went to our opening night party (complete with Wild West entertainment), you already know just how fun this conference can be. Oh, and there will also be plenty of learning opportunities too.

Recurve is all over ACI again this year. Here are the sessions and other places you can catch us at. We would love to talk to you!

TUESDAY MARCH 29

Home Energy Summit

8:30am-10:00am
Engaging Markets and Private Capital To Achieve Our Long-Term Goals

Matt Golden, Recurve’s President and Founder, will be kicking off the second day of the Home Energy Summit, which includes heavy hitters such as Katherine Hogan of the DOE, Dian Gruenich formerly of the CPUC, and Commissioner Karen Douglas of the CEC.

2:45pm – 4:00pm
Breakout Session: Effects of Program Design on Delivery by Contractors

Adam Winter, SVP and cofounder of Recurve, will be co-leading a breakout session along with folks from WellHome, Distinct ENERGY Performance, and more.

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WEDNESDAY MARCH 30

1:30pm-3:00pm

Beyond Your Certification
Matt Golden will be helping session attendees plan a successful business strategy post-BPI certification. Joining him will be Tiger Adolf of BPI, Courtney Moriarta of WellHome, and Sam Flanery of Michigan Energy Savings.

3:30pm – 5:00pm

Optimization of Performance Financing Through Innovation
Another appearance by Matt Golden, this time alongside Sammy Chu of Long Island Green Homes and Dan Kartzman of Powersmith, to speak about LIGH program’s integration with Recurve Software and Powersmith home energy upgrades as an example of program design success.

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THURSDAY MARCH 31

10:30am – 12:00pm

Energy Upgrade CA: Game Plan for Market Transformation
Another breakout that Matt Golden is participating in, this time teaching attendees about how the Energy Upgrade California program is leveraging federal stimulus dollars to grow the building performance industry and create jobs, while addressing the typical challenges that programs face. He’ll be joined by Leif Magnuson of the EPA and several others directly involved in the program.

1:30pm – 3:00pm – in the foyer of the exhibit hall
Join Chris McClellan, Sales Manager at Recurve, for an in-depth demo of Recurve Software. He’ll show you how Recurve Software helps you do more energy audits every week, generate accurate savings predictions, and present polished reports and proposals on-site. At the end of the demo, he’ll also be giving away a tablet to one lucky winner! So be sure to visit us on the tradeshow floor at booth 601 to sign up for a free trial of Recurve Software and enter the contest.

3:30pm – 5:00pm (a very busy timeslot for us!)

National Policy Update
Yet another session with – you guessed it – Matt Golden! Get an update on current national and state trends in public policy, including HOME STAR, utility data access, ARRA funded programs and California state financing recommendations for programs in wake of PACE. The session will also cover how contractors can get involved in upcoming program opportunities. Other presenters include Stephen Cowell of CSG,, Rick Gerardi of WellHome, and Kara Saul-Rinaldi of the National Home Performance Council.

A Hard Look at Software: The End Users’ Perspective (Panel)
Chris McClellan will be discussing how software can help you streamline your business operations while increasing sales and improving quality of service through real-life examples of how users have successfully integrated various software solutions into their day-to-day operations. Chris will be joined by Skye Dunning of Building Performance Specialists and Elise Brown of Evergreen Home Performance.

Selling Home Performance: Where Mastic Meets the Sheet Metal
Jason Bowers, Recurve Local Operations General Manager, will be teaching contractors how to increase close rates and sell larger work scopes, along with Casey Murphy of ICF International and Eric Howarth of EGIA.

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Don’t forget to come visit us for a software demo, to enter our contest (we’re giving away THREE tablets!) or just to say hello on Wednesday & Thursday during the tradeshow hours. We’ll be holding down Booth 601.

How software can help contractors doing energy efficiency, HVAC, and more

by Shana Fong on March 2, 2011
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As featured in Green Building Journal, Matt Golden, President and Founder of Recurve Inc., discusses the role that software plays in the contracting profession, and how professionals today need targeted applications. Software solutions lead to a variety of benefits including reduced audit times, reduced costs for customers, and an increase in accessibility among professionals.

The key to home performance he says is a holistic approach to the problem. Software applications today need to be flexible enough to appeal to all types of business, ranging from the small-scale insulation jobs to high-end retrofits. In the end he is optimistic about the direction the trades are heading, and offers up advice to professionals looking to take the plunge into software.

The Most Powerful Contractor Marketing Weapon

by Shana Fong on January 21, 2011
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(Hint: You Already Own It)

Source: ACCA

An old saying states that people don’t care how much you know until they know how much you care. Don’t let your familiarity with the saying make you numb to its far-reaching business power.

Like many of you, we’ve been involved in numerous contracting projects over the years. We’ve built a home, renovated six buildings, and hired for all sorts of projects from retiling to roofs to remodeling a kitchen. We’ve had some go wrong, such as the sheetrock job that looked like a drunken rhinoceros careened off every wall. We also had a tile setter mix boxes of tile mid-job, creating a really nice two-tone effect that he defended as stylish. Thankfully, these miscues are in the minority.

The majority of the contractors have been exceptional. Yet there’s one trait among even the good ones that causes their rehire rate to be barely higher than that of the rotten ones. This mistake totally short circuits future calls and referrals, and it’s costing you a fortune, even though the power to correct it exists in your company, right now, today.

The mistake is ignoring the relationship.

See, a bad contractor (whether he knows he’s bad or not) doesn’t get a callback or referrals due to poor work. And a good contractor most often doesn’t get a callback or referrals because of inattention to his customers. Same result, for entirely different reasons.

Out Of Sight, Out Of Mind
Think of your past friends and relationships. The most common reason they’re in the past and not the present is you fell out of touch. You might have even been a good friend with much in common, yet if not in touch, you’re not on the friend list. There are even figures to back this up. According to a Good Housekeeping survey of those who purchased from contractors:

  • Thirty-seven percent said the relationship was the most important reason.
  • Twenty-two percent said it was because you stayed in touch after a previous purchase.
  • Fourteen percent were referred by a friend or family member.

Add those up, and 73 percent of your sales have some relationship tie-in.

Unfortunately, most contractors just service them, bill them, and hope for the best.

So, how do you rank in terms of customer relations and retention?

With minimum retention efforts, you get a call, and it’s answered by the nearest minimally trained receptionist. You schedule, show up, do the work, present the invoice, then go home. No follow-up is attempted. You assume, “If they need me, they know how to reach me.” Unless you live in a town with exactly one contractor, good luck.

With average retention efforts, your call handling quality is dependent upon who answers. You deliver what you consider fair — no more, no less. Techs are intermittently trained. Some customers get an agreement offer, some don’t. Your CSR may make a call-behind or send a thank you note, but this is not systemized. Newsletters and follow-up range from spotty to nonexistent. You dabble with improvement but with little lasting change. Customers feel the inconsistency and migrate away. Repeat calls and referrals suffer miserably.

With maximum retention efforts, you categorize poorly trained employees as unethical business. You answer the phones consistently and make consistent high-quality presentations. Follow-up is automatic, starting with happy calls and a thank you card that contains a referral request. Seasonal newsletters go out like clockwork. Your website, value-building ads, forms, and leave-behinds are not purely sales pieces (though they boost prices and closing ratios) but educational customer-awareness tools. Customers get outbound messages from you — online and offline — eight to 14 times per year.

If you’re in the maximum category, congratulations. You also probably dominate your market and not by coincidence. Yet for the others, don’t make this too hard. Start simply with two things:

  1. The thank you note and call. Even the most basic thank you note (automatically generated and about 45 cents worth of effort) tells customers they’re valuable. It’s so easy to do and so easy not to do. Most choose the latter.
  2. A newsletter. Since thank you notes are transaction based (and thus sporadic or potentially forgotten between visits), you must have at least one calendar-based item. A quality newsletter sent out two to four times a year will position your company branding as different from perhaps 90 percent of the other contractors in town. That’s an incredible advantage for not much money.

Start where you can. Your customers, company, and profits deserve the boost.

Are You Overpaying for Electricity?

by Shana Fong on January 7, 2011

You may be paying too much for electricity. Shop around, check your meter and check appliances.

Your electric bill is probably increasing, even if you still turn off the lights whenever you leave the room. The Denver Post recently reported that the price of electricity for most residences here in Colorado jumped 15 percent in the past year. Both electric rates and additional fees on electric bills are going up around the nation. However, you can potentially minimize cost spikes by carefully reading your bill, checking your consumption and comparison shopping.

Check their Work

The convenience of automatic bill pay and online banking comes with a danger. We may be less diligent about reviewing utility bills, and may even miss a major spike or an erroneous charge. Even if you don’t have to write a check, review the usage listed on your bill every month. Compare electric usage to previous months in kilowatt-hours, not dollar amounts. The actual bill may vary for the same amount of electricity depending on added fees or rate hikes, but more on that later.

The average home uses 920 kilowatt-hours (kWh) of electricity per month, according to the U.S. Energy Information Administration. It’s fairly easy to use less than the average by switching out light bulbs, turning down the thermostat, turning off vampire appliances, etc. However, if your bill shows significantly higher consumption, either you or the electric company may have a problem.

• An unusually high bill may simply be an accounting error or a misread meter. You can double-check the electric company’s work by looking at your meter. It should be slightly higher than the meter reading at the end of your last billing period.

• If the meter and the bill match, but the usage seems unusually high, make sure the meter is working correctly. It should stop spinning when you turn off every appliance, light and gadget (though it’s easier and more foolproof to test the meter by shutting off all your breakers). If it still spins, it may either be broken or a neighbor’s circuit is inappropriately wired onto your meter. You can also ask most utility companies to test the meter for accuracy.

Shop Around

If the meter is working and the usage is reasonable, but the bill is unreasonable, you may have more options than you think. Many states have recently opened their utility markets to new competitors. Texas has a particularly robust electricity market. I found more than 20 rate plans from at least six providers for a ZIP code in Dallas.

You may still effectively have a monopoly, but the company may offer various rates. Look for long-term contract savings and low-income discounts. Also opt out of any renewable-energy premiums if your only goal is a lower electric bill.

Know Your Usage

If you are getting the best possible rates and the meter is working, faulty wiring or a faulty appliance may have cause the spike in your bill. If you switch off all the breakers and the meter stops running, test each circuit and each appliance. Unplug everything, then individually turn on breakers and plug in each item.

If the meter starts to spin with a breaker on but nothing running on that circuit, you may have faulty wiring. More likely, the meter will really get going when you turn on the air conditioner or other electricity hog. Use a watt-hour meter, such as a Kill-A-Watt, between the outlet and the appliance to check the true energy usage of your devices and appliances.

If you think you are overpaying for electricity, check the electric company’s numbers and meter, then check your wiring and appliances, and shop around if you can.

Source: Networx

How to clean up a broken CFL

by Shana Fong on November 18, 2010
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CFLs contain a small amount of mercury sealed within the glass tubing. Here are some detailed instructions from the Environmental Protection Agency on how to safely clean up and dispose of a broken CFL bulb:

Before Cleanup: Air Out the Room

  • Have people and pets leave the room, and don’t let anyone walk through the breakage area on their way out.
  • Open a window and leave the room for 15 minutes or more.
  • Shut off the central forced-air heating/air conditioning system, if you have one.

Cleanup Steps for Hard Surfaces

  • Carefully scoop up glass pieces and powder using stiff paper or cardboard and place them in a glass jar with metal lid (such as a canning jar) or in a sealed plastic bag.
  • Use sticky tape, such as duct tape, to pick up any remaining small glass fragments and powder.
  • Wipe the area clean with damp paper towels or disposable wet wipes. Place towels in the glass jar or plastic bag.
  • Do not use a vacuum or broom to clean up the broken bulb on hard surfaces.

Cleanup Steps for Carpeting or Rug

  • Carefully pick up glass fragments and place them in a glass jar with metal lid (such as a canning jar) or in a sealed plastic bag.
  • Use sticky tape, such as duct tape, to pick up any remaining small glass fragments and powder.
  • If vacuuming is needed after all visible materials are removed, vacuum the area where the bulb was broken.
  • Remove the vacuum bag (or empty and wipe the canister), and put the bag or vacuum debris in a sealed plastic bag.

Disposal of Cleanup Materials

  • Immediately place all clean-up materials outdoors in a trash container or protected area for the next normal trash pickup.
  • Wash your hands after disposing of the jars or plastic bags containing clean-up materials.
  • Check with your local or state government about disposal requirements in your specific area. Some states do not allow such trash disposal. Instead, they require that broken and unbroken mercury-containing bulbs be taken to a local recycling center.
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