HVAC Marketing and Advertising from Contractor 20/20

April 5, 2012 | Author

Here at Contractor 20/20, we can boost your HVAC business in as little as a week. Our proven marketing strategies help bring customers to you. With our help, your business will grow through our HVAC advertising and marketing methods. These strategies are chosen to be the best for your business and the market you are in, ensuring that your investment in advertising will be rewarded.

The Internet is the new realm for getting word out about your company. Our Internet marketing strategies improve how Internet users can find your location online. We design sites with search engine optimization for HVAC companies in mind. Website SEO means that customers searching for an HVAC contractor in their area will be more likely to find your website by typing in their location and keywords relating to heating and air conditioning services. If you need to improve your image online, we have a variety of web packages to meet any business needs or budgets.

Traditional HVAC marketing methods remain effective, despite the rise in high-tech communications. We have newspaper, radio, and television advertising options if you would like to promote your business using one of those. Another means of marketing we use is direct mail. This literally puts the name of your HVAC business into the hands of potential customers by sending advertisements directly to them in the mail.

You are in the business of running an HVAC company, not marketing. You do not have to be an expert in advertising to increase traffic to your business. Let the experts with Contractor 20/20 improve your image and business through a variety of marketing and advertising means. If you are ready to attract more customers and boost your bottom line, give us at Contractor 20/20 a call at 607-770-8933 ext. 80.

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Keys to Better Profits in 2012

February 24, 2012 | Author

Congratulations, you have survived the worst economic downturn in 70 years. Now let’s make 2012 a great high profit year! I know that some of my friends are in states with higher-than-average foreclosures and unemployment. Both the competition and consumers are so desperate that high profits at this time are just impossible. I am told in these states, for example, you will find the terrible challenges of out of work new construction guys driving down prices and consumers doing “just the minimum” driving down average sales. Even with the best targeted marketing and cost controls, success is desperately difficult.

In your situation any profit is a high profit.

The good news is if the economy improves, your situation will improve. If the economy does not improve, then as your weaker competitors go under, you will grab their customers and your situation will improve.

The last man standing wins.

If you use the advice below, then time is your friend. The fact is that the long term trend is that more men are retiring out of the trades than entering them. This fact by itself means that regardless of the economy in general, better times are ahead. For those left, the only thing that stands between you and high profits is you.

The Keys to High 20% net or Better Profits in 2012

1. Keep overhead in balance with sales

  • Maximize sales to existing customers:

To do this you must retain as many customers as possible by

a) Mailing 1/3 of them each month

b) Building extra value into the sale by reminding customers, at the time of job completion, of the guarantees that they received

c) Leaving stickers, magnets, and outside window thermometers to “brand“ the home

d) Making happy calls to make sure the tech was competent, friendly, worked clean, and left the customer satisfied

e) Making sure your tech has the right sales training and the right sales tools to maximize his average ticket

f) Using an effective message on hold that keeps customers online and upsells your products and services

  • Set a sales goal for new customers

To do this take your overhead percentage goal, let’s say 40% for example, and divide it by your current overhead. $400,000 in overhead divided by .4 would set your sales goal at $1,000,000. Now take the sales goal minus your repeat customer projection equals your new customer sales goal. Now compare your last year’s advertising budget to the amount of new sales it generated and the result is your new customer percentage cost. Take that number times your new customer sales goal and the resulting number is the EXTRA ad budget needed to hit your sales goal. Now build that cost into your pricing. Then research and test what methods are best to get new customers in your particular market, then master those methods.

a) Radio and TV, with a jingle and easy to remember phone number. It’s the lowest cost way to build your top of mind awareness

b) Internet marketing … the lowest cost way to snag customers ready to buy

c) Billboard and movie theater advertising to build name awareness

d) Direct Mail … works only with the right art to an extremely narrowly targeted group

e) Yellow pages ads and stickers … You need the right ad at the right price in the first six pages of the right sections.

f) Door hangers … a plastic bag filled with goodies and a letter talking about work you have done for neighbors with coupons

g) Mailers to new movers into your market area

h) Buy the phone numbers of competitors gone out of business

i) Consolidate and purchase weaker competitors

j) Trade or pay for leads from other trades, online sources or civic associations.

Key fact: for every $1.00 you can cut in unnecessary expenses you can cut $2.50 off your sales goal, that is why good consult from a real overhead efficiency expert pays for itself

2) Get your labor and material pricing right …. To keep gross profits at 60% of sales

3) Keep your operations delivering high quality service efficiently… so you can keep prices low enough and quality high enough to retain a minimum 75% of past customers

4) Branding your company … as the one that guarantees their work , has drug tested security screened techs … that give an upfront “no surprises “ price , that is a positive force in the community … that is an ecological , ethical leader

5) Consistent Prayer

-Mike Morosi, President

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Marketing Facts of Life

February 1, 2012 | Author

Job 1: Retain the customers you have – Cost 2% of the sale

Job 2: Acquire the New customers you need to hit profit goals and keep overhead under control

  • Cost plumbing 16 to 20% of the sale
  • HVAC service 16 to 20% of the sale
  • HVAC replacement 8 to 12% of the sale
  • Electrical 30 to 36 % of the sale

GOALS

  1. The right pricing to drive gross profits to 60%.
  2. The right marketing to drive overhead cost down to 40% leaving 20% in net profit.
  3. The right branding to attract high profit customers and make you a community hero & celebrity
  4. implementation.
  • Set a sales goal then discover what revenue streams afford you the greatest ROI!
  • Then exploit them to the level needed to hit your goals and then pass the cost on in pricing.

Getting it Done!!!

BRANDING

Let us now consider branding. Finally, we determine what your current company’s brand actually is through phone surveys to your customer base. We then shift the brand, if needed, to an image that will maximize sales and profit.

Consider a Tylenol vs. Acetaminophen case study. There’s no real product difference. There is only a perceived difference in quality that allows for a huge difference in price and profitability. Also consider Hilton vs. Holiday Inn where there are real differences in product and service that allow a great difference in pricing.

Consider what builds up your brand. Things like uniforms, booties, on-time service, expert service, uniformed Techs, drug tested field staff, sales training, customer testimonials and more.

You are the company that:

  • Gives an upfront price
  • Guarantees that price
  • Guarantees the work
  • Has only drug tested, security screens techs
  • Shows up on time
  • Has courteous, clean techs who don’t leave a mess

Then improve your Brand so you can maximize Profits

MESSAGE ELEMENTS & DELIVERY

  • Top of Mind Positive Name Awareness
  • Who you are, where you are, what you sell
  • Why emotionally customers should by from you – trust is the key
  • Why practically customers should buy from you – knowledge and guarantees are the key
  • Why now – prevent future problems or get extra savings

TV and Radio when the coverage area fits your market area 50% or better is the best way to build name recognition and branding.

Radio and TV- $10-$15 per thousand

Cable TV $25 to $40 per thousand is the most cost effective way to build name recognition and positive name awareness vs.

Direct Mail – $400 per thousand

You can reach somebody 40 times on radio and TV for every one Direct Mail. You can reach somebody 16 times on the radio and TV for every one time in the newspaper.

TARGETING

One target, two types of customers. Mid to upscale homeowners are great, the older the better.

Remember that with HVAC in particular you are dealing with two types of customers:

  1. Customers who like regular maintenance: you are going to get these customers when they are new to the area or when they have a bad experience with their current supplier and are ready to make a change.
  2. Customers who only fix it when its broken: these customers are the ones that are going to find you on the internet or yellow pages, and also respond to your direct mail.

SERVICE AGREEMENTS

The key to success in HVAC is service agreements. 1 out of 15 service agreement customers to 1 out of 20 will naturally lead to a replacement in a given year.

TUNE UP TIME

In terms of handling HVAC, you mail the customers who you did tune ups for in the last 3 years two times. The ones that don’t respond, up to 18 months old, should be called to set an appointment.

GET YOUR BRANDING RIGHT

  • Spread the good news
  • Keep your existing customers
  • Get enough new customers to conquer your overhead (Enough wind under your wings to stay airborne)

Then you win!!!

TELEMARKETING TIP FOR NEIGHBORS

There’s even a successful strategy of calling that can be done to neighbors saying you are doing work in the area and you just keep dropping the price until you have a full day of work for your technician right in the same neighborhood. Be careful to obey “do not call” rules.

THE EASY MONEY IN INTERNET AND DIRECT MAIL MARKETING

Internet: Business Looking for You

Tip: Keyword your competitors’ names

Find a proven provider, then it’s a proven Internet Marketing Fact. If your internet marketing is earning less than $5 to $13 for every dollar invested you are missing the boat!!

There are 4 issues with the internet:

  1. Quality of your website: attractive and passive SEO
  2. Pay per Cick Google Ad Words: keyword target your completion
  3. Maps Section and reputation management
  4. Organic SEO promotion

All of which, with proper management, you can gain top position on. Then there are referral sites? Friend or foe, providing leads or stealing your leads

DIRECT MAIL: THE EASY MONEY

We first recommend retention: direct mail, post cards, newsletters, and thank you notes to your base. They are easy and proven successful to get $8 to $16 for every $1 invested. They also improve your customer retention 9 to 11% and get $8 to $16 for every $1 invested. It’s a no brainer.

THE “NOT SO EASY“ MONEY IN DIRECT MAIL

Regarding direct mail to the public, we now have targeting for new customers based on the 60 personality types. First we profile your customers and find the top 10 personalities that now choose your company. Then we combine that info with the profiles of the general public done nationwide for 500,000 customers of professional high end contractors like you. We narrow your targeting down to the 15 best personalities most likely to buy, mail them, and see who responds enough to drive profit. Then we help you target only your company’s top 5 “Gold Mine” personalities for future high profit mailings. Yes. After 35 years we have got it down to a science…

REVENUE STREAMS

Test it, track, keep what works, and dump what does not:

  1. Mass Branding with TV and Radio with a proven message
  2. Retain the customer base using Direct Mail
  3. Email Marketing with Newsletters
  4. Heavy Door Hangers with plastic bags with a letter saying you did work for the neighbors with pizza cutters, jar openers, pens, etc. These types of door hangers work the best.
  5. Weekend Newspapers with ads saying “Don’t worry, we are here if things break down over the weekend”
  6. Direct Mail to extremely narrow targets
  7. Combine Plumbing’s long shelf life with HVAC ads to extend the life of your HVAC advertising
  8. Telemarketing to customers you’ve done work for in the last 18 months, and telemarketing scripts to the public. There are Service Roundtable Members that have extensive experience with this who will happily share their scripts.
  9. Yellow Pages
  10. Message on hold
  11. Pay per Click
  12. Google Places
  13. Billboards
  14. Leave Behinds
  15. Online Directory
  16. Church Directory
  17. Newspapers: Fri /Sat don’t worry, we’re open weekends

SUMMARY

  • Get your price right
  • Get your branding right
  • Spread the good news
  • Keep your existing customers

Get enough new customers to conquer your overhead and enough wind under your wings to stay airborne. Then you win!

For teaching videos and testimonial

http://www.contractor2020.com/plumber-video-marketing.html

607 770 8933 x80 for a Free Initial Consultation

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