In every economy – in every part of the United States – there is always one consistent concern -that concern is a downturn in revenue. It is a legitimate concern, and one that should be prepared for. With the right preparation and marketing plan, you can survive an economic slowdown and even grow your company.
How to Survive and Thrive
The best way to survive, and even thrive, during an economic downturn is to get your company running at 20 percent net profit before the turndown. This means you need to be retaining good customers, marketing to right new customers, and making sure your overhead expenses are not out of control. The secret to 20 percent net profit lies in the relationship between your customer retention numbers, how your prior customers feel about your pricing, and your overhead expenses. At Contractor 20/20 we can show you how these numbers work together and it may surprise you. We have the tools and resources to help get you where you need to be before the downturn so that you can keep your company thriving and even acquire other companies (and their customer lists) that didn’t prepare. For example, in 2008 foreign investors bought up the real-estate foreclosures and then sold them back with a 50% profit. Downturns can be opportunities if you are prepared and positioned correctly before they happen.
How to Simply Survive
If you didn’t prepare for the economic downturn do not panic. The key to surviving is aggressively marketing to prior customers. Our research shows that even in an economic slowdown your prior customer base will give you your best return on your advertising investment.
Secondly, we would suggest re-evaluating your current overhead costs. If you are overstaffed, or money is leaking somewhere, you need to address these issues quickly. We have a system that can easily spots problems with overhead. Either you cut overhead costs, address overhead problems, or you pump up your sales through promotional advertising (in addition to marketing to prior customers). The most cost-effective way to successfully promote to new customers is to target the right customer. This really is key. We have the tools and resources needed to identify your best customer and get them calling.
Finding a Balance
Within this slowdown, in which you feel odds are against you and your business, don’t get negative. We can help you get through this. We can actually use this time to invest in a marketing plan that gets results now and puts you in a better position when you get through to the other side. Plumbers, electricians, and HVAC contractors can find a balance in these tough times when they enlist a key marketing team: Contractor 20/20. During slowdowns and upturns, we’re there to help you both survive and thrive! (607) 770-8933
