5 Steps to 18% Net Profit

Contractor 20/20 Provides 5 Steps You Should Follow to Maximize Your Net Profits

Contractor 20/20 has extensive knowledge and expertise in helping plumbers, HVAC, and electricians obtain higher profit margins by following tested and proven strategies, and you can benefit also.  Call them today for all your marketing questions. These five steps are crucial in order to have continued success with your business.

Step#1. Maximize Sales from prior customers.
DIRECT MAIL: The cure for slow months and increase customer retention.

1. We’ve looked at the most successful mailers of 150 companies and studied the expected rate of return from both repeat customers and the general public and pick the best for you.

2. We consider the effect direct mail has on the transfer of your sales from high demand months to low demand months, the effect on average ticket, customer retention and smoothing out work flow and cash flow.

3. When you get repeat customers to buy in a slow month that frees up time to serve more new customers in high demand months.

FACT: If you don’t stay in touch with past customers you are cheating yourself out of profits.

Step#2. Minimize the costs for new customers with effective yellow page advertising, TV/Radio awareness and effective direct mail to new prospects.
We target your most likely buyers by age or homeowner, age of home and home value. Our experience shows that over 80% of responses come from less than 30% of the homeowners. Our job is to get the “dead wood” off the list to maximize efficiency.
FACT: Most contractors lose the profit they work so hard for during slow times. That problem can be “cured” by effective direct mail.


1. We determine your cost per new customer.
2. We consider how your ads content, placement, as well as your top of mind awareness are affecting your results.
3. We show you how your numbers compare to the national averages and top results.
4. We recommend proven methods to increase response.

FACT: Proper placement, content and awareness method can make your advertising results six times better.

MEDIA SURVEY— We call every radio, TV and cable station in your area to determine the most efficient ways to build awareness.

1. Targeted to your best customers by age, gender, income and lifestyle.
2. Your target area-your service area.
3. We calculate the cost per percentage part of target audience reached with each commercial (CPP) to determine best advertising buys in your area.

FACT: Most contractors waste more then half their advertising dollars.

Step#3. Accurately track marketing costs.
Sorry, this information is proprietary and available only to clients.
Please call Mike Morosi at (607) 770-8933.

Step#4. Put your fixed and variable expenses in balance with your sales levels.
PROFIT POTENTIAL STUDY—we study costs; labor, material, overhead, average sale, hourly efficiency to determine optimum pricing and staffing levels.

1. Compare pricing and markups and customer retention
2. Hourly efficiency
3. Determine profit potential
4. History of marketing results
5. Positioning and slogans
6. Overhead, labor, materials and profit goals
7. Potential for extra sales during slow months using direct mail

FACT: Charging too much due to poor planning hurts your business just as much as charging too little and cheating yourself out of your deserved profits.

Step#5. Adjusting pricing to reflect marketing costs.
Sorry, this information is proprietary and available only to clients.
Please call Contractor 20/20 and ask for Mike Morosi at (607) 770-8933.

Emily Morosi