Marketing Facts of Life

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


  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!!!


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


  • 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.


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.


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.


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.


  • 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!!!


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.


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


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.


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…


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


  • 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!

(607) 770-8933 for a Free Initial Consultation

Emily Morosi