Every construction business owner’s goal is to win or negotiate more work at higher margins against less competition. But contractors are generally too busy working and building projects, and therefore put their sales activity as a second priority. Business is simple–GET WORK and DO WORK. To develop a steady sales pipeline full of high-margin customers and contracts takes a commitment to make getting and winning just as important as doing work. To supercharge your sales process, win higher margin work and grow your business, follow these 10 steps:
1. Stay Focused on Getting More Work!
Profitable construction company owners dedicate almost 25% or more of their time on the “get work” side of their business. They hold monthly sales strategy meetings, review their sales award tracking results, focus on building customer relationships, make sales calls weekly, and make sure their company sales plan is operating on a continuous basis. They also focus on potential, future, current and recent proposals, estimates and bids. And most importantly, they concentrate on pro-active follow-up after submitting each and every bid and proposal.
2. Create a Target Market Customer List!
To keep the sales pipeline full, make a list of your top 20 to 200 current and potential customers, existing and new markets, and new targets you want to go after. Look at the jobs you have completed or bid in the last five years. Who was the customer, architect, engineer, project manager or any other person who might have influenced the decision to hire your company? Also list out any new or potential targets you want to attack. List out all of these on a spreadsheet ready to rank and sort in order of priority and profit potential.
3. Develop a Sales Action Calendar!
Now that you have a sales customer target list, start with the customers you already know. Decide what sales activity will potentially improve your chances of winning work with them. Include the specific sales activity for each target and how often you will attack them (minimum three times per year per customer). Sales activities can include: meetings, lunches, ball games, trade shows, industry dinners, golf, fishing, mailings, postcards, gifts, lunch and learns, presentations, field trips, information, brochures, etc. Keep track of your sales activities monthly on your sales action calendar.
4. Build Loyal Customer Relationships!
In the construction business, the biggest sales bang for your buck is creating customer relationships with top customers, most desired potential customers, and quality referring parties who can refer you lots of work. For most construction companies, focusing on creating 10 to 20 loyal customers is all it takes to build a highly profitable business. Pick the top 20 best customer targets you want to go after, and work hard to convert them from one-time or past customers to repeat, and then to loyal customers.
5. Build a Referral Sales Program!
When visiting your top 20 customers, make it a priority to ask customers for referrals to people they know who can use your services. This will ensure a quality target list to use to expand your customer base. Remember, don’t ask, don’t get! After they give you a referral, send them a thank-you gift as appreciation for their help.
6. Do Your Website Right!
Do your website professionally and keep it up to date. Your website must be a showpiece for what your company does best. It must list out why customers should hire your company and what types of work you specialize in. Include a home page, business profile, competitive advantages, your expertise and specialties, client list, corporate team, key management resumes with photos, project progress and completed photos, testimonials, and a detailed research center giving customers information to use for their upcoming projects.
7. Build a Super Sales Pitch!
Develop a laptop presentation to carry with you and present when in front of potential customers. Also create several small tri-fold brochures, flyers or postcards for each of your project expertise niches you specialize in. Spend the cash on your sales presentation!
8. Get Active Where Your Customers Hang Out.
People want to do business with people they know and trust. A great way to become known is to join and get involved in your target customers’ industries, associations or communities where they can get to know you. The more you’re seen doing good things and helping out, the more people will see the good in you and call you to help them.
9. Don’t Waste Your Money!
Don’t waste your hard-earned money on giving out cheap t-shirts, pens, calendars and notepads to the wrong people. Save it up and invest in season tickets to your local sporting events and take your top customers with you. I have never seen a foreman, journeymen or apprentice wearing your t-shirt or baseball hat who then awards a construction contract to your company.
10. Should You Advertise or Invest in Social Media?
Placing ads in newspaper or magazines is expensive for contractors serving their local markets. You should invest in unique job signs, awesome-looking job trailers that stand out, bright company uniforms, clean and professionally painted trucks, and other ways to promote your company image in a consistent manner. The same for social media: Facebook, LinkedIn and Twitter. Invest time and money where you will get a high return and will attract high paying customers.
Now Go Make It Happen!
These sales strategies will make you lots of money! To get your sales supercharged, start by making a priority to target your top potential customers and build relationships. This will give you the biggest return on investment of sales time and money. If you take out two customers every week, it will only cost around $10,000 a year. This is small potatoes compared to making another $50,000 to $100,000 on your bottom line by developing loyal relationships versus winning all your work being low bidder. Remember, any sales process is better than a perfect process never executed.
George Hedley, CSP, CPBC, helps contractors grow and profit as a professional business coach, popular speaker and peer group leader. He is the author of “Get Your Construction Business to Always Make a Profit!” and “Hardhat BIZSCHOOL Online University” available on his website. Visit www.hardhatbizschool.com for more information.
