IRRIGATION SALES SUGGESTIONS - Saturated with Sales

What a potential customer can’t see can hurt business. That’s why contractors must sometimes put more effort into selling irrigation services than they do with more visual forms of business, such as lawn maintenance, construction and lighting.

"A lot of times commercial clients don’t see how necessary irrigation is until somebody explains it to them," says Mark Trendell, service manager for Chapel Valley Landscape Co., Woodbine, Md. "Also, it’s not aesthetically pleasing. An irrigation system is just there to support the landscape."

While standard marketing tools such as phone directories, direct mail pieces and door hangers are still being used, contractors today often depend more on referrals, networking and the Internet to generate new irrigation business.

REFERRALS RULE. About 85 percent of Grand Rapids, Mich.-based Grapids Irrigation’s new business is acquired through referrals, says company President Will Katerberg. The Chapel Valley Landscape Co. obtains 90 percent of its business through referrals, Trendell says. Referrals are generally spread through good work and reputation, but there are methods contractors can utilize that sometimes increase referral rates.

For instance, curious neighbors can present marketing opportunities for contractors. Grapids Irrigation workers occasionally attach door-hanger advertisements at neighboring houses when they’re on a job.

The cardboard cutouts notify nearby residents that the company is working in the area and offers a chance to view the completed project or the work in progress. Grapids Irrigation’s distributor provides the hangers for less than 1 cent each, according to Katerberg.

HydroPoint Data Systems, an irrigation systems manufacturer in Petaluma, Calif., even provides free door hangers to contractors who install the company’s specialized controllers, says Dale Hansen, HydroPoint’s vice president of sales.

Despite being a low- or no-cost marketing method, not everyone is convinced door hangers are worth distributing. Because of time constraints, Grapids Irrigation distributes only 300 to 400 door hangers each year, Katerberg says. "If we’re busy, we get lazy and don’t bother," he explains. "You’re taking a guy away from his job. I think it’s effective, but most of the time we haven’t needed it."

Contractors should keep continuity with colors and logos so residents can immediately identify a company when they receive mailings or other advertisements, Katerberg suggests. He compares this marketing method to repetitive radio or television advertisements, which typically convey the same message each time.

Logos also convey credibility. "People might ask, ‘Are they going to be here tomorrow if they can’t even logo their truck?’" Katerberg says. "Put your name on it if you’re not ashamed of who you are."

THE INTERNET. What would any business be today without the Internet? More contractors are embracing the Web as a marketing tool to attract computer-savvy clients.

Katerberg is investing more money into the company’s Web site, which he says attracts younger clientele than the Yellow Pages. "We feel that the jobs we close quickly and easily are the ones where the clients have done all their research," Katerberg explains. "They know who we are, and they’ve checked out our list of customers, affiliations, looked at jobs we’ve done and know as much about us as any of our employees."

The company first posted its Web site about five years ago and has made several upgrades since, including improved graphics, links to the company’s major manufacturers and faster navigating and downloading speed, Katerberg says, adding that he spent about $4,000 this year tweaking the company’s Web page.

About 80 to 85 percent of Grapids Irrigation’s clients say they’ve viewed the company’s Web site prior to calling, says Katerberg. He estimates the closure rate for people who have viewed the Web site at 40 to 50 percent. Katerberg attributes higher success rates to Internet access because it provides customers with instant, detailed information about the company’s services and history.

"Today’s younger consumer is much more knowledgeable and discerning," Katerberg explains. "They’ll go to Google and look for lawn sprinklers, look at our Web page, and then they’ll look to see if you’re linked with manufacturers who approve of your ability."

DIRECT MAIL. Targeting a specific demographic through direct mail is a popular marketing method for irrigation contractors but isn’t very effective, says Katerberg.

"The returns aren’t enough to make it worthwhile, but it’s one of those things that if you’re going to be in business, you have to do it," Katerberg explains. "You have to keep your name in front of people."

Katerberg estimates that only 1 to 1.5 percent of Grapids Irrigation’s direct mailings results in leads. Of those leads, approximately 4 to 5 percent generate business, he says. Grapids Irrigation sends 5,000 to 6,000 mailings four times a year to high-scale properties and new construction areas, which are selected by zip code.

"You want to market to people who aren’t going to go to Wal-Mart, pick up two plants and call it landscaping," Katerberg explains, adding that the company spends about $3,000 each year on direct mail, according to Katerberg.

The company’s irrigation distributor produces the mailings, which feature visuals such as a healthy lawn with sprinklers running and "Grapids Irrigation" prominently displayed. Katerberg signed a long-term contract with the distributor, so he pays about 75 percent less than what a one-time mailing would cost.

The mailings are sent as 8½–by-11 newspaper inserts or mailed in Valpak or private-mailing envelopes in which there are only five or six other advertisers in the package. The fewer advertisers in the package, the better because a company is less likely to get lost in the shuffle, says Katerberg.

Katerberg also mails coupons that offer current customers discounts, such as free irrigation system winterization, for referrals. But Katerberg says he only sends the mailings about once every three years to increase returns.

When Katerberg does mail coupons, he sends about 2,000 to 3,000 and might gain 15 promising leads and that if the calls result in sales, it’s a worthwhile investment, he says.

PHONE DIRECTORIES. Yellow Pages advertising is probably the most basic form of marketing any company engages in, but it can also yield low returns. Grapids Irrigation recently downsized its Yellow Pages ad for the first time in 20 years because the costs kept rising while legitimate leads remained low, Katerberg says.

Katerberg had spent about $1,000 per month on a Yellow Pages ad and is now paying $660 each month. The previous ad was 6-by-2½, and the current ad is about half that size, he says. Katerberg keeps the ads simple by just displaying the company’s name and phone number, and telling shoppers they provide residential and commercial irrigation work. "Otherwise, we get too many leads that are not good leads," Katerberg explains. "Your phone will ring, but you’re chasing for stuff where the potential client is calling 100 other people, too."

Phone directories tend to attract more price shoppers rather than consumers searching for quality and reputation, according to Katerberg. "When I get calls from the Yellow Pages, they say, ‘How cheap are you?’ And that means the cheapest guy wins," Katerberg says. But the ads are still necessary, he explains, because it helps establish a company’s legitimacy by showing it has a location and a phone number.

Grapids Irrigation’s ad generates maybe 30 calls a month that results in about 5 percent of business, Katerberg says. However, some irrigation contractors have more luck with Yellow Pages ads. Albuquerque, N.M.-based Just Sprinklers’ Yellow Pages ad results in about 20 percent of the company’s irrigation sales, according to company President John Seaver, who spends about $20,000 to $25,000 for a half-page ad.