Lawn and landscape companies are in the sales and marketing business as much as the grass cutting business, says general contractor and business speaker George Hedley. Grasp this idea, he says, and your profits will soar. “Doing good work won’t get you enough work,” Hedley told an audience at the GIE+EXPO in Louisville, Ky., last October. “Companies need written marketing plans, a strategy to build relationships and a system to track your efforts.” Hedley says many landscape companies don’t even take the time to host regular, face-to-face meetings with their top 20 customers. “You need to meet with your top customers at least four times per year,” he says. There are “four differentials” in any industry, Hedley says – price, product, niche and relationships. The last one is the most important because it helps companies convey their competitiveness while providing the greatest return on investment. Effective marketers use a broad strategy that combines building personal relationships with other marketing activities. In addition to one-on-one meetings over lunch, sports games or concerts, Hedley recommends organizing regular direct mail and e-mail campaigns to gain customer attention. Want more loyalty and referrals over the long run? Let your top clients know that you value their relationship, he says– and have fun while you are doing it. “Most people are too busy working to make any money,” Hedley says. “My marketing plan is playing golf with my clients and waiting for the phone to ring. This strategy brings in millions of dollars per year with the same people.”
“I found out that ‘repeat customer’ just means I’m on their bid list,” Hedley says. “It doesn’t mean I get all of their business. I was competitive, but I didn’t stand out.” So he began to revise his goals. “Today, I try to develop loyal customers – people that will do business with me for a fair price on an ongoing basis,” he says. Hedley is not above using price as a negotiating tool – “I may buy my way in by bidding the job at a cheap price,” he says – yet he doesn’t stop there. Instead of constantly moving on to the next job, he develops long-term relationships with customers. Hedley offers a snapshot of his marketing plan. He sets a goal of seeing his top 24 customers at least four times a year by inviting them to hockey games, the symphony or to play golf. He spends $20,000 per year on such outings, but says it’s worth it. “You can make money schmoozing and having fun,” he says. Of course, you don’t have to spend vast sums of money wooing clients, Hedley says. In fact, you can develop a strong marketing plan using just a tiny fraction of your gross sales. “You just have to meet with people that can generate business for you – such as landscape architects, homebuilders and real estate brokers,” he says. Even Hedley, who is gregarious, doesn’t like making cold calls to strangers. Yet he likened these calls to “one-a-day vitamins” that net him additional business. Keeping an up-to-date customer mailing list and sending mail or e-mail to his entire database at least four times per year is also a critical move, Hedley says. For example, send customers special offers and useful information such as lawn care tips to get their attention. “You can do a lot with a little bit of money,” he says.
The message should also be targeted towards the clientele that you are seeking to attract. “A good motto talks about your customers – not about you,” he says. Delivering your message also provides you with another opportunity to sell your service. You can offer an exclusive on certain materials or a quality guarantee. Your message should be targeted towards services that your customers are interested in. “Don’t tell people that you’re good at everything,” he says. “You may need more than one brochure. For instance, develop a piece on your expertise in creating water features, and target it to people interested in this service.”
Many customers discontinue a service because they think their contractor “doesn’t care about them,” Hedley told session attendees. These customers often don’t drop lawn care services altogether – instead, they engage another contractor because they haven’t developed any loyalty. Hedley cited his own experience as an example. He says that he doesn’t know his landscaping subcontractors because his project manager hired them and they’ve never thanked him. “I don’t know them because they don’t know me,” he says. “I feel like I’m just a number to them. A change order request is the only time I hear from them.” Hedley sums up his message: “Go where you’re invited and stay where you’re appreciated. One of his favorite contractors is his carpet installer because he brings Hedley gifts. “He stops by my office every few months with a $20 bottle of pinot noir,” Hedley says. “He knows the kind of wine I like. He went to Scotland on vacation last year and brought me a golf book. Now he’s earned all my business for the year.” Perhaps Hedley’s least favorite contractor is the one who gave him a wine basket that he later saw on sale at Costco. “A few days later, I saw it for nine bucks,” he says. “That’s embarrassing. I gave that guy $4 million in business last year.” Hedley adds, “Get me my favorite wine, and you’ve got me for life.” L&L The author is a freelance writer based in Cleveland. |
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