Posts Tagged ‘Construction Industry’

How Upselling Works In Construction Marketing

Have you noticed whenever you buy a burger, the sales people always try to persuade you to “Go Large”, or have “extra fries” etc. Have you also noticed at the checkout of every superstore are racks of things you would not have thought of buying, but as you stand there waiting at the checkout, you suddenly realise all the things you “need”! Scary stuff! Real profits come when you get the client to buy a larger, more expensive, or more comprehensive product or service.

This is how it works in the construction industry:

EXAMPLE A: The Remodeler/Home Refurbishment – in the business of building extensions, bathrooms, sun rooms, loft conversions etc., How about suggesting certain enhancements at the point of survey. Or ask them if they had considered extending the work to include a the latest whiz bang disposal unit, designed to be 150% more efficient and thus delivering significant cost savings to your client.

EXAMPLE B: The Commercial Contractor – how about offering a Repairs and Maintenance service after the initial defects period following contract completion. This can deliver great benefits for your client because you already know the premises and can operate much more efficiently with the prior knowledge base you already have.

EXAMPLE C: The House Builder: If you are building housing schemes where a number of homes will be rented/leased you could offer and Liaison Officer based on site for the first 6 months after completion, to make sure people are secure in their homes, know where to find everything and are happy. You could offer this service as a free added benefit – this may be the deciding factor that will win you the contract over your competition! Alternatively, if the client/housing association/ local housing authority are intending to employ someone for this job, you could easily extend your business reach by supplying the right person for the job – someone who already knows the property and has proven qualifications to do the job.

EXAMPLE D: The Sub-Contractor: if you work for a number of larger contractors, the way you source the products you use is crucial. It may be that the main contractor already has an approved list of suppliers, but often good relationships can be established with individual Buyers to enable the Subbie to recommend where to source materials at competitive prices. A whole range of complex partnerships can be made to enable commissions to be paid and everyone benefits! Of course, it goes without saying that any deal agreed should be completely transparent and should ultimately benefit the client in terms of cost savings and quality products and services. One wrong move or “under the table” deal can result in lost credibility and trust. So keep everything above board.

EXAMPLE E: The Architect: Design & Build contracts are one obvious root to establish good working relationships with construction professionals on a project team and can be one way architects can “up-sell” their professional skills by working on a partnering basis. Partnered Contracts can be lucrative for all involved, including the client, but they have to be set up correctly to work efficiently. More about this in a later chapter. Architects who are willing to get involved at the Pre-Construction phase of a project on a “No Pass No Fee” basis are more likely to keep busy down the line. (“No Pass” meaning not getting Planning Approval for a project).

EXAMPLE F: Whatever area of construction you are in, you will have a network of approved professionals you work with. So you will have a lot of bargaining power when soliciting goods and services for your project. Sub-contractors, agents, architects, quantity surveyors, building consultants and merchants will all be part of the mix. This can be an area of healthy growth for your business when approved list suppliers, partners and subsidiaries reciprocate with their own recommendations for your company.

Masterclass In Construction Marketing

How Upselling Works In Construction Marketing

Have you noticed whenever you buy a burger, the sales people always try to persuade you to “Go Large”, or have “extra fries” etc. Have you also noticed at the checkout of every superstore are racks of things you would not have thought of buying, but as you stand there waiting at the checkout, you suddenly realise all the things you “need”! Scary stuff! Real profits come when you get the client to buy a larger, more expensive, or more comprehensive product or service.
This is how it works in the construction industry:
EXAMPLE A: The Remodeler/Home Refurbishment – in the business of building extensions, bathrooms, sun rooms, loft conversions etc., How about suggesting certain enhancements at the point of survey. Or ask them if they had considered extending the work to include a the latest whiz bang disposal unit, designed to be 150% more efficient and thus delivering significant cost savings to your client.
EXAMPLE B: The Commercial Contractor – how about offering a Repairs and Maintenance service after the initial defects period following contract completion. This can deliver great benefits for your client because you already know the premises and can operate much more efficiently with the prior knowledge base you already have.
EXAMPLE C: The House Builder: If you are building housing schemes where a number of homes will be rented/leased you could offer and Liaison Officer based on site for the first 6 months after completion, to make sure people are secure in their homes, know where to find everything and are happy. You could offer this service as a free added benefit – this may be the deciding factor that will win you the contract over your competition! Alternatively, if the client/housing association/ local housing authority are intending to employ someone for this job, you could easily extend your business reach by supplying the right person for the job – someone who already knows the property and has proven qualifications to do the job.
EXAMPLE D: The Sub-Contractor: if you work for a number of larger contractors, the way you source the products you use is crucial. It may be that the main contractor already has an approved list of suppliers, but often good relationships can be established with individual Buyers to enable the Subbie to recommend where to source materials at competitive prices. A whole range of complex partnerships can be made to enable commissions to be paid and everyone benefits! Of course, it goes without saying that any deal agreed should be completely transparent and should ultimately benefit the client in terms of cost savings and quality products and services. One wrong move or “under the table” deal can result in lost credibility and trust. So keep everything above board.
EXAMPLE E: The Architect: Design & Build contracts are one obvious root to establish good working relationships with construction professionals on a project team and can be one way architects can “up-sell” their professional skills by working on a partnering basis. Partnered Contracts can be lucrative for all involved, including the client, but they have to be set up correctly to work efficiently. More about this in a later chapter. Architects who are willing to get involved at the Pre-Construction phase of a project on a “No Pass No Fee” basis are more likely to keep busy down the line. (“No Pass” meaning not getting Planning Approval for a project).
EXAMPLE F: Whatever area of construction you are in, you will have a network of approved professionals you work with. So you will have a lot of bargaining power when soliciting goods and services for your project. Sub-contractors, agents, architects, quantity surveyors, building consultants and merchants will all be part of the mix. This can be an area of healthy growth for your business when approved list suppliers, partners and subsidiaries reciprocate with their own recommendations for your company.

Visit the Masterclass for Construction Marketing at:

http://www.marketing.makingconstructionwork.com

It Doesn’t Work Anymore!

It really doesn’t work! Especially in the construction industry. In fact it never really worked. You know what I mean, the slick sales people coming out with all the predictable sales pitch jargon. It still happens sometimes when the telesales people get you on the phone! Some of them still read from a script and if you ask them the wrong question, they can’t speak!

Marketing for construction is all about building relationships  not about cool cliches.

Top 5 Marketing Blunders That Can Cripple Your Construction Business

Top 5 Marketing Blunders Of The Construction Industry

There has never been a time when marketing for the construction industry was so important. However, those of us who are involved in this crucial aspect of business development are acutely aware that the industry has been notorious at making huge blunders in its marketing efforts!

On of the top five blunders people in the construction industry make when trying to grow business, is in the way it deals with prospective and current clients.

Most business development professionals recognise that all marketing for construction begins and ends in one simple principle – knowing how to build relationships.

It is at least 5 times easier to win a new contract from an existing
client than to go out and find a new one! That is not to say that we should not be extending our client base – that is essential for
ongoing company growth and to ensure a healthy sales pipeline.

However, if you are producing good quality work, you should find that 70% to 80% of your turnover comes either directly from current or past clients, or from referrals and recommendations from clients you’ve worked for. You need to spend a lot of time developing relationships with these key people – they can become your best marketing tool.

Current and past clients are like gold dust to your business. Your
existing client base also forms potential sales revenue for “back-
end” products and services.

If you have no track record with your potential client, you need to
be able to demonstrate that you are trustworthy. Endorsements and testimonials from people you have built relationships with, are crucial to substantiate this. It is also important to be available
to your prospects so that they can have a face to face meeting with you – even at the highest management level of your company. This will build confidence and reassurance because they are dealing with a real person and not just a marketing consultant with an ulterior motive!

There are many ways that relationships can be built:

- Run a Lunch Club for your project team at completion.
- Hold Continuous Professional Development Training Seminars with guest “experts” in the industry
- Promise less, deliver more
- Make sure there are open lines of communication
- Give you workforce “Customer Relationship” Training
- Distribute a high content newsletter
- Open a Social Networking forum
- etc., etc.,

As a professional “marketing for construction” consultant, I am
applying these strategies every day – and they get results!

Free Report: “Top 5 Blunders…” available for immediate download at:
http://www.makingconstructionwork.com

OR use the sign up form on on the right hand side near the top of the page to get your FREE Mini-Course.

Steve Flashman
Marketing Consultant To The Construction Industry
http://www.makingconstructionwork.com