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Steve B Steve B is offline
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Default WHY CONTRACTORS COST WHAT THEY DO

One of them
doesn't even have a yellow-pages listing. The word-of-mouth
recommendations fill his schedule.
Word-of-mouth is great, but even established companies like McDonalds,
Home

Depot, Wal Mart, etc...still advertise.
Think maybe they know something about marketing??


Marketing can be over rated. I think I would still go to McDonalds if they
did NO advertising.

It all depends on your market niche. I was a steel erection contractor. I
had the smallest yellow page ad you could get. I was AAA Welding, but they
still messed up the alphabet and put me farther back in the listings rather
at the first a few times over the years.

I targeted the businesses I wanted to have as customers. I realized the
size I wanted to grow to. I achieved that, and upon selling the business
had 275 apartment projects and companies as steady clients. I can remember
getting only one good contact from the yellow pages, that one being U-Haul
that I went on to do all their carport repair work for.

Most people who called me from the yellow pages were tirekickers, and
homeowners who cried when I told them how much I wanted to send a truck, two
experienced men and $25,000 worth of equipment to their house for a couple
of hours to fix their problems. And their conversation usually started
with, "I need you to come finish a job that some unlicensed person flaked
out on."

Referrals were the best. Good customers referring other good customers.
And managers that transferred from property to property, and called me from
each.

I did a good job. I was on time. I didn't overcharge. I guaranteed my
work 100%, and if there was a problem, it was put to the top of the list,
and I didn't tell people they had to wait a week.

The last year in business myself and one helper had a gross intake of $334k.
The man who bought the business went out into all directions of
modifications and new services and new things, bigger building, new car for
wifey, new trucks, and lasted three years before going bankrupt. He drove a
new truck every year, and advertised on TV, something I never considered.

Marketing is a great thing if you're selling advertising.

Steve