SURFACES | StonExpo Blog

Posts Tagged ‘sales’

You’re using technology to improve your business. Maybe you’re even reading this on a smart phone or tablet. You don’t have a complete social media strategy yet, but you’re working on it. Mostly, you need help, now, on how to use technology to improve your bottom line.

In a previous SURFACES│StonExpo/Marmomacc Americas Blog “You’re Really Good At Change, But What’s Next?” I reported some practical, inexpensive ideas on how you can use technology in your business. Here are a few more tools and ideas you and your staff can use right now:

-Search for your store on Google and consumer review sites (like angieslist.com, yelp.com and complaints.com); if you find compliments about your business when you do the searches, have them on a computer ready to show to customers in your store, and put links to them on your Web site;

-Get a small, inexpensive “shoot and share” video camera; ask your staff to each record themselves as if they were telling a customer about your business and why the customer should buy from you; when they have a version they like, ask them to show it to you and one another; they’ll be practicing – on one another instead of a customer – while training each other; you might even find videos good enough to use on your Web site or YouTube.com;

-Ask satisfied customers for video testimonials about their new floors and your business; these can be used (with permission) in your store, on your Web site, etc.; (yes, I know, you think customers won’t agree to do this, but as time passes Gen X’ers and Millennials are much less concerned about privacy issues than Boomers, so you may be pleasantly surprised at the results).

Yes, at some point, all new technology is scary. But if we take small steps we’ll learn and benefit from the technologies. After all, there’s a reason that DVD’s replaced VHS tapes, and Blu-ray is replacing DVD’s. When people see benefits from new technology, they adapt the new technology. These tips can help you benefit from new technologies today, simply.  Good luck!

Margaret Thatcher, former Prime Minister of the United Kingdom, is quoted as having said “Being powerful is like being a lady. If you have to tell people you are, you aren’t.” Trust is similar – if you have to ask people to trust you, they probably shouldn’t. Trust needs to be earned.

Trust is becoming increasingly important as you try to serve your customers. It’s part of the reason why they

-check your Web site and your competitors’ Web sites, or Google you and review sites like angieslist.com before coming to your store;

-check with their friends on facebook.com and twitter.com for second, third and fourth opinions before buying from you; and

-bring friends to your store and want to check with their family before committing to buy new flooring.

How do you earn their trust, then? Certainly your reputation and brand are critical to ever getting them in your door. Once they walk in, what can you then do to earn their trust? Because they can’t trust someone they don’t know, it’s critical to build a relationship with your customers.

First, we need to listen to each customer, both online and when she comes into the store. Each customer has a unique situation and we need to be ready to provide unique solutions, not the same solution as we try to give everyone else based on go-to products.

We need to demonstrate by our actions – good eye contact, sincerity, and listening – that we genuinely have the customer’s best interests in mind. We are her partner in finding that unique solution. Nothing is more important than she is.

She needs to believe that the options you present serve her interests as well as your own. What do I mean by this? Just because you have three rolls of a beige texture in the back doesn’t mean that you should put it first on her list of carpet options! Make sure the products you show her deliver on her unique needs in a way she’ll understand. This is possible if we have listened well and demonstrated our partnership role.

And, your customer needs to understand the selection process, and that it truly is her selection. You’re not selling – you’re enabling her selection of the best product for her.

Trust based on this kind of a relationship with your customer will strengthen your reputation in your market. As Benjamin Franklin once said, “Glass, china and reputations are easily cracked and never well mended.” Protect your reputation by building trust with your customer.

 

The beauty of natural stone – rock as old as time, harvested from some of the most delicate and unforgiving lands on our planet, trucked, floated, or flown to any imaginable destination, and customized to the most exacting specifications of your unique project – and all yours for the low price of $27.00 per square foot installed.

Where did we go wrong? When did one of the oldest, richest, and most storied crafts known to man become a commoditized industry replete with bargain pricing, blinking neon signs, free undermount sinks included with purchase, incompetent workers, and unprincipled business practices? When did we pervert the art and beauty of natural stone by categorizing these inimitable natural resources into groups and colors that we sell at prices that severely undermine the value of our product and integrity of our industry?

Ladies and Gentlemen: we have done this to ourselves. Fortunately, current economic forces are providing us the ideal opportunity to repair our broken industry.

The business of stone fabrication is expensive and labor-intensive – cumbersome at best. The downfall of our industry began when uneducated individuals dove headfirst into the business convinced that the limitless profits of fabricating natural stone would greatly outweigh the paltry cost of operating a fabrication facility. All you need is slabs, laborers to fabricate those slabs, and some overeager customers who are willing to part with their hard-earned cash for a poorly crafted countertop… right?

Wrong. An intelligent and experienced fabricator will quickly inform you that these basic costs do not begin to scratch the surface of the burdensome expense of the stone business. A truly responsible stone fabricator will have a significant overhead, which will include myriad tangible costs: facilities, machinery and equipment, product, personnel, vehicles, safety equipment, liability and workers’ compensation insurances, and federal and state taxes- just to name a few. There will also be a multitude of intangible costs: knowledge, skill, experience, and ethics.

The intelligent and experienced fabricator cannot compete with the parasite whose sole purpose is to pocket as much cash as possible before vanishing without a trace, leaving the stone industry in disrepair with street prices that are irresponsible, unsustainable, and degrading to our craft.

The effects of industry reticence to combat and discourage these destructive practices are immeasurable. We are fractured, discouraged, and fatigued. Coincidentally, the economic forces currently threatening each of our businesses have created a unique opportunity for intelligent and experienced fabricators to finally take a stand against this industry perversion. There is no better time for candid discussion and discovery than now.  Through education, awareness, accountability, and principle, intelligent and experienced fabricators throughout our country and around the world can save our broken industry. I hope you will join me.

 

You can also join John Kilfoyle for the Countertop Installers Forum: Solutions to the Most Common Problems (WE23T) on Wednesday, January 25, 2012, 4:00pm – 5:30pm at StonExpo/Marmomacc Americas.  Click here to register for StonExpo/Marmomacc Americas.

In recent years, it has crossed most business owner’s minds to cut back on their advertising budget.  Traditional advertising such as magazines, newspaper and television can be expensive. And while these outlets are still important, we must admit that times have changed.  Social media is taking over the world and none more-so than Facebook. If you haven’t already created a business page… it’s time.

Setting up your page is the easy part. Getting ‘Likes’ and keeping your customers entertained is the hard part. To help you out, I’ve put together a list of 20 ways to promote your Facebook page:

Showroom Signage
-Type ‘like {page name}’ and send to FBOOK (32665)
-QR codes
-Bathroom Stall Door

Business Essentials
-Business Cards
-Outgoing Envelopes

Marketing Collateral
-Company Brochures
-Trade-show Giveaways (pens, balloons, etc.)
-Print Ads

Website
-Like Button
-Comment Box

Other
-Incoming Answering Service

Email
-Signature
-E-Newsletter

Company Property
-Vehicle Bumper Stickers
-Employee Apparel
-Store Front Marquee

Within Facebook
-Tag Your Customers In Pictures
-Ask Your Employees to LIKE You
-LIKE Other Local Businesses/Causes/Personalities/Organizations

The BEST Way
-WORD OF MOUTH!

If you need more direction in the best practices of social media for your flooring or stone business, I invite you to join us during Surfaces │StonExpo/Marmomacc Americas 2012 for the following how-to workshop.

Social Media: How To For Business
January 23, 2012, 9:00 a.m. – 12:00 p.m.
Presented by: Sarah B Johnson, MKG Department (www.mkgdept.net) and Christine B Whittemore, Simple Marketing Now, LLC (www.simplemarketingnow.com)

For more information about the session, visit:
http://connect.surfaces.com/connect/public/SessionDetails.aspx?SessionID=7236&maxSessions=91&aeid=257,258

If I said, “Save money. Live better™.” you’d think of Walmart®. If I said “Let’s Build Something Together™” you might think of Lowe’s®. If I said “Better Living Through Chemistry™”, you might think of DuPont® even though DuPont changed its slogan almost 30 years ago. And if I said “Compromise elsewhere™”, you’d think… (Well, I don’t know what you’d think, but Boar’s Head® uses these words as part of their branding.) These short slogans, or taglines, are part of a company’s brand and are intended to be memorable, identifiable, and very brief descriptors of who they are and what they mean to customers.

Some of you may have taglines that work well for your business. But, many of you probably don’t have a tagline, because your name itself is a strong brand in your markets. I’m not suggesting that you must have a tagline – it’s got to be right for your business and add value – but I am suggesting that you and your staff think about what it could be. By doing so, you’ll develop a clearer view of who you are, why you are special in your market, and why people should buy from you.  Maybe you should hold a staff contest to develop and explain potential taglines as a way of engaging your staff and improving their ability to concisely explain your business to customers.

Mark Twain is credited as saying “If I had more time, I would have written you a shorter letter.” It’s hard to capture your business essence in a 2-4 word tagline, right? Would it be easier if you could use up to, say, 20 words? In Hollywood, loglines are used to briefly describe the essence of a movie. For example, if I said “A betrayed Roman general seeks vengeance in the arena” you might think of the movie “Gladiator”. If I said “Lovers from different social classes on an ill-fated voyage” you’d probably think of “Titanic”.

So, what would your logline be? What’s your unique story, in 20 words or less? Again, you can ask your staff to develop potential loglines for your business. Then, you can use a good logline when greeting your customers (in ads, online, or in the store) to give them a brief summary of what your business is all about, and why they should buy from you.

I’ll have more about taglines and loglines in my SURFACES│StonExpo/Marmomacc Americas 2012 Seminar “Why And How To Sharpen Your Selling Skills”: http://connect.surfaces.com/connect/public/SessionDetails.aspx?SessionID=7362&maxSessions=85&aeid=257,258

In the 1980’s, Ronald Reagan was president of the USA, the economy was strong, and you were asking yourself, “Do I need a computer?” In the 1990’s, the economy was weak, people were watching Jerry Springer, and you were asking yourself, “Do I need a cell phone?” Came the new millennium, there’s a Starbucks® on every corner, we were all concerned about security, and you were asking yourself “Do I need a Web site?” Somehow, you made it through all these changes, proving that you’re really good at handling change, even technology change.

But, change hasn’t stopped. The economy’s weak again and you’re asking yourself “Do I need to do something about another round of communications technologies – social media?” What should you do, and how do you get started?

Here are a few “technology tools and techniques” you and your staff can use right now as you figure out the rest of your social media strategy:

-Ask your staff to spend time looking through your Web site. Then have them each take you on a tour of your Web site. This way you’ll be certain they know what’s on your Web site! (Your customers know what’s there, and your staff should know as much or more than your customers do.) You might even ask them to present at least part of their tour to each other in a staff meeting, including how they would use that information or that part of the Web site with customers.

-Search for your store on Google and consumer review sites (like angieslist.com, yelp.com and complaints.com). Act on the complaints you find and fix what customers are complaining about.

-Ask your measurers to make narrated videos of the planned installations. Show the videos to the installers before they go to the job. Ask installers to send pictures or videos of issues they encounter on the job to the salesman or measurer – this will increase the speed and quality of resolving the issues and increase customer satisfaction. And, your business will show customers that it’s a market leader through its use of technology.

Good luck with these technology tools and techniques. I’ll have more in the SURFACES │StonExpo/Marmomacc Americas 2012 seminar that Paul Friederichsen and I are presenting titled “Making Marketing and Sales Work Together”: http://connect.surfaces.com/connect/public/SessionDetails.aspx?SessionID=7264&maxSessions=89&aeid=257,258

It still amazes me how so many of top business executives shy away from social media. In fact, I’ve run across corporate online “social phobia”: a fear that disgruntled customers will run amuck if given the chance at a digital soap box. These otherwise shrewd and enlightened professionals still believe that things like Facebook and Twitter are just the purview of their teenaged kids – much like their grandparents thought television would never amount to anything when there’s perfectly good radio to listen to. Are they in denial or what?

Consider a few of the many unbelievably compelling growth stats since 2005:

• Facebook has gone from 6 million members to an estimated 750 million today.
• Female Boomers are the fastest growing Facebook demographic.
• Twitter began in 2005 and has 110 million users.
• YouTube’s domain name was activated in 2005 and is now 2^nd only to Google

… and owned by Google.

• Online advertising expenditures surpassed radio advertising.
• ~ 40% of US Companies use blogs for marketing purposes.
• More mobile devices are used in the US than TV’s and PC’s combined.
• 75% of the millennial demographic group has an online profile.

Whether you agree with it or not, social media is here to stay. It is the hottest communication channel in the known universe. Ignore it and scoff at it at your peril. The written word may be rapidly dying in newspapers across the country, but it is alive and well, having migrated to cyberspace thank you very much.

The definition of marketing is selling more things to more people more often. One way you do that successfully is to go where the people are. Which is why marketers are also discovering smart phones. Smart phone penetration is reaching upwards of 75%. Now combine that with how often each of us check our own smart phone each day for tweets, Facebook wall posts, LinkedIn updates, emails, texts, news, scores, etc. and you have an understanding about the rise in popularity of these devices to the marketer. Learn more at http://www.madisonavemedia.com/.

Granted, we will still continue to watch TV, listen to radio and read magazines. But any media strategy for any advertiser of any size for any product or service must build on a social foundation. If you’re one of those who still believe it’s a bunch of hype or kid’s stuff, I’ve got a buggy whip factory I’d like to sell you.

Want to get really psyched about this topic? Go to: http://www.youtube.com/watch?v=3SuNx0UrnEo

Every time you price a residential or commercial project, you are rolling the dice and gambling with your financial assets, reputation, and very business survival.  How you go about identifying potential risk will likely determine your probable success.

First off, it’s always helpful to have a checklist of questions like the following:

What’s the job really worth in your market area? What is the likelihood that you can make a profit at or above your average gross profit? How would you peg your chances of success?  Based upon what criteria?

Have you really thought about this bid in the context of your other business?  If you get the job, will it require all out effort that will take away from other business? Have you done this type of project before or will this be a new experience? Will I have to hire more personnel to perform the work? 

How about the publicity angle for you, either good or bad? What will this do for or to your reputation if you are successful or unsuccessful?

Does getting this job really make sense, or is it ego?

Will you run a credit check or Dun & Bradstreet report on the client prior to signing a contract, if so, at what dollar level?  What was my previous experience like with this client?  Do I have an existing credit line for the product purchases?  Will my cash flow from current operations permit timely supplier and installer payments for this job? 

Do you really need the hassle, i.e., how difficult, challenging, and time-consuming will this project become?  Have you considered a “worse case scenario” (a real job meltdown) and how you’d handle it?

If you’ve considered these questions, here are some comments based on my experience and battle scars: 

If you don’t know what the job is really worth, don’t bid it.  You should do enough research to know the “going rates” in your area.  IF you have a lot of experience, then you can structure your bid more aggressively; with minimal experience make sure you’ve allowed profit for the unknown.

If this one job will make or break your reputation, make sure it’s worth it.  Don’t bid on a whim and then burn your bridges by non-performance.  If you wind up on the front page of the local paper, make sure it enhances rather than destroys your reputation.  Watch your ego.

Spend the money to do a credit check, no exceptions, beyond a certain dollar amount.  If you had to grit your teeth the last time you worked with that client, or had trouble getting paid, don’t go there again.  Some things don’t change, at least for the better. You build your financial strength over the years, so don’t squander it on one, ill-advised project.

Finally, when in doubt, put another “set of eyes” on the project before you turn in that bid.  If it feels right, and you have all the answers, take the risk.  If not, swallow hard and live to compete another day.

Dave Stafford is a former flooring contractor, has been in the industry for over 25 years, is a business consultant, and specializes in government contracts.  He may be contacted at dave@dsainfo.com.

Michael Schrage, a research fellow at MIT Sloan School’s Center for Digital Business asked on the HBR Blog: “Should Your Best Customers Be Stupid?”  It reminded me of Syms famous tagline “An Educated Consumer is Our Best Customer.”  Schrage then challenged us to ask our colleagues whether we “make most of our margins from our ‘smartest’ customers or from our ‘stupidest’ ones?”  Ouch!  That question hurts because it smacks of an issue that is pervasive throughout the floor covering industry.

Stupidity is a poor strategy in an era where information is king, when consumers often know more than sales people and retailers must be consumer centric.      

SURFACES │StonExpo/Marmomacc Americas is another example.  Many of your retail competitors will not be there.  Why?  My guess is they are either not bright enough to understand the value, broke or someone has determined they are more useful to them if they are ‘stupid.’ 

Exploring the global market by attending SURFACES │StonExpo/Marmomacc Americas and other industry shows makes you a better retailer and business person; more aware of the market solutions, trends, critical issues and opportunities.  You may never know what “could have been” if you are not at SURFACES │StonExpo/Marmomacc Americas.  It may be that break-out product that changes your company.  This is particularly true as the industry moves away from carpet to hard surfaces and domestic products to imported products.  All while consumers increasingly prefer home centers or the internet over specialty businesses. 

A retailer recently told me they were not attending SURFACES │StonExpo/Marmomacc Americas because her largest supplier would not be there either.  My response was that their absence was the top reason she needed to attend.  Why?  Because the suppliers you do not know are there; that is where you need to spend your time.  They are showing their products and offering you the opportunity to create differentiation between you and your competitors.  In an era of sameness and the commoditization of floor products, differentiation is your Holy Grail. 

It is not that you cannot depend on your suppliers or buying group.  It is that you must not abdicate your most important responsibility to anyone else.  Your bandwidth manifests into profit.  Industry wide events provide that opportunity.  You do not operate in a vacuum and your problems are not unique to you.  The seminars and products are presented to provide you a 360˚ on the marketplace without bias.  SURFACES │StonExpo/Marmomacc Americas and all industry shows provide a platform for you to innovate to ensure your organization is growing beyond an industry box.  Your attendance should not be optional; you have to be there.

Today I listened to some economists talking about, well, the economy on a radio program today and heard an amazing story about Apple. I love Apple. I’m typing this on an Apple laptop right now and make no secret that I crave an iPad (Note: my birthday’s coming up in a couple of months.)

Now we all know Apple has finally surpassed Microsoft in value and even, at least for a few days, Exxon Mobile as the largest company in the U.S. But did you know that Apple has more cash on hand ($72 billion) than Uncle Sam? When I heard this I almost wrecked. More than the government that can print more money when it wants too? Evidently. How’s that possible?

There are lots of reasons you can point to, the brilliance of Steve Jobs, the persistence of the company, the fanaticism of its followers. Note I said “followers” not “customers” … there’s a difference and I’m one of them. I’d like to suggest they’ve succeeded and continue to succeed by virtue of their ideas. Great ideas. Inventive ideas. BIG IDEAS.

Apple ideas take many forms, obviously. From their unique operating system to the way they package the lowly computer mouse. It began with an idea summed-up as “A computer for the rest of us” and went from there. Sure, they’ve had some duds. Even Babe Ruth struck out a lot. But Apple has defined our culture in ways no one believed a little engine that could ever could.

Big ideas are original. They take you where your competition has dared not go. They creatively solve problems for customers. And as we all know, they become followers. Just ask Apple.