Advertising VS. Word of Mouth

[gear junkie]

Don't own a business (yet) so I need to learn the business side. I'm curious Rick, so don't get offended. You've been in business for awhile but what did you do when you started out? How did you get jobs? What do the rest of you guys do to keep money rolling? During the slow season for example. We need to have more business related discussions. Thanks in advance.

Ben

[PLUMBER RICK]

easy, i started at age 12 1/2 with my uncle. at this time i was learning and at age 13 i had my first snake. a milwaukee hand held snake, similar to the k-39 with chuck. at 18 i started in the union as an apprentice working for a new construction shop. this lasted for 15 years. i was also able to moonlight after hours and weekends.

when i decided i had enough of new construction. i took my contractors test and went to work for myself. so my moonlighting jobs, turned into full time jobs. i was now available during regular hours.

one of the strangest things about moonlighting was the time i got called to high schools principals office:eek: a customers water service had broken and they contacted the school to track me down:D

now being completely on my own for 10 years, i get all my work from referrals and other plumbing contractors. i do jobs that they don't do. most of them in the specialty field. i keep busy enough to turn jobs away and only travel 500 miles a month.

today i had a new referral from an existing customer. turns out that she is related to the owner of the next job i was going to. but that was not the person who referred me:confused:

in the last 6 years that i can look up on the computer, i have worked for over 1100 different people and companies. some of course only 1 time as it was for a 1 time job from another plumber. but the majority are repeat customers. in fact some have used me since i was with my uncle at age 12.

the real issue with the yellow pages here is that the companies are banking on their 1 and 2 page ads to lure in business. all claiming to be available within 1 hour and an up front price. there's a reason they can make it in an hour, they are not busy:eek:

my buddy, who some have met has 20 guys in the field. he doesn't advertise and if you don't call first thing in the morning, you don't get same day service.

it works for me and it works for him.

rick.

[Crappy days]

Rick, Just to make it clear, I am not disagreeing with moonlighting or any of the advice/story on how you started. But last time I read the union agreement my Friends had to sign it was very clear on no cross competition with the union. This included receiving your own c-36 license or moon lighting in any way. Granted most do not or cannot enforce this. How ever if some one wants to be ethical and start a business how would you recommend that without advertising.

[Crappy days]

Gear junkie, I did moonlighting throughout my career working for others. If they did not permit it I quit and found someone that did. The last employer I worked for knew I was licensed. I also told him I would only be willing to work for him 1 year. We had a gentleman's agreement that I would not solicit his customers while working for him. Because he was a fair man I also honored the agreement for two years afterward. Leading up to my departure date I hit the pavement. When I left I had two large property management company's that swallowed all of my time. I also payed a flier delivery service and advertised in some local small publications.

Lately I have started running adds in the yellow pages and some other print/mailer media. Throughout my career working for others or myself I have learned you cannot depend solely on advertising. Advertising is great when done smart. Most advertisements you do not make a profit on. If you can break even or make a profit then it is OK. Where you make your money is in return service. It does no good to spend money on advertisements if you cannot keep the customer.

[DuckButter]

Gear Junky, Rick & Crappy..
Let me toss this into the mix...I'm right where Rick basically was in his mid 30's.
Crappy...I'll take your word on the results from yellow page advertising, but I have to be honest...right now I'm busy and this is s'posed to be slow season.
I get more and more referrals and repeat buz as time passes...I almost feel like I'm cheating with the ad budget.

Gear Junky...I'm doing almost the exact same thing Rick just said (minus the union part).
I have had severe nail-biting times when I was unsure if I should pack it in before the reserve got too low and look for a new job...then the phone rings.
Here's MY suggestion:
Make sure you have enough reserve cash to cover 6 months overhead BEFORE quitting the "day job".
Make sure you sample all means of pulling in more work BEFORE you decide to take the leap. (Local newspaper, contractors...you might make less per hour on one site, but it's consistant work if you "get in" with a busy GC)
KNOW your pricing (lowballing on the basis that you're at least making more money than you used to will cost your shirt in the longrun)

[PLUMBER RICK]

funny you mention the union. some of the work i do is for union shops. i'm no longer in the union. but at the same time i get hired to go to union jobs and do specialty work. never had an issue.

just like any one else starting out. you can't expect to open up shop and have business come in. if i moved out of my local area, i too would struggle for work. all of my contacts would be to far away.

a new business would have to take on work that others might not want. do it for less money to get the job. do the work with as little overhead as possible. you can't just open your door for business and expect the customers to come your way. you need to establish yourself, possibly work for another contractor until you can survive on your own.

i had an electrician friend that got married:eek: and moved to washington dc. with his wife. he commuted to los angeles for 1 week every month just to make ends meat. don't know what he does now. but that was almost 2 years ago.

fortunatly everyone needs a plumber sooner or later. work will come. also last time i checked, a contractor has to be finacially strong just to qualify for his license. hopefully anyone just starting out on their own has enough saved up to weather the slow time. it's not easy just starting out.

i personally don't use the yellow pages for anything more than looking up a supplier. i don't look for doctors, lawyers, auto mechanics, accountants, or other trades. i get referrals from other people if i need to. why go at it blind. a referral is a better guarantee of finding a qualified person, than an ad from someone you don't know.

hopefully people can understand that.

rick.

[Crappy days]

I would agree referrals are always best. When ever I can, I give referrals or use referrals. Yellow pages are one of many ways to advertise. I have had great success with mailers. The type that come with 50 other company's in them (window installers, kitchen remodels , plumber etc. ) glossy postcard size. There are a few company's in every area that do this.

[gear junkie]

This is big difference between plumbing and HVAC. With hvac; moonlighting is a big no no. Don't even think about it. Plumbing seems to be more tolerant on the issue. Since I do both (but w/ summer, hvac is taking more of my time) I'm torn between the issue. I've done it but try to limit the amount. I never look down on those who do. My boss is great and fully supports me and I try not to backdoor him. Don't make this a flat rate discussion but almost all hvac companies are flat rate. Just a couple observations I've noticed.

[ToUtahNow]

I too was fortunate in that I had some customers prior to starting my business. I also had done a few homes where my bathrooms were featured in Architectural Digest so I did quite a few custom homes. However, advertising is something you do from the day you start your business until the day you close the door. Advertising is not always about the Yellow Pages but sometimes they will help you get started. Where some people get hurt is when they first try to wean themselves off of the Yellow Pages and their customers think they went out of business because they can’t find your number in the book.

I kept a fairly modest Yellow Page ad for the first 5-years or so. After 5-years I was well enough known that I no longer needed a Yellow Page ad. While I was still building my business there were several times when things were slowing down between jobs and the Yellow Pages were not working. For about 10% of the cost of my Yellow Page ad I could run an ad in the local paper and pick up more work than I was getting from the Yellow Page ad. It did not take too many of those ads to make me see how much I could save without a Yellow Page ad.

Advertising is not always about the printed ad. Advertising is what you do every day while you are inter-acting with the community. I once had a customer at a retirement community complain to me they have to walk several hundred yards from the Bowling Greens to get to the Clubhouse restrooms. I ended up finding a few manufactures and supply houses to donate the materials and we helped them build a restroom at the Bowling Greens. Many of the residents were former Contractors so I supplied all of the plumbing and helped them with the rest. Soon afterwards I was told they needed a bathroom at the 9th hole so we did it all over again. Needless to say I was a Saint in their eyes and it did not take too long to recoup my cost and 25-years later my shop is still working in the retirement community.

In addition, I had my own radio show on the weekends called “Home Improvement” (pre Tim Allen) where homeowners would call in asking for plumbing advice. It was a lot of fun and I got a lot of exposure. A good part of being the new guy in our Valley was I was the only guy willing to work 24/7. Many of the old-time plumbers refer work to me so their guys did not have to go out at 2 AM to save someone. I never tried to take their customers but many of them started calling me direct after a while. One of the customers was a property management company which was good for a minimum of $10,000 per month in service and again 25-years later my shop is still doing their plumbing.

Mark

[ToUtahNow]

Rick, Just to make it clear, I am not disagreeing with moonlighting or any of the advice/story on how you started. But last time I read the union agreement my Friends had to sign it was very clear on no cross competition with the union. This included receiving your own c-36 license or moon lighting in any way. Granted most do not or cannot enforce this. How ever if some one wants to be ethical and start a business how would you recommend that without advertising.

When I was in the HVAC Union we could not moonlight so I never tried. All of the Business Agents from all of the Unions would get together once a week and drive around town trying to catch people. Once I left the Union I really enjoyed kicking them off of my projects when they would show up looking for Union members.

Mark

[MrsSeatDown]

Rick forgot, I just used our yellow pages the other day to look up a dentist. Oops! That was just to return his son's wallet that Rick found.

We wouldn't take a reward. He asked for Rick's card. They ended up sending a beautiful bouquet of orchids the next day.

Mrs. Seat Down

[DuckButter]

LOL, I am lost as to why the f*** R*** topic is sooo taboo.
I'll just take you guys word on it and leave it be.
Gear...you have double the leverage with HVAC certification....more opportunities for work.

[gear junkie]

LOL, I am lost as to why the f*** R*** topic is sooo taboo.
I'll just take you guys word on it and leave it be.
Gear...you have double the leverage with HVAC certification....more opportunities for work.

Look up some past threads. Look for the number of pages, not the title. We'll talk about something simple then it'll turn into "the discussion". Read the past and you'll see.

[Crappy days]

Do not despair there will be plenty to discuss ( argue ) about just be patient. :D:D:D

[plumberscrack]

Crappy,
Is it possible for you to get all your thoughts together instead of double posting? ;)

Rick,
How many times do we have to read about you in the principals office? :p PM your buddies name and I'll look him up. Always in the need for a good sparky. :D

The Yellow Pages here cover the Washington Metropolitan Area that's 3 states! I only work in 1 of them and that's more than I can handle.

[Clato]

I will agree that the full page ads in the Yellow pages are a waste of money. Years ago (read many years!) we had a quarter page ad. And unlike others in the business we would reduce the size as time went on. I (we) have a Fencing contracting business and we use a basic sign on the job... just the name. We've found in years past thats all you need them to remember (they can then find you in the book!). We have a small presence in the yellow (or what ever color they are now) pages to make sure they know we're still here.

So, word of mouth is great! We get most of our business like that. BUT! If they can't find your number, and they usually look in the yellow pages, they don't know you are still there.

JMO,

Clato

[PLUMBER RICK]

clato, nothing wrong with fencing. but i would think that since most people probably get competitive estimates for fencing, the whole ambulance chasing scenario doesn't apply.

typically with plumbing repairs, emergency issues. people that don't have a regular plumber, end up looking in a book and get taken by those full page ads.

just compare the amount of plumbing ads to any other trade in your local book. out here there are over 40 pages:eek: even the binding and back cover too. no other trade has this many ads.

just like any other service or professional, referrals are the best. having a total stranger show up at your house is a crack shot. you might get plumber crack:D

rick.

[ToUtahNow]

I'm right there with clato on this one. I agree for emergency work they are headed for the Yellow Pages until they find someone who can come out but there is no reason to be the largest ad.

Mark

[Crappy days]

P Crack, NO

[Crappy days]

P Crack , I do not think so.

[ToUtahNow]

crappy,

You blew your comedic come-back. You should have follow up your "No" post with a post which said something like, "I don't think so"

Mark :D :D :D

[ToUtahNow]

LOL-Now that is just too funny

[westcoastplumber]

Word of mouth and envelope openers, jar openers, once in the house keep your name around there and you will be fine. Put stickers on the water heater, g/d, in the toilet tank, when the customer needs it fixed, they will call you. Main thing, just get in the door first!:D

[Gene Bickford]

I sometimes think my yellow page ad is a complete waste of money but when I run the numbers I find I have more then doubled my investment.
I have a tracking phone # that is ONLY used in my ad so I get a report each month so I can tell exactly how many calls I've got as direct result of the ad.
The report also contains how many missed calls, peak call hour,peak call day etc...
The ad is realizing a profit but more importantly it's creating a customer base that is spreading the word on my service.

[cutekara]

Has anyone out there heard about WideCircles.com. It seems like a way better service then wasting money on PPC. Apparently they are using refering websites ( forums, blogs, wiki, etc. ) and have a viral word of mouth distributed approach to it. My friend told me he got around 100 visits from single post which cost him $0.40c. I am going to give them a try today . In case you are intrested here is it. http://widecircles.com?s=imt1

:jumping:

[JCsPlumbing]

I have to say that my business, while tiny, (Just me most of the time) mirrors Ricks. Never advertised. But stay busy. It's honestly got to the point where people call and I don't know how they know me. "You did work for Bob's sisters' neighbor. Their cousin said you could help me.":confused::confused::confused::confused::):):):)

[westcoastplumber]

I target areas with post cards, 1,000 at a time, to date, every mailing has had a return along with a profit.

I have a large amount of repeat customers and referall customers, my main amount of business is referall.

I also have a large network of real estate agents that I have built up pretty rapidly, one referall was all it took.

I send a large amount of traffic to my web site and have recieved many compliments on it because it brings me closer to the customer, on a personal level.

The other day I had a customer give me a flyer that was over 7 months old, an old black and white i happened to drop off when I was working for his neighbor. He said he checked out my web site and held on to the flyer.

Besides that, caring about the customer and respect for their property, and clean work, this is what my comapny is built on.

[Ace Sewer]

I don't know how to get started, never had to do it. I hired into a friend's company, making it all of three people. A couple years later he mentioned he was thinking of selling it; wanted time for other pursuits. So I bought a piece of it and mostly let him do his sculpture, make him work once in a while.

I do know how to grow it though (now, three years later, we have just become five). I agree with all that referrals are the way to go. Just do good work, and understand and meet your customers' needs. Make your customers happy and give them a few cards. It will grow itself if you do good work. I have had to keep the brakes on growth until I find the right person to hire; I won't risk the reputation we've built by sending just anyone out. Then it gets lean again $-wise for a little while until I let it build enough to keep the new person busy. I let it expand until I am nearly overloaded, then find that right person and go crazy trying to get it all done while training them, then rest for a while while it builds some more. I do maintain yellow pages ads as people who want me need to be able to find me. Other than that, we don't advertise.

[mtnman1100]

Wow This Is An Awesome Bb. I Just Found It Today.
I Am Also Just Getting My Business Off The Ground And Using Bulletin Boards Like This One, Here In Colorado, Has Attracted Some Attention. Then The Referrals Start And More Business. It's Great.

[DuckButter]

I get more and more referrals and repeat buz as time passes...I almost feel like I'm cheating with the ad budget.


This hit me like a time capsule, I vaguely recall posting this and wanted to reiterate how true it is.
This week I've gotten a lot of calls, but most of the new ones are turning out to be inquiries or tentative work requests for the future.
I'm not sure if it's just chance, or a sign of the economy, but right now I'm booked through wednesday with old customers.

I don't feel like I'm cheating the budget now, thats for sure.

[DuckButter]

Wow This Is An Awesome Bb. I Just Found It Today.
I Am Also Just Getting My Business Off The Ground And Using Bulletin Boards Like This One, Here In Colorado, Has Attracted Some Attention. Then The Referrals Start And More Business. It's Great.

Welcome!
There are countless message boards for the trades online.
This one has a much warmer feel to it than others, many of us have come to know eachother in real life, some speak over the phone often as well.

We have our moments, disagreements happen, but being able to swap idea's and debate differences at home as if you were hanging at the supply house is amazing.

[westcoastplumber]

Wow This Is An Awesome Bb. I Just Found It Today.
I Am Also Just Getting My Business Off The Ground And Using Bulletin Boards Like This One, Here In Colorado, Has Attracted Some Attention. Then The Referrals Start And More Business. It's Great.


Welcome to the forum and enjoy. Good luck with your adventure, the feeling is great, work hard and be fair, all the rest comes, find things that put you seperate from your competition.

whether it is wearing booties, a good personality, find something to seperate yourself and run with it.

congrats!!!

[Service Guy]

What do you guys do when it slows down? I don't know what happened, but my new business was finally getting somewhat steady and november, december and january were looking up. However, February and march have been really, realy dead. Its getting scary. Luckily I have a new yellowpages ad coming out in April and I am currently working on a business website. But I need work NOW!
Any tricks to drum up some quick business?

[Tyman]

Service Guy,

Send out 50% off coupons. Then raise all your prices 50%.:killingme:

Seriously, it is slow for us right now too, but I have seen this same trend every year thus far. Reorganize your tools, get blades sharpened, clean the van and just wait. Hopefully this summer you will be asking us how to deal with your phone ringing constantly.

[DuckButter]

Au contraire, phones been going nuts...suddenly busier than it was this time last year.
I'm getting some new business, but I'd wager 75% is repeats or referrals right now.
Talked to another member last night on the phone (adam) and he's all out as well.
One possible idea, look up old customers and give a call to ask how things are with the work you'd done...I have in the past and have been surprized at how many remember there are other things they need done.

[Gene Bickford]

I to have been very slow in fact, last Tuesday I was ready to pack it up. Then out of the blue we got a few calls and managed to pull a half decent week.

[Service Guy]

Service Guy,

Send out 50% off coupons. Then raise all your prices 50%.:killingme:

Seriously, it is slow for us right now too, but I have seen this same trend every year thus far. Reorganize your tools, get blades sharpened, clean the van and just wait. Hopefully this summer you will be asking us how to deal with your phone ringing constantly.

That makes me feel a little bit better. I am only doing a few piddly calls/week. I am trying my best to maintain a positive outlook.:indecisive:

[PLUMBER RICK]

What do you guys do when it slows down? I don't know what happened, but my new business was finally getting somewhat steady and november, december and january were looking up. However, February and march have been really, realy dead. Its getting scary. Luckily I have a new yellowpages ad coming out in April and I am currently working on a business website. But I need work NOW!
Any tricks to drum up some quick business?

first off, you need to get rid of the drum and go sectional:D

but seriously, there will always be slow times. typically when i look back on my computer and see my monthly totals, year after year, april will slow down due to taxes, income and property.

of course in the service side, things break, plug every month.

repeat business and customer referrals are the key to keeping busy.

try generating an incentive program for your current customers. maybe something as simple as a coffee, grocery gift card.

the more customer base, the less down time:scratchhead:

with small scale jobs, i have to do a lot of little jobs to keep busy/ make money.

of course with large scale jobs it's the opposite. but then i can't service the little jobs that come in daily.

it's a toss up and you need to decide what works for you.

i gave up remodels and re pipes as i don't have the time or help.

the more time you've been in business, the easier it gets to keep busy;)

good luck keep positive. the phone will ring.

rick.

[Service Guy]

You guys are like good, old friends already!:blush:
Good ideas, I decided to send out coupon postcards to all my previous customers. I don't have that many*yet...only 110 previous customers so far!:( But they've kept me in business this far and a friendly postcard/coupon will at least remind them of me, and even if they don't need me, that reminder may be enough to drop my name to a friend they know.

I know someday I'll look back at this first year of business infancy and laugh,:lol: but when I'm in the middle of it, its not so funny!:sad:

[DuckButter]

I know someday I'll look back at this first year of business infancy and laugh,:lol: but when I'm in the middle of it, its not so funny!:sad:

No lie, that's exactly what crossed my mind just now as I drove home.
In the last two weeks I have gotten more calls than I can handle, especially today & yesterday...most are old customers with new projects.

Back in early January, like clockwork I went through the usual "panic syndrome"...it gets predictably slow that time every year, but the economy added to my angst.
My wife just laughed at me and said "I don't want to hear it when you whine about 12 hour days this year...you do this every year!".
Sure enough I'm swamped...I might have to either sub out or look into expanding...worked Sat & sunday this weekend & thats getting old quick.

I am not trying to lecture, or sound like I'm the business model for success...long way to go for that.
What has proven to work is ALWAYS answer the phone, I've answered my cell phone at Thanksgiving while at the in-laws, I've answered the phone at 11pm, at little league games, while taking a shower, & during sex.
(yes, I'm kidding about the last two)
Bottom line, when you're reliable, people remember you.

I always clean the area I worked in...don't care if it's a slum with crap everywhere, my spot is clean when I'm done.

Be real, being constantly agreeable thinking you're being professional might come off as superficial, uptight or make you look like you're hiding something.
I have one customer that moved here from NYC...wears his Yankee's hat whenever I stop by....he just knows I'll give him my evil smirk and tell him they suck.
He also knows that if I tell him he has corroded copper lines that are going to give, I'm not inventing it.


This is what has worked for me, seeing you post here in the forum totally reminds me of what I went through when I first started on my own not too long ago.

I'm sure you know these things already, but thought I'd confirm that it really does work.

[DuckButter]

Send out 50% off coupons. Then raise all your prices 50%.:killingme:

Meant to comment on this before, you were kidding obviously, but the sad truth is tricks like that work.
Gets you a customer for one time only.
I know loads of guys that advertize dirt prices, then add "necessary" work once they get there.
Same deal, one time shots...they lose your number after the jobs done.
I'm no ad exec, or demographic marketing specialist, but tactics like that make your ad budget grow over time to stay busy...just my hunch.

[westcoastplumber]

You guys are like good, old friends already!:blush:
Good ideas, I decided to send out coupon postcards to all my previous customers. I don't have that many*yet...only 110 previous customers so far!:( But they've kept me in business this far and a friendly postcard/coupon will at least remind them of me, and even if they don't need me, that reminder may be enough to drop my name to a friend they know.

I know someday I'll look back at this first year of business infancy and laugh,:lol: but when I'm in the middle of it, its not so funny!:sad:

I send my customers post cards like every other month. I have customers wait for the 10% off and slam me with a days work at once.

I also mail about 2000 postcards a month, this is really good too. Keeps me in peoples minds and keeps my logo out in front of them, so they have a picture.

The closer to tax time you get the slower it gets.

Here is a remedy to slow periods, get lots of commercial / income property accounts, these accounts always have problems, and I call them charge accounts, charge accounts are your best customers as long as you take care of them and they always have something going on.

Hang in there, clean your van, market yourself, straighten your tools and organize, because if you don't do it now, you won't have the time later:D

[libbyloulou]

What a thread ! learned loads in the last hour.

You guys are brilliant, wish i had mates like you in britain.

You have all changed my view of an american worker.


(don't ask what i thought, i'm not sure):o

Please keep this going, i'm picking some really good tips up, thanks!

[SlimTim]

I'm a long time forum reader even if I haven't posted much.
I know this is probably a looney way to look at the advertising question but here goes... I'm a one man shop for 11 yrs now (34 yrs total in the plumbing business). I have never advertised (except for that church bulletin-they were customers and I felt obligated), and though I've had those slow weeks, usually never more than a month, there is always something that comes in (sometimes just in time!)
There are several reasons that I think referrals are preferable.
When a referral comes to you asking for your help, it immediately puts you in a better position than if you are asking (via advertising) for their business. First, they are not usually so demanding about appointment times and they are generally not "shopping" for the best deal.
They already know that your work and character are superior because after all, they were referred by a friend or relative or whomever.
Because they were referred, you will almost never get stiffed, for whatever reason, because they would lose face with the person that referred them, You know, most of my customers have become as friends or family even. So, they would not think of referring a deadbeat to me.
Regarding "drumming up" business. If one is not in this only for the sake of the work, but rather for the many relationships you develop through your work, then it kind of happens naturally.
If you read about one of your customers promotion in the newspaper then send a handwritten note of congratulations. Birthday cards, attend their kids recital, invite them to your kids recital, just call to check in on them (as was mentioned earlier in this thread).
Also, branch out into other areas. If you deal in water or air purifiers, make calls and offer to put one in for trial purposes, no charge to them. You will frequently get sales from that plus, it is a big benefit to your customer.
Sorry to drag on so long. If you look at all the typos in this rant you will know why I seldom post. I can't believe this thread started last June!
Best regards to all.

[Rooty]

I know that it is hard at times and these are not easy times. I see the construction guys starting to do mmore of the service end of things and they really foul things up. Then there are the big "Rooter" guys that have young inexperienced techs that think they know something and just sell abill of goods. I wish that I could educate customers better about me so they would know the quality of work that I do. Any tips on how to accomplish that?

[Rooty]

Okay, I've been reading the forum now for a while and it seems to be well worth the time. Everyone here seems very willing to help. I know that a fellow plumber in my area and I talk often about things and we see things differently on advertising.
Does anyone have experience in changing their ad layout and the response that it generated, or not? I do not have the advertising budget to "go big" so I am thinking of simply keeping the same size and changing the layout. Any thoughts???

[SlimTim]

Rooty, I don't know anything about ad layouts but I do know if a diligent rooter guy called me about referrals I would send him somewhat steady work. I don't have a sewer machine and I prefer not to get into kitchen drains even. I have enough of the work I like without those headaches. I refer my work now to the local rooterman and will only allow a certain two of their techs to do my work.
They bill me and give me 10% off labor (though I didn't ask for that deal). I either forward the bill or rebill my customer. The customer feels I went the extra mile by arranging for the work to be done and getting the best tech they have (that's worth something!). I do followup calls to make sure the techs are doing right.

So, my point is, if you can get a few one man shops like myself referring calls to you, you may be able to build a clientel or at least make it through slow times.

[DuckButter]

If one is not in this only for the sake of the work, but rather for the many relationships you develop through your work, then it kind of happens naturally.


Of all the points in your post that I COMPLETELY agree with, this one truly sticks out.
I've been laughed at for saying I make alot of friends with customers.
I mentioned it briefly on another post above, I don't feel compelled to put on a game face & overdo the professionalism.
I have customers that will hang with me in the basement & "vent" about women (sorry ladies, guys do it too).
One customer calls me when he's down (I suspect), because we always wind up chuckling as we chat...he wants me to go water skiing at his lake property this summer, I told him if he some much as smirks at me the wrong way while I flop around...I'll swim back to shore.:eek:

Point is, I have an advantage over larger shops that'll send young kids out on service calls, I make a concerted effort to just be myself.
I have many customers that ask how my wife is, or I ask how the new job has been going, I see kids that have grown an inch in the last year and comment.
These folks aren't the ones that look for the cheapest price, these are the ones that want to know for a fact that when you tell them something needs to be done, it really needs to be done & your not looking to add work for a profit alone.

I just stopped in to do a little paperwork, now off to another job.
This job is a customer that I've had from the start, I swear this is NOT an exaggeration...I told him I had no idea what it might cost because I couldn't diagnose the trouble on the phone...his reply: "I'd rather not take time off work...you mind if I just leave a blank check on the counter?"
Relationships & trust are probably the single most important factor in growing a business...any business.

[SlimTim]

A dozen dittos to that Duckbutter. I'll go one further, I have a customer that sends me checks about every 3 to 6 months for $250 or $500 just to make sure I'll be available when he calls.

I never invoice him. After a job is done he'll immediately send a check, usually for more than what i would have charged.

I read somewhere once that people won't remember you for what you said or even what you did. They'll remember you for how you made them feel. (I guess the good work and pithy talk are just icing on the cake.)

[DuckButter]

A dozen dittos to that Duckbutter. I'll go one further, I have a customer that sends me checks about every 3 to 6 months for $250 or $500 just to make sure I'll be available when he calls.

Reminds me of another good topic: TIPS

I'm odd...don't like tips..barring late night calls or extenuated circumstances.
I'll usually insist that they not tip, it makes me uncomfortable, especially when it's not a difficult task.
If they insist after the first refusal, then it's all fair, and I'm not up to looking like an idiot arguing about it.
I have one customer that just does it no matter what, I got him good last time...
Intentionally underpriced the work, then showed him after he paid me..:eek:

I did it more for the humor...we had a good laugh as I told him "The boss doesn't like me taking tips."

[gayathriherath]

Looks great. wonderful content.

____________________
GAYATHRI

Social Media Marketing (http://www.esteembpo.com)

[Twicepipes]

Of all the points in your post that I COMPLETELY agree with, this one truly sticks out.
I've been laughed at for saying I make alot of friends with customers.
I mentioned it briefly on another post above, I don't feel compelled to put on a game face & overdo the professionalism.
I have customers that will hang with me in the basement & "vent" about women (sorry ladies, guys do it too).
One customer calls me when he's down (I suspect), because we always wind up chuckling as we chat...he wants me to go water skiing at his lake property this summer, I told him if he some much as smirks at me the wrong way while I flop around...I'll swim back to shore.:eek:

Point is, I have an advantage over larger shops that'll send young kids out on service calls, I make a concerted effort to just be myself.
I have many customers that ask how my wife is, or I ask how the new job has been going, I see kids that have grown an inch in the last year and comment.
These folks aren't the ones that look for the cheapest price, these are the ones that want to know for a fact that when you tell them something needs to be done, it really needs to be done & your not looking to add work for a profit alone.

I just stopped in to do a little paperwork, now off to another job.
This job is a customer that I've had from the start, I swear this is NOT an exaggeration...I told him I had no idea what it might cost because I couldn't diagnose the trouble on the phone...his reply: "I'd rather not take time off work...you mind if I just leave a blank check on the counter?"
Relationships & trust are probably the single most important factor in growing a business...any business.

Just reading through this thread and I gotta say, this is a damn good post. Take heed. Honesty is the best policy. Not being a phony bologna, plastic banana makes you more believable and human which is something we all can relate to. Of course, being overly honest can also have a negative effect too. But generally speaking, a no gimmick approach will assuredly result in repeat business. It certainly has worked for me.
When I first joined here, someone asked me "how do you know you're that good?" Well, customers leaving a blank check is commonplace for me also. Entrusting me with the keys to their home under the mat without anyone being there also takes a huge amount of faith on the customers part.

On a separate note, I find that working for another plumbers' customers has its downside and only helps to strengthen the relationship for someone that may or may not call me a month from now. I'm currently working on changing that situation with the help of threads like this one.
Thanks

[drtyhands]

It appears that almost every post, with members who relies solely on referrals, has some fairly scary slow periods. Different forms of advertising demand different profits. New construction plumbers don't advertise at all and they have the lowest percentage of profit.

Plumbers who run their businesses on referral only may be getting these referrals because they are charging low prices. One member, I met with seems to have some fairly high-end and loyal customers who pay fairly well. This is not the same for all members. I don't want to insult any other member and say they are less professional nor do they have less integrity. So, don't take this the wrong way. Many plumbers cannot portray this same image. This leaves many plumbers with the need to get referrals by charging lower prices. Low prices = lower net profit.

There will always be the exceptional customers who don't care about price. To net a good profit this would have to be the norm.

Be honest. Are you meeting the expectations you had, before you started your business, by depending on only referrals?

Jack

Jack is not Burt. That is not my style.

Asking a question pertaining to expectations right now is not realistic Jack.Most of these overnight service plumbing wonders have sprung up in the last few years because of the excess monies people have and flat rates ability to communicate our neccessity to access it.

Now that the money is dried up I love it.I'm letting the newbies see my glee.I had to listen to them boasting all these years when I knew they didn't know their arse from a hole in the ground.

Don't see too many bustin' down the doors to get "into" the trade these days.
:wave3::rotflmao1:

P.S.
Scumbags are out here in the dirt too;)

[Devine Plumbing]

For a small guy like me word of mouth is more than adequate. It gives me enough incoming work that I am able to pick and choose what jobs I want, and pass the others on to someone else. If it is something I don't want to do, or am not properly qualified to do I just simply pass it on. I probably have enough work to keep one or two employees busy if I wanted to. However, any bigger and I would need to increase my advertising to gain a larger market share.

[Plumbcrazy]

What has proven to work is ALWAYS answer the phone, I've answered my cell phone at Thanksgiving while at the in-laws, I've answered the phone at 11pm, at little league games, while taking a shower, & during sex.
(yes, I'm kidding about the last two)
Bottom line, when you're reliable, people remember you.

I have jumped out of the bathtub on many ocassions to answer our phone after hours. Cell phone sits on tub with paper & pen right next to it. Of course you feel silly dripping wet with shampoo in your hair. But, damn, that call is money.

Never during sex! But I have looked at number on phone when interrupted.:lol:

[ritajones]

Word of mouth is still great, but to really get the ball rolling I think you need traditional advertising methods first and then word of mouth kicks in after some people try out your product or service and get talking to friends and family. It's good to have a mixture of both, but I'll take traditional advertising if I had to pick.