Breaking the golden handshakes

[Electricalserv]

Today I've been advertising myself to local estate agents.

Unfortunately they are all useing the same spark and seem to be very loyal to him. Although the feedback is sometimes he is too busy and doesn't show up. Even after that comment the estate agents still seem to be very loyal to him.

So for you business minded guys how can I get in and break this trend. I have already stated I will undercut him. But I just don't think that will be enough. If he isn't turning up he isn't offering a good service so why do these people not want to budge??..all have said they will keep my card for reference but I just have a feeling nothing will come of it.

 

[Octopus]

If I was an estate agent and you said to me that you would undercut the existing supplier I would be wondering which corners you would be cutting.

At the end of the day you need to position yourself as the "brides maid" and cross your fingers that the phone will ring and you'll be given your chance to shine.

I'd make a mental note to call in again every 2-3 months dropping off cards each time.

Good luck.

 

[Electricalserv]

Its hard to go in there with no selling point though and mine was (on written letter) that I can offer reduced prices at cheaper rates than my competitors.

There is no corners being cut. I'm just cheaper because I choose to be. I was told by one of their existing customers they charged somebody £90 to switch an RCD back on...Why people pay for It I don't know

 

[Octopus]

Lifes tough out there at the moment so keep smiling.

As my previous post said starting off by saying your going to undercut the competition isn't likely to win that many friends. Maybe you should big up your attention to detail, your ability to keep to timed appointments etc, etc.

 

[Electricalserv]

Your probably right, but in all honesty the busines game is about the ££££ and by coming in cheaper its likely going to make them sit up more, I just feel that without giving someone a chance you are letting others freely charge more for something that can be given cheaper elesewhere for the same standard.

Il see how it goes anyway

 

[Antman]

Dog eat dog world out there

 

[accordfire]

Today I've been advertising myself to local estate agents.

Unfortunately they are all useing the same spark and seem to be very loyal to him. Although the feedback is sometimes he is too busy and doesn't show up. Even after that comment the estate agents still seem to be very loyal to him.

So for you business minded guys how can I get in and break this trend. I have already stated I will undercut him. But I just don't think that will be enough. If he isn't turning up he isn't offering a good service so why do these people not want to budge??..all have said they will keep my card for reference but I just have a feeling nothing will come of it.

This is a problem we face time and time again - trying to break in to markets, or to find new customers, even in existing markets we already have experience of.

It's a damn good question, and most usually, it appears on the forum as "what's the best way to advertise, business is slow" - kind of questions.

IMO, it's never clever in the long run to advertise a willingness to undercut or be cheaper than the competition - discount selling only ever ends up on the floor, with you trying to compete for work that doesn't have the margin in it. That's a big part of why we end up with threads like "Is £495 too cheap for a CU Change" ----I guess.

So. How do we find new customers in new markets?

Ultimately - customers, especially commercial ones - look for reassurance that you're around, going to stay around, can do the job, and can offer terms that work for them. Domestic customers look for a friendly face, good pricing, and for something that "isn't in the price" - what used to be called a WOW factor.

Estate agents in particular are hard to crack - we've tried for months with letting agents and so on (for fire safety work) - and it is hard going.

But. We have started to get a little in from them, mostly by making sure we're in front of them in subtle ways - marketing, rather than out and out advertising. As far as it all goes, it's always, IMO, better to advertise the advantages of using you, rather than how cheap you can be. Concentrate on how your equivalent service is stronger, or better than your competitor's other than on cost - reliability, attention to detail and so on - but the clever bit is to emphasise their weaknesses indirectly - by promoting them as your strengths.

Occasional, but regular mailings - or leaflets - don't be scared to pop in new leaflets every two months or so - even better if you can put a relevant "offer" on them.....

But the sad fact remains, if you're going to break into something like that, the key ingredient is time - and repetition, but not so much it gets their backs up - it's hard, but it gets easier after the first couple. Sometimes.

That they've kept your card is good - now all you have to do is make sure they keep you in their minds - and periodic popping in/leaflets/mailshots/etc can do that.

 

[Hawk81]

I would say that the reason they stay loyal to him is quite simply they know what they will get. They are used to dealing with him. They probably think if we change our spark he might make a real mess so we will stick with what we know. Its hard to change peoples minds on things like that. You can only hope they do give you a chance someday.

 

[Electricalserv]

I always thought that offering a better deal than competitors in business is what got you the work.

For instance if Asda are selling a product for £25 and Tesco for £35 your going to go to Asda as its cheaper. The only difference here is that the product sells itself.

I agree if the customers don't know the quality of my product tehy may be hesitant if I say il do it cheaper. But until they see my product in real scale how can they judge it?

Do you guys think I have made a bad marketing campaign by coming in cheaper?

 

[Electricalserv]

I would say that the reason they stay loyal to him is quite simply they know what they will get. They are used to dealing with him. They probably think if we change our spark he might make a real mess so we will stick with what we know. Its hard to change peoples minds on things like that. You can only hope they do give you a chance someday.

The guy has only been trading 6 years so he has taken the work from somebody else. I think there is a tie family wise to him and one of the estate agents.....but all of them use him!

 

[AlanWirral]

Clear your inbox mate.....

 

[accordfire]

Yeah, it is the case, ES - but there's a difference between "cheaper" and better deal.

It works for Asda and Tesco, because you already know what you're buying, know how it tastes, or washes you, etc - and the brand owner has done all the marketing to convince you that's the one to buy.

In our case, we're doing the marketing AND the sale - building the brand and stocking the product - so we have more to do, in a different way. We can't simply stack em up and sell em cheap. We could if we were selling sockets out of boxes, however.

When we perceive better deal - we don't generally consider lowest cost first - the trick is to sell them a benefit they can't get with any other, and then make the price competitive - give them more for around the same price, not the same cheaper.

It is a subtle difference, but one that counts - as others have said, marketing on "cheaper" usually has customer wonder how you're doing it - especially if they have been used to a given rate over time - so really, it's about what you can ADD to what they already get rather than what you are taking away......and that's the kind of language you need to think in and use, to win - cheaper, taking away - anything - is seen as negative. Adding (value, less than cost) is seen as positive..... subtle, but it works.....

 

[rocker]

Instead of going in cheaper, say something like '10% discount on every fifth job booked'. It just looks better and implys you're going to be around for a while as well. You'd have to have some kind of small print to make sure they don't book 4 lightswitch changes and then get the discount on a rewire, mind....

 

[mattmoo1974]

He's doing somat right.
They mite of had there fingers burnt with a "Im cheaper" spark and just stick with what they know.
Im sure hes told them all the horror storys about DI's etc etc.
Iv dropped my card into alot of local estate agents and im getting the same as you :S
I just said that if your regular guy cant do it give me a ring as im only up the road.
I ll keep you posted if i get any joy from it.

 

[alarm man]

if their not going down the cheaper route and this lad gets all the work,maybe it could be the case he's handing out brown envelopes,it happens and it happens a lot,rightly or wrongly ..