Soliciting Work in a Bad Economy

Do you change the tire on your car when it is working fine ?

In a time when there are few jobs to be had, those few jobs must be quickly and accurately estimated, I worked for a company that once forgot a boiler on a hospital job, but the steamfitters were tasked to control the cost because the job was in the hometown.

Marketing is a must for every company (every person in the company needs to know there actions reflect on the company), every cost-plus or negotiated sale is made to a friend which can be a winner for both sides when the prices are volatile, when there is an aggressive schedule, when there are unknowns,... every bid is an opportunity to show your expertise, if you don't need or want the work, maybe your competitors don't either, price accordingly.

Marketing and sales are two totally different concepts. It is much easier to evaluate the efficacy of a sales program than that of a marketing program, because the results of a sales program are directly measurable. A good marketing program, on the other hand, is directed at positioning the firm in the marketplace- you want to be the first name called when a new project comes up for bid. A good marketing program will result in more RFQ's, requiring less direct sales efforts.

Over the years, involving a variety of different media tests, the only advertising I have found to be really effective over all scenarios has been the recommendation from a happy customer. Direct mail, published advertising (print, TV, radio, etc.) are all shotgun approaches and for smaller operations, are of questionable efficacy, unless very specially targeted (which, of course, raises the cost). Something else I have found effective in some circumstances is redirecting the resources allocated for advertising to some sort of "Community Service"- donating labor/materials to a local charity project for example- keeping an idle crew employed during slow times and creating a lot of free publicity, if handled right...

I would not be able to survive today were someone to take my computers away from me, but computer tools are not the be all/end all solution to today's economic situation. Build a reputation as a problem solver, and even in the worst of times, you will maintain a market position.

I don't know if this will help resolve the issues you face, just some random thoughts that you might find useful...

Sit down and talk with your dad about what he has learned. He is a very smart man. You should also look at other companys the same size as yours that have been around a long time.

I believe that there is an important distinction between industrial and consumer marketing. For your business, what are the businesses that use your services ? Then you can focus on them.

The direct mail tack seems too shotgun, whilst your sales effort needs a rifle. Apart from the fact that in these times your budget may well be limited.

Talk to your father about what is his definition of his market, look at what his competitors do, establish whether this is a regional business and so on. Mass communication is not an appropriate technique unless you sell your services to individual houseowners.

That should get you refocussed on your priorities.

Target marketing is very simple. A yearly calendar with your name and space for note is a great way of one time spending on advertising that last a whole year. Sending 20 or 30 calenders to large companies always got me a lot of work and kept my advertising cost low.

I would try to develop a sizeable list of people willing to be "references" -- your Dad's satsified customers. While most construction companies will supply references, they probaby haven't developed it to the extent that is possible. Any kind of compensation muddies the water, and most customers wouldn't want to be bothered a lot without some kind of compensation. That is where some creativity could come in.

Word of mouth is still the most powerful advertising. Any advertising should emphasize this reference list. If people can call someone in the same city, go and see the end result for themselves, this is the best advertising. Sounds trite, but word does get around...

And as far as bids... people will go with somewhat higher bids if they think the quality of work will be superior and/or the work will be backed stronger. Only your Dad's personality and reputation can convey this.

Like most readers of this article I get a lot of pretty color brochures across my desk, but when I come to choose new people to put in a tender I rely on word of recommendations.

Talking to marketing people is nice (and I like getting free lunches), but a face to face meeting with one of the actual project engineers, who can give an honest appraisal of their companies abilities, works best.

Sounds like your dad knows what he's doing.

An interesting line of thought, I remember much the same type approach at an earlier time.

Experience showed direct mail nets about 1% activity, color brochure and desktop publishing possibly 2% with negligible return.

As other posters have indicated it is your reputation that speaks loudest.

But, otherwise if you want to get your dads attention give him competition

Possibly your heart is in advertising and marketing, instead of construction. Some businesses require marketing and advertising, especially those selling things nobody really needs. A construction site sign, a calendar, and a trusted handshake are likely to be most effective for your particular business. (I gave the calendar suggestion a vote for Good Answer.) So actually you may find that hiring a "Marketing Professional" is more trouble than it is worth as far as your business is concerned. P.S. I suggest you learn how your Dad does bids and estimates and make a software program for your company to use based on his methods.