In the downturn what are you doing to add value to your service? For example I have been doing my own patching for years, I am promoting it more and as a one stop option I have won several jobs even being high on the electric portion.

Ob

Phil,
I was un-employed for 6 weeks before I was allowed to quote on a dairy shed.
Personally I did nothing out of the ordinary.
I quoted such a high figure and never really expected to get the job, but the farmer called me after the tender process finished and said "you've got the job"

There is me and a helper with a big time-frame to get this job done.

IMO, if you have to make concessions, is there really any point in doing the job?

I mean, we are Electricians, we aren't mud workers, we are also not plumbers, just how far do you go with saying "Yes we can do that!"?

Value to the customer is one thing, but in a down-turn, it could mean that they can screw you over for more money as well.

Sorry about the negative attitude, I've been there before.

Phil .,

I have few diffrent ways to add to my contracting work as like example in resdentail area if very small patching on drywall I can do that but there is one spot I will hand off is painting due it hard to get match the exsting colour on the wall or ceiling but if there there is going be a bunch of of patching many time it cheaper to get a hold of drywall contractor to do all the patching.

As for other service I do work on Diesel engines as the situation required { due I work on alot of generators so that do come handy when do the troubleshooting }

I did try to make all one stop for me before it did not work too well with me but for other peoples it may work ok.

Merci,Marc

I think Phil raises a good point. Let me give an example.

Back in the 60's, Ford ran ads showing how they dipped entire car bodies in a vat in order to paint them, and extolled how this process ensured a fine paint job. The public, suitably awed, ran to the Ford dealers when they wanted a new car.

The catch? Ford wasn't doing anything that the other companies weren't doing at the time. The general public didn't know that, though, and were impressed. They associated a common process with one brand name. It was a marketing coup.

The customer is always going to notice a difference in price. You have to make sure he understands the difference between the various products. I mean, you can pay $5 or $150 for a pair of sneakers - and some customer will feel the $150 pair is worth it.

Last summer I lost a job to a lower priced contractor. Well, the customer had a choice: my complete desigh, or the other guys' inadequate (but legal, if you fudged the paperwork) plan. A choice of either be happy with my work, or to be always fussing over the other guys' results. There are no hard feelings; the customer was well aware of the chance he took.

Good point Reno. When I do contracting work or even I do my job for our Uncle Sam, I stick to the basic:

*Never treat the customers as stupid
*Never act as if you are stupid
*Explain things in a manner where they can understand
*Sell them only what they need, not what you can sell them
*I avoid using cheap parts and explain why, long term cost
*I suggest using quaility parts and explain way, long time value
*Flip a freebie to the nice customers. It's cheap advertisement
*Know you compitition. What are they doing? What are they not?
*Answer their questions even if they are planning to do the work themselves (to a point). In most places the home owner can legally do electrical work on their property. They are going to do it anyway. If it is not too far, offer to stop by an double check the work. Odds are they will hire you for the harder stuff.
*I look customers systems over and Identify any major issues and bring it to their attention and identify it on the bill. More times then not, I get a service call of it.

*Stay on top of what the industry is putting on the street.

Treat your customers as human beings, not cattle, impower them with usible information and they will be more willing to spend the extra money even in this economy. People want value and safe wiring and will pay more if you sell it right

Nicly said Sparky. I have been a little carful about advise latley. If a customer injuries themself trying something I advised them there may be some implied liability. I got this from mechanic that was held liable for a brake job that he advised a customer on.

It's never a good idea trying to explain to a customer, how to do something. You can be held liable and loose everything.
You are a professional. It took many years to get where you are and learn what you have learned. That knowledge and experience can not be taught in a 10 minute conversation with a home owner.
You are not going to someones house to give them an education on how to do something. Your there to provide service, not DIY!

I hear you guys. I do not instuct them on how to rewire a house or anything. The people I do assist I have a good understanding what they are capable of. It's typically it just answer a technical question or clear Gray areas in installation instruction. I also make them well aware that they are resposible not me. I am cautious to give out advice just for thar reason. There are too many varibles that can come back and nip me in the butt. Pending on what it is and I think they are biting off more then they can chew, I fire off with a slew of questions like did you check this? Did you check that? Did you double check your calculations? Etc. They either go away or hire me.

I can't deny your logic, but the challenge is to still be able to communicate with the customer, to reassure him that he is getting value for his money.

Be too vague, and you sow the seeds of distrust and suspicion. Be too vague, and the customer is left without knowing how you differ from the other guy.

I just head an ad for a local firm, assuring customers that their 'technicians' were professionally trained, state licensed, would appear on time and be neatly dressed, that all work would be done in a timely, professional manner, and carried a one year guarantee.

No trade secrets there - most of what they said is required by law, and the rest is common in the industry. Yet, this guy has a very effective ad, and successful business, by directly addressing the customers' concerns.

Let's look at another few examples:

If you make sure to explain to the customer that you will wear booties in the house, lay gown tarps and vacuum up afterwards .... that reassures them - and sets you apart from the guy who might do all that, but doesn't point it out to the customer ahead of time.

If you are having to trench, the customer will certainly be interested to see pics of how well you were able to restore the grass after the last job. Who wants to wait two years for the scar to heal?

If you're running pipe, instead of a simple cable, it's to your advantage to explain why you think it's worth the extra expense.

Likewise, if there are things the customer can do to reduce the expense, make sure he is told exactly what his savings will be. For example, you might say ($500 to run that new circuit, but you can save $50 if you empty the closet for me, so I can access the crawl space."

Don't sell yourself short as to your skill. Often the tiny details are what make the difference; if you wear dentures, you know exactly what I mean!

Perception is key. As another example, I know several folks who will pay a bit more for the nice, comfortable experience at Target, rather than the cattle-drive feeling they gat at Wal-Mart.

Most of us have plenty of experience to draw upon; the key is to sit back, and remember what you like and dislike = then put it into practice. Look at things from the customers' perspective. The customer likely has no interest in whether our drill is DeWalt or Milwaukee, but cares a great deal about mjuddy footprints on the new carpet.

My wife is a customer, first as a builder, now as the manager of a country club community. She has hired tons of tradesmen and fired more than a few.
#1 on her list is "RETURN YOUR CALLS".
Nothing is more frustrating that trying to hire someone and not getting a call back. It certainly makes you wonder if this guy will actually show up on time.
That is
#2 "SHOW UP ON TIME"
#3 "Bring what you need to finish the job when you start it"
We all understand things come up and you may have to go get something but if you know you will need something, bring it.
#4 Clean up after yourself.
Don't walk away leaving a mess and don't create unnecessary hazards for other people by leaving things laying around.

She puts price way down on the list. It is more important that you can actually finish the job for the quoted price than it is the lowest quote. The low bid is always suspicious.

I understand she might not be the typical customer because she has done this for a while but in the end I believe that is really what people want, in spite of what they say.
BTW that was also what IBM strived to do ... back when they were selling service. We called it different things but the elements were the same.

Both you and Obsaleet made some good points. It can be challenging to communicate to the customer. I treat them as special in part, they are. Make you customer comfortable, the final bill is easier for them to swallow. The thing is, I have been doing this for years. A good solid reputation is by far the best advertising you can have.

My new landlord flipped her skirt when she realized who I was because of my reputation. She's letting me fix a couple of things at cost so we both win on many fronts. I give her a break on the cost and I can sleep at night, knowing that they are wired right. Pics are coming in a few days. That freebie will put me at the top of her list on who to call. She will confirm my rep to her friends and when they need someone, you know who the will call.

Sometimes selling obvious is a good tool. Creative salemanship is just part of the job. On larger construction jobs, every chance I had to do something noticbly at the construction entrances, I did, even if it was not critical. The customer walks in on the site, the see my progress, they are tickled pink.

Sell your skills, sell the product, make the customer feel special, empower them, make yourself stand out among the other wire heads and you will have more then you share of work, even with the economy the way it is.

Giving away work or charging material at costs can be a two edged sword it may get you a recommendation but it may be attached to the term "cheap". I did a "favor" for what I knew would be someone who could give me a foot in the door with others well sure as sunshine I got a call from a "friend" of EDs who needed a quote. Well I shot back a quote with my material markup and regular labor rates thinking I was due for some profit. Well the next day I get a call asking why I was charging so much because good ole Ed had told him how much I had charged him. So just a word of caution now I only cut breaks to 501 C 3s then I can say "it was for charity".

One thing that really annoys me about some customers though, is when they change thier mind half way through a job and expect you to take up the slack.
And then bag you for the increased price.

Not my fault when they want a socket on the other side of the room to where they originally wanted it.

The nature of the beast is that low-bidding to get work is totally self-defeating. Either give it away entirely or charge your regular rate.

WE ARE NOT MANUFACTURERS.

We have essentially no control over material costs. Like wheat farmers we must operate as price TAKERS -- not price SETTERS -- when it comes to our inputs: our cost of living, job risk and routine materials.

Unlike farmers we cannot borrow against the farm to tide us over while we cut our price to move out the grain. Every dollar of contract price reduction comes out of our income -- quite promptly -- and in this credit contraction no one can fudge cash flow

Our business is contracting massively. With the loss of contract volume profit margins must go UP -- not down!

Survival dictates that additional income must be generated in non-traditional areas. A shrinking pie plate means that you MUST find another pie.

Right now that might be solar arrays. It might be Title 24 upgrades. ( California ) It might mean foreclosure operations wherein you function as a GC.

What ever you do -- do NOT increase the supply of electricians. That means fire all of your apprentices ASAP. Any compassion that you may feel must be balanced with the reality that any attempt to 'carry' them will bankrupt you.

Trends in technology have crushed the need for wire jockeys. Alarm and security systems have gone wireless. WiFi has ruined the retro-fit cable-fishing craft. Wireless X-10 and its analogs (digilogs?) have eliminated our craft as well.

Hence we have three or four guys chasing each job opening.

Here abouts wages have collapsed 40% for j-men; i.e. non-union shops are paying $17/hr vs $27/hr. By comparison the local cost of living has not dropped at all.

All of the older troops have been kicked to the curb.

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I watch CraigsList every day to keep tabs on the latest players to liquidate their businesses. Prices keep dropping on all construction tools and assets.

Just as shocking is the rise in stolen professional tools on offer.

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In this kind of environment putting additional trades under your hat makes perfect sense.

It also makes sense to network with other tradesmen and form a 'reference co-op.' Every team member maintains a stack of b-cards for himself and his buddies. The co-op scratches each other's back on the cheap. Significant work discovered is rewarded with a spiff.

An example: you're swapping out a Hunter fan. You see lousy cabinet faces/ tired faucets/ handyman eyesore 'repairs'. Whip out the b-cards.

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Create a 'line card' with skills listed instead of products.

Stuff like landscaping electrical -- sticking solenoids at the irrigation valves -- compromised wet connections....

Pitch exterior receptacles -- garage circuit extensions -- more wrap fixtures over the tool bench.

Have such materials at the ready and bid them to reflect ONE service call efficiency.

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I shun painting because color match and pre-prep is such a challenge. But I don't mind closing up my penetrations on a rough/semi-rough basis. In this manner the customer can either perform the 'eye-wash' finishing or contract it out without huge time pressure.

Good post Tesla. Too bad the customer base reads our posts

I am focused on the money generating divisions of my business. Service is the only steady income so that is where we look to add value. our techs are trained to look for the upsell on every call.Techs need to be taught to be salesmen on the jobs.

Another thread (about estimating) has made me reflect on some of my past jobs.

You know, in EVERY job where I was given free reign, later feedback from the customer revealed that all of the 'unnecessary' stuff I put in quickly proved to be critical.

The opposite was also true: in EVERY job where I was strictly limited to the plans and the dictates of the accountant, the customer has quickly regretted his choices.

Now, the real challenge lies in getting that message across to the customers - especially when the 'customer' is not also the final user or occupant! You have to get the message through: hire me or you'll be sorry!

ref the low bid.
I was talking to my wife about this again tonight out on the boat. She is arguing with the greens keeper about why he should hire her electrician instead of some guy they don't know who just had the lowest bid.

#1 All electricians are not created equal. She has a business relationship with someone who has a proven record
#2 When this thing breaks (read:run over with a trencher) or you need to add on, you want to be able to get the guy who installed it and knows what is going on so you are not reinventing the wheel. The low cost stranger may not even be in business anymore.
#3 and maybe most important, if the bid is too good to be true, it probably isn't. This guy will usually be back, hat in hand asking for more money or he will be cutting corners trying to get out alive. That isn't good for anyone.


Just a little thinking from the customer side.

I have been staying very busy with up sales and finding problems that need to be addressed. For instance I have 2 jobs now on the schedule because there underground meter sockets are pulling from the house.