Published December 2007

Ring the Cash Register this Winter

By Scottie Dayton (page 52)

Home services exec says pumpers should offer maintenance agreements, tip-top service to generate business, even during the traditionally slow times.

Waiting for the phone to ring is how too many service providers manage their business. So says Tab Hunter, president of franchise operations for Clockwork Home Services in Sarasota, Fla.

No matter what the service, business is seasonal, a fact Hunter learned as a pumper and licensed onsite installer in Nashville, Tenn. Surviving those valleys and operating on a budget became prime objectives. The answers he found boiled down to a concerted and determined small business marketing effort.

Hunter shared his insights on generating year-round business at the “Business Booster Shot’’ training session in Nashville in September. The session focused on best business practices was open to contractors in all types of work, and Hunter’s talk, “Calls on the Board Every Day,’’ was aimed at coping with the slow season for any business.

Pumper: How do pumpers start improving their business?

Hunter: First, they must identify their customers. For example, they’re usually homeowners, not renters. Their single-family dwelling is eight to 10 years old. If the onsite system has never had any attention, it probably needs some, especially if the home has a garbage disposal that is used like a trash compactor.

Your customers are just like the last 10 people you serviced. Analyze them. How old was the home? What was the family like? Were they do-it-yourselfers? Professional people who choose to hire contractors? Do they understand the benefit of regular maintenance?

People usually call pumpers when they are in an unpleasant situation. By delivering professional service at a reasonable price, I guarantee that you will become their provider of choice instantly. Make sure that most men, women, and children in your marketplace know your name. Then it’s over. You have them.

Once that relationship is established, lock it down with a service agreement. That was one of my key successes, because it enabled me to start scheduling around seasonal spikes and valleys. Unfortunately, only a small percentage of pumpers offer service agreements to their tank customers.

Pumper: Do you recommend mailing reminder post cards?

Hunter: Even more than that. What if the maintenance agreement has two visits a year? Spring is usually a busy time for pumpers because it’s raining, so plan a midsummer checkup. Maybe it’s a bio-treatment, or preventive crust layer check, or cleaning the effluent filter. Sure, homeowners can do it, but do they want to? Even more important, will they remember to do it? Systems with pumps certainly need checking twice a year. Design the maintenance plan so homeowners want to see you.

The way to sell it is by asking, “Why wait until you have an emergency? Let’s prevent it from happening and interrupting your family’s comfort. There is no convenient time for an emergency.”

Pumper: Few pumpers consider themselves salesmen, nor do they want anything to do with sales. How do you overcome that mindset?

Hunter: Pumpers don’t have to be salesmen. They first must understand how service contracts benefit customers, then the benefit they brought to the company, and finally how that will benefit all employees and owners. The number one improvement needed in this industry is implementing service agreements. That requires educating pumpers about the value of service agreements so they can educate customers.

The challenge is that pumpers are very technical. They talk about the inlet and outlet and what’s going on inside the tank. Customers just want to hear how you can take better care of them. So here’s the script:

“Today your pumping cost $100. For $159, I’ll pump the tank and put you on our service agreement. I’ll come out twice a year and do x, y, z. If any components need attention, I’ll take care of them right away. Your system will always be in proper working order.”

Once you educate customers, sales follow. This is the number one way to put calls on the board.

Pumper: What’s another way pumpers can improve business?

Hunter: Service businesses are dependent on the Yellow Pages to build or expand their customer base. However, few pumpers are ready for Yellow Page pay-per-click, where advertisers only pay when users click on an ad to visit their Web site. Most pumpers must first become more savvy in customer service satisfaction and retention. If they aren’t tracking the calls their Yellow Page ad generates, converting them to business produced, and comparing that revenue with the cost of the ad, they aren’t ready for Internet advertising.

Pumper: Should pumpers buy business management software to track calls?

Hunter: Tracking can be done in any spreadsheet program or using a chalkboard. The trick is to assign a tracking number to each advertisement so you know which marketing dollars are making your phones ring. Furthermore, if contractors advertise in the Yellow Pages, (mailed coupon packs) and the Sunday paper, tracking tells them which media attracted the most business. When preparing next year’s budget, they can throw more money at that one and spend less on those that haven’t produced as well.

Pumper: Share another way to generate calls.

Hunter: Utilizing previous customers through direct mail campaigns. When you service a residence, drive around the area — it’s called cloverleafing — to see how many other homes have onsite systems. Chances are that most do. They are all potential customers. Reach out to them with a referral program based on the person whose tank you pumped. Offer that customer a reward for using his or her name in a referral letter. Dinner for two. Even cash.

Another way to reach the neighbors is to leave a door hanger. These usually have a perforated coupon or peel-off magnet with contact number. The hanger says, “We just satisfied one of your neighbors. We’re ABC Pumping and Hauling. How may we be of service to you?” Require that your technicians distribute six hangers at each service call — three to the left and three to the right of the home. If it’s a really rural area, leave a hanger on the three nearest homes. Have a standard to which every technician adheres and you’ll see business increase.

A third way is subscribing to a service selling CDs with the name and house number of everyone on your customer’s street and connecting streets. Just type “cross street search” into any Internet browser to find a source for address information. Now you can launch a direct mail campaign that contains a special offer, coupon, or maintenance agreement.

Pumper: Does collaborating with other home services generate business?

Hunter: Yes. An electrician or air-conditioning repairman leaves your reference behind and you leave his. Plumbers, roofers, pest control, painters — they are all service people who frequent homes. Find out who they are, take them to lunch, and share your idea of growing revenue. You’ll see your business increase.

Pumper: If other pumpers in the vicinity are promoting their businesses, how do I make mine stand out?

Hunter: Guarantee that your technicians are drug-free and have no criminal record and your company will jump to the top of any list. That is the least contractors can do when they put employees in other people’s homes. Promote this advantage to local Realtors. I guarantee it will increase the awareness of your company in the marketplace.

Pumper: How do business owners convince employees who just want to pump to buy into their promotional plans?

Hunter: Employees want to know what is in it for them. Whoever is responsible for educating service technicians must make sure the objective is clear. For example, we need to sell service agreements for the following reasons:

Always start with how service agreements benefit customers. Satisfied customers benefit the business, and a successful business benefits employees in monetary and career advancements.

Pumper: Can small business owners afford your plan of retention?

Hunter: Yes, if they spend money wisely and start with what they can afford. They have to create a plan and decide what is more economical. The key to marketing is test, test, retest, track, track, and track. No one can make informed decisions without doing that. If you don’t want to do it, hire someone. Many vocational college kids are looking for something to do before and after class.

Here’s a free way to make your phones ring — turn happy customers into cheerleaders. A cheerleader is someone who calls a friend after you leave and raves about what a wonderful experience it was to have the septic tank pumped. That’s an ambassador for your company.