Toolbox february 2015

TOOLBOX A P U B L I CAT I O N O F C E RT I F I E D CO N T RACTO R S N E TWO R K F E B R U A RY 2015

FROM THE PRESIDENT

TAKE A LOOK

INSIDE

To Sign, Click Here Contractors need an app to capture the online home improvement shopper. We plan to have that soon.

B Y S COT T S I E G A L

F E AT U R E S

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Here’s What’s Next

Checklists and other forms will set homeowner expectations.

A FEW MONTHS AGO WE NEEDED NEW TRUCKS, A FEW FOR SALES AND ONE FOR PRODUCTION. When buying vehicles, you’re usually buying commodities. They’re the same regardless of the dealership you get them from. We buy trucks in white, and letter them over. There are no bells and whistles. I don’t even really need to see the trucks. With no desire to go to the dealership, I went online to find out what kind of trade-in value there’d be for the trucks we have.

First stop: AAA. I’m a member and they have a tradeScott Siegal in service. I answer a few questions, the next thing you President, know I’ve got a price. I wonder if this negotiated price is Certified a good price, so I go to the car dealership, where I realize Contractors two things: I can’t stand haggling with these dealers and Network the AAA price really is a good price. I call up Enterprise, which is where we bought our vehicles four years ago. Their purchase price is the same but the terms are slightly better.

HOW PEOPLE SHOP

10 H R N OT E S Knock, Knock

People who shop start online these days. They don’t want to go to showrooms or have someone in the house sell them. And for those who do prefer the showroom or the in-home visit—i.e., Baby Boomers—it’s more habit than anything else. Contractors are no exception. Most homeowners see contractors as commodities. Somehow, your website needs to change this perception.

This got me thinking about what was on my website and how we respond to inquiries. There are plenty of contractors who think homeowners will never buy a home improvement project online. They’re thinking there’s no way to do it.

And anyway, how can we sell them unless we get in front of them? continued on page 2

Canvassing Myths and Legends

Almost any size company can canvas.

Here’s how.

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M E M B E R P RO F I L E

Business Savvy

They knew they wanted to own a business.

4 SALES MEETING Small Talk Isn’t

Master the art of rapport.

5 V E N D O R P RO F I L E Loyal Treatment

James Hardie invests in skills of its dealers.

When one employee complains about another.

11 CO N F E R E N C E CCN Tampa Conference 12 I N T H E N E W S The latest news and CCN event updates.

A PUBLICATION OF

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To Sign, Click Here continued from page 1

MISSION STATEMENT To enhance the professionalism, performance, and perception of the construction industry. We promote ethics, education, leadership, and innovation, so that the construction industry and the community achieve mutual benefit.

Corporate Headquarters 6476 Sligo Mill Road Takoma Park, MD 20912 301.891.0999 800.396.1510 866.250.3270 fax www.contractors.net STAFF Scott Siegal, President scott@contractors.net Jamie Siegal, Vice President jamie@contractors.net Gail McNeill, COO gmcneill@contractors.net Catherine Honigsberg, GM catherine@contractors.net Sindy Wohl, Director of VIP sindy@contractors.net Denise Metheny, Accounting denise@contractors.net Tracy Neill, Office Manager Tracy@contractors.net Troy Timmer, Account Representative troy@contractors.net Shawn Feurer, Account Representative sfeurer@contractors.net Derrick Love, Technology derrick@contractors.net Sydney Ledger, Events sydney@contractors.net Eleni Brenner, Events Assistant eleni@contractors.net Toolbox is a publication of the Certified Contractors Network. Toolbox is a member benefit. Non-members may subscribe for $75 annually.

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But homeowners already buy jobs online. Solar City, the largest home improvement contractor in the U.S. (by volume), has been selling $40,000 and $50,000 jobs online for at least three years. The homeowner contacts them, usually online. Solar City will then photograph your roof using a satellite service. They estimate the number of kilowatts that could be generated by equipment mounted on that roof space, and do an online presentation using screen-sharing software. They send you a contract for that amount. If you wish to proceed, a technician arrives for a site visit. If the amount of kilowatts is within 10% of that initial contract price, the contract is valid and Solar City arranges for the installation.

I wondered how we might apply that model to roofing/siding/windows. To me, the best way to sell value is still to get in front of the homeowner and make your case for your company and the project. It’s the best thing for the homeowner too. They get an education.

At the same time, it’s clear that there are people who want to buy our products/projects online and more and more will in time.

C APTURING THE ONLINE SHOPPER

What we’ll be putting together and testing at Maggio this year—with the intention of making it available to all CCN members—is an app, accessible via our website, that will allow homeowners to select the job they want to buy. It will start with a video explaining that it’s almost impossible to get an accurate price for a home improvement project online and that any contractor is going to need to see the project to create a real estimate. That said, using this tool homeowners could evaluate both the contractor and materials for their project.

The homeowner clicks on a materials selection button that steps him or her through a series of questions. Their answers will trigger information in the form of videos, pictures and text boxes showing choices available in, for instance, roofing materials, flashings, underlayments, and fasteners. Whether it’s windows, siding, roofing or something else, the project is broken into components, with choices, and pricing.

ONLINE SALES

What we’re thinking is that as this moves beyond the test stage here at Maggio and out to the CCN membership, the CCN contractor posting the app can customize it with their company’s own information. So for instance, questions might include whether or not you [the homeowner] prefer to work with a company that uses its own installers vs. subcontracted installers.

The idea is to show that home improvement projects are not a commodity and that there is more to a project than price and materials.

Salespeople will be able to close more business because your company will already have provided homeowners with information that would otherwise be communicated across the kitchen table. That you’re the educator gives you the leg up when someone arrives from the company to measure. At the next stage— where a proposal is readied—that sale might take place in the house, or it may take place online using Go To Meeting or similar conferencing software.

To tell people, especially busy and tech-savvy people, that they have to have a salesman in their home to give two hour long (or longer) presentations may not make sense anymore. Since the customer is changing, isn’t it time we change as well?

Business Savvy They knew they wanted to own a business, but they weren’t sure what kind, let alone how.

MEMBER P RO F I L E

B Y J I M CO RY

KRISTEN AND TERRY STAMMAN knew they wanted to go into business. At the time Kristen was working on her MBA and Terry had a law degree but found the prospect of being an attorney unappealing “for lots of reasons.” They considered, briefly, running a restaurant. Then the chain they had looked at went public, and faltered.

Kristen’s idea was that if they could learn how to run a business successfully in one industry, they could apply those principles—cash flow, profit and loss, strategic planning—to any business.

The industry turned out to be painting, specifically Triple A Student Painters, a franchise, which they bought in the summer of 1995. “We jumped in head first and learned on the fly,” Terry recalls.

Siding repair familiarized them with fiber cement siding, and they installed their first complete fiber cement siding job in 2001, on their own home. “Then we hopped on board with Hardie,” Terry Stamman says.

SIDING PROFESSIONALS

At the time, most siding contractors sold and installed vinyl, wood, or, (in the Upper Midwest) steel. Fiber cement was supposedly difficult to install, thus more expensive to sell. Few home improvement companies knew the product. The Stammans saw all this as an opportunity.

The company they founded, Twin Cities Siding Professionals, soon built a reputation for expertise in fiber cement siding. But though the Stammans knew how to sell and install it, they weren’t making much money. After a few years in business a new salesperson from their supplier asked them what their margins were. “We told him, and he said: ‘You’re going to be out of business in two years if something doesn’t change,’” Terry Stamman recalls.

The rep arranged for them to visit a

Missouri siding company that belonged to CCN. The owners showed them the books and explained how they’d been losing money two years before. “I said: ‘What happened?’” Terry Stamman says, “And [the owners] said: ‘CCN.’”

DIDN’T ASK FOR THE SALE

TCSP joined CCN in 2005. The four years immediately after saw “50%, 60% or 70% a year” increases in sales. One reason is that Terry Stamman, who was selling, changed his sales practices. “Before, I didn’t ask for the sale,” he says. “I didn’t want to put any pressure on anybody. I’d say: ‘Think about it until you’re sure.’ Then I’d lose sales to guys who had a really good presentation.”

That ceased after he went to the Sales Training Boot Camp.

Meanwhile, TCSP production people went to the Blue Collar Boot Camp and, a little later, the Stammans attended Financial Planning Boot Camp, “a big eye-opener.” Among other things, Terry Stamman says, they learned to “start off with what you want to make and go back and break it down from there.”

After a drop in revenue in 2009 with the recession, Twin Cities Siding Professionals just recorded its best financial year ever.

NOT JUST A SIDING COMPANY

Kristen Stamman says the company’s biggest ongoing challenge—besides lead flow and finding and retaining entry-level workers and great sales people—is profitability. “When you live in an environment where it is winter five months out of the year, it’s hard to convince some homeowners that a job being performed in January is every bit as good as a job in June,” she says. “Having ‘holes’ in your schedule is a profit buster.”

What’s helped them overcome that, she points out, is a management team who “care deeply about each other and hold

Terry and Kristen Stamman Owners Twin Cities Siding Professionals St. Paul, MN

The rep arranged for them to visit a Missouri siding company that belonged to CCN. The owners showed them the books and explained how they’d been losing money two years before. “I said: ‘What happened?’” Terry Stamman says, “And [the owners] said: ‘CCN.’” the company in highest regard.”

Twin Cities Siding Professionals commitment to best practices has won the company many awards, including not one but two Better Business Bureau Integrity awards, making TCSP one of the only companies in Minnesota to do so. The Stammans credit CCN with showing them a way to systematize the idea that “we will do whatever it takes, within reason,” to make customers satisfied or more than satisfied.

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SALES MEETING

Small Talk Isn’t

Prospects start to become interested in what you’re selling when they believe you care about them and their problems.

B Y D AV E M AC L E A N

Dave MacLean, vice president of sales Brothers Services Co. Baltimore, MD

Conversation…is the basis of all friendship, but it doesn’t mean you need to be friends with the prospect. What you do need to do is take an interest in them, maybe even care about them, so that you become the trusted source of knowledge as they search for a solution to their problem.

THE WORD “RAPPORT” HAS AN ELEMENT OF MYSTERY TO IT. The Free Dictionary defines it as a “relationship, especially one of mutual trust or emotional affinity.”

That would seem to be about as far from what goes on between a salesperson and a homeowner as you can get, at least initially.

Without rapport you won’t get far in a sales call. Rapport is both personality—who you are—and technique. It’s about finding ways to connect with your prospect.

Conversation is what makes that happen.

And though conversation, according to one

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philosopher, is the basis of all friendship, it doesn’t mean you need to be friends with the prospect. What you do need to do is take an interest in them, maybe even care about them, so that you become the trusted source of knowledge as they search for a solution to their problem.

AT TITUDE NOT PRODUCT

It takes salespeople a while to master this, if they ever do. They see a name on a lead sheet, and the job: Wants roof replaced.

But selling a new roof is never as simple as just replacing the one that’s there. People buy trust and confidence, not products.

Creating rapport starts with being respectful and friendly. First, always call when you’re on your way to the house.

“Hi, this is Dave, just calling to let you know I’m on my way over. I look forward to seeing you in a few minutes.” Imagine the difference between doing that vs. simply showing up and knocking loudly on the door. We’ve all sat there at one point or another waiting for the cable guy to show up. Not fun. Already you’ve set the stage for a welcome reception.

Now there’s the way you approach.

Dress professionally. That is, with a collared shirt that’s lettered to identify the company. Knock, smile, introduce yourself, extend your hand, and hand whoever opens the door your business card. Compliment them on the house, and thank them for the opportunity to be there. The reason for all this? First impressions last. If you don’t make a favorable first impression, they’re going to shut off at some point in the call.

TALKING, NOT SHOUTING

Many times salespeople enter the house and start right in on their pitch. It’s all about what they have to offer. And as

that type of ego-driven behavior proves less than effective, prospect interest diminishes, and the salesperson turns up the volume. Now you’re really nowhere.

What you want to do is talk to people, not shout at them. Have a respectful, civil, genuinely engaged conversation.

And pay attention to them. Observe your surroundings. You want to understand the customer. What are they interested in? Small talk isn’t small when it comes to rapport. Ask about their children, if it’s evident they have kids.

If you see a classic car in the garage, or a set of golf clubs, inquire about those.

Ask about pets. Finding common ground immediately places the conversation on a different level.

R APPORT = REL ATIONSHIP

If all this seems unnecessary, or just too much, consider this: chances are that your prospect has called more than one company. Maybe they have three or four lined up. Those companies might have been there already or are scheduled to arrive behind you. Their products will be similar. If you arrive and don’t take the time to build rapport, the customer will make their decision based upon price alone and you’re only one coupon away from them moving on to the next company.

On the other hand, when you work to build rapport, what you’re really doing is preparing the ground so that they quickly come to see you as a person, who is there as a consultant, rather than just a sales guy pushing product. You become someone that they have things in common with. You activate their empathy by being empathetic. —Dave MacLean is vice president/sales at Brothers Services Co., a Baltimore home improvement firm.

Loyal Treatment

VENDOR P RO F I L E

Fiber cement siding leader James Hardie has long supported the idea of helping contractors improve their business management skills.

B Y J I M CO RY

THE JAMES HARDIE COMPANY makes a product that so completely dominates its category that, like Coke, the name and the category are synonymous, and often interchangeable in the minds of consumers.

Not that that was always the case. The product Hardie makes—fiber cement siding—was invented in Australia in late 1980s and James Hardie brought its product to the U.S. in the early 1990s. It gained traction in new construction before coming into widespread recognition and acceptance among the contractors who replace siding on existing homes.

brands in the U.S., though Marc Setty, business manager of the repair and remodel segment for James Hardie, says the company began investing more resources in the repair and replace segment in 2006 as the building materials market began to shift from new construction to renovation, following the plunge in housing starts and housing sales that began that year. Replacement siding has become a big part of the company’s business as, in many markets, siding contractors who once sold and installed vinyl or wood exclusively have added fiber cement to their product offering.

PRODUCT DEMAND

James Hardie has been a long-time supporter and sponsor of CCN, in fact even before 2006. “They’re an example of what a good partnership for CCN can be,” says CCN president Scott Siegal. “A lot of manufacturers come to us and their first reaction is: how many of your contractors can we get to sell our product to? Hardie’s initial approach wasn’t like that. Their first goal was to see how many of their contractors they could get involved in CCN, so that those contractors could be better, more profitable companies.”

Apart from its involvement with CCN, Setty says, Hardie has long maintained its Preferred Remodeler Program, and in 2011 the company created an Associate Contractor Program “to reach out to that smaller, more fragmented base of contractors who are interested in selling Hardie and growing with Hardie.”

In October of last year the company merged these two programs into the James Hardie Contractor Alliance, with, Setty says, five different membership levels so that “no matter what size you are, or what your focus is,” companies can participate. The program, he says,

A recent study of the U.S. fiber cement market by Reportlinker.com notes that fiber cement products “have seen sharp increases in use since their introduction to the U.S. in the early 1990s” and forecasts demand for fiber cement products to grow at 8% annually through 2017. “Siding made from fiber cement has largely supplanted wood siding,” according to the report, “because fiber cement is nearly impervious to degradation and requires less maintenance than wood.” The report suggested fiber cement was gaining share of market at the expense of brick, in the South, and vinyl, in the Midwest and Northeast.

James Hardie is far and away the market leader but other producers include GAF Materials, Maxtile and Nichiha.

Another recent report, by the Cleveland-based Freedonia Group, published in 2014, indicated that the leading materials for siding in the U.S. are vinyl, fiber cement and stucco.

SERIOUS ABOUT REPL ACEMENT

Among exterior contractors James Hardie is now one of the most well-known siding

LOYALT Y PROGR AMS

Long-time CCN sponsor James Hardie is a global company that is known as the premier fiber cement siding supplier in the U.S.

“ A lot of manufacturers come to us and their first reaction is: How many of your contractors can we get to sell our product to?

Hardie’s initial approach wasn’t like that.” Scott Siegal, CCN builds on its predecessors while being “more appealing and easy-to-use at all levels.” It makes business resources, including marketing materials, financing and business planning tools, available to contractors who sell and install James Hardie. Setty says that the new Contractor Alliance Program “demonstrates our commitment to the contractors who help bring our brand to local markets all over the country.” And Hardie continues to be one of the strongest manufacturer supporters of CCN, with many leading CCN members selling and installing the product. When contractors become better business people, Siegal says, “they make more money and grow their business. It’s a win/win/win for all. And contractors are very loyal people. They remember who brought them to the dance.”

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Here’s What’s Next How the right forms, and processes, can guarantee you a satisfied customer almost all the time.

By Jeffrey Fick

LAST WEEK I WAS TALKING WITH A CUSTOMER WHOSE ROOF WE REPLACED. He was surprised and vaguely annoyed because dirt had fallen through the framing and there was a quarter inch of it all over his attic.

I apologized. I also pointed out that our normal process is to explain that this happens, and we do that three times prior to project start. First, the salesperson, in presenting the proposal, should have explained it. Second, it would’ve been include in a letter we send to homeowners notifying them of our projected start date and enclosing a brochure explaining what to expect on the job, including dirt.

And third the foreman during his preinstallation meeting should have talked about it, because it’s on his checklist for that meeting. He said: “You’re right, everybody told me about it but I never realized it was going to be that much.”

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A NEW WORLD

Most homeowners don’t deal with contractors and/or large construction projects very often. They may call a plumber or an electrician for a quick repair, but bigger projects are not routine. So they often have no idea what’s next once they sign a contract. They hope that the job will be satisfactory and that the work will go quickly, with minimal noise and mess.

Typically, they’re anxious.

Most contractors do little to address that anxiety. They might provide a start date. Other than that, they assume that the homeowner realizes that the project will be messy and disruptive for a couple of days. They don’t want to bring up the realities of demolition and reconstruction for fear of making unrealistic promises, or scaring the customer into cancelling.

By not explaining what really is going to happen and setting real expectations, they

can leave homeowners burned by some aspect of the job or the experience, and not even be aware of it.

LEAVING NOTHING TO CHANCE

This situation provides the perfect opportunity to give the homeowner a clear idea of what to expect. Then once you’ve done an even better job than what the homeowner expected, you’ve laid the groundwork for a referral or additional business.

To do this we use a series of forms, letters, checklists and a brochure. They are: • The Contract Review Checklist - The salesperson who estimated the job runs through this 34-item list with the customer right after contract signing.

By crossing all our “T’s” and dotting our “I’s” now, we flush out most areas of misunderstanding. The list covers all the unforeseens that could wind up leaving the customer disappointed (such as dirt coming into the attic).

Our salesperson explains lead paint procedures; how the weather and changes to current projects affect the schedule; how we handle change orders.

Overhanging branch or branches? We explain that we’re not arborists and get a decision then and there about who will trim the tree branches or shrubbery.

Other essentials on this list include movement of HVAC units, satellite dishes, cable, bathroom facilities (if we’re going to be there long enough, we automatically order a porta-potty), and an explanation about our yard sign program. Ever been accused of breaking a window you know you did not break? The salesperson also takes digital pictures of the house from all elevations, included in the job folder with notes. This helps document the condition of the house before we start any work. At the bottom of the list, under the last item, it says: The items listed above have been explained to me and I am satisfied that there is a mutual understanding of what is being provided

by Fick Bros. in the installation. The customer signs and dates it.

H E R E’S W H AT ’S C O M I N G

• Before the Installation: Homeowner’s Checklist – A 2-page brochure we mail to clients or email in PDF form. It explains how we manage project scheduling, our job sign program, the pre-construction meeting, driveway access, storage, port-a-pot location, clean up and what homeowners should do to protect the house inside and out. One issue we take care to address is HVAC units, satellite dishes and cables, which may need to be removed prior to the start of work.

We also alert homeowners that in the course of tear-off, thousands of nails will be removed, along with much else.

We let them know we will do everything possible to clean up spilled tear-off debris, but given the fact that we’re removing in excess of 6 tons of trash, it’s likely we’ll miss something.

• Project Manager Introduction – A form letter we give to every client during the preconstruction meeting. It introduces the project manager by name. At this time he tells the homeowner that he now is “the man.” Any questions regarding the project should go to him at the cell phone number on the form. The form tells clients “approximately” how long the project will last (days/weeks), and a start date. It alerts the homeowner that we need them to be home on the last day to do a final inspection and review and make final payment.

• Preconstruction Meeting Checklist – On jobs of any complexity, the preconstruction meeting, two or three days before job start, helps us prepare the customer for what’s coming.

Our foreman uses a form called the Preconstruction Meeting Checklist.

This consists of 30 items, checked off as done or n/a. Among other things, the foreman verifies that the customers have seen and gone through the Contract Review Checklist and the Homeowner’s Pre-Installation Checklist. One area we take care to explain thoroughly has to do with debris falling thru the roof and into the attic. So when that homeowner who said there was a quarter inch of dirt in his attic brought his situation to my attention, I could remind him that he’d been warned.

• Project Final Inspection & Completion Certificate – So the homeowners understand what is expected of them, the foreman explains the final inspection process and completion certificate during the pre-construction meeting. It is printed on the back of the Project Manager Introduction so we are sure that the customer has received it. We make sure the homeowners understand that we will be expecting final payment on the last day and be asking them to sign the completion certificate.

REPETITION AND AGREEMENT The homeowner who’s paying attention might begin to feel Fick Bros. is being a little redundant. “I didn’t sign this many papers when I bought my house.” The salesperson told him about how our scheduling process works, is it really necessary for the job foreman to go over it again in the preconstruction meeting?

Simple answer: Yes. People don’t always hear, or understand, the

first time. Documenting everything, and obtaining a signature, brings clarity to the project. A roofing job is never clean and it’s never quiet. But a homeowner doesn’t know that. And when the pounding and banging starts, and shingles and strips of tarpaper start flying, he or she can suddenly get intimidated.

There’s also the fact that your installers are going to do

Jeffrey Fick vice president, sales and marketing Fick Bros.

Baltimore, MD

One issue we take care to address is HVAC units, satellite dishes and cables, which may need to be removed prior to the start of work. We also alert homeowners that in the course of tear-off, thousands of nails will come off, along with much else. We let them know we will do everything possible to clean up spilled tearoff debris, but given the fact that we’re removing in excess of 6 tons of trash, it’s likely we’ll miss something.

things that might otherwise catch homeowners unaware.

What if you never talked about where the dumpster was going to be placed and the homeowner comes home from work to find it taking up half of the driveway? If we talk about the dumpster and where it’s going, and you agree, and sign on the bottom line that you agree, there won’t be any surprise there.

Yes it takes more time to do it this way, and time

is money, but the time and trouble saved easily trumps any inconvenience.

In the end people talk about their experience of having the work done. By having a system to follow you can assure that those memories will be positive, thus ensuring positive reviews and referrals.—Jeffrey Fick is vice president of sales and marketing for longtime CCN member Fick Bros. in Baltimore

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Canvassing Myths and Legends Don’t count out canvassing as a super lead source.

By Chris Thompson WHEN IT COMES TO HOME improvement companies and canvassing, a common misconception is the idea that you have to be a big company. People think of vans loaded with high school and college kids fanning out across neighborhoods, and all the expense and management hassle (hiring, firing) that entails.

Actually, just about any company with some kind of marketing budget—such as the companies I have worked with in CCN—can build a canvassing operation as part of their ongoing marketing effort.

In fact, it helps to start small, with one or two part-time canvassers. That way you can lay your foundations, get the systems in place and do it right so that ultimately canvassing can be a big piece of your overall marketing plan.

START WITH RESULTS

Successful canvassing happens in three steps, each essential. First step: develop a strategy (and a script) for capturing leads and setting appointments. Second step: handle (i.e., manage) those leads so as to maximize conversion-to-appointment-to presentation rates. Third step: make sure the salespeople understand how the lead is different and how to sell it in the home.

Start by setting a goal. What are the results you want to achieve? (That is, how much business would you like to write from canvassing?) Now work backwards

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from there to figure out how many people working how many hours will be necessary to get to that goal.

Say for instance your goal is one sale (average $10,000) every two days.

Assuming your four-hour part-time canvasser will knock on 20 doors per hour, and that only half the time people will be home, that means 10 conversations per hour. Those 40 doors should yield X number of leads and X number of appointments.

CHANGE OF TACTICS

Another misconception about canvassing is that it involves pinning homeowners down, getting them to agree to a sales appointment when in fact they may not really be up for it, so that they then cancel at the first opportunity.

In fact, some companies do that.

But that’s not the only way to relate to homeowners. What happens when a canvasser comes calling? Homeowners hear someone knocking, they answer the door, and the canvasser announces that he’s noticed the windows are old and wonders if the homeowner wants a quote on new windows, or states that the company is replacing a roof in the neighborhood and asks if the homeowner would like an estimate on roof replacement, etc. Most people are wary of strangers that come to the door, and they

don’t like to be put on the spot having to make what seems like a big decision in just a few seconds.

That’s why we’re finding that old “hunt and kill” style of canvassing is less and less effective.

But there’s another way to do it. Offer homeowners information, rather than insisting on an appointment. They drop their guard and the engagement produces a soft lead, one that you can follow up on and that will in the long run yield far better results. Whatever course you want to take, it’s all in the script.

LEADS VS. APPOINTMENTS

A lead, by definition, is a customer contact. That is, you have the name and contact information of a homeowner/ prospect, and the knowledge that that prospect could at some point soon use your company’s product or services.

An appointment, on the other hand, is a time set for a conversation about whether or not that homeowner wants to actually buy what you’re selling.

In the past, home improvement canvassing operations were mostly

C A N VA S S I N G M Y T H S A N D L E G E N D S

interested in collecting appointments.

For instance when it comes to conversion of leads-to-appointments to product presentations, the national average is somewhere between 40% and 50%. Out of 100 canvassing leads, more than half drop away. Lots of cancellations and no-shows.

GOING FOR LEADS AND APPOINTMENTS

What we’ve found more effective is a strategy for capturing both leads and appointments. It works like this: Canvassers knock and inform homeowners that they’re making a free information packet about roofing/siding/windows available to everyone in the neighborhood.

They may, depending on the strength of the canvasser, offer to actually set an appointment then and there. But the key thing is to get the contact information.

Our scripts say something like: “We’re offering everyone in the neighborhood an information guide on [roofing/siding/ windows]. I want to make sure I get the right guide to you. We’re not selling this, we’re giving it away to those who wish to receive it.” Then we offer to mail or email the appropriate information to that homeowner.

Using this approach, most of what comes back to the office will consist of raw leads. They’re homeowners who may be interested in having work done on their homes at some point. Now it’s up to you to convert those raw leads into actual sales appointments. The key is follow-up.

DEDIC ATED PURSUIT

Follow up by email, mail or phone call, depending on the prospect. You don’t need a big boiler room operation to do this. What you do need is someone dedicated, whether full- or part-time. Have that person focus on the leads coming in that need to be set, or re-set, calling from a script that’s geared to that purpose.

Following up through multiple channels will take time, but produces solid results.

Follow-up is everything, because it allows you to double, at least, the sales your canvassing effort results in. But be prepared to set leads and re-set leads (or re-re-set leads) to produce maximum sales.

For instance, last year a canvassing program by James Hardie in a Chicago location produced 53 sales from canvas leads. At the same time the Hardie program produced 53 sales from leads that had been generated the year before (2013) and converted to appointments, then demos, then sales, through an ongoing marketing effort in multiple channels. Follow-up is everything, because it allows you to double, at least, the sales your canvassing effort results in. But be prepared to set leads and re-set leads (or re-re-set leads) to produce maximum sales.

SALES PIECE

If all your leads are inbound you might find that half the battle in converting canvassing leads to sales is the sales team.

So when you launch your canvassing program, have a continuous conversation with salespeople. Make sure you: 1) explain inbound vs. outbound leads, 2) go over key selling points of outbound leads, 3) role play repeatedly. Let’s go through these: Step One: If right now all your leads are “inbound,” that is, they consist of people reaching out to you, then your salespeople are used to selling a certain

kind of customer who already knows they want or need your product. They have high or immediate interest. It’s likely that they will have sought out other home improvement companies as well. Your canvassing lead is outbound, meaning you developed an interest that may otherwise have lain dormant. Have salespeople go out with canvassers, or watch those canvassers/marketers at a home show or other event. That way they can get an idea what that lead is about. They need to know because sales must be the perfect complement to your marketing effort.

Step Two: Your job, in selling that inbound lead, is to differentiate your company, or product, from that of competitors. Selling an outbound lead is different because you’re selling a different customer group. You’ve reached out to them and identified them as people who might at some point be interested in the product. They may have never even talked to a competitor. So the salesperson’s job is to telescope that future interest into immediate interest. Emphasize the product’s features and benefits. Then show them how they can afford it.

Step Three: Role play. Show them your marketing strategy in action (i.e., take them out with canvassers) and how your selling strategy fits with that. Rehearse canvas lead calls. Run through all the potential objections and how to identify them before they’re voiced and meet them once they are.

OWN YOUR MARKET

What canvassing can do for your marketing, and your company, is provide a lead source that generates steady, predictable quantities of leads. Set it up right, and administer it effectively, and you can put yourself in control of your market. Canvassing empowers you and gives you two things you might not otherwise have been able to have or to predict: cash flow, and peace of mind.

—Chris Thompson is president of Canvas King, a marketing company in Ohio.

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H R N OT E S

Knock, Knock

Here’s a system for managing interpersonal conflicts before they get out of control.

B Y M A R I LY N M AC F A R LA N E

Marilyn D. Macfarlane Human Resources Professional West Chester, PA marilyndmacf@ gmail.com

You want details, frequency, severity and impact, not generalities.

Put the complainant on the spot and require examples.

HAVE YOU EVER HAD AN EMPLOYEE walk into your office with a complaint about a co-worker? Such complaints can range from minor irritations to major annoyances. They also test your mettle as a manager and a company owner.

Someone’s bringing you a problem and expecting you to provide a solution.

Here, in five steps, is how to handle it: 1. Let them talk. Many times when people give voice to ideas or feelings that are irrational, it has a way of making those thoughts or feelings sound silly.

But whatever you do, don’t interfere or interrupt. Let them expound and explain. After five minutes they will begin to repeat themselves.

That’s where you take control of the

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conversation and move it in another direction. Don’t choose sides. You don’t have enough information to make a decision yet. In most cases what you seek and expect is a compromise rather than who was right or wrong.

2. Determine whether the complaint is legitimate. Offer support to the one making the complaint and let him or her know that you sympathize with the way they feel. But stay neutral. If the complaint seems to have some validity, chances are that you’ll need to speak to both parties (individually) to get to the root of the problem.

3. Ask for specifics. Whoever came into your office to make the complaint may have a legitimate reason for being offended, upset or frustrated and it may be a situation that requires you to make a decision or intervene. But they need to offer specifics, not generalizations.

So, for instance, saying Debby is obnoxious, or Debby has an attitude provides no insight. Saying that Debby refuses to answer emails in a timely manner or Debby didn’t file a report I needed to have to get my own work done tells you something factual. Those are issues. You want details, frequency, severity and impact, not generalities.

Put the complainant on the spot and require examples.

4. Find out what they think should be done.

If after you’ve asked for specifics the complainer backtracks, (“Oh, never mind, it’s nothing.”) insist that the issue be addressed. What would alleviate the situation? Asking someone who makes a complaint to also suggest what they think ought to happen has a way of quieting or resolving the complaint.

They now realize they’re asking for something and that they need to figure out what makes sense.

5. Decide on where to go, based on all the information you have. If the complaint is realistic, and it’s clear that the problem will only grow, thank the person who made the complaint. Let them know you will be investigating and getting information. By bringing a complaint, they’re asking you to take action. Now it’s time to talk to the person the complaint was made about.

You want to find out if it’s legitimate.

Summon that person to your office and say something like: I have received a [concern, comments or complaint] regarding ______. Can you tell me if there is anything to that? Is this issue about behavior, or performance? Or is it just a personality clash? Do these two just not like each other? You need to know all this before the issue can be resolved.

GET IT FIXED

If there is a difference of opinion on something, sit them both down. Tell them you need them to get along, and you expect them to get along, work together and be civil and professional to each other. If it’s a performance issue—someone not getting his or her work done on time and slowing everyone else down as a result—deal with it as such. If you ignore it there is the chance that this complaint can grow and become toxic. Avoiding a problem damages your credibility as a manager and usually only results in the problem getting bigger.

One of the best ways to limit complaints is by issuing an employee handbook outlining the behavior that’s not appropriate to the workplace.

Conference Highlights

CO N F E R E N C E HIGHLIGHTS

Need dek B Y J I M CO RY

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At CCN’s Winter Conference in Tampa last month, (1) NFL Hall of Famer Derrick Brooks, of Tampa, gives the keynote address, (2) employees of Istueta Roofing (left to right Frank Isueta, Omar Santana, Danny Argote, Faure Collazo, Ariel Istueta, Patty Barnes) explain company best practices in a presentation on “Pulling It Together,” (3) Mark Bernas and Louise Kelly of CCN sponsor EnerBank USA ask “Can I get a two-clap,” (4) Kevin Bumstead (left) of Stan’s Roofing & Siding and Bryan Elliott of Virtus Services share ideas in a Mastering the Measure Call session, (5) Doug Cleary, Rookie Salesperson of the Year Wizard Award winner, (6) Dave MacLean, Brothers Services vice president and frequent Toolbox contributor, (7) Ian Holmes, of Holmes Custom Renovations, Cincinnati.

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Wizard Award Winners

IN THE NEWS

Applications Open for Remodeling’s Big50 Award The application period for the Remodeling Big50 is open. Every year Remodeling magazine, a leading trade publication for residential construction contractors, selects 50 residential contractors for the award, which is given for best practices in one or more aspects of the home renovation business. These can include marketing, selling, design, community involvement or simply developing the management systems that make for a thriving remodeling company.

The award, given for more than 25 years by the publication, recognizes the professionalism and integrity of individual remodelers. It is the only award given in the remodeling industry for the quality of the company, rather than the volume of its sales.

To apply, companies need to have been in business at least five years. Companies can only be named to Big50 once.

While Remodeling’s readership is made up primarily of design/build remodelers, many home improvement and exterior contractors have been named to Big50 over the years, including many companies that are CCN members. CCN companies that have been honored as Big50 within the last five years include Energy Swing Windows, Opal Enterprises, Istueta Roofing, Rogers Roofing, Maggio Roofing, Window Nation, Quarve Contracting, Integrity Roofing and Windows, and Twin Cities Siding Professionals.

You can apply for Big50 by clicking the Big50 logo on the Remodeling home page at www.remodeling.hw.net.

6476 Sligo Mill Road Takoma Park, MD 20912 T 1.800.396.1510 Email Us info@contractors.net WWW.CONTRACTORS.NET

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Andy Watson Virtus Family of Companies Rookie Production Manager of the Year Doug Cleary Capizzi Home Improvement Rookie Salesperson of the Year

Brothers Services, L to R: Steve Szwagil, Greg Morgan, Dave MacLean

Antonio Valdivia Universal Roof & Contracting Rookie Project Manager of the Year Karly Larsen Rain Gutter Specialties Office Manager of the Year Edgar Ortega Maggio Roofing Production Manager of the Year Tim Shiebler Renewal by Andersen of Orange County Most Improved Salesperson of the Year Jody Keefer Brothers Services Salesperson of the Year Dean Sorensen Renewal by Andersen of Orange County Sales Manager of the Year

About CCN The Mission of CCN is to make its independent contractor members more successful and profitable, while assisting them to provide better and more professional services and products for their customers.

Alejandra Gonzalez Universal Roof & Contracting Rookie Office Manager of the Year

Andy Heib Twin Cities Siding Professionals Project Manager of the Year Dave MacLean Brothers Services Most Helpful Member

Istueta Roofing, L to R: Faure Collazo, Omar Santana, Frank Istueta, Danny Argote, Patty Barnes Charlie Gindele Renewal by Andersen of Orange County Best Member Speaker of the Year Tim Brown, Sr. Rain Gutter Specialties Best Boss Brent Nelson Twin Cities Siding Professionals Company MVP

Twin Cities Siding Professionals, L to R: Terry Stamman, Andy Hieb, Kristen Stamman

Catherine Honigsberg Maggio Roofing President’s Award Renewal by Andersen of Orange County Most Improved Company of the Year Brothers Services Company of the Year

Rain Gutters Specialties, L to R: Tim Brown Sr., Richard George, Tim Brown Jr., Tony Florez