TODD... May He Rest in Peace

My wife and I have spent the past four weeks travelling around Tasmania. When you are retired, this is the sort of thing, ‘retirees’ do.

What an absolute beautiful ‘State’ it is. The country side is picture perfect, the history is fascinating and the old buildings dating back to the early 1800’s are simply amazing. If it wasn’t so cold here in winter, we would consider living here.

On one of our days wandering around, we ended up at a place called ‘Gardiners Point’. It is situated at the far, North-West coast of Tasmania and has the longest uninterrupted expense of ocean on earth. This is why a plaque has been placed with the inscription, ‘The Edge of the World’.

As it was after 1 o’clock, we stopped at a Tavern to get a counter lunch. We were told by the barman that no meals were being served as within the hour, the place was booked out for a memorial service. He said that it was for a twenty year old that recently took his own life. As I looked around there were photos on every wall of him with family and friends in different stages of his life. We didn’t want to pry and ask questions, but was told that ‘Todd’, was actually due to be married in the next few months and the pub was going to be venue where the reception was going to be held. My wife and I felt so sad.

We finished our beer and drove down to the beach, (which was close by) and then saw many cars parked on the side of the road. I would have estimated well over 100. We noticed then, the cemetery. This town only consisted of a pub and a general store but every person from miles around must have been there to mourn the death of this young lad. It brought back our sadness of what we had seen.

I am writing this to ask, R-U-O-K? Please. If you are not, talk to someone. You may feel that you’re on the ‘Edge of the World’ but taking your life is not the solution. You will affect so many peoples’ lives who will blame themselves for not doing more to help you.

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50 YEARS A HOUSE PAINTER

This book contains 36 topics of industry related knowledge and information which will help you in the way you operate your business.Topics under headings of; Business Checklist, Staff, Marketing and Sourcing Customers, Professional Behavior, Successful Operation and Looking Ahead.Highly recommended by Jason Osborn, Dulux Business Development Executive as; ‘A very easy interesting read, that combines industry facts and great topics. ’

The problem can be solved, or at least reduced, if:

1. You admit to yourself you have depression and talk to someone about it. 2. Be able to recognize the signs of depression in others and either give them support or advise them who they should see.

Everyone feels sad or down sometimes, especially during tough times. Feeling sad or upset is a normal reaction to difficult situations. But, if you have these feelings intensely for long periods of time and are having trouble with normal activities, you may be experiencing depression.

Some causes of depression are:

• Relationship problems or conflict – • e.g. separation/divorce, abusive relationship • Job loss, especially long-term unemployment • Loneliness or feeling isolated • Excessive drug or alcohol use • Having another family member who has depression • Having a serious physical illness • Changes in how the brain functions • Personality factors – e.g. anxiety, low self-esteem Taking steps to manage depression is important for your current and long-term health. Depression is an illness that can get worse if left untreated.

• See your doctor - Talk to your doctor about how you’ve been feeling to find the most appropriate treatment for you. Your doctor can also refer you to a psychologist or other mental health professional for treatment, sometimes with a rebate through Medicare. • Talk to someone you trust - Talking to family, friends, a counsellor, minister or a crisis line, can help you develop an understanding of your situation and help you move forward. There are some very effective treatments through psychologists/ mental health professionals that can make a real difference. • Look after yourself - Eat a balanced diet, exercise regularly and get enough sleep. Exercise has been shown to help reduce depression. Take time out to relax and do things you used to enjoy, even if you don’t feel like it now. When you have depression it can be hard to get motivated, but it’s important not to isolate yourself. • Be aware of your feelings - Noticing changes in your mood and thoughts and identifying what situations make you feel good and bad can help to stop negative thought patterns. • Keep safe - You may be having thoughts about dying, that it may be better to ‘not be around’ or you don’t know how much longer you can go on.

These thoughts are common when people feel very depressed. If you have these thoughts, get help straight away.

The ‘Edge of the World’ doesn’t mean the ‘End’ of the world. Although there could be a vast ocean in between, it can be crossed. You just need to be strong enough to ask people to help you cross it. Life is beautiful and worth living so give it a chance.

Jim Baker

www.mytools4business.com

PAINTING YOURSELF into a corner

Marketing is a foundational process, and without a solid strategy in place, you’ll never grow your business to its full potential.

It’s hard to know where, and how should you spend your budget, and whom should you target. So, you want to ensure you diversify your marketing efforts and focus on a few key audiences, rather than paint yourself into a corner…

The Harvard Business Review, in their article “The Value Of Keeping The Right Customers”, notes:

“Acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one. you don’t have to spend time and resources going out and finding a new client — you just have to keep the one you have happy.”

It makes sense, right?

That’s why the smart tradies split their marketing dollars — half into new customers and the other half, past customers. The bright eggs are looking for tactics that target both audiences at once because you still need NEW customers to keep your business thriving. In our trade business, Dr. DRiP Plumbing, we’ve found that focusing on repeat customers results in triple average-dollar sales. Whilst that may not be consistent across all industries, there’s no reason why if it worked for us, it can’t work for you too.

Easy steps to market to your database PLUS gain new leads.

#1 Text message database marketing.

While SMS marketing can be viewed as spam or an intrusion of privacy, it’s becoming an accepted way for businesses to communicate with us, especially when the message is designed to provide customers with value. Plus, an average cost of 7 cents per 160-character message and a whopping 98% open rate, it’s affordable and yields strong ROI!

For examples on how to effectively run a text message campaign, and templated examples, check out our blog HERE.

#2 Referral program.

Referrals are one of the most powerful lead generators for trade business owners. Your happy, satisfied customers can do a lot of legwork advocating for your business in a budget-friendly way.

In Dr. DRiP Plumbing, this is what we’ve done. We’ve built-in rewards for both the referrer and referee — it’s essentially an incentives program that ensures we are taking care of our existing customers and targeting potential customers.

#3 Buddy Up.

Partner up with another local business (that has relevance to your painting business) such as a professional carpet cleaning company, real estate agent or home stylist.

Partnering with another local business provides the chance to grow your database; it is a cross-promotional activity designed to add value for customers. It’s a symbiotic relationship, ‘You scratch my back, and I scratch yours.’ It costs you nothing to cross-promote like this but can be seen as a massive bonus in both current and new customers eyes.

There you have it.

If you think smart and spend your money wisely, you can ensure you’re targeting both current and potential customers without breaking the bank. Using these three uncomplicated strategies, you’ll be able to not only grow your current database but also solidify past customers and ensure you get repeat business.

To find out more about how to use your marketing dollars wisely, download our Marketing Maximiser guide HERE.

Andy Smith

A fellow trade business owner and co-founder of Lifestyle Tradie, a membership and community for tradies in business. Written by Lifestyle Tradie

Lifestyle Tradie is an award-winning membership and community for trade business owners who want to make more profit and fasttrack financial freedom.

DIRTY DEEDS:

Insulting payment offers and Deeds of Release

I wish I had $20 bucks for every client that called me up telling me he had just received a Deed of Release from the builder or developer with a curt request that he sign it and return it.

What is a Deed of Release? Basically it is a legal agreement where both parties agree to release themselves from further performance of their contract for an agreed payment.

The most typical situation we have seen is a subcontractor who is owed (let’s say) $350 000 by the builder and one day receives a Deed of Release stating that the Builder will pay $50 000 in exchange for the subcontractor ending the contract and making no further claims. Often a conversation follows where the Builder says that the subbie can either take the fifty grand now or spend months fighting and get nothing.

Many contractors feel fear and panic. This is a threatening ‘take-it-or-leave-it’ deal with no warning. The purpose of this article is to demystify this pathetic practice and let you in on what is really going on.

When you get a Deed of Release from your client that comes without warning and with a ridiculous and threatening offer in it, this tells you three things: a) your client is having financial difficulties, and b) your client has probably waaaaaaaay under-quoted the job and is trying to claw back some profit at your expense, and c) your client is fearful of how you might react.

Think about that for a second….. in terms of relative power your client is the weak one, not you. So weak that he has to resort to this kind of pathetic practice in order to make a profit (which means that he’s also incompetent).

I have run many claims for my clients where the debtor has threatened to sue for millions, start multiple court actions, Tribunal hearings, cross-claims, destruction, chaos, bla, bla, bla. The more of that talk you hear, the weaker your client actually is.

It’s a two step process: 1) Tell your client what he can do with it, 2) Tell him where he can shove it.

Low-ball Deeds are an insult to the value of your work, and your client thinks that he can simply walk away because your invoices don’t suit him anymore. Imagine if the roles were reversed? What if you decided one day that you could not afford to continue on a project…. Could you just send your client a Deed of Release demanding that he agree to pay you 75% of what you are owed so you can just walk away? I don’t think so!

The reason I am suggesting you reject these Deeds is that they don’t offer you any benefit except to pay a small part of what you are owed.

Think about it. For the benefit of getting just a small amount of cash that will not make much difference to your debtors, you are walking away from your entitlement to the true value of ALL the work you have done. That is a bad deal and if some one wants to try that on you it is better to fight like hell for what is yours.

There is no best pathway to dealing with Deeds of Release or low-ball settlement offers. But the best first step is to get some accountability. That is, get your client to explain himself. Not only does it make life uncomfortable for him but it gets you valuable information as to how your client will try to justify the move if it went to court.

Write back to your client asking some of the following as appropriate to your circumstances:

The valuation of my work is (let’s say) $86 000.00. How did you come to your valuation of (for example) $25 000.00?

Can you please itemize my work and value each item so that I can see how your settlement figure was arrived at?

Have you used any of the contract’s provisions to assist you in valuing our work? If so, which ones?

Why was I not consulted regarding this Deed?

On what basis did you think I would settle for such a low amount when the value of my work is far higher? Clearly you are offering this Deed/Offer because you have been unable to complete this project profitably; is this because you under-quoted or because you did not plan it properly?

Your offer is only for the work. What are you offering my company for the loss of profit due to not completing the balance of the work?

How many other contractors on the project have you sent a Deed to? Please send me their details.

Is your company going into administration? If so, who is the administrator and what are their contact details?

Now use the ones that are relevant to your project. Now you are of course thinking “There’s no way they’ll answer questions like that!” And you’d be right. What we are after is what they do come back to you with. They may answer some of them but may otherwise give away good information will they are busy abusing you for asking. That’s what we want!

It will yield invaluable information about your client’s thinking. You can then use this to get your money… which brings me to my final point.

Refuse the offer!

And take some form of action to get your money: Either by adjudication or statement of claim. These Deeds are attempts to scare you off and if you come out fighting you stand a much better chance of getting what’s owed or else a much higher payout.

Finally you must regard the above as a general strategy that we have found works. It may not be appropriate for your situation or the contract you are working under. Get professional advice when dealing with a Deed of Release or a final offer. There may be repercussions that are not immediately obvious.

The most important thing is not to just give in because you are desperate for money. Most of the time it is not enough to make a difference to your debtors, and you are throwing away the value of your work.

Anthony Igra

1300 669 075 www.contractorsdebtrecovery.com.au