Down but not out - need advice

[ote]

I recently moved from big city in VA to rural town in NC. I had a small electrical contracting firm in VA, grew up there, knew everyone, didn't have to advertise business at all things were great. Moved to be closer to family, my dad passed away a couple of years ago and mom and sis live in NC. I don't regret the move at all, but trying to best figure how to get the word out. I ran an ad in small town newspaper and got a couple of service calls but not much, customers were pleased with work and I'm sure they will pass on referrals. There is a large city about 30miles away and I'm putting ad in paper there next week. Thinking about advertising as lowest rates in town and I've checked with area contractors about their rates and I can beat those but....................... not really SURE if I should do this or not. It would be a rate I could live with for a while but wouldn't want to do this all the time. With the economy in the gutter, and being new in town, not sure how to get the word out. I know I just can't sit and do nothing. Advertising rates aren't cheap, just trying to get idea on what would be best......................................any ideas.................I did join the local home builders association and first meeting is in a couple weeks.....................any thoughts????????????????

 

[mcclary's electrical]

I recently moved from big city in VA to rural town in NC. I had a small electrical contracting firm in VA, grew up there, knew everyone, didn't have to advertise business at all things were great. Moved to be closer to family, my dad passed away a couple of years ago and mom and sis live in NC. I don't regret the move at all, but trying to best figure how to get the word out. I ran an ad in small town newspaper and got a couple of service calls but not much, customers were pleased with work and I'm sure they will pass on referrals. There is a large city about 30miles away and I'm putting ad in paper there next week. Thinking about advertising as lowest rates in town and I've checked with area contractors about their rates and I can beat those but....................... not really SURE if I should do this or not. It would be a rate I could live with for a while but wouldn't want to do this all the time. With the economy in the gutter, and being new in town, not sure how to get the word out. I know I just can't sit and do nothing. Advertising rates aren't cheap, just trying to get idea on what would be best......................................any ideas.................I did join the local home builders association and first meeting is in a couple weeks.....................any thoughts????????????????

It's a tough choice, if you do advertise the cheapest price, it may pull you out of this jam, but it offers a long term problem that is hard to work your way out of, it will takes years of advertising WITHOUT such boast to undo the harm of a year or so with this ad. IMO, I would run the ad, but not actually brag about being the lowest priced. Use the word competitively priced. Stay one dollar cheaper than him:grin:

 

[Ruff-N]

It's a tough choice, if you do advertise the cheapest price, it may pull you out of this jam, but it offers a long term problem that is hard to work your way out of, it will takes years of advertising WITHOUT such boast to undo the harm of a year or so with this ad. IMO, I would run the ad, but not actually brag about being the lowest priced. Use the word competitively priced. Stay one dollar cheaper than him:grin:

I agree with MC Elect. advertising as the "cheapest price" I see a red flag. IMO if I was a customer I would not bother with calling you. Competitvely priced sounds better. And then as MC Elect. states later customers that do call will hold you to "the cheapest price" and when you up your prices expect for some customers to jump ship, just remember in the electrical business there will always be someone with cheaper rates than you. And if you keep dropping your prices just to get work, you won't be in business for long. JM2cW Hope things work out for you.

 

[growler]

There is a large city about 30miles away and I'm putting ad in paper there next week. Thinking about advertising as lowest rates in town and I've checked with area contractors about their rates and I can beat those but....................... not really SURE if I should do this or not.

Trying to drive to a city 30 miles away to do service calls and still trying to be the cheapest guy in town isn't going to be easy. If the city is 30 miles away that means many of the calls are going to be much farther out.

I would keep the add in the small town news paper because people in small towns tend to remember you and spread by word of mouth. To try to pick up work in the city why not try something like Craig's List, it's free and so you are not wasting any money if things don't work.

In a small town try to look for places where you can put up advertising or business cards or even go to local businesses and introduce yourself. If you live in a small town then go to church, that's where to will start to get known. I'm not even joking.

 

[satcom]

A few years ago we had a guy move into town to be close to family, he tried to build a business and only a little work came in, last year one of the local EC's was retiring, and he bought his business, now I see his truck all over town on jobs.

 

[ote]

Down but not out - need advice

Thanks for the advice.........I plan on staying here forever and the long term ramifications of being the "cheapest rates in town" would be hard to overcome. I think I will reword ad to say maybe " Most Competitive Rates in Town"???????????????????? or do you think just "Competive Rates" would work. Kinda new at the advertising aspect. I would like to make a "statement" but not at the expense of having to live with something that might be detrimental in the long run...........

 

[glene77is]

T
the long term ramifications of being the "cheapest rates in town" would be hard to overcome.

Guys,

Has anybody thought of selling something besides 'price' ?

How about advertising "Most Experienced",
or "Safest", or "24 hour service", or "Quick Response" ?

Just a thought ...

 

[glene77is]

Ote,

Try this idea, as a thought experiment.

Team up with a Plumber, a HVAC tech, a Carpenter, and a Painter.

Refer between each other.
This kind of referal diversification
can make you appear to be a "Solution Provider" for any kind of problem.

It is a method of diversifying your business involvement.
I have done things like this with a HVAC tech and a Plumber
(both licensed) for several years.
It is the only way I have been able to stay afloat.

On a larger scale, one of our larger shops has Alarm and HVAC divisions.
One company that has diversified, first by co-oping the contacts, then hiring the the co-ops, then making a formal division from the first company.

Buena Suerta,

 

[ote]

Guys,

Thanks for the great ideas!! Think I'll advertise quality service, years of experience,customer service, quick respose, etc ( things I do best)... and competive rates, and go with it and see what happens. I liked Glenne77is thoughts on teaming up with other trades. As a matter of fact, I spoke with a builder today that meets once a week with other trades( painter, HVAC, Real estate, etc) sorta their own little group and they meet and refer work to each other. He told me to come on out, so we'll see what becomes of it..............think you guys put me on the right track here..........thanks for the advice!!

 

[hurk27]

I have been set in the same boat, the company I have worked for over 20 years went under the owner had a stoke and his running the business was never the same, I have been working off the old phone number but its been slim pickings, I started my own company and reversed many of the licenses that I held for our company into my company, and I had a good following of customers, but mostly small service calls, new construction has been in the tubes for a while around here, I managed to get a few small jobs just by putting my cards at restaurant's that I know are frequented by contractors, but nothing major, I was contacted by verizion for an ad in their yellow pages and about fell off my seat at what they said it will cost, and the fact I will not get any returns on it until the next book cycle comes out which is next year, but the want the money now, local advertising is very expensive around here, so I'm going to put some fliers out, trying to push generators and upgrades, kind of a real set back for me in life.

 

[Volta]

Thanks for the advice.........I plan on staying here forever and the long term ramifications of being the "cheapest rates in town" would be hard to overcome. I think I will reword ad to say maybe " Most Competitive Rates in Town"???????????????????? or do you think just "Competive Rates" would work. Kinda new at the advertising aspect. I would like to make a "statement" but not at the expense of having to live with something that might be detrimental in the long run...........

Yup, you could do just as well- or better- with "Highest Price in Town- And WORTH IT!" .

Different class of customers that way :roll:.

But a big part of advertising is simply having the ads, whatever they say. When someone finally needs a contractor, and flip through the internet or whatever, the previous times your name was seen helps as much as the ad they see that day, IMO.

 

[Dennis Alwon]

Where are you OTE... Work is pretty slow and I live near the triangle where it was one of the busiest areas in NC. Good luck.

 

[readydave8]

I also would be leery of advertising lowest price, that's pretty much how I started out and it takes a long time to get prices up to where they should be, made older customers mad a few times if I hadn't worked for them for a while and the price was much higher when they hired me again.

Could you advertise "best value?" The customer would assume he was getting a low price, and it would open the door to winning over those the think they want the cheapest electrician but later have problems and see the light.

I don't remember anyone calling me years later to thank me for the low price, but I'm sure some still think of me concerning those jobs that didn't go well.

My friend that does a lot of new work and steady GC customers gets a list of the permits that have been pulled in his town each month and cold calls the ones he doesn't know, seems to have picked up some good jobs that way. But I think he has to have the lowest bid most of the time to get work that way.

 

[ote]

I'm in the western part close to the smoky mountains, beautiful country....not much on development or jobs though.........a lot of tourists and quite a few that have summer homes here.....but there are lots of motels and restaurants that I'm trying to target for service work...........somebody is doing the work on these.......

 

[Split Bolt]

There's a guy here where I live who advertises that he'll beat any written estimate by 10%. How does that affect my business? It doesn't because those are not the clients I'm looking for! I kinda feel sorry for him because in this area, you don't really need to do that. I think it cheapens your name and you'll NEVER get out of that rut! Why don't you befriend some local mom & pop supply houses and lighting stores? You will pay a little more for your materials, but you will be referred to a higher level client base. The ones you want expect perfection and don't mind paying for it!

 

[hurk27]

There's a guy here where I live who advertises that he'll beat any written estimate by 10%. How does that affect my business? It doesn't because those are not the clients I'm looking for! I kinda feel sorry for him because in this area, you don't really need to do that. I think it cheapens your name and you'll NEVER get out of that rut! Why don't you befriend some local mom & pop supply houses and lighting stores? You will pay a little more for your materials, but you will be referred to a higher level client base. The ones you want expect perfection and don't mind paying for it!

How about "we fix the 10% discount electrical work"

kind of like the TV commercial "We fix the $6.00 hair cuts" lol

 

[jmellc]

NC has been hard hit the last couple of years. Like Alwon said, even here in Triangle that use to be green pasture is hurting now. Lots of rural NC has been slow for several years. Maybe try for a job with 1 of the established EC's and see about a partnership or buyout down the road? You are likely jumping into an already overcrowded market.

 

[roger]

You are likely jumping into an already overcrowded market.

I agree, I am in western NC and it is slim pickens from the small work to the large projects.

Roger

 

[knoppdude]

I think you are right to sell yourself based upon doing good work. Offer fair prices, to yourself and customer, and I think your business will take off. Things are just tough right now, everywhere, because of the economy. I wish I could get the customers I have to understand that although my price seems high, I only get to pocket a small portion of it. The money pays for insurance, bonding, etc. I might actually put this English proverb on my business cards with the hope that someone gets the idea: "For want of a nail a horseshoe was lost, for want of a shoe a horse was lost, for want of a horse a rider was lost, for want of a rider a battle was lost, and all for want of a horseshoe nail". One loose wire can cause a fire, so hire someone who cares.

 

[mtfallsmikey]

Ote,

Try this idea, as a thought experiment.

Team up with a Plumber, a HVAC tech, a Carpenter, and a Painter.

Refer between each other.
This kind of referal diversification
can make you appear to be a "Solution Provider" for any kind of problem.

It is a method of diversifying your business involvement.
I have done things like this with a HVAC tech and a Plumber
(both licensed) for several years.
It is the only way I have been able to stay afloat.

On a larger scale, one of our larger shops has Alarm and HVAC divisions.
One company that has diversified, first by co-oping the contacts, then hiring the the co-ops, then making a formal division from the first company.

Buena Suerta,

I did that for years when I had my plbg., HVAC biz....got to the point that I would be the GC on a lot of bath/kitchen remodels, had my "team" already together...