www.NAHB.org
Subscribe to NBN Online
Front Page
n Lofty Housing Prices Putting Communities Off Limits to Workers, Symposium Hears
n BuilderBooks.com Job Site Safety Survey — Your Opinion Counts
n South Carolina Builders Defeat Impact Fee Referendum
n Housing Snapshot
 
President's Message
n Building a Foundation for Workforce Housing
 
Housing Forum
n Freddie Mac Initiatives Address Workforce Housing
 
Workforce Housing
n Jackson Pledges to Dismantle Regulatory Barriers to Affordable Housing
n Former HUD Secretaries Address Workforce Housing Issue
n Working Families Losing Ground in Housing Market
n Partnerships Provide Local Solutions to Workforce Housing Needs
n Housing Supply Needs to Catch Up With Demand to Reduce Price Pressures
 
Housing and Economics
n Incomes in California Increasingly Lagging Behind Escalating Home Prices
 
Small Builders and Remodelers
n Should You Charge for an Estimate?
n CGRs Make A Difference, Especially When It’s All in the Family
 
Seniors Housing
n Security Is a Primary Concern of Seniors
 
Regulation
n HUD Announces Program to Honor Communities for Reducing Regulatory Barriers to Housing
 
Green Building
n Texas Builders Raise the Standard for Residential Energy Efficiency
 
Environment
n Air Pollution Cut in Half, EPA Announces
 
Builders' Show
n Make Your IBS Plans by Dec. 17 — and Save
 
Commercial Builders
n YWCA Homeless Facility in Seattle Wins Top Commercial Building Award
n MasterFormat Retooled for Today’s Increasingly Complex Buildings
 
Women's Council
n Builders in Saginaw Visit Elementary School Classrooms
 
Building Systems
n New Courses Cover Cast-in-Place Concrete Foundations and ICFs
 
Business Management
n IRS Reduces Small Business Unemployment Tax Reporting Requirements
n ‘Find’-ing Your Way Through QuickBooks® Without Going Crazy
n Get Answers to IT Problems and Software Questions at New Builder Tech Forums at IBS
 
Building Quality
n Builders Report Profitable Results From Attention to Quality
 
Labor
n Scholarship Enables Job Corps Students to Start Housing Industry Careers
 
Building Products
n Fire Alarm System Uses a Single Pair of Wires
 
Builder's Engineer
n My Favorite Marketing Story
 
Building News
Coast To Coast

 
Association News
& Events

n Earn NAHB WorldPointssm Rewards When You Charge
n Awards Programs Deadlines
n Calendar of Events
 
NBN Back Issues
 

Print This Article   Print All Articles   Email the Editor  

My Favorite Marketing Story

If I’ve learned anything in business over the years it is this: if you want to be successful, half of what you do should be marketing.

Half. That’s a big number.

The above explains why so many businesses languish, or worse, fail. For example, say you are a crackerjack framer and are tired of working for someone else. So you hang out your shingle and start a company. It doesn’t matter that you are the best framer in three counties and have all the best tools and employees. If no one knows about you, you’re going down.

How best should a construction company spend its marketing dollars? We all know that marketing comes in many shapes and sizes: phone book advertising, job site placards, sponsoring a hole at the fund-raiser golf tourney, newspaper advertising, radio advertising and more.

In my experience, the number one marketing method for construction-related companies is also the least expensive: word-of-mouth referrals.

The easiest & most affordable way to increase your productivity.
Try the latest version with our new release special!!
Keep all your critical schedule and job site info on your pda.
The only limitation is the contractors imagination.

Which brings to mind my favorite marketing story. About 10 years ago I happened upon a magazine article. Unfortunately I don’t remember the magazine or the author, but the article’s message is forever riveted in my brain. Here’s the gist:

A fellow owned a small remodeling company. He had struggled for years trying to find the right mix of advertising using traditional methods. Finally, one year he got fed up with pouring all that money into advertising, which may or may not have been working. He knew, however, with 100% certainty, that most of his customers came to him by way of referrals from other satisfied customers.

And so he had a radical thought: what if I stop paying for all those advertisements and instead invest that money in follow-up customer service?

His plan was to call every customer a month or so after their job was completed and ask how things were going. Specifically, were there any problems? Were they satisfied with the quality of his work? How well did his personnel treat them?

This accomplished two things:

  • It gave him feedback on his crew and workmanship.
  • It gave him a chance to correct problems.

If there was a problem, even if it may not have been his, he graciously offered to come back and fix it, free. This fellow’s business skyrocketed.

Can you imagine? What if a company did this for you? And what if it actually did come back and cheerfully fix the problems — for free? If a company ever went that far above and beyond for me, I would go out of my way to tell friends and associates all about it.

Remember the old saying: a person rarely talks about a good job, but will complain about a bad job until their dying day. My dad is a great example of this. He bought a set of tires from a nationally recognized company in the 1970s. One tire blew out in the sidewall. The company gave him the runaround and would not make it right. To this day, my dad has not gone back and takes great pleasure in telling all his friends about that company’s shoddy products and poor service.

To summarize: the basic fundamental of all marketing is to have customers seek you out. This can’t happen unless:

  1. They know you exist.
  2. They feel comfortable that you’re trustworthy and competent.

Traditional marketing methods are poor at accomplishing this. Word of mouth referrals, however, work like magic.

Tim K. Garrison P.E. of ConstructionCalc.com has authored books and short courses and lectures on topics relevant to builders. Got a technical or management issue? E-mail buildersengineer@constructioncalc.comTim reads every one.

This column cannot be reprinted without permission from the author.

The views expressed in this article represent the personal views, statements and opinions of the author and do not necessarily represent the views, statements, opinions or policies of the National Association of Home Builders. NAHB does not necessarily endorse any of the views expressed by the author and NAHB is not responsible for any direct or indirect consequences arising out of the views expressed in this article.


go to top
See how Countrywide can streamline the process for Condo/PUD Project Approvals to help get you results.
Learn how easy it can be to borrow money the smart way with Countrywide’s Home Equity Line of Credit.

To unsubscribe or to manage your subscription, CLICK HERE

Nation's Building News Online is produced and distributed by the National Association of Home Builders

NBN Online is best viewed using the latest versions of Internet Explorer or NetScape Navigator, available free.