Contractor Marketing SalesAt the risk of greatly oversimplifying, here are the ABC’s of sales distilled down to its most basic form:

  1. The potential customer tells you what product or service they want.
  2. You tell them that you can provide them with this product/service for a certain amount of money.
  3. The potential customer decides to buy or not to buy

Many contractors believe that the #1 consideration that potential customers have when determining which contractor to hire is how much the job will cost. This may be true for a certain percentage of customers but these are not the customers that you want to attract to your company. You want customers that will pay you enough money to do the job right and still make a profit.

Fortunately most customers, actually do not put price as their #1 consideration – even when they think they do. My experience is that price is actually the third most important consideration for the majority of customers. In 95% of sales situations I have found that the actual priority for customers is the following:

  1. Quality of Contractor – Is the Contractor honest and competent?
  2. Schedule – Can the contractor meet the customer’s scheduling requirements?
  3. Value – Based on #1 and #2 is the contractor’s price a good value?

My own electrical contracting company typically does about 2,500 jobs each year, ranging from $89 service calls to complete house rewires as well as upgrading the power to multi-building apartment complexes. In all of our jobs, whether costing less than a hundred dollars or over a million dollars, I have found that there will always be another contractor who is willing to do the job for less than my company. And the customer usually is well aware of this fact.

Yes, you read that correctly. Even when we are sometimes the highest priced of several other contractors, customers often hire my company. Why is that? They believe we are the most honest, reliable, and competent contractor. They believe we will do the job within a time frame that the customer is comfortable with.

By the way, I have never thought of myself as a super-salesperson. My whole “sales technique” has always been to actually be honest, reliable, and competent and to do my best to meet my customer’s scheduling needs.