By Tom Woodcock, Seal the Deal
I’ve been around the sales block a few times in my life. I’ve seen trends and varying market conditions. I’ve gotta be honest, I’ve never seen what’s taking place in the economy such as now. Many contractors are still thriving with the backlog they’ve established. Some are even having record years. Don’t be fooled. When interest rates go up, construction slows. Period! Combine that increase with the inflationary aspect of building and eventually you price out construction consumers, regardless of the size of the customer or project. This my friends is about to happen. I’ve been sounding a clarion cry to my consulting clients and from the stage at every event I speak at. I think if most contractors are honest with themselves, they see it coming. So how do you counter a potential slowdown in construction?
There really is only one answer, sell! Not sell your business, but sell in general. By expanding your customer base you can counteract any slowdown that takes place in the market. This means getting out there with your existing customer base, to protect what volume with them you have continuing, and also hit targets that are an opportunity as well. The problem is, you have projects currently and have to manage them. Some of you may be at your wits end time wise to even take care of what you have. I completely get that. The first order of business is to evaluate your time management and determine where you can find some additional time for an increase in sales work. We all waste time if we’re to be honest with ourselves, it’s just human nature. Finding 3-4 extra hours in the week can result in 2 sales calls. If that’s 2 more than you’re doing now, you’ve increased your sales effort.
The second course of action is to qualify the existing or target accounts you want to pursue. Which gives you the most realistic bang for the buck in relation to time spent? Then determine the best way to connect with those individuals. Can you get them out for a lunch, meet them before an association meeting or catch them at a networking event? Any vehicle that can help get you face to face is worth the time committed. That needs to be your goal as most will rely on email or social media communication, ie: lazy selling. The more personal contact you have with existing or potential clients, the more you’ll stand out from the pack. It’s a more time consuming and expensive process but worth the investment of both.
Frequently, when the economy tightens and construction slows, the first reaction is to spend on marketing. Though there may be a legitimate reason to increase that spend, if it’s not tied to a stronger sales effort then it ends up wasted. The point is to combine these two vehicles to have a significant impact on the marketplace. It’s more common to put money into a website than increase the amount of time a company puts into their sales effort. It’s the age old mentality that your marketing sells for you. This is rare in the sense that marketing can create interest but it’s the sales work that lands the projects. Sales work isn’t always easy either. There’s a lot of rejection and often customers are hard to read. Understanding that sales is a numbers game though, the more people you’re in front of, the more you’ll succeed. It’s a basic sales formula that cannot be denied.
We are almost at pre-pandemic levels in relation to personal contact. People are meeting and spending time together. Association attendance has increased significantly and major events are back on. These contacts should be a part of your regular sales regimen. Then begin to be creative in your approach. Learn your client’s tastes and preferences. Cater to those tastes in your sales work. Small things make a difference and a customer will notice you took the time to understand them and their needs. As the economy contracts, most forecasters are saying a recession is either upon us or imminent, be prepared by setting your sales strategy. If you don’t know how that’s done, get help!
About the Author:
Tom Woodcock knows sales! With over 20 years of sales and sales management experience, Tom has mastered the art of negotiation, increasing corporate revenues, team building, and driving profitability through sales restructuring. Tom has led workshops at ASA’s national convention, SUBExcel several times, and continues to inspire and excite his audiences.
