| Tricks of the Trade™ |
First edition Tuesday March 14, 2000 |
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10 Cardinal rules |
MC's 10 Cardinal Rules For Construction Companies 1. Thou shalt return all phone calls the same day.
This means that you must return all phone calls the same day
or by 9:00 AM the next morning at the latest. You return the
call regardless of who it is from, and you don't make assumptions
about what the call may be about. Most importantly, you don't make
excuses about how busy you are. You return ALL phone calls.
2. Thou shalt keep ALL appointments, and on time.
This means that you must keep all appointments, and keep them
on time. You plan your day and leave early enough for the
appointment to be sure that you arrive on time. An appointment
means you made a promise to another person that you would be there
on time. Research has shown that "contractors" are late
or don't bother to show up at all for 30% to 40% of all appointments.
Those that are considered to be professional in our business, keep
their promises. You don't make excuses about how busy you are or what
happened . . . . you get to the appointment on time. If there is a
problem, you call on your mobile phone and let your customer know.
That is the way the pros conduct business.
3. Thou shalt present thyself to thy customers and the public in a
professional manner at all times.
This means you are professionally dressed including a coat and tie,
shoes shined, your haircut on a regular basis and clean shaven.
You keep your appointments and on time, you always have fresh, clean
business cards available to hand out, you are articulate in your
speech and you conduct yourself in a professional manner with an air
of success. Ladies should follow suit.
4. Thou shalt keep thy ego in thy pocket.
This means that you recognize that customers do not care how much
you know until they know how much to care. You keep your ego and your
opinions in your pocket, find out what the customer wants, and help
them to get it.
5. Thou shalt interview the customer to see if they qualify to buy from
thee,not if thee qualifies to sell to them.
Your approach to sales in construction should always be to find out
what the customer wants to do, when they want to do it, who will
make the buying decision and what they want to invest in that
service. That will qualify the customer, eliminate your waisting
time and working for nothing and vastly reduce your sales to leads
ratio.
6. Thou shalt get written quotes on all items that exceed $300.00 on thy
estimate.
This means that any item on your estimate sheet that exceeds $300.00
will be backed up by a firm written price quotation from either a sub
or a specialty contractor. If you are computing labor or other costs
in house, you will have that number checked by at least one other
person before the quote to the customer. This proceedure will almost
guarantee you a profit on each job, assuming that you get it built on
schedule.
7. Thou shalt determine thy correct markup and use it without fail.
The pros in our business know exactly what their correct markup is
and they use it on each job that they offer a quotation on, and
without fail. They never cut their markup on any job regardless
the reason.
8. Thou shalt honor thy overhead budget at all times, and spend not
otherwise.
Between November 15 and December 31 you establish your budget for the
following year and then you stick to it like glue. No new toys, no
buying of anything unless it is in your budget or you have made the
necessary adjustments to your sales projections to cover that expense.
9. Thou shalt continue thy education on a daily basis.
The one and only common thread amongst all successful contractors is
education. You must commit to continuing and ongoing education on a
daily basis if you wish to move from the ranks of those that work
with their hands to those that make money in this business. Read at
least one half hour each day, attend a class or seminar at least once
a quarter and become and remain a student of the business.
10. Thou shalt take a fixed salary from thy business each month.
This means that you assign yourself (and your spouse if they work
in your business) a salary each month and make sure that you take it.
You can't run a construction business of any kind if you can't pay
your own bills.
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