How contractor referrals can be 36-48% of your sales!
I have been doing some research lately on contractor referrals.
This to me is the best lead you can get for a couple of reasons. First someone is already seen your work and you have a client that is already extremely happy.
Second you can almost always get more money for the job. You don’t find many referrals pricing you out because they have seen your work or your existing client recommends you highly.
Now by no means do I suggest you raise the price, it’s just that your able to get your price without discounting or giving something to get the job.
I also believe because the economy is slow that it’s the perfect time to work your existing client base. I have some friends in the business and they only work there existing clients. Yep no marketing cost!
Yes, you need do go above and beyond for every client you work for to get a solid referral base started. This should always be your main focus. For every happy client they will send you 5 new clients.
At Absolute right now we have a 56% referral base over the 20 years they have been in business. This client base is what helped us in the slow times right now.
The only advertising we are doing for 2009 is just our TV ads. We run 500 ads a month. This has kept the phone ringing so far but I plan to kick in some inserts for the summer.
Make sure your team clearly understands the power of a happy client. Just talking to some contractors around the country and they have said the same thing that there existing client base was the key to them making it during this downturn.
Plus it always cost less to sell to your existing client. No marketing cost expenses.
So work your contractor referrals and watch that bottom line go to the roof!
Happy Selling
Glen Kohlenberg
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