Building Tree Forts

When I was a child, it seemed that every kid in the neighborhood owned a few boards. I don't recall how this came about, but I seem to remember that we would beg our fathers for whatever scraps he had laying around.

During the summers we would often gather with our friends du jour and build some kind of tree fort. Most of these structures would surely be condemned by the local authorities, but being children we were unaware of the proper procedures to follow. But I digress.

Often we would spend the better part of the day "designing" and building our fort. And nearly as often, by the time the structure was complete a disagreement had erupted. It was not unusual for demolition to occur the same day as construction, as each of us took our lumber and went home, only to repeat the process a few days later.

In retrospect, the whole thing was silly for several reasons. One, we seldom got to enjoy our work for long. Two, I had one of the largest lumber supplies in the neighborhood and I should have exerted more authority over the proceedings. Three, you can only pound so many nails into a board before it becomes splintered and useless.

But a lesson was learned. On the rare occasions when everyone would cooperate for a prolonged period, we built some pretty fabulous forts. Well, they seemed fabulous to us at least. We would use the fort for a variety of purposes, such as hiding from the Indians who frequently attacked the neighborhood. Or, if the fort were perched among the lofty birch trees, we would use our position to lob various items at unsuspecting kids who were not "in" on that particular day.

As kids we could not get past our petty differences to see the benefits of working together. Instead, we would act like children (which I guess was appropriate) and stomp off, dragging a pile of 2"x4"s behind us. We all would have been better off to take a deep breath, talk about our dispute, and work together to our mutual benefit.

The same is true in our paint contracting business. As owners, we can easily fall into the mindset of "my way or the highway". While this makes for a pithy comment, it is seldom an effective way to build a business. That approach resulted in forts that did not last long. The same will happen to a business that adopts it.

Does This Make My Butt Look Big?

I suspect few men will escape life without some woman asking him if certain clothing makes her butt look big. And I suspect few women will go through life without asking some man that question.

From my observations, most men find such a question to be uncomfortable (unless of course, the woman asking has a very small butt). The man will hem and haw, desperately seeking a diplomatic answer. Or worse, he will unthinkingly blurt out reassurances to the effect that the size of a woman's posterior is of no importance.

I find both the question and such responses rather amusing. They involve an attempt to distort the facts, and that is never a good thing. If a pair of jeans makes her butt look big, the jeans make her butt look big. And nothing you say will change that fact.

Now, few men want to say, "Honey, when you wear those jeans, you look like a rhino. I suggest you wear a tent to dinner tonight." That is a sure way to get to sleep on the couch tonight.

This doesn't mean that we should lie. First, if someone asks me a question, I expect them to sincerely desire an honest answer. If they don't, that is their issue, not mine. Second, being truthful does not mean that we must be rude.

You may wonder what this has to do with paint contracting. And I'm going to tell you.

Honesty should permeate our every action, no matter the context, no matter the parties involved. This includes our employees, subs, vendors, and customers. This includes all issues, large and small.

Many try to justify so-called "white lies" as a tactic to avoid hurting feelings. Adding an adjective of any color to the word lie does not change the fact that it is a lie. And if someone is so sensitive that the truth will hurt their feelings, then I would suggest they have much more serious issues to worry about than the size of their gluteous maximus.

Marketing Painting Services

Every new painting contractor (and even a lot of seasoned professionals) wants to know the best way to market his business. While there is no "best" way, there are certain principles that one must follow.

Joe Garcia of givetogetmarketing.com offers some insight on this issue.

People don't really buy products and services. They buy what the products or services can do for them. People don't buy quarter inch drills, they buy quarter inch holes.

People buy solutions to their problems. Therefore, all products and services must be the solution to a problem. The problem can be a relatively easy one to solve, like the problem of being hungry and going to a restaurant for the solution. Or it can be a major problem, like the problem of having a serious illness and going to a specialist for the solution.

In the context of a painting contractor, we don't sell painting services. We sell beautification and protection services. We add color to walls and protect surfaces from the elements. We enhance lives and protect asset values.

This has significant implications for our marketing. If we focus on painting, we look just like every other painting contractor. But if we focus on the benefits to the customer-- enhancing their environment, transforming a drab interior into a den of luxury, reducing maintenance costs, etc.-- we present an entirely different image.

About the only difference you may find between marketing products and services, is that services may require more personal contact between you and your potential buyers. This personal contact may be in the form of a face to face presentation, or a telephone presentation.

A face to face presentation allows you communicate the benefits to the customer. If you simply submit a price, the benefits of the products you use may not be understood. The benefits of using your company might be overlooked.

Marketing and sales are all about communications. What we communicate is just as important as how we communicate it.

Put it in Writing

I talk to a lot of contractors about their business plan. Actually, I talk to a lot of contractors who have some vague ideas about where they want to take their business. I don't really consider this a plan, but more like an exercise in wishful thinking. If it isn't written down, it isn't a plan.

Putting your plan in writing does several things.

First, it compels you to actually give some thought to your goals and how you will achieve them. It is easy to have all kinds of vague thoughts flying through our heads, but putting those ideas in writing makes us think about them, analyze them, and identify potential obstacles. Instead of flying by the seat of our pants, we have specific steps outlined to guide our actions.

Second, it holds us accountable. Putting a plan in writing is a commitment. It gives us something to refer to, something to compare to our actual results.

Third, we can involve others in the planning process. Wishful thinking that is confined to our own brains is very difficult to share with others, let alone involve them in the process. Involving key team members in the process not only helps you develop a better plan, it improves the chances of successful implementation.

A business plan does not need to be a fancy, formal document. I once wrote elaborate plans, filled with grand prose and elegant charts. This was nothing more than a waste of time and ink. Now, I simply list my goals and bullet point the steps to be taken to achieve those goals.

Regardless of the particular form your plan takes, it should include some basic elements. You should identify your financial goals, such as revenue, profit, and personal income. You should identify your marketing goals, such as the leads required. You should identify production goals, such as the man hours required and equipment purchases.

Writing a business plan might seem time consuming and boring. But running a successful business is not all glitz and glamour.

Making Customers Fall in Love

Brian Tracy makes an interesting point in a recent post.

When a man and a woman go out for the first time, they spend an inordinate amount of time talking and listening to each other. They look into each other's eyes and hang on every word. They are each fascinated by the personality of the other. The more each listens to the other, the more positive and happy each of them feel and the stronger becomes the bonds of affection between them.

In contrast is the bore who can talk about nothing but himself. I've been on many a date like that, and I couldn't wait for it to end. However, when the woman showed some interest in me (and you've got to know that I am one interesting fellow) the evening was much more enjoyable.

Communication requires speaking and listening. If only one party is speaking, the communication is one-way.

I've seen many contractors take this approach with their customers. They go on and on about their ability to walk on water and heal the lame. They tell the customer what he needs and how the job should be done. They spend their time talking, and they never stop to listen. They are just like that boring date that we can't wait to end.

It is fine to talk about your company. It is fine to brag. After all, if you got it, flaunt it. But keep in mind that paint contracting is a service business, and we provide that service to our customers. It's not all about us.

Treat your customers like a first date. I don't mean buy her flowers and take her to a nice restaurant. I mean sincerely listen to her needs and desires regarding the project. When you do so, your customers might fall in love with you.

It Can Be Depressing

If you listen to the media, the world is coming to an end. Jobs are being cut faster than a New York minute. Nobody can borrow money. Nobody is spending money. Taxes are going up. Stocks are falling into the basement. It's enough to make someone depressed.

While many of these things are real, we don't seem to hear about anything good. For example, oil prices are about half what they were just a few months ago. We don't seem to hear about that though, because the media has moved on to some new pariah to lynch.

Some say that the media focuses on negative stories because that is what sells newspapers and attracts viewers. I disagree. I think the media focuses on negative stories because they have a very cynical view of life. They believe that success is an aberration, and life truly consists of groveling in the muck and mire to eke out a meager living.

I think that it is important to stay informed. But that does not require reliance on the mass media. The Internet provides an abundance of news sources. (But just because it is on the Internet does not mean that it is true.)

I get my information from many sources-- the newspaper, radio, television, the Internet, and more. I do not accept what I read and hear uncritically-- I integrate it with what I know to be true, what I observe, and with my knowledge of economics, philosophy, politics, and other subjects.

Much of what we hear in the media is motivated by an agenda. Much of what we hear is only half of the story. Keep that in mind the next time the media tells you that the world is coming to an end. Not all of it is.

Making it through tough economic times requires the same business principles as making it through good economic times-- marketing, selling at the right price, cash flow management, and more. Do the right things-- in good times and in bad-- and good things will result.

Thinking Directions Workshop

I have previously posted about Jean Moroney's Thinking Directions. Last Saturday I attended her workshop and left with several very useful tools to improve my thinking skills.

Jean reminded me of an important point-- the most important skill that a business owner possesses is thinking. This is more important than painting or any other technical skill. If we cannot or do not think properly and efficiently, our business will fail.

As the owner of a paint contracting, our thinking can involve many different topics during the course of a day-- estimating, production management, accounting, ordering materials, and much more. Our ability to perform these tasks ultimately rests on our ability to think.

Thinking determines what actions we should take. If our thinking is convoluted, or ineffective, or focused on erroneous information, our actions will ultimately be ineffective, inefficient, and perhaps even destructive.

Most of us know how to think. However, we can often run into roadblocks where our thinking goes in circles, or we cannot make a decision, or we don't even know where to start. This is where thinking skills are beneficial-- they help us identify these roadblocks and provide tools for overcoming them.

Ultimately, our thinking skills determine how efficiently we use our time. Good thinking skills allow us to focus on the relevant facts, evaluate them properly, and reach a decision. And when we our decisions are accurate (based on the facts and not our wishes) we can act with confidence. We can act decisively, rather than take two steps forward and one step back.

Building a successful painting business is not easy work. But most of that work occurs between our ears. Most of that work requires thinking skills.

Too Much Democracy?

Bill Hogg writes about an interesting idea:

Like The Ritz-Carlton, prior to formal interviews for any role, all candidates (for any position within Pret) must work on the shop floor for a day. The team who works there gets a say on whether the candidate will fit in with the team there or whether they would like the person to work for Pret. If the answer is no, the candidate isn’t hired.

At first I thought that this was a good idea, but as I thought about it more I had some reservations.

It's fine to involve employees in hiring decisions. After all, if they will be working with the new hire then we would like to be sure there is a good fit. But, to give employees veto power over a hiring decision (or virtually and decision) is to absolve oneself of responsibility. A business should not be a democracy.

A business owner must make firm and final decisions. While it is fine to delegate, the criteria and standards must be clearly stated and explained.

I'm not familiar with the business discussed in the article. Perhaps I am missing some key point and I would agree with what they are doing. But if they are in fact turning hiring decisions into a democratic process, I have some serious problems.

A bad hiring decision can be expensive and disruptive. Giving employees a voice in hiring can be a very effective policy. However, giving a voice and extending veto power can be just as expensive and disruptive.

Learning to Fish

Though I have been witnessing this for years, I continue to be surprised at how many contractors want easy answers to whatever issue they are facing at the moment. For example, a contractor decides that he wants to start tracking leads and starts asking others to share a spreadsheet.

Now, there is nothing wrong with asking for help or seeking the input of others. But asking for a spreadsheet is like asking for a fish. It might satisfy you for the moment, but what will you do tomorrow? It is much better to learn how to fish, because then you will never go hungry.

I could put together a spreadsheet to track leads in a matter of minutes. It is not a complicated process. However, if one doesn't understand how a spreadsheet works, he could easily mess it up. He'd be right back where he started-- begging for a fish.

In contrast, if he spent a few hours learning how to set up a spreadsheet he would never face this problem. He would be able to repair the spreadsheet. He'd be able to modify it to fit his specific needs. Learning to fish provides him with independence.

This same idea applies to all aspects of our painting business-- accounting, management, administration, marketing, etc. I do not mean to imply that we need to be an expert in each area, but we do need to have a reasonable working knowledge. We need to be able to make informed decisions, and that requires some level of expertise. It might take a little longer than simply asking for the answer, but in the long term we are much more capable of managing our business.

Sitting in the Dark

Winter is soon approaching, and perhaps the first signs have even begun to appear in your corner of the world. With winter, leads begin to slow. The exterior season comes to a halt. Winter is the time of year when painting contractors often struggle to keep afloat. But it doesn't have to be that way.

Too many contractors view marketing like a light switch. They turn it on and off. The problem is, they wait until it is dark to turn it on. But unlike a light switch, the results are not immediate. So they sit in the dark, waiting for the phone to ring. They don't realize that if they had left the light on all day long, the darkness would never descend upon them.

Now more than ever, marketing will make the difference between success and failure. Consumers are holding on to their money more tightly and leads will grow more precious. You need to keep your lights on or you could find yourself sitting in the dark.

I've written many times that marketing does not need to be expensive. There are many relatively inexpensive, yet effective, methods for marketing. But they need to be implemented consistently, in good times and in bad.

Next week I am offering the first of several marketing workshops. The first-- Guerilla Marketing for Painting Contractors-- covers some of these inexpensive marketing methods that are often overlooked or neglected.

Guerilla marketing, according to its founder Jay Levinson, is an attitude. The Guerilla Marketing Handbook describes a guerilla marketer as one who thinks outside of the bucket (okay, that is my phrase for it), who challenges conventional thinking regarding marketing, who takes chances. This workshop will address creative methods for generating leads. Among the topics covered are the Sign Promotion, the Winter Coat Sale, Partnership Programs, and more.

Due to the response, we are now offering a second seating for our first series of marketing workshops. Sign up today before this series fills up.

Increasing Your Earnings

If you are like most painting contractors, you would like to make more money. In fact, if you are like most Americans, you would like to make more money. Unlike those who are employees, the owner of a business has a lot of control over his income. Or, as Brian Tracy writes

Is the manager earning $250,000 per year ten times as smart as the manager earning $25,000? 10 times as experienced? Does he or she work 10 times harder? Of course not. None of these are physically or mentally possible, but there are people in every business earning many times more than others with the same average age, experience and intelligence.

You might think "so what?" How does that apply to me? Keep reading and I will tell you.

If you are a typical painting contractor you are selling labor for $25 to $30 an hour. If you are a typical painting contractor you should be selling labor for $40 an hour or more. If you are currently at $30, increasing your rate to $40 is a 33% increase. Doing so involves almost no additional costs, so that increase goes straight to the bottom line (or your pocket).

Now you may be thinking that I've gone off the deep end. If you are like most contractors, you hear "your price is too high" too often as it is. Increasing your price by 33% will be suicidal, as you will never be able to land work at that price.

The fact is, people will pay more if they think they are getting more. I'm not going to repeat my arguments in support of this. I will however, give you 3 simple steps to take that will help you sell at a higher price:

1. Improve/ develop customer education tools. This includes your web site, an information packet, perhaps your verbal skills, and more.
2. Increase the value you offer your customers. This includes offering greater convenience, more options, better products, etc.
3. Improve your sales skills. This includes developing an Answer Book, developing a sales presentation, and spending more time with your customers during the sales process.

You might think that these items will be expensive to develop and produce. But the truth is, for every $1 you invest into these things you will likely be able to raise your selling price $2 to $3 per hour. In other words, you will double or triple your investment. That is a pretty good return in my opinion, and it is a return that will continue job after job.

Obviously the above is just a brief explanation of the steps needed to increase your selling price. There is much more involved in doing so. But the fact is, it can be done. The fact is, you can do it. But only if you implement the right policies and procedures.

Learning from Squirrels

It is the time of year when squirrels start burying acorns in anticipation of winter. It's not like we have harsh winters, but that is just what squirrels do.

It is also the time of year when painting contractors start to worry about leads slowing down. It's not like this should come as a huge surprise, but that is just what painting contractors do.

Unlike squirrels, who act automatically according to their nature, painting contractors have a choice in the matter. They can choose to prepare for the winter, or they can choose to evade the fact that winter arrives at about the same time every year. But don't just take my word on it, consult a calendar.

Squirrels can be rather ingenious little things. For years I battled to keep them out of our bird feeders. I tried all kinds of things, including putting Vaseline on the poles that held the feeders. Nothing worked, until we found a feeder designed specifically to keep squirrels away. In other words, someone figured out a way to defeat the squirrels.

Now I am not implying that painting contractors should bury acorns. That would be silly because acorns aren't going to do a painting contractor much good. But if we use acorns as a metaphor, then we must wonder why so many painting contractors plod along year after year without preparing for winter.

I have lots of guesses-- laziness, myopia, delusion, and massive aphid infestations are a few. But regardless of the reason, the fact remains that we will soon be deluged with contractors suddenly realizing that winter is about to descend upon us. And then it will likely be too late to do anything about it.

So take a lesson from the squirrels and start getting ready for winter. And just as a heads up, the same thing is going to happen next year. Trust me on that one.

Two-Step Marketing

I have long been an advocate of a two-step sales approach. I recently came across an interesting article that advocated a two-step marketing approach. Joe Garcia writes

Why? Because these Two-Steppers know how to use marketing magnets to attract just the kinds of prospective customers they want. And during the presentations, the prospects will have the opportunity to get to know, like and trust the presenters.

The offer of free information related to your product or service -- information about the problem your product or service solves -- is a powerful magnet, that most people can't resist.

Joe lists 5 ways to offer information:

1. Free tips booklet
2. Free newsletter
3. Free report
4. Free info-pack
5. Free informational web site

All of these are possible for a painting contractor. In fact, I use 4 of these in my business (I don't use a free report) and I concur that they help differentiate my company. By educating my customers, they make more informed buying decisions regarding their painting project. And a more informed customer is more likely to hire my company because he will see the value offered.

Overly Picky Customers

If you have been in business for very long, you have likely run into a customer who can't find anything right with your work. They mark the slightest imperfection with blue tape. They stand on chairs, use mirrors, and more to inspect your work.

Such customers are much worse than simply frustrating. They threaten our reputation and our profit. And if we don't deal with them properly, they could hold us hostage for a very long time, demanding that we redo our work over and over.

The best and most effective way to deal with this type of situation is to avoid getting into to begin with. That might seem like an easy thing to say, but more difficult to actually do. I do not concur with that evaluation.

The fundamental issue with the overly picky customer is unrealized expectations. In other words, they expected one thing and received something else. Why did this occur? Why did the customer expect one level of quality or appearance and actually received another?

I put the bulk of the blame on the contractor. One of the primary goals of the sales process is to set reasonable expectations. We do this by asking questions, listening to the answers, and then educating the customer. We must try to uncover the customer's expectations long before we start the job-- how else can we propose a job that will meet those expectations.

In the case of the overly picky customer, this can easily be identified during the first meeting. Ask the customer if she is happy with the last paint job. If not, why not? If so, what did she like about it? Ask her what level of prep she desires and the appearance she seeks for the final product. If her expectations are unreasonable, you now have an opportunity to address that fact. If her expectations remain unreasonable, you can refuse to submit a proposal.

The second part of avoiding overly picky customers is to have a well written contract that details exactly what is included and what is not included. This helps define expectations and does provide legal protection for both parties.

If you fail to do the above and find yourself dealing with an unreasonable customer, I cannot offer much advice. You cannot reason with unreasonable people. All you can do is remain calm, stand your ground, and get through it.

Marking up Materials

Marking up materials is a crucial part of proper financial management. Material markup is used to cover the time and expense of obtaining materials. The amount you should markup materials will depend on numerous factors, such as the time required, the frequency of material purchases, and the cost of the materials.

Some contractors view this as a ripoff. They think that customers will be upset if they are marking up materials. First, you should be including the material cost in your estimate. Second, you should be compensated for the time required to purchase the materials.

For most painting contractors, the markup should probably be 40% to 60%. You can, and should calculate what your markup should be. To do so, you need to know a few things: the average number of gallons purchased per trip to the paint store, your average cost per gallon, and the average time required for a purchase (including travel time).

Let's say that your average purchase is 4 gallons, your average cost is $25 per gallon, and it takes 1 hour per trip. This means that your average purchase is $100. The time spent purchasing materials is lost production time, and the costs associated with that time must be recovered. If your labor rate is $40 per hour, and the trip takes 60 minutes, each trip deprives you of $40 of revenue. However, if you markup materials 40%, or $40 on your average purchase, you have now recovered that revenue.

Of course, your numbers will vary, and so it is important to plug in your actual numbers. I'd suggest looking at your purchases for a month to arrive at some reasonable averages.

You could also simply adjust your production rates to recover the trip time, or add a specific charge for picking up materials. But I think marking up materials is the easiest and most accurate method.

Marketing Workshops

Out of the Bucket.com is pleased to announce our upcoming marketing workshops. Our first series includes:

Guerilla Marketing for Painting Contractors
Guerilla marketing, according to its founder Jay Levinson, is an attitude. The Guerilla Marketing Handbook describes a guerilla marketer as one who thinks outside of the bucket (okay, that is my phrase for it), who challenges conventional thinking regarding marketing, who takes chances. This workshop will address creative methods for generating leads. Among the topics covered are the Sign Promotion, the Winter Coat Sale, Partnership Programs, and more.

Customer Retention and Proximity Marketing Programs
Effective marketing does not need to be fancy or expensive. Indeed, many aspects of an effective marketing plan are relatively simple and inexpensive. As with any part of the business, systematizing parts of your marketing plan can reap significant rewards with minimal effort or expense. Two of these methods are proximity marketing and customer retention. This workshop will address the value of developing and implementing a customer retention program and using proximity marketing to generate leads around current jobs. The focus will be on easy to implement methods for creating multiple exposures.

Click here to learn more.

Perception and Reality

Magicians often use diversions to distract us during their act. They will use noise or a dramatic movement to direct our focus to one place, while they perform their "magic" somewhere else. In other words, they make us see what they want us to see, and in the process create the perception of magic.

But in reality there is not magic. But when we only get a part of the facts, and we are being steered towards a particular conclusion, those partial facts can support that conclusion.

The recent turmoil in the financial markets is a case in point. We have been told, over and over an over, that there is a credit freeze, that businesses cannot borrow money, etc. This mantra was repeated so many times, by so many people, that it seemed like it had to be true. Like a magician, both politicians and the media directed our focus to what they wanted us to see.

But reality presents a slightly different set of facts. If there is a credit freeze, then why do I continue to receive credit offers on a daily basis? Indeed, one day this week I received 4 such offers at my office and 2 at home. This hardly seems like a credit freeze to me.

I won't claim that there aren't serious problems with our economy. But hysterical claims that are not supported by the facts are simply a diversion. And in this case, that diversion is being used to rob Peter to pay Paul.

Such tactics are limited to demigods or magicians. Our customers use them as well. Every painting contractor has probably been told, "I have a lower price" more times than he can count. But the perception and the reality of such claims can be quite different.

The customer may or may not have a lower price. Their claim may simply be a negotiating tactic. And even if they have a lower price, what does that mean? Rather than simply give in and match the lower price, or defend your price, engage the customer in a conversation. Seek to discover the real meaning of their words, rather than accept your perception of their meaning.

A Paradigm Shift

It can sometimes be easy to get locked into a certain way of thinking. Over the years we accept certain ideas and they become so ingrained that their truth seems unquestionable. But what if those ideas are wrong? We can find ourselves missing opportunities. We can find ourselves closed to better ways of running our business.

A case in point is something I have offered my customers for years-- a low price guarantee (LPG). In short, the LPG states that we will meet or beat any estimate from a qualified contractor. A qualified contractor must have insurance, be a member of a trade association, and submit a written estimate with the same materials and scope of work. These are pretty minimal criteria.

Many contractors have raised issues with this. After all, I spend a lot of time talking about selling for the right price, ignoring the "going rate", etc. Why would I want to offer an LPG? It seems to contradict so much of what I advocate.

On the surface this is true. But in reality the LPG places the focus on value rather than price.

Despite the rather low criteria for a contractor to be "qualified", very, very few can meet them. This means that virtually every estimate submitted is not going against a qualified contractor. If a customer wants to activate the LPG, he must compare these other contractors to my company. He will quickly see that they do not meet even the most rudimentary criteria. The customer can then clearly see that there is a difference between the contractors and the proposed job.

This does not mean that I win every job. It does mean that I have another tool in my arsenal to shift the focus from price. Sometimes the best way to address an issue is to confront it head on. And sometimes that requires a shift in our thinking.

Opportunity Knocks

When Hurricane Ike slammed into the Texas Gulf Coast, he did more than wreck homes, knock out the power, and disrupt millions of lives. He also created opportunities .

Ike's winds created mountains of debris throughout the city. For example, I had a pile of limbs about 8' long, 5' deep, and 8' tall. We also filled about 50 plastic bags with twigs and leaves. The massive amount of debris presented the city and property owners with a challenge-- how to remove and dispose of this mess in a timely fashion.

The city responded by hiring hundreds of outside contractors. However, we were warned that it might be months before all of the debris was removed. Some enterprising people filled the void and began offering debris removal directly to home owners. They saw an opportunity and tried to meet it. As painting contractors, there are often other services that we can offer that will add to our bottom line and enhance the job for the customer.

Services such as wood repair, pressure washing, and radiant barriers can create win- win situations for both the customer and the contractor. For the customer, the need to find another contractor is eliminated, and for the contractor these services create additional revenue streams.

I don't mean that we should become a jack-of-all-trades. But there are services that fit well within our skill set that can be offered without compromising quality or pushing us outside of our core competencies.

We don't always know when opportunity will knock. When it does, we must be prepared to answer the door. Sometimes it might be an annoying solicitor. But it might be a friend with a 6-pack of imported beer.

How Not to Negotiate

One of the stranger stories resulting from Hurricane Ike involved a contractor whom I consult. He had painted a small commercial building about a month before Ike. After the storm, the owner found numerous areas that had been struck by flying debris and caused some peeling of the paint film. The contractor provided a price of $300 to touch up the damaged areas.

The customer complained, stating that the paint should have weathered the storm better. Mind you, windows throughout the city were broken by debris that was moving at 110 miles per hour and higher. But for some reason, this customer thought that paint should somehow withstand such abuse.

The contractor lowered his price to $225, explaining to me that he wanted to keep his crew busy and make the customer happy. He may have accomplished both in the short term, but I think he shot himself in the foot for the long term.

In dropping his price 25% without changing the scope of work, he essentially told the customer that he was over charging. He also showed the customer that he is willing to drop his price and cave to the customer's demands, no matter how unreasonable they might be. It will be increasingly difficult for the contractor to get his price with this customer in the future.

Holding one's line on pricing takes some back bone. It requires confidence in one's price and the value offered. It requires customer education. Nobody likes to pay more than is necessary, and it never hurts to ask for a lower price. But to simply give in at the first sign of resistance is not an effective negotiating tactic. In fact, it isn't negotiation at all and it sends a very bad message to the customer.