by Kent Covington
It’s no secret that the economy is slow right now, and contractors of all kinds are feeling the pinch more than most… which, in turn, affects your company.
So what can you do to survive - or even GROW your company in troubled economy? Here are a few tips.
PACK A COOLER, BUT KEEP THE TANK ON “FULL”!
If you wanted to take a family road trip on a very limited budget, what could you do to cut down on your travel expenses? You might bring a cooler full of food, drinks, and snacks to avoid the expense of dining out for every meal. You might look for economical lodging. But if you fill your tank halfway when a full tank is needed, you can expect a long walk to the nearest service station. And in the end, you will have saved nothing.
Similarly, while you should look for ways to make your company more efficient (which sometimes means cutting costs), beware of cutting back on the things that are responsible for fueling your business.
When times are tough, many of your customers will become more cost-conscious and look for ways to tighten their belts. It is absolutely critical, now more than ever, that you continue to remind them why YOU are the best choice for their wholesale needs. Make sure they understand that the few dollars they might save somewhere else can’t match the service you offer with your products.
There are two engines within your business that you can and must use to communicate your value to your customer:
Customer service and marketing.
These are the keys to business growth. Now is the time to invest in things to carry you forward, which leads me to my next point…
STAY ON OFFENSE!
What if a basketball team, in the middle of a game, chose to concentrate solely on defense, and stopped shooting the ball? Would they have any chance of winning? The same is true in business. You have to keep shooting; keep pushing forward! Find out if there are any needs your customers have that you are not currently meeting, and look for ways to increase your sales volume from your existing customers. And of course, keep inviting new customers to do business with you.
There are many ways to market your business, but there simply isn’t room here to touch on everything. So, we’ll look at one method that is especially well suited to helping you grow your company in a slow economy… strategic partnerships.
WORK TOGETHER WITH OTHER BUSINESSES
What (non-competing) companies in your area serve the same kind of customers you serve? Figure out who those companies are, and find a way to work together.
For instance, a Winnelson company often serves contractors (and sometimes individuals) who are working on a kitchen or bathroom remodeling project. Often, they must compete with the likes of Lowe’s or Home Depot for sales. Well, a local flooring company - we’ll call them “Johnson Flooring” - also competes with the big box stores, and serves many of the same customers.
The Winnelson company could arrange to place a sign by their counter advertising Johnson Flooring, while the flooring retailer does the same for the Winnelson company. The Winnelson company could pass out discount cards, valid with any flooring purchase at Johnson Flooring, and vice versa.
I recently heard of a highly successful promotion by a retailer of high end household products, in which they sent out credit card sized promotional cards coded with a magnetic strip on the back. Each card was redeemable for some discount or prize, and the only way for customers to know what they had won, would be to visit the store. For a small investment in a pack of plastic cards and the right card-reader software, you could hold a similar promotion, and have a partnering company (such as “Johnson Flooring”) pass out these cards to all of their customers.
Somewhere in your town, there is a company (possibly several) that can help you reach new customers. Why not buy the owner or manager of that company a cup of coffee, and talk about how you can help one another?
Again, there are many ways to market your company, but strategic partnerships are often among the most efficient, low-risk opportunities available to you. And in a slow economy, that’s exactly what you’re looking for.
Remember, be efficient, but stay on offense! By prudently investing in marketing and customer service, you can thrive, even in a slow economy.
