5 Tips For Marketing To Real Estate Agents

First, I would like to thank Jessica for requesting this topic!

Real estate agents can be a great source of repeat referral business for the roofing contractor.  How can you tap into this market without wasting time and money?

Before getting into specifics of how to market to agents I would like to give you a couple of cautions to keep in mind.

First, when designing your marketing plan for real estate agents remember that there are about as many (if not more) real estate agents as there are roofing contractors.  This makes it critical for you to spend your time in the right places and with the right agents.  Just like in the roofing industry there are a lot of agents just sitting around without much work.

Second, you have to be prepared to say no to some agent’s requests.  I have had agents ask, after a roof inspection that was bad and was jeopardizing the sale, to just say something to make the potential buyers feel good about the roof.  You may be asked to give estimates of how long a roof will last, and you may find yourself pressured to withhold negative information for the sake of getting the deal done.  Hopefully this will never happen to you, but you should be prepared.

Now on to the marketing part.  Here are Five Tips.

1 – Find out who the busy agents are. This one can be tricky.  Just because an agent spends a bunch of money on ads doesn’t mean they are busy.  How can you find out who the busy agents are?  One of the first things I would do is visit local real estate offices and speak to either the Broker or the Office Manager and ask them who their busiest agents are, they will often be more than happy to tell you who is really producing and also who the up and comers are.  This will give you a good list of targets.

2 – Focus on agents who work with Buyers. Typically it will be the buyer in the transaction that will request a roof inspection and you would like to be the roofing contractor the agent recommends.   However, you should also try to get in with busy listing agents who will recommend that their customers get a roof inspection ahead of time (not all do this) so that they can market the home with a clean roof inspection.  Also, it will often be the listing agent who will make recommendations to the seller as to which contractor to choose to have any requested repairs made.  That said, if I had to choose I would choose the buyers agents to target first.

3 – Meet agents face to face. Take in helpful information to the agent.  Become a resource.  Agents are people too and they usually choose contractors they are comfortable with and feel will be there for them to help them out.  After you have finished step one ask what times are the best to catch the agent in the office and then drop by and introduce yourself and your company.

4 – Don’t be put off by the first rebuttal. Don’t feel bad if you don’t get a warm and fuzzy feeling on your first visit.  Just be cordial and persistent.  Agents will eventually appreciate your persistence and over time will be more inclined to send some work your way.  Establishing familiarity will go a long way for you over time.

5 – Offer to speak at the local Board of Realtors meetings or at local real estate office meetings. Brokers will often invite companies to speak at their weekly meetings as will the local Board of Realtors.  Check with them and ask what sort of roofing related topic they would feel would be beneficial and do a short presentation on the subject (don’t forget to bring bagels and coffee).   Make sure to bring some sort of leave behinds that highlight how an agent can benefit from working with your company.

I hope this information helps.  Face to face marketing with agents is more time consuming but will get you much much farther than would any sort of mailer or flyer.  One other tip, make sure that any agents you do currently work with refer you to other agents in their office.  Their recommendation can go a long way in getting you in with other agents.

Please let me know your experiences in working with agents in the comments section below.

Is There Only One Way To Comply With California Title 24 Part 6?

You have just showed your customer the available cool roof products and gone over the costs. “Do I have to use them?” “I wanted a black roof.”  These will be just a few of the comments you may hear customers make followed by “I heard there are other things I can do instead of using a cool roof.”

Are you ready to talk about the options available to your customers? Does your marketing address the fact that your customers have options?  If so, you will be able to help your customers make the best decision and maybe make a little extra money along the way.

First let’s talk about some of the reasons your customers may not want to go the cool roof route.

Before I go into this I want to say up front that there will be circumstances where a cool roof will be a good option, or the only option that will work. I am also only talking about cool roof’s in a residential context, not commercial. And finally I want to mention that I am all for energy conservation and doing what is good for the environment. That said, I am not a huge fan of cool roofs. Why?

To start, they are very expensive, at least when you are talking about cool asphalt shingles. Right now roofing manufacturers must use a specially coated granule that is much more expensive than a standard granule.  As of right now most cool shingles run almost double the cost of the equivalent non-cool shingle (with the exception of some white shingles that are getting CRRC approval).

In addition to the cost there is the issue of color. Right now the available colors are limited and even though some are introducing darker versions of cool roofs many still have a washed out look to me.

The next issue I have is that I am skeptical of the ability of a cool roof to really save the homeowner money. At least enough money to make the additional expense worth the cost. According to some cool roof literature a cool roof will reduce the typical attic temperature by about ten degrees. Really, that’s it? Will that really save most people a substantial amount in the summertime? It will reduce some of the load on your AC unit on the hottest days but will reducing your attic from 150 degrees to 140 degrees really change the feel and comfort of your home? Will it really save you a substantial amount on your energy bills? What does it do for you in the winter? I know that there are some passionate discussions about this, however at this point I am not convinced. I am not addressing the “heat island effect” argument, just the individual homeowner benefit.

The last thing that I find troubling about cool roofs is addressed here: www.roofcalc.com/RoofCalcFAQ.aspx#8 Look at the answers to the questions “Will installing an ENERGY STAR-compliant roof product save me money no matter where I live?” and “Can I expect the same level of savings over the entire lifetime of my roof?” You may find the answers surprising.

The good news is there are six allowed trade-offs that may work for your customer instead of using a cool roof. In part 3 I will go into detail on each of the available trade-offs.

In the meantime please let me know your thoughts about cool roofs.

Why Do They Buy?

Does this quote apply to the roofing business?  If so, how?

You don’t buy coal, you buy heat;
You don’t buy circus tickets, you buy thrills;
You don’t buy a paper, you buy news;
You don’t buy glasses, you buy vision.

- ANONYMOUS

You don’t buy a roof, you buy _______ . If you ask me, no one lays around daydreaming about buying a new roof.  So, when your customers sign the contract why are they really buying?  There can be many reasons, understanding those reasons can help make your marketing more effective, and your sales easier to close.  Let’s look at some of the common, and very different reasons your customers not only buy a new roof, but choose you to do it for them.

The most obvious reason to buy a roof is out of necessity.  So, we could say “You don’t buy a roof, you buy protection.”  A roof protects our family, our valuables, our health, our investment, etc.  During this difficult economy this seems to be the primary motivator for the re-roof market.  If that is the case in your market look for ways to incorporate this into your marketing.  Look for ways to stress that this expense is small in comparison to the value of what it protects.

Another motivator for purchasing a roof is to fit in (or stand out).  This was a big motivator over the past couple of years.  When everyone was refinancing and fixing up their homes it created an environment where a new roof was just part of keeping up with the Joneses.  If you have neighborhoods still experiencing this phenomenon then your marketing should focus on ways to stand out from crowd with new and interesting roofing products.  So in this case we could say “You don’t buy a roof, you buy status.”

Often the decision to buy a new roof is a mixture of the two.  The “desire” to attain greater status in the neighborhood is rationalized by the “need” for a new roof.  This can be your toughest sell as usually the need is not as pressing and a new roof could wait, but the desire is there.  In this case your marketing has to appeal to the desire first, but be backed up with sufficient facts so that the buyer can convince themselves of the need.

These are just two basic reasons someone may purchase a new roof.  Take some time to analyze what drives the buying decisions for the majority of your customers and make sure that your marketing is appealing to the right source of motivation.

In addition to the reasons someone is buying a new roof it is important also to analyze why they are choosing you as their roofing contractor.  What needs are you filling?  You may be a high end contractor and choosing you could be a status symbol in itself.  You may be a value oriented contractor satisfying the customers need for a good deal.  You may be known as an exceptionally honest contractor and you fill the customers need for protection (from shady contractors).  It is important to identify the reasons customers choose you and incorporate those into your marketing as well.

If you can successfully answer the question “What are my customers really buying?” and incorporate that into your marketing, your customer will already feel drawn to you and your company before you make a sales call, and this can lead to a much more productive and profitable 2010.

What Did You Say?

I heard an ad on the radio the other day that nearly made me choke on my coffee.  After I regained control of my car I had to think of how few ads catch my attention like this one did.  Then it made me wonder if roofing contractors would ever be willing to use such a provocative method.

When I say provocative I don’t mean in the sexy sense, I am using the definition “likely to bring a strong reaction.”  I can’t tell you the number of times roofing contractors have told me that they will never say anything about the competition or other brands.  They tell me that customers don’t like that.  On some levels I agree, however I don’t know that it is totally true.

So, what was the ad that caught my attention?  Before I tell you the ad I will say that it dealt with a problem that many roofing contractors face – low quality, cheap competitors.  The ad was for the Shane Company (you know, your friend in the diamond business).  The first sentence was spoken by their deadpan spokesperson.  He said something to the effect of:

‘Our competitors diamonds are so cheap that they look like a chunk of frozen spit.’

That is the line that had me swerving down the freeway.  Then he went on to really add the pain by saying that if you were to buy such a cheap, cloudy, milky diamond you and the loved one you gave it too would never really be happy with it.

I love that ad.  You may start thinking that customers don’t really like that.  After some research I have to disagree.  Let’s look at some of the most successful companies and whether or not they use this strategy.  Here are a few:

Apple vs. PC  -  Whopper vs. Big Mac

Verizon vs. AT&T  -  Ford vs. Chevy

I could go on.  These companies call out the competition and people love it and respond to it.  This gives them the chance to identify with the company they prefer and helps them to really buy into it.

Would this work for Roofing Contractor Marketing? If done properly.  The Shane Company ad did not specifically mention any competitor.  What it did do was point out an easily identifiable difference between their product and the competitors (in a humorous way).  It also explained how the customer would likely feel after they purchased the inferior product and reminded them that they can easily avoid that pain and embarrassment by shopping with them.

These are principles that could easily be incorporated into a roofing companies marketing materials. Take some time to identify points of difference between you and your competitors and then don’t be afraid to talk about and advertise those points.  But what if my competitor just copies me?  That is o.k.,  in my next post I will talk about a little utilized marketing fact “If you say it first. you own it.”  It never sounds as good to a customer to hear “Oh yeah…, we do that too.”  So, go ahead, be provocative, your future customers may just like it, even if your competitors don’t!

We all know that the internet is where the vast majority of new customers are starting their search for a roofing contractor.  As a result many contractors spend a lot of money on their websites only to find that they do not show up in the search engines (most notably Google) for their area.  This can be very frustrating and I devoted December’s newsletter to discussing ways you can improve your web sites ranking in the search engines.

However I just came across a method that can almost instantly put your business near the top of the search engine rankings for your local area and I think it is something every roofing contractor should incorporate into their marketing.  The best part it is free and takes almost no time at all.

I will let this video from Google do the explaining

Don’t wait to do this.  Click Here to go to the Google Local Business Center and get your business signed up and listed right away!

Anytime roofing contractors can find FREE ways to promote and market their business, especially with a quality source like Google, it is a real win.  Please let me know how this works for you.  Leave a comment below.

How Can Roofers Make Home Show Marketing More Fun?

This past weekend my wife and I and some friends went to a local ski expo.  When we arrived and saw the place we thought we would be in and out in an hour.  Four hours later we were leaving with smiles on our faces.  What made it a great experience and how can roofing contractors make their home shows more productive and fun?

I have been to many home shows, worked a number of them and helped roofing contractors prepare for them.  However, I have never been to a home show that was nearly as much fun as the recent ski show I went to.  Now you are probably thinking “of course a ski show is going to be more fun than a home show.”  Why?  Are skiers more passionate about their hobby than homeowners?  No, I don’t think so.  People are just as passionate about their homes, and they spend a lot more money on them than they do on skiing.  However, we in the industry tend to think that having fun is not part of the sales equation.  I think when it comes to home shows we should try to make it more exiting and entertaining for the homeowner.  How?

Here are some of the things vendors were doing to attract attention and have a little fun.

1 – One vendor had a Plinko game going (you know, like the “Price is Right”)  Fill out an info card and get a try to win prizes ranging from nothing to a cheap keychain to a free lift ticket.

2 - Another had a snow chain installing contest where the fastest installer won a free lift ticket.  I am proud to say I won a free lift ticket!

3 - One creative and inexpensive game was a beer pong set up with small prizes like chap-stick or soda can insulators for getting the ball in the cup.

4 - One company had a “horse race” where each person got a number on a horse and they had a kid from the group roll dice and move the horse forward one slot each time the number was rolled.  My wife was excited to “win” a $20.00 off coupon.

5 - Many vendors had drawings for prizes if you signed up.

When I have worked home shows in the past I hated how people would come by and just look for the freebie to take without even talking to me.  These vendors had games that engaged the customer and we spent a lot of time talking and listening when we probably would not have otherwise.

We also found that winning a chap-stick was a lot more fun and satisfying than just picking it up off the table.  So, how can roofing contractors incorporate this into their marketing efforts at home shows?  Try to incorporate something fun, a golf putting contest for a free roof inspection, or that key chain or coffee mug that you were going to give away anyway.  Something to get the customers to stop and talk instead of snatch and run.  I’ll bet you’ll be the hit at the next home show if you are the only roofing contractor marketing himself in a fun and unique way.  Give it a try, you and your future customers will like it!

How Much Money Does Each New Customer Cost Your Roofing Company?

In November’s newsletter I wrote an article entitled “5 ways to beat your competition without spending a dime”.  The first item was to show up and be on time for your appointments.  When I wrote that I thought it was so obvious that I almost did not put it in.  But then I had the following experience.

A friend of mine called and told me he needed a new roof on his duplex.  I told him that I knew a great roofer in his area and that I would have them contact him right away.  I called the roofer and told him that my friend was expecting a call from him.  He did call and set up an appointment to check out the roof.  I later contacted my friend to see how things had gone.  He said that the roofer I recommended had called but them never showed up for their appointment and that he ended up getting someone else to do the job.  They did not even show up for a pre-qualified referral lead. Needless to say I was embarrassed and will probably not recommend that roofing contractor again.  But, the experience led me to write this post.

How much money did that roofer waste by not following up on that lead? I am not talking about his potential profit, I am talking about his cost of acquisition for a new customer.  I know that this roofing contractor actively markets his roofing company including yellow pages, a web site, and direct mailing.  That amounts to a lot of money each year to acquire new customers.

Let’s look at how you can figure what each new customer costs you to acquire in terms of marketing dollars.

First - take your total marketing spend for the year.  Add up all that you spend on your yellow pages, web sites, direct mailing, and other marketing.

Second - divide that number by the total number of jobs you closed in that same year.

Here is an example:

Total of all Marketing expenditures for the year
Yellow Pages – $1200 per month = 14,400.00
Web Site – $50.00 per month = $600.00
Direct mailing – $300.00 per month = $3,600.00
Newspaper Ad – $300.00 per month = $3,600.00

Total Marketing spend for the year = $22,200.00

I know that there are some roofing contractors who spend that much just on their yellow page ads!

Now lets figure the total number of customers acquired in that same time period
1.5 re-roofs per week = 78
Total repair jobs = 50

Total customers acquired = 128

Total Marketing Spend = 22,200.00 divided by number of customers 128 = $173.43 per customer.

So in this example it costs $173.43 to acquire a new customer.  If that were the case for the roofer I mentioned above he wasted $173.43 by not showing up in addition to the amount of profit he could have made.

This is an important number for all roofing contractors to know.  This is an important number for all of your employees to know as well.  Every time someone does something that costs you a new customer you just wasted that much money in your marketing expenses.

This is also a good number to know when you are analyzing new marketing opportunities.  You can take the cost of the marketing item and divide it by the total number of customers you expect it to bring and find out if it is a good spend.

Marketing is a major expense for roofing contractors.  Knowing the exact value of a new customer can go a long way to helping you to bring those costs down.

Should roofing contractors include a blog in their marketing program?  The short answer is absolutely!  Why?  Here are 4 reasons why every roofer should have a blog.

1 – Search engines like blogs. If you have put up your shiny new roofing website only to never be able to find it on Google you know that getting the search engines to pay attention is not easy.  Blogs get a lot more attention from them and if you link them into your website they can move you up in the search engine rankings quicker than almost anything else.

2 – People like blogs. If a customer goes to Google and searches for a roofing contractor in their area and finds your blog, they will be able to learn a lot more about you and your company than they would from a conventional website.  This can help you build a relationship with them before you ever meet them.  Post blogs about your views on customer service and quality.  These can really set you apart from other roofing contractors.

3 – Blogs are virtually free (or very cheap).  You can use free services like www.wordpress.com or www.blogger.com that offer free blog sites and hosting.  To download free blog software that you can host on your own site I recommend www.wordpress.org.  That is what this site uses and it is excellent.  If you are new to blogging and you choose WordPress I would check out the book “WordPress for Dummies” it will give you and excellent intro to the world of blogging.  Where else can roofers get effective free marketing?

4 – Blogging makes you think. If you decide to sit down and write about your thoughts on roofing contractors and customer service, you really have to stop and think about how you feel about the subject.  This exercise can really help you communicate these ideas more clearly to your roofing customers in your marketing and in your face to face sales.

Roofing contractor marketing should include blogging.  Even if you are not a great writer you should start today.  It will get easier with time and the resulting boost to your marketing program will be worth it.

How do you handle your calls?

What does a well rounded marketing campaign for a roofing contractor include?  Beyond your web site or yellow page ad, your marketing includes every aspect of your business that your potential customer comes in contact with.

In a previous post we looked at how the way your crews act on a job site can affect how others perceive your company.  But, there are many other factors that can influence whether or not a person wants to do business with your company.

Before you spend money attracting customers make sure you have these aspects of your business dialed in.

1 - The appearance of your trucks and how you and your workers drive in those trucks.  That person you just cut-off may need a new roof!

2 - The condition of your office/showroom.  This can make a big impression on potential customers.

3 - The way you or others answer the phone.  Are they courteous and professional?  Do they really care if the person on the other end chooses your company?  Are callers treated as an interruption or vital source of business?  Do you quickly return phone calls?  Is your voice mail message friendly and professional?

4 - Your employees, are they enthusiastic or are they just going through the motions?

5 - Your current marketing materials.  When you give a bid for a new roof is your quote thorough, clean, neat and professional?

These 5 items all seem obvious.  However, if just one is off you may find that customers choose not to use you even though they can’t really put their finger on why.

If you make sure that the basic items are covered you may find that your marketing efforts become more effective and your close rate improves.

A common mistake many small business owners, including roofing contractors, make is confusing marketing with selling.  “I don’t need to do much marketing, I am an excellent salesman.”  Is that true?  What are the differences?

Let’s use the old saying “you could sell ice to an Eskimo” to answer that.  Selling is obvious.  Many roofing contractors are excellent salesmen once they are in front of a homeowner.

The question is: Where are the Eskimo’s?  How do I get them to call me?  That is where marketing comes in.  It does not matter how good of a roofer you are, or how good of a salesman you are, if you have no one to talk to.  Sadly, many people are hiring roofing contractors who are not as good as you at sales or roofing.  Why?  They have better marketing.

This probably seems obvious but it is a good reminder that no matter how good we are we still need a solid marketing program to be sucessful in todays market.