1. How do you convince customers to give you their e-mail address? For special offers? Unadvertised sales?

We use the presumptive close. We just say "and your e-mail address is" if they ask why, we tell them that we send out special discounts to those on our e-mail list.  We can show them examples.  The best way we get this accomplished is to measure how many e-mails we get and who is collecting them.  We post those numbers every week and do training with people who are not collecting. We don’t make it a negative but explain to the employees why it is so important to get e-mail addresses.

2. How do you attract talented staff? (we’ve tried newspapers, Internet and in-store ads)

We have started to use the internet more, there are many sites you can post openings for.  It differs from city to city.  We use "Craig list" and have found a lot of success. We have also made contacts with local schools and colleges by getting in contact with particular instructors who can send their best students to us.

3. How can pool retailers in the same market work together to grow awareness among consumers?

It starts with just talking.  Getting to understand that you are not really competitors and that if you don’t fight things are better in the end.  It does not always work but you have to try.  When there is an issue, you should call and talk about it.  There will be competitive situations when you will be against each other.  That is just going to happen.  But working together to make sure that all of the customers understand the importance of a brick and mortar store is for the benefit of both.  And what ever you do, do not bad mouth each other.  If an employee does, talk to the employee and make sure that you let the other dealer know that it will not happen again.

4. Where are the best places to advertise online?

The most prevalent sight is Google.  You need to be there.  They make it very easy to buy key words and to manage what you are doing.  Next is probably Yahoo followed by MSN.  We spend about 80% of our money on Google at this point.  That seems to be where the action is.  You do need to check your keywords often and adjust your bids.

5. How does the presence of available products online factor into what products you carry in your store?

This is a major factor in our decision making.  It is similar to trying to have products that local competitors do not have.  We make sure that the product has some good selling propositions.  When we don’t have different products, I think it is important not to give out part numbers.

Questions and Answers provided by the 2009 Builder Power Panel

Greg Howard, Carecraft:

In an effort to control costs, what benefit can buying groups provide pool builders? 

Buying Groups typically provide better CONTROL for a Builder.  When Builders plan in advance and carry enough stock in their own warehouses to cover most of their equipment needs; they can focus on other things.  The stock is in their building, where they can see it and is paid for. Then, as the day nears when they will install the equipment, they don’t have to stop everything and make sure it is not ordered nor coordinate a delivery. They just have their people take it to the job site on the appropriate day.  If there is a delay in a job, the equipment remains in the warehouse. If there is a rush, the equipment is already there. Buying this way can save a Builder 20% or more. 

Do you have any suggestions on the possibility to renegotiate existing agreements, such as leases or other long term obligations?

The best tip is to try to meet the needs of the person who will be granting the request. Each company a Builder does business with has their own problems; whether a Boss or a Bank or Shareholders, everyone usually answers to someone. Making a Lease longer in exchange for a lower rate meets some of the Landlord’s needs (stability). Asking for a smaller copier meets some of the Copier Leasing Company’s needs (keep an account and don’t have to repossess equipment). People will respect give-and-take more than threats. Pleading Poverty isn’t a good tactic, instead, say that if you focus your limited resources on finishing jobs, you will be in business after this recession ends and be a great customer again. Assure the other side that if they say yes, you will act right away (and there won’t be another round of negotiating for an even better deal).  

If I am in arrears to current suppliers, what is the best way to deal with them, knowing we are important to each other?

Offer a PAYMENT PLAN!!! When you say anything other than: "I can pay you $ X each week until we’re caught up", all the person owed the money hears is: "Blah, Blah, Blah…" When you offer to make weekly (or Monthly) payments, they can write up your promise, drop it in a file, and move on to the next account in arrears. Once done, it’s easy to call BEFORE YOU MISS A PAYMENT and ask to lower the amount and extend the length of time. The key to Payment Plans is CALL THEM BEFORE THEY CALL YOU.  You know when you are going to be late or short before the other side does, what not call them and let them know?

Brian Van Bower, co-founder Genesis 3:

Beginning to charge for design is difficult when you are just starting out. Explaining to clients that you want to be able to dedicate enough time and effort into the design and planning of their project because you know how important it is to them is key. Before attempting to charge for design you must first make sure that your design knowledge and ability is worthy of compensation. Educating yourself in design, and sharing those credentials with clients, may help bridge the credibility gap. An easy sell is explaining that you charge for design, so you can afford to do it correctly, then letting the clients know that you will "credit" the design fee back to them toward the contract, should it be awarded to you. I often make a point of telling a potential client that most of my industry will include design at no cost but that often, that’s what it's worth. Remember to expand your focus to the entire environment rather than being focused on the hole in the ground with water in it. You may also want to seek Landscape Architects in your area that specialize in residential outdoor designs. You can then sell them on your abilities and allow them to bring you in as "their" expert on pools. Clients that use Landscape Architects expect to pay fees already so it is easier for them to accept you as a pool designer when recommended by the LA. You'll find that the more you charge for design, the more attention the clients pay to you, and your design.

How do you approach jobs on a "cost plus basis"?

Many types of contractors now work on a cost plus basis, especially on involved projects that are likely to escalate in scope and continually change direction. Our firm is design only so we don't do any contracting. My associates that operate on a cost plus basis like the idea that they are not forced to be in a total cost/bid situation. Usually, contractors with the highest reputations are best able to operate this way with little resistance. A strict submittal/approval system to have clients sign off on segments of construction or materials must be adhered to, since that will determine your compensation. Having a specific payment schedule is essential to success in this case. Also, clear contracts delineating who is responsible for what is important since there are no secrets in costs. You must be comfortable with your clients knowing exactly what you are receiving. Your percentage needs to take in to account your general overhead costs, insurance, etc. in order to make operating this way feasible.  

How can I handle a competitor that just moved into our market that is giving jobs away?

Hire them as a subcontractor! Just kidding. Buying your way into a market is, unfortunately, all too common in our industry. There isn't a simple answer to this question, as it is a multifaceted issue. You must continually stress your experience, durability, and track record as important considerations in choosing a contractor for their project. Recommending that clients ask their potential bidding contractors to show them projects they have done in the area that are similar to what is being proposed is a subtle way of raising the issue indirectly. Taking the high road by avoiding talking negatively about anyone else is always the right approach. You are far better served expounding on your pluses rather than any mention of others negatives. No one likes negativity in sales. Another tact that I have always liked is being substantially different in cost, rather than marginally different. I have seen clients buy more readily when the difference in price is greater, provided you have explained the value that you have included to justify it. The perception is, similarly priced companies are all about the same while the higher priced company is in a league of their own. Don't drop prices to try to maintain a market share! Stick to your guns; be worth what you charge and everything else will take care of itself.   

Lew Akins, Ocean Quest Pools by Lew Akins:

It all starts with finding out what the client would love to have.  Be sure to show as many features as possible to determine the customer’s real desires.  Remember that the client really doesn’t know much about what they are doing.  Act as a consultant, rather than a salesperson.  Suggest that the homeowner let you know what they would like without regard to the cost.  You can then incorporate all the elements they want into the design.  At that point a customer can choose between various items as a function of a desired budget.  We all tend to buy something we really want, even if we have to stretch our budget a bit.  At the end of the day, you will have a much happier customer.

I see these all tile pools in the magazines.  How the heck do you sell those.  I gave a seminar on all tile pools several years ago at the APSP national show.  An attendee mentioned he had never sold an all tile pool.  My question for him was "how often have you offered it?"

Many pool builders I have spoken with mention how expensive it is to tile a pool.  It is not important what it costs, it is only important that you know what it costs.  You can then offer the option to ALL clients.  Amazingly, some will actually buy it.  We sell all tile on 20% of our jobs, only because we offer it to everyone.

Do you insist that husband and wife are both present for a presentation?  

No!!!!!!  Asking a woman if her husband will be there can be a critical mistake.  We all know that the decision maker for most projects is the wife.  Why would we alienate her with such a question?  That being said, it is important to retain your intellectual property (design).  If you are building truly custom work, and doing top flight designs, no one will expect that you leave it without compensation.

Brett Abbott, MYM Austin:

What should I focus on to make web site a better tool to get leads?

Focusing on your website is a smart strategy.  It will get more attention than any other advertising or marketing effort you make in the year 2010.  Creating a powerful website is a complicated process that cannot be explained in a blog.  However, here are a few tips that can guide you to make your website more powerful and persuasive:

1. Make sure your general design and layout looks professional. If any part of your website looks cheesy or amateurish, then your visitors will presume that your craftsmanship and/or business are cheesy and amateurish.

2. You should have some sort of "Free, low-risk offer" on every page.  Offer a report, a CD, a photo book, a DVD -- anything that will (1) help the idle shopper learn more about swimming pools, and (2) entice them to give you their contact information in order to receive the free item.

3. Eliminate all outbound links on your home page. These are hurting your SEO rankings.

4. Eliminate all cheesy, lame, platitudinal, "me-too"  "ad-speak" comments such as "We're the best!" or "We'll make your dreams come true" or "it's our goal to satisfy your needs.  People see right through this crap, and will therefore presume you are full of malarkey.

5. Get personal.  Be honest and sincere on your "about us" page.  Include photos of yourself, your facility, your vehicles, and the people who work for you.

6. If you are still using a flash-based website, get rid of it.  You can build a Google-friendly HTML website for half the cost of a flash website, and you can get 100 times better search engine rankings within HTML website.

7. If you are using a flash-based photo gallery that allows people to only look at one photo at a time, get rid of it.  Our tests prove unequivocally that your visitors want to see all of your photos at once, and be able to browse more freely through all your creations.

8. Make sure you are following all basic website protocols, such as:

a. logo in the upper left should link to the home page

b. all hyperlinks should be underlined and in a distinctly different color.

c. any hyperlink that isn't underlined (such as headings and menu items) should have a "hover" feature that changes when you hover over it, so that people instantly know that it's a hyperlink.

9. And then, above all else, get some professional assistance with your Search Engine Optimization (SEO) efforts.  Because websites are becoming increasingly dominant in the sales process, it's critically important that people find your website quickly in their search efforts.  And at the rate the science and Art of search engine optimization is changing, you will have difficulty staying in the lead if you tried to do it yourself.

How would you prioritize various advertising media for effectiveness for pool sales?

First, before you spend any money on any advertising, you should recognize these important facts: 1) All advertising efforts should include a free, low risk offer.  This will increase your response rate, as it will encourage the "future buyers" who aren't ready to talk to a salesperson to go ahead and contact you anyway give you their contact information. (This will then allow you to start marketing to them directly, instead of advertising to the masses.) 2) All advertising efforts should be driving people to your website. It makes all of your other advertising efforts more powerful.

3) Your website itself is also an important and effective form of advertising media.

With that in mind, here are my recommended media for advertising (and lead generating) in the industry, based on the results we've seen with our clients: 1) Referrals -- referrals are not a method of advertising, but they are a method of lead generation.  Therefore, before you invest too much money in new advertising, consider investing more money in your referral processes.  Your referral leads are usually better qualified and easier to close than your "advertising" leads anyway. 2) Website -- invest in SEO so that people find you naturally. Technically, this is not "advertising," but it's now producing the same results as traditional advertising. 3) Pay-per-click (Google ad words, etc.) -- this can be very effective, because it only costs you money when people actually click the link.  However, if it is not managed properly, you can waste a lot of money in a hurry. Get professional help with this. 4) Direct mail -- this can be effective if you target the right neighborhoods, and you put together a compelling piece. The safest way to do this is with the RSVP program.  It usually costs about a nickel a home, and it only targets the most expensive homes in the neighborhood.  The folks at RSVP are semi-exclusive, so if you are already locked out, you might look around for another "post card-pack" program in your city. Most cities have one or more competitive alternatives to RSVP. 5) Radio -- if you really want to "make a splash" in your marketplace, there is no more powerful medium than radio.  But the secret here is you must commit to a minimum of six months, and a budget of $50,000-$100,000, depending on the size of your marketplace and the reach of the radio station you choose. 6) Networking -- again, technically, this is not "advertising," but it is money (and time) invested to generate leads. As our society becomes increasingly more "personal" and "socially driven" while at the same time becoming increasingly skeptical of commercial advertising, networking will continue to be a powerful source of leads.  But this doesn't mean "go join a networking group." Instead I recommend the following:

a. Visit a different networking group every week.  Bring lots of business cards, and use your "elevator pitch" so that you leave a lasting impression on every person in the room.

b. Establish an informal "one-on-one" networking plan for yourself.  I recommend you commit to have a lunch or breakfast meeting with one new homebuilder or architect every week for the entire year. After meeting with 50 different home builders are architects, you are certain to come up with some new important business partners.

Leads are precious.  We don’t have a good follow up system in place.  Could you recommend some methods to make it better?

A "good" follow-up system is one that happens automatically without human involvement. Unfortunately, these are extremely hard to find. In theory, you could create one for yourself using a system such as "Constant Contact," but I have yet to meet a pool builder that will commit the time and effort to put this sort of system in place.  Further, Constant Contact only takes care of the e-mail side of things, while you really should have a direct mail side to your follow up system as well.

At MYM Austin, we use a system called Infusionsoft. It's expensive ($5,000 upfront investment plus $300 per month), it’s clunky, hard to learn, hard to use, and annoying, but it gets the job done.  A lower-cost system that is not automatic, but can nonetheless be very effective, is the greeting card program from SendOutCards.com. You can create any sort of custom greeting card that you want, and mail it to your prospects for about a buck and a half each. You can "semi-automate" this system by making it part of a standard process that your receptionist or sales administrator executes on behalf of your sales team.

No matter what system or systems you use, you'll want to make sure that the content of the e-mails and/or post cards and/or greeting cards is well-crafted, powerfully written, and compelling. Again, no easy task.