May 2014
www.dakotasupplygroup.com
SPOTLIGHT Tom's
Current
Handling The “B” Word In Michael Stone’s book Profitable Sales, A Contractor’s Guide, he devotes a section to the proper use of the word “backlog” when meeting with potential customers. Specifically, he discusses how contractors of all sorts become dependent on the word. “We’ve got a huge backlog,” they tell their customers, using the word both as a means of stalling and as a badge of courage. After all, if you’re backlogged, you must be in demand, right? Unfortunately, very few customers see it that way. Almost no business enjoys the kind of unlimited goodwill that it takes for customers to say, “We’ll wait. After all, they must be worth it if they are so busy.” Instead, prospects evaluate their options. Sometimes, this results in their choosing to wait for you. Many times, it means they choose a competitor who can simply get to the job sooner. In his book, Michael Stone breaks down how to deal with this common predicament in a positive way that gives you a fighting chance of landing the project, even if you can’t start right away. The trick, you see, is starting right away. Nope – that’s not a typo. It’s simply a more positive way of addressing the situation. Let’s say you are meeting with a prospective customer, and you know that you won’t be able to put a crew on the project for two months. First of all, leave any discussion about scheduling until the end of the conversation. That way, you can build up some trust. Then, when the topic does finally come up, explain that you plan on starting the project’s prep work right away, and also
how long those steps take: First of all, it’s likely that the design phase of the project will take two or three weeks, plus a few days for customer approvals. Then it may take a week or more to get quotes from subcontractors or suppliers. Once plans are finalized, it often takes a few weeks to apply for and receive permits from the local government. Finally, assure the customer that you will order materials as soon as it makes sense, and that this step can take a week or more, depending on the project. Finally, be truthful about your workload. Tell them that toward the end of the process, you will put them on the schedule – and that even though you are busy, it looks like your crew will be ready for the project at about the same time that the prep work is done – two months or so. By approaching the process in this way, your prospective customer has a better understanding of two critical facts: (1) Progress will be made on their project right away, and (2) it’s natural for a project to take a while to get going, thanks to a list of important factors, including government paperwork, as well as their own part in the approval process. Instead of focusing on what you can’t do, you’ve told them what you can do. That makes a big difference. Try it out next time you have a backlog, and I think you’ll be excited by the results.