MARKETING YOUR BUSINESS
This month our main topic is DIVERSIFICATION.
We all know the Real Estate market has taken a major downturn. I have a number of friends and clients who have been hit hard by this turn of events. It makes the point, more clearly than any speaker could, of the importance of having multiple streams of income.
One of my clients was asking how he could add streams of income to his current business. We decided to look at his core venture which is plumbing, and see how we could expand this.
His primary market is in home repairs. I asked him for the two main reasons he gets called to a home for repairs. The first was a bad water heater, and the second was a toilet that would not stop running. I know the second issue very well, as I had just called him for that very reason.(Anyone who knows me understands that I am not allowed to use any tools; my family fears I will hurt myself, or worse!) I told my client that I noticed the stoppers needed to be changed about every 9 months or so. And he said that was about average because the water is so hard in my area.
I then asked, what if he started a program where he just replaced the insides for his customers for a flat fee? And did a complete check while he was there, just like the AC guys with their preventive maintenance program. He could offer this service and not charge the overtime fee if they called for other services throughout the year. We are in the trial stages and will keep you informed on the progress. But let's get back to how diversifying can help your company as well. Take a look at your core business:
What products or services can you offer your clients? How much would this help your clients, and your business?
Look at your client list. How many times a year are they doing business with you? What is the average transaction price?
How many years have your clients been buying from you? What products could you offer that they may need? How much better off would they be with that service or product from you, whom they know and trust, than from someone else? You owe them the best service possible.
Just think how much easier it will be offering these products to loyal customers. You will be able to use marketing dollars wisely, and will be more profitable in the long run. And downturns in the market will not be so hard on your company.
Take a few minutes to look at some of America's largest companies. The smart ones have diversified to all types of business. I did a little research on GE, BOEING, and GM and here is what I found.
GE is into so many products I was amazed. Here is just a quick list of them:
GE has a finger in: Appliances, Aviation, Consumer Electronics, Electrical Distribution, Energy, Finance Business, Finance Consumer, Healthcare, Lighting, Media, Oil and Gas, Rail, Security, Water. WOW, they have a hand in everything, but this is how they protect themselves from market changes. They didn't do so well on the Finance side, but look at how many things they are into where the economy has little effect on the bottom line: Healthcare, lighting energy etc.
Now let's look at Boeing. I went to their web site to get this info on products they offer: Commercial Airplanes, Integrated Defense Systems, and Phantom Works (not sure what this is but sounds like fun) That's it. They may do more but that's all I could find.
In a down economy they don't have much to fall back on, do they? Boeing has been in the news since they have lost two major contracts to foreign competition.
I also went to GM to see what they had to offer in the way of diversity and we all know about their problems. Here is what GM is doing these days: GM line of Automobiles, AC Delco, GMAC, GM Blogs, GM Card services, GM Good Wrench , GM Mobility, Parts and Accessories and ON Star. Not very diverse, is it?
So please take a few minutes to look at your business and see how you can add more paths to income. If you have questions please give me a call, I am available to help. I can be reached at 941-716-2597.
Paul
You owe it to your customers to offer them all your services. Because they know you and trust you, you can do what is right for them and they will get the most benefit from their investment with you.