Qualified Remodeler Magazine

MAR 2019

Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.

Issue link: https://qualifiedremodeler.epubxp.com/i/1090915

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Page 53 of 70

(siding, windows, bath-refitting, etc.) Exceptional companies oƁen earn 15 percent or more. A re- modeling company's goal should be no less than 5 percent pre-tax net. Better run remodelers exceed this. Improper pricing, unwise hiring methods and outdated sales compensation are oƁen at fault. In 2019, Your Profitability Could Improve If You Hire the Right People—and Keep Them. Recruiting, hiring, training and keeping personnel is a key profitability issue. The cost of advertising and phone interviewing is expensive and is sel- dom identified as a separate item on an operating statement. In the case of salespeople, add in costly time spent training. Then, examine the number of leads issued to the new hire. Efficient recruiting starts with defining what you want the hired party to do, then creating an ad or job posting to gain inquiries. Next, it involves using a script to perform telephone interviews. The job of a recruiter is like that of a salesperson. There has to be a system clearly defined and used to cre- ate an effective telephone interview. By effectively asking questions, a recruiter defines the skills of the applicant. The goal is to then get them to want an interview. Successful recruiters conserve time and money (which transmits to bottom-line profits). They use an electronically generated profile*, which creates a more effective interview and helps determine, A) Can the applicant do the job? B) Will they do the job? C) Do they fit the organization and the business model? These instruments enable a recruiter to challenge someone during an interview, i.e., "Convince us you are the right person for this position." U nfortunately, the less you know about professional interviewing, the higher the chances are you will experience mis-hires and high turn- over. We've been using profiles for over 40 years and have found that with proper use they save time, improve the amount of information from the applicant and reduce turnover. (*We will email you a completed profile without charge. Send an email to admin@daveyoho.com with subject "profile" and refer to this article and publication date.) Ten years ago, industry statistics indicated that only about 50 percent of scheduled candidates showed up for interviews. Current surveys indi- cate the number of candidates who now show up is 30 percent or less. Companies who recruit and interview effectively use methods, which include scripting for both telephone and in-person inter- views. And many of these companies average 70 percent showing up for interviews. Decide today to improve your hiring skills and then prepare to upgrade your management skills. To Improve Profitability in 2019, Manage Your Salespeople (Whatever You Call Them) Properly Modern selling is not fast-talking, being liked or outthinking your customers. It is a science enabling owners, manager and representatives to create a cooperative environment, acting in consort to ful- fill both the wants and the needs of the customer. Great managers understand their sales reps and their customers. Their role is to hire and train salespeople to make presentations. Not to prejudge or qualify prospects based on their own values, but to make great presentations regardless of what they think about the quality of the lead. A sound sales methodology is designed to con- vince virtually everyone when executed correctly. Great sales managers understand that their role is to train salespeople to execute each step of the pre- sentation with precision 100 percent of the time. No one should ignore the opportunity to re- contact leads, who did not receive a presentation or were presented and not sold. Revisiting a prospect is not about cutting your price or offering a lesser product at a reduced price. Carefully scripted, it can provide a revisit. In addition, a rehash program supports your sales department. It helps management train, retain and redirect salespeople while increasing their sales. An unsold lead has the same value (costs) as when it was issued, yet it produced no revenue. Someone will sell it someday—why not you, instead of your competitor? With proper planning and ex- ecution, revisited leads can represent 7 percent to 10 percent of your gross revenue in 2019. Follow up on a consistent basis with email, text messages, direct mail or personal visits with pros- pects who have expressed an interest yet remain unsold. This includes past customers. Be sure to check Do Not Call regulations for your market. There are usually time-restrictive, re-contact pro - visions, even when the customer contacted your company. The more successful companies rehash every lead and follow up on every sale for addi - tional business and referrals. They oƁen find that salespeople unintentionally mishandled the con- tact, the presentation and/or the price. Following up is a great customer-satisfaction tool. The true cost of lead issuance is created by dividing the number of leads issued by the fully loaded marketing costs. These costs have escalated to obscene levels. Many large companies saw this as a nonproblem and simply raised prices. The out- come of which was a cycle of increased operating costs—that, in turn, created higher selling prices without increasing net profit. Management's plan for 2019 should include methods for taking their organization from good to great in sales management. Start out by exam- ining your metrics. Dave Yoho Associates is the oldest (since 1962), largest and most successful consulting company representing the remodeling and home improvement industry. The company has a staff of field representatives and account executives who consult for large and small retailers, manufacturers and service providers. In the spring of 2019, they will be holding two educational seminars in Orlando, Florida, designed to improve your profitability immediately. To learn more, visit hipsummit.com or see their ads in this magazine. QualifiedRemodeler.com March 2019 51

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