Staying Competitive in a Shaky Economy

It’s tough being a business owner these days. With consumers tightening their financial belts and layoffs on the rise, competition for those precious dollars can be fierce. Don’t let the contractor across town siphon away your business – check out these tips for keeping your current clients and attracting new ones.

Think carefully before turning work down. Referrals are an important part of finding new clients, and every job you do gets your name out to more people, says Daniel Lowe, owner of Lowe’s Electric in Lincroft, New Jersey (Editor’s note: Lowe’s Electric is not affiliated with Lowe’s Home Improvement or Lowe’s for Pros). “You never know who that job is going to lead to,” Lowe says. “I could walk into someone’s house to install a ceiling fan, and the next thing I know, I’m getting a maintenance contract out of it.”

Know your stuff. High standards are important. Sub-par work won’t help you build a good reputation and it certainly won’t attract new clients. Completing jobs accurately and efficiently is a great marketing tool, Lowe says – probably even more so than undercutting your competition on price. “I won’t give a low price just to get in the door,” Lowe says. “I tell clients that [my services] will probably cost a little more, but there won’t be any surprises. I like to be honest up front and explain what’s at hand.”

Creating specialty areas within your company can also help you send the most qualified electricians out on each job, says Emerson Smoker, owner of Rite Way Electric in Albany, Ore. “You can separate into divisions where you have a certain amount of employees that do one specialty item and others that do another specialty,” Smoker says. “If one guy excels in a certain area, he can stay there, but if need be, he can be moved around to find and area that fits.”

Continuing education can also help you and your employees work as proficiently as possible. It’s always a good idea to go beyond the minimum state requirements for continuing education, Lowe says, because it helps electricians stay current on the latest industry developments. Free vendor workshops on various products can also be useful because they allow contractors to stay abreast of the latest product offerings that might be of use to their clientele.

Get your name out there. It often pays to go beyond the standard Yellow Pages ad when it comes to advertising your services. Lowe is currently working on a catalog that features the various electrical products he installs. The catalog, complete with product descriptions and prices, will be distributed to local homebuilders and other contractors. Church bulletins, school newsletters and other forms of local advertising are other outside-the-box advertising options.

A little face-to-face business networking can also go a long way. For years, Smoker says, he neglected this tactic, preferring to stay “with my head down and my screwdriver in my hand.” But since joining the local chamber of commerce and rotary club, he’s been in touch with other business owners and community leaders, all of whom are potential clients. “You want to rub shoulders with the people who are movers and shakers in the community,” Smoker says. “I believe that is a niche as well.”

Don’t let the relationship end when the job is over. Following up with your past clients helps them remember you and makes them more likely to recall your name the next time they need electrical work. Occasional mail campaigns in the form of newsletters can be helpful, Lowe says – they can include both your business information and consumer-friendly household tips, such as reminders to check smoke alarm batteries. Refrigerator magnets emblazoned with your contact info are also good, creative reminders. Lowe says he even places vinyl stickers on his clients’ panel boxes because it’s one of the first places homeowners look when they’re having electrical problems. “There’s all kinds of things you can do to make [people] aware of your services,” Lowe says.