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View Full Version : Fellow Fridge Lord's...Saddle Up It's that Season Again!



PAXFREON
23-03-2004, 11:00 PM
Hello All!..

An Idea for ya!

I just did a nice cheap direct mail piece (roughly 1000 pieces) I targeted Bars/Taverns, Deli's and Restaurants..My phone has been ringing off the hook and it's not even the hot season yet. At first I was a little skeptical about this type of marketing method, But I am a big time beleiver now.

If your slow give it a shot.

RogGoetsch
24-03-2004, 07:31 AM
Hello All!..

An Idea for ya!

I just did a nice cheap direct mail piece (roughly 1000 pieces) I targeted Bars/Taverns, Deli's and Restaurants..My phone has been ringing off the hook and it's not even the hot season yet. At first I was a little skeptical about this type of marketing method, But I am a big time beleiver now.

If your slow give it a shot.

Proceed with caution. I began building my commercial service business 16 years ago, and have learned a few things. A normal response rate is about 2%. A smart business owner values his refrigeration man and won't jump ship on a whim. If your response rate is greater than 5%, beware! You probably said something you may regret.

Did you quote rates and are they substantially below the going rate? If so you will get calls from everyone who values low price more than quality. They will want the cheapest fix on neglected equipment, will try to get you to discount the bill after the work is done and will dump you for the next low price they find.

You will also get calls from everyone who doesn't pay his bills. Did you quote terms like C.O.D.? It's always amazing how many people running a business don't have a checkbook with them but will assure you they will put it in the mail....

Beware of customers who have several units for you to look at. There's usually a reason they haven't had them fixed. Make sure they pay you for the first one before you spend two days and $400.00 in parts getting everything running again.

Beware of the customer who slaps you on the back, tells you what a wonderful guy you are, has four friends with markets looking for a guy just like you and wants a discount because he's never going to call any one but you from now on.

While you are there, watch other vendors: produce, liquor, soda, bread, dairy, etc. if you can. Do they pick up a check before they leave, or do they let the owner sign for the goods?

Beware of the customer who calls you for the first time during a heat wave. I always ask why he isn't using his regular man. Most of the time the answer is "I can't get ahold of him." or "He's too busy." That tells you this customer is not one of his good ones.

Starting out, you're going to get many of these, along with the good customers. Over time, you can drop the worst ones. Eventually, you will have more work than you can handle (which is the sign it's time to raise your rates) and will continue to grow by word of mouth with no ads, not even directory listings.

The good thing about commercial service is that you will build a base of really good customers. It takes a few years but it means you never worry about getting paid, you know the equipment and which breakers need to be checked if something isn't running. You don't bid anything and you make top dollar on all your work. Now if only they would never call nights and weekends....

Rog

chemi-cool
24-03-2004, 03:10 PM
hi pax*****,

rog is right. it takes time, and even long time to build your own satisfied customers.

I am marketing my self everyday, but never by mail, always in person.
after you learn what they want and finish all the small talk, than get down to business, slow, dont frighten them, impress them. never tell lies and dont add feathers in your tail.

remeber that medium to big customers, have at least two refrigeration firm to relay on.
prove them that its worth to make you No.1.

have patient, do not push, go slow and get the big fish.

summer was always here. even when its snows.

good luck.

chemi :)

Abe
25-03-2004, 09:11 PM
All are right of course........There is the "personal selling " bit when you can afford to visit, talk, charm and gain confidence of customer.

Pax*****s blanket direct mail trick is a cheap fix it, when things are slow, and stove needs heating up a bit, it comes with its risks, but I wouldnt condemn the idea.

Depends on the maturity of the business, when I first started up, I did a 1000 mail shot , it certainly brought in business, good and bad. Now, I more or less pick and choose, having sifted the bad eggs a long time ago...

Anyway.....nice to see youre still at it Pax, long may ye prosper..

iceman007
27-03-2004, 01:19 PM
Wish me luck guys. I,ve taken the decision to start up my own business. I've learnt alot by watching the way my last firm used to always try and cut their rates and undercut the competition. The problem for me as a technician was that the turnaround time on jobs was always trying to be cut down, as the lower rates meant lower margins, the only way to bring them up was to fit in more jobs. We always used to have arguments, because I would NEVER compromise on the quality of the job, or any of the safety aspects.

I have no intention of being the cheapest. I want to develop a quality customer base, and provide them with a quality standard of work. Any advice would be really appreciated. It all goes live at the end of April.

Thanks
James

chemi-cool
27-03-2004, 06:32 PM
welcome to the real world, james.

I wish you all the luck.

its not going to be easy but never stop fighting and dont throw statements into the air.
you will have to be a manager as well, so be a good one. at least youknow exactly who is working for you.

best of luck!!

chemi

RogGoetsch
27-03-2004, 07:07 PM
Wish me luck guys. I,ve taken the decision to start up my own business. I've learnt alot by watching the way my last firm used to always try and cut their rates and undercut the competition. The problem for me as a technician was that the turnaround time on jobs was always trying to be cut down, as the lower rates meant lower margins, the only way to bring them up was to fit in more jobs. We always used to have arguments, because I would NEVER compromise on the quality of the job, or any of the safety aspects.

I have no intention of being the cheapest. I want to develop a quality customer base, and provide them with a quality standard of work. Any advice would be really appreciated. It all goes live at the end of April.

Thanks
James


Don't know about the UK, but in my area I find you need a spouse's income to cover the bills for a few months, either that or six month's or so living expenses in the bank. I didn't have either so lived on credit cards for a few months. Went very deeply into the hole before beginning to climb out.

What kind of business? I chose commercial refrig over AC because I figured commercial accounts would have six or so refrig units apiece and I like refrig and had no duct experience.

I got licenses & business cards, found a truck, then started canvassing every morning. Parked the truck and called on businesses: small markets, restaurants, deli's all day long, up one side of the street and down the other. Skipped restaurants & deli's during breakfast & lunch rushes, came back later.

Asked to talk to the person in charge, sometimes got a quick brush off, so asked them to keep my card just in case they changed their minds, but if interest was shown I would make my pitch and then ask questions. Were they happy with their present refrig co.? Why or why not? Who were they using, etc. I undercut the market in the beginning. The big boys were charging $50/hr (1988,89); I quoted $35. I also advertised no overtime charge.

Luckily I also wrote the date on the back of each card as I handed it out because the owner would often write my labor rate on the card and years later I would get a call from someone saying they found my card and wanted me to honor the original rates & terms. I would ask them to turn the card over and read the date!

I started in October and frequently was asked to look at something immediately. By March I was too busy to canvass. I had handed out about 1400 cards and had about a ten percent response rate, about 140 customers. Many of them were only looking for low price and switched to someone else later, but like Aiyub said, in the beginning you take the bad with the good.

Good luck!

Rog

iceman007
27-03-2004, 07:52 PM
Hi

I never thought it would be easy. In fact I've prepared for the worst scenario, and have enough to live on for the next 6-9 months, which should last me through to Christmas. At least I figure that by this time I should know if things will take off. I have alot of good contacts here which should get me off to a good start. Although I do some a/c it's starting to get too cut throat and the margins aren't what they were, so the majority of my stuff I hope to make commercial fridge which is what I started on.
I've had to manage staff before-if anything I've been too soft in the past. I plan to work on the advertising and think that initially mailshots will get my details around, I expect to have to undercut at the start until the reputation and client base becomes established, but at least I thought it was a case of now or never as the season is drawing near, even though I've been busy all over the winter, when here in our crap climate it normally slacks off a bit. How I envy those of you in warmer locations !!!

Thanks alot Chemi and Rog for your advice.

James

chemi-cool
27-03-2004, 08:13 PM
hi james,
dont envy any one, its not a pleasure working on a white roof with temp. around of 40C+ , in the sun, every thing you touch, burn your hands.
funny but then I start thinking of the cold wheather of england and how I miss my little place in scotland.....

but life is stronger then us.
I agree with rog that refrigeration has better prospects in your erea, but dont neglect the AC. its a growing trend it the uk and has its finencial advantages.

good luck.

chemi

iceman007
27-03-2004, 10:03 PM
Chemi

Isn't life funny. I mean alot of English people spend their time moaning about the climate- I'm one of them. The other week, I had to do a quite large installation job and spent most of the week on an exposed building being soaked and frozen solid!.I always tell Mrs Iceman how I wished the climate was different or how we lived in a warmer climate,but it's alot easier said than done-I've known a few people emigrate, usually to either Australia New Zealand or USA and some come back because they get homesick, so I suppose the moral is to be happy with what you have and count your blessings. No doubt there are drawbacks to anywhere. I still will be doing a/c work as it's becoming a growing sector in the UK as more buildings are having it, either for comfort cooling or the close control equipment found in communications rooms etc, it's just that commercial refrigeration is the thing I enjoy doing.

James

Abe
28-03-2004, 12:07 AM
Iceman

You came to the right place now that you starting up. I wish you all the best.
For starters I am going to offer you a little advice...

Be honest, with your customers, with your vendors and with the tax man.

Dont be tempted to cheat any one of them. Offer your labour, charge accordingly, dont go cheap cheap......youre a pro......you know your stuff.....get recompensed accordingly

Eat less but eat good....Its a saying my father taught me, ie: dont be greedy or accumulate ill gotten gains....it makes for bad unwholesome food and life....

Keep up the paperwork. Be methodical. Get your quotes in sharpish. Attend to call outs quickly........carry enough spares with you.......but also practice "just in time" buy policies to manage cash flows

Dont offer too much credit. Remember, 50% up front......balance on completion.

Dont be shy.........and dont jump and rant or display arrogance

Show a goodly face, always allow the customer to think he is in charge, and he is the boss......but keep the balls in your court.

With your customers......Begin as you intend to carry on.....

Remember, there is a shortage of "good" engineers....in the UK. There is work.

Subcontracting is useful........Get in touch with as many fridge companies....Williams, Fosters, Breweries, etc........They will offer you local work on breakdowns and will pay the going rate.

Hope this helps......and long may ye prosper

PAXFREON
29-03-2004, 02:54 AM
ICEMAN,

Trust the knowkedge of the seasoned posters of this sit.AIYUB and HEREFISH basically showed me the ropes when I took over for my father!!! There will be good days and bad days. Always keep your head up and your work neat

Best of Luck Sir

iceman007
29-03-2004, 10:18 PM
Hi Chemi, Rog, Aiyub, Paul

I've been genuinely overwhelmed at you replies to my post. Thank you all for the advice given. It's greatly appreciated. I've been approaching a few places and already it seems like there will be work there. I'm looking forward to it-even the bad times! Aiyub, Thank you especially to you for the good advice and taking the time to share it.

Grateful Thanks
James.

PS I know it's a long shot, but does anyone know if there are any HVAC suppliers (tools etc) near to Waco, Texas as I'm there in two weeks (it's cheaper there than here)

iceman007
30-03-2004, 12:34 AM
Aiyub

I learnt alot of valuable lessons from watching my Father run his own business. He was a plumber and gas fitter. The strangest thing of all was he was extremely well qualified ACOPS CORGI etc etc, and his business went t**s up, because of one simple word- CASHFLOW. You see he was getting the work and doing it, but the money wasn't coming in-he wasn't being paid on time, he was getting the poverty stories and wasn't manging the finances. The trouble with him was that he had no debt control and in the end the whole thing just spiraled out of control. The same thing happened to a company I once worked for.

For the last 15 years it's been my goa; to have my own business. I've saved, and as I've gone along learned about all aspects of running a business. I consider myself to be reasonably well qualified- all I've done for years is training course after training course, but it doesn't mean alot if you cannot run a business. So in four weeks from now, my journey begins. I hope that it will be a successful one, but whatever happens, I can look upon it and know that I gave it my best. But, I haven't waited all this time to fail- it just isn't an option.

I will remain eternally grateful to you for the advice you have offered, and for taking the time to share your knowledge with me.

Best Wishes
James