Well, do ya? What do you spend per month as a percent of sales? What are the most effective ways to get new customers

No, we have never advertised. It's very expensive in our market, and I have found that if we take care of our customers they send us their friends. I've been able to grow the company as fast as I cared to just by waiting for the phone to ring.

This will not always be this way, no doubt. The time will come when the gravy train stops running in this industry, and there will be a major shake-out. At that point marketing will be more important to those still standing. Until then, I'm happy to not spend the money.

My boss doesn't really advertise either. I know he did a full page ad in a local book, but it was for a charity thing going on. I still think we should make some nice little 4"X6" advertisements and staple them to the front entry of new houses going up. There are a lot of GC's that have told me that if they new about us they would have hired us to do the job.

What kind of information would you put on these postcards? Have you done them before?

No, We haven't done them before, but I have designed samples to show him where it shows 4 small images of completed theater rooms and junction panels on the front with a design on it and on the back it just has our compny name, explaines what we do, and says "to schedule an appointment for a free estimate call us at..."

That's what they all say.

We've tried this approach, only to have our cards ripped from the structure and thrown into the dumpster.

You need a different way in with builders. Most see this card as a cut out of their extras bottom line.

A good way to start is to join your local builder's association. It won't happen over night, but eventually, you'll network and make some connections with builders. Though some still won't warm up to it.

Ideally, it would be advantageous to get to the architect, designer, or better yet, the homeowner.

JJP

I am also a "word of Mouth" company in Phoenix AZ.

I am doing OK with this tactic because my customers are always very happy with the products I sell them and the professionalism in the installtion. I dont BS my customers into equipment they dont need and there happy for that.

I have joined the ASBA (Arizona Small Business Assoation) and the BBB and hopfully this will help this year for new clients.

I have also done a few BIGGER custom commercial jobs that plenty of people will see and hopefully wounder what company did the install and want to use us for their own private systems.

VR Audio Systems LLC
Phoenix, Arizona
www.vraudiosystems.com

Word of mouth is the best advertising out there. I work for alot of interior designers. I kick them 10% of the project, and the work just keeps rolling in. A happy client will tell all their friends. Just show up on time, deliver what you promise, and give them good service. At the end of a big project, I send a gift basket with some DVDs a bottle of wine, and if the client has children, a kids DVD. Its a small gesture, but the clients tell EVERYONE.

Hey NY,

Do you kick back 10% of gross or 10% of net? 10% of gross seems like a lot. Also, do you inflate your prices to compensate?

10% of Gross was our first venture, which was a total mistake. There are similar aproaches via a kickback (which is very illeagal) that you might wanna check out. Maybe giving them a much less % or working on a scale of xxx per kkk.

Why would a kickback be illegal? It's basically just paying somone a fee for advertising for you.

Ya but in some fields you cannot mix this blood. There are laws protecting homeowners. Kinda like a Laywer giving money to a judge. Besides if the home owner ever became aware of his architech or designer takeing money from a sub might not be in there best interests.

I know if i were to bid out a job and found out that the contractor that i was pursueded to go with by my designer was taking a kickback, I wouldnt think i would realy want either of them on the job. The kickback might be more important than the Qualty of workmanship on the job.

I guess that makes sense...I guess it all just depends on how honest the people involved are

Don't be too naive guys. If you can afford to sit back and wait for builders, interior designers, architects to refer you out of the goodness of their hearts, more power to you. Most of the people I deal with want a cut. Any GC out there, including builders, will add 10-20% to your price. A unified price is presented to the customer, but that % still goes to the contractor. That's how a contractor makes money. I don't see why this you would consider this illegal.

I wassnt talking about GC's i was talking about Arch and Designers. I have a few Archs that are close firends, and from what i have been told, there can lose there AIA licenseing or whatever it is, if they accept money to guarentee a particular contractors bid to win.

But, Im sure your problable making alot more money than I, even with your kickbacks. I guess if your giving the ARCH 10% of you contarct and we bid the same job with the same price, I should be 10% less than you right???

When i talk kickbacks, im refering to the REAL WORLD of bidding out jobs. Not simple job referals where no biding is involded. I guess if there was no bidding or pricing to several differnt firms, than it wouldnt be considered a kickback.

whatever....