Great idea, wrong approach (maybe)

Rarely do I see an example of marketing brilliance and stupidity combined in one place as great and obvious as this ad.  This is not a criticism of the contractor who placed it.  He apparently published the ad on the advice of a consultant and says in the Contractortalk.com posting where he described the advertsing is a worthy test.  Maybe I’ll be proven wrong, but can you see what could be obviously out of place here?

Of course, the idea of a free fix-up visit is potentially quite effective and is one of the best approaches to get you in the home for repeat and referral business, but would I advertise in this manner publicly to new potential clients?

No way, Jose (. . . or Ralph, Bill, or Mark)

As other posters on the contractortalk.com thread observed, how can you qualify the tire-kickers, freebie seekers, and unemployed and desperate people from people with the money who need and want your services?  Sure, you can say you can qualify the callers based on the “some conditions apply” but you are potentially asking for trouble because the people with the most time to receive the free services also can have the most time to complain to the media, friends, and consumer authorities if you fail to deliver.  (And if you deliver this service through public advertising — with an ad that looks like it would appeal to lower-middle class and poor people — do you think the referrals and relationships you build from it will be worthy of your business?)

Now the story is entirely different if you offer this kind of free maintenance service through direct mail or even email to existing and previous clients.  Then you have found the magic key to marketing success because you are delivering exceptional after-service value to clients who respect you and want to do business with you.  You get back in the homes of people with money to spend.  You could also give “referral certificates” to your best clients and invite them to provide this message to their friends and colleagues.

The best parallel I can give of a great marketing methodology needing the right context could be our own business.  We earn most of our revenue by profiling successful construction businesses, inviting them to work with us on features with supplier-support co-op advertising.  If we advertise our offer publicly, we’ll generally obtain response from small, start-up or otherwise unsuitable businesses for the offer.  They would love the free publicity of course, but don’t have enough of a supply chain to qualify and refer potential advertisers to us.  We could spin our wheels with these inbound inquiries which can go nowhere.  (As it is, when we receive these calls without seeking them, we treat the potential client with respect, of course, and suggest inexpensive or free alternatives to the special feature — but we certainly don’t advertise to look for these people.)

I will keep my eyes on this story and if I’m proven wrong and this advertising proves to be effective and profitable for the contractor, will reverse my position.  Right now, however, my reaction is:  Great concept:  Dumb promotion.

P.S.  Note the contractor placing this ad, H & S Construction, may be wiser than the ad appears.  He has a brilliant domain (http://renovatingpro.com) and a clearly defined New Jersey service area which presumably has  upper-middle class and high end homes.  In this case, assuming he is using community media, the qualification process is defined by the media and the service area he in.  So in his case, the ad may be valid and effective.

  • http://www.renovatingpro.com H&S Construction

    Wow, a pat on the back and a knee to the groin at the same time. Its okay though I get your point. This was a test and the market it was sent to was taken into close consideration. The homes it was delivered to were in an affluent area and there was virtually no lower class. I would not send this to an urban area where the demographics had a high number of homes below my target value. The results of this test….failure. Publication of 10,000 in a local paper with an ad size of 5″x7″ positioned next to a weekly article I write. Total calls 0, we are now 4 days post circulation. Why no calls? I suspect everyone was able to see through the FREE and were expecting a high pressure salesman to be along for the ride. The truth is there would be lots of soft sells. On any estimate we would typically spend an hour or so with the potential client listening and finding solutions for their issues. In this case they would also get some work done at the same time. To me I feel this would put our credibility through the roof. The fact that we are so confidant in our “product” that we are willing to give you a sample for free speaks volumes about who we are. I was prepared to do the 1 hr with no further obligation of the owner but they would be placed on our mailing list and sent friendly emails and newsletters until they either call us when they are ready to buy or tell me to knock it off.
    So in the end I am out $75( yeah I get a pretty good deal) for the ad, to me worth every penny. 1 job with our average sale of $8500 would more than make up for all the tire kickers who have not purchased….yet.

    Now on to the next test

  • http://ConstructionMarketingIdeas admin

    thanks for your comment — and update.

    I really think the offer is still a useful idea, but framed as an extra gift to your current and previous clients and possibly the ones they refer. To market this, you would use direct mail (a carefully thought-through and well-designed piece) and/or Internet marketing to your list. You might tie it with an anniversary or special event, or just as a free “check in and maintainance” service for the work you’ve already done.

    You are back in the homes of your satisfied clients, and you will undoubtedly pick up new business and referrals — and enhance your word-of-mouth.

    So the idea is good, even if the ad didn’t work.

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