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Increase your marketing effort
The economy is definitely having an effect on drycleaners across the country and, yes, money is tight for many operators.
However, it also has caused an increase in phone calls to us for those who are looking for growth and marketing in their routes. I guess this shows that many know that it is now time to beef up their marketing efforts and hit these tough times head on instead of doing what many others are, just sitting back and admitting defeat.
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Times have changed and it is time to change your mindset if you feel that you cannot afford to wait any longer to build your business.
Burger King once was on an incredible run in ’80s until they decided to cut back on marketing. They figured that everyone had heard of them by now and there was no need to spend so much on advertising. Once that decision was made, their business dropped nationwide and they have never recovered.
Drycleaners sometimes feel the same way. Marketing does not bring instant return on their investment and it is difficult to decide where and how to spend the dime and time that is necessary to ensure stability and growth.
As most of you know, the best way to focus on growth is with routes and the time is now to make this happen. We at The Route Pro, Inc., have been busier than ever and routes are now becoming essential in defeating the economic situation and dealing with competition. I feel that you can persevere through this as well as become more profitable, but only if you want to.
So how can you get there and at what costs? Well, many operators are investing their time in the promoting of routes by networking, and, yes, even going door-to-door.
Face-to-face marketing is still the best way to grow your business and shows the rest of the world that you are more than a drycleaner, you are a businessperson. The image many have of an owner is someone in the back, pressing shirts and separating clothes.
The consumer also believes that you are making piles of money and underpay your back-end employees. By getting out from behind the counter and out of the back or production area you are working on your business by building a positive image by personally asking for the business.
OK, if it isn’t going to be you, then who?
On a recent conference call with our RPI members, the question was asked of how to find a good salesperson? This is a question that often gets asked across the board during any seminar, conference or one-to-one interaction.
Believe me, they’re out there. The question that isn’t asked enough is “How do you keep a good salesperson?” I know the first part sounds easy, but quite often I feel that the good ones slip away.
Here is a simple list of why salespeople fail and, take note, I am sure that some of you have fallen in this trap.
Not enough training. This is a big one. Think about it. Salespeople in other industries go through extensive training and this doesn’t happen overnight. They also go through ongoing training as well. If this is the case, then why do many operators give a new hire a pile of flyers, bags and say go get them.
Sound familiar? If it does, be willing to educate your crew and give them more than a one-hour pep talk.
Improper compensation. Many times salespeople are not compensated enough or by results. Both of these hurdles affect the performance of your crew and end up frustrating you.
Here’s how I look at it. You are willing to pay up front for direct mail, door hangers and other marketing methods; however, you feel that there is a chance that a person will take advantage of you.
What I like about a salesperson is that you pay them per result. Ask your marketing company if they would do that for you. They would think you are crazy.
As for how to pay them, it must be per result. If you give them a “guarantee pay” of some sort, they won’t get the results you need. Eliminate this safety net and you should see increased results.
Hold them accountable. OK, this falls back on you. Too often they are not held accountable for the quality of the sign-ups and again your results are limited. Not only monitor how many sign-ups your salesperson gets, but the quality. Communicate the frequency and dollars generated and make sure that they are reaching about 80 percent on the retention of sign-ups.
Find out what truly motivates them. Money isn’t always the number one motivating factor when it comes to making a sales person successful.
Sometimes they are motivating by a chance to advance in the company. If this is true, offer them an opportunity for a promotion if they hit certain sales goals. This may also assist you in the hiring process by offering a career position.
Give them other non-selling duties. Most successful salespeople have other responsibilities such as customer service, operations, retention and/or even accounts receivable. Salespeople in all facets of business rarely actually sell 40 hours a week. This may even include driving a small part of a route. Make room for about 20 to 25 hours a week in hardcore sells and give them other duties and you will get quality results.
Yes, you need other marketing pieces and tools to grow, but you may need to invest more of your dime or your time on a marketing person. If you aren’t willing to invest in this position, then you may be in more trouble than you think. Maybe it is time to jump ship and find a lifeboat, or at least swim to shore.
Look at your own situation and make a decision now. Should you go or grow? If it is the latter, then be prepared to spend some time developing your business and hire someone to do it for you.
It is sad but true. You have to spend money to make money and this is why marketing is ever so critical, especially in today’s world. Some of you may say that you cannot afford to spend time or money on building your business, however most of you cannot afford not to.
James Peuster offers onsite training and all aspects of routes. Management, marketing and maintenance are all key components in developing a million-dollar route. His e-mail address is james@theroutepro.com. His route manual is available through the Golomb Group. You can listen to his radio programs on www.theroutepro.com.
He can be contacted at (816) 739-2066 or james@theroutepro.com.
Hanger