Many of our Dealers are reporting their businesses being overwhelmed with customers calling them to have work done. This is primarily due to people staying around the house more and wanting to do things to spruce up the looks of their home.
Many times, the knee-jerk reaction to having too much business is to expand. This requires more employees, equipment, trucks, etc. and is always an option when you see your business become popular. Another option often overlooked however is to raise prices for the work you’re performing. The laws of economics state that as a business raises their prices, they will appeal to a smaller pool of people. Many Dealers find this concerning as they “don’t want to lose out on the business”. The conundrum lies in that they already have too much business so losing out on a few projects may not hurt them as badly as they think.
If you raise prices without increasing overhead, any increase goes directly to your bottom line. Dealers have increased prices from $5.50 to $6.00 per square foot on a standard installation (that’s less than 10%) and now find that for every average size driveway of 1000 square feet, they put $500 directly to their bottom line. Given a single crew operation can complete 2-3 of these type jobs per week, Dealers can see an increase of $40,000 or more per year.
CTi’s Dealer Support App (available for both Apple and Android), provides valuable information for our Dealers when they are out in the field. Product specs, SDS sheets, coverages, and installation tips can all be quickly viewed with the app.
In many areas of the country it’s cold outside. Warm up the inside of your home with CTi’s concrete coatings made to look just like hardwood. A perfect way to create that cozy environment and keep that cold weather at bay!
One of the advantages of owning a CTi Dealership is the ability to create a successful business with only one or two additional employees. CTi Dealers normally start by working with prospective customers and heading up the installations.
Installations can be done alone but are much easier with the aid of one person. Many Dealers will either use a construction oriented temporary labor service, get with their local firefighters (these guys are normally great workers and have a schedule that is ideal as part-time help), or will utilize their partner in the business as a co-lead.
Once the Dealership gains momentum, decisions on which person continues to install the products and which ones will start speaking with customers regularly are made. Cash flow offers the ability for the Dealership owner to make the decision on which of these two duties he enjoys most and to hire someone to help with the other side of the business.
When working with homeowners and business owners about having the CTi coatings installed, too many times we get caught in simply telling the customer everything we know about the coatings, the prep that will be done, maintenance, and dozens of other areas that may or may not interest the customer.
We teach our Dealers to ask the customer some questions that lead to a conversation about what they are most concerned about or what they would like to know about the products. This is done by asking questions that are “open ended”. An open ended question requires the customer to answer with something more than yes or no. A question such as “do you like brown?” doesn’t get much of a conversation started, but a question such as “what things are most important to you as a finished product?” get the customer engaged and talking more which leads to a better conversation and more sales.
We see an increase this time of year of people who are interested in finding out more about starting a CTi Dealership. Many of these folks tell our Dealer Advisors they have been thinking of starting a new business for years and have made a resolution to do it for the New Year.
Making decisions is critical to being a successful business owner. Once an owner feels he has all of the pertinent facts, making decisions, right or wrong, moves his business to a new level. Many folks dread making decisions because their afraid they’ll make the wrong one. Tom Watson, the founder of IBM, told people “If you want to succeed, double your failure rate.” What Mr. Watson was referring to was business owners are not designed to stay in one place. If a wrong decision is made, they adapt, evaluate the new information and continue making decisions until they make the ones that lead to their success.