Issue link: http://read.dmtmag.com/i/48221
24 • DECEMBER 2011 • WORLD FENCE NEWS The last few months we have been reviewing a fence franchise operating model for processes, procedures and systems that could be standardized for operating the most efficient possible fence contractor model. Working in the field I have come to realize that, because there are so many "moving parts," it is impossible to create an operating system or "pat" response to all possible scenarios; there are simply too many variables. We can, however, capture as much of the process as possible, realizing that in the day-to-day operations we can never have a "cookie cutter" an- The commercial sales side: Fence franchise procedures, continued BY TOM LUBY, PROFIT BUILDERS INTERNATIONAL swer for everything. That being said, over the past few months we have covered systems and procedures for handling the first con- tact with the customer and the process whereby the residential sales estima- tors operate. Now let's look at the commercial sales side of the fence contractor's book of jobs. FREE! American Made PulJak T-shirt in specially-marked PulJak boxes. Get yours today and show support for American Manufacturing! THE FENCEMAN'S FRIEND STRETCHES • LIFTS • ALIGNS • CLAMPS FOR: TIGHT CORNERS, SHORT PULLS, GATES ONLY MODEL A–21 ⁄2 PulJak® $90.50 Designed for those "Impossible" jobs Company LLC 4 Sycamore Way, Unit 6A • Branford, CT 06405 PHONE: (203) 500-2520 • FAX: (203) 738-1088 E-mail: puljak@comcast.net Visit us on the Web at www.puljakusa.com VISIT US AT BOOTH NO. 1047! Commercial estimators pre-bid – bid – post-bid procedures Sales staff should always follow sales tools and techniques to optimize sales capture ratios and maximize profit margins. It is critical to use all of the sales tools possible, such as "value selling," "backward selling," and "closing the sale" all found in my fence industry sales and marketing book called "The Close." I understand that most commercial estimates are only a numbers game, but at times there is leeway for the contract to be awarded to the most qualified contractor, not just the low- est bidder. There are very distinct dif- ferences between how a residential bid is processed and how a commercial bid is processed. On an important side note: So many times I have been asked, "What type of customer and style fence create the best fence jobs to pursue? Are they residential or commercial? Would they be vinyl, wood, chain link or orna- mental iron or aluminum?" There really is no right answer ex- cept "The most profitable one!" For example, I have been in markets that are over-saturated with vinyl contrac- tors, and installing log fences was where the most money was found be- cause no one else did that type of fence. It all depends on your market area; find your niche! Same thing for residential verses commercial sales: wherever you can make the most money should be the PhoneAire 500- Wireless Telephone Entry 3500' Line of sight 12-24 VAC/DC Solar compatible 500 codes No phone line or PBX modes Call waiting Call forwarding Latching code Sleep code One-Shot code Event input Program from homes phone Night light Unique ring cadence Optional Camera (800) 541-5677 PhoneAire -Telephone Entry- PhoneLink PhoneLink 500- Choose AAS ~ Quality You can Count on! Hardwired Telephone Entry 12-24 VAC/DC Solar compatible 500 codes No phone line or PBX modes Call waiting Call forwarding Latching code Sleep code One-Shot code Event input Program from homes phone Night light Unique ring cadence Optional Camera www.americanaccess.com Be Sure To Visit Us At FENCETECH'12 Booth No. 1312 main focus of your attention. In most cases a combination of both residential and commercial seems to work best, as each has its ups and downs. In the commercial sales arena, the step-by-step sales procedures to be fol- lowed are: All commercial sales opportuni- ties are regulated and monitored by the commercial sales coordinator. In smaller fence contractor operations that may be the secretary/receptionist or even the sales staff themselves. Calls or e-mails are received daily by him or her and entered into the sys- tem in your software and a commer- cial sales estimator is assigned. Normally, the sales estimator will schedule his or her own appointments from that point, but close contact is Fencer's Field Report continued from previous page briefly with Bill Westerfeld of Secu- rity Iron Company in New Orleans, Louisiana, who told us that this past season was not too bad. His business mix is 50% residen- tial and 50% commercial. We were told that the company was established in 1975 and is one of the larger manu- facturers of security products in the South. Their line includes, but is not limited to, ornamental iron, wood, chain link, aluminum and vinyl fence products, driveway and pedestrian gates, automated access controls, se- curity storm doors, rails and other cus- tom ornamental products, platform fence, pool fence and plantation fence. Bill told us that, while the com- pany's forte is custom ornamental iron (their biggest single item this year), they have been called upon to do a number of cage installations around air conditioners, as well as security win- dows and doors. We asked about the economy in the area and were told that the area was still recovering from the effects of Hurricane Katrina. The area is only ap- proximately 60% to 70% repopulated. There are some projects going on that have federal funding behind them. He said that there are a lot of foreclo- sures – big time. There is some limited commercial construction, yet a Veter- ans Administration hospital project has been cut back. Bill told us that, in his view, nothing is going to change until after the election in 2012. We then asked Bill about the com- pany strategy that was used in 2011, and, in a phrase, "not to close." They cut back spending, and while he is try- ing to upgrade his web site, he laid off 20 people a year ago and hasn't hired them back as of yet. contin ued on pa g e 26