In order to profit fully from this flow, it is vital that you view your business the way the consumer does. Doing so will provide the insight necessary to become more effective. The advertising dollars you spend in order to generate business really amounts to nothing more than your cost of buying customers. If you total all the money you spend in a year on advertising, divide it by the number of potential customers it generates, you would have calculated your gross potential customer cost. If you divide the gross cost by the number of jobs you actually acquired, you would have arrived at your net customer cost.



If this figure is then deducted from the price you charged for the job, you'll begin to appreciate the importance of not turning-off potential customers.

The only way to lower this cost, thus reducing your advertising expenses and increasing profits, would be to sell more of the customers you come in contact with. In order to do this, every effort should be made to avoid costly mistakes.

Effective Telephone Use - A Word About the Telephone

More potential business is lost at this point than most business owners are aware of! Everything from how your phone is answered to how you end the conversation is critical. Your phone, when used effectively, is an important money making tool. Learning how to use this tool correctly requires nothing more than a little time and common sense.

Have your business phone located in an area that is not subject to noise. Noisy conditions force you to speak louder than normal, and the caller to frequently repeat themselves. Don't use speaker phones or constantly place callers on hold. There is nothing wrong with taking a caller's number and getting back to them in a few minutes.

Always start a phone conversation by introducing yourself by name. Ask the caller how they heard of you. Ask them what part of town they're calling from. Ask them if they ever used your service before. This will act as a warm-up for further dialog while allowing you to sound organized and professional. Next, ask the caller how you may help them, and then LISTEN CAREFULLY.

Before answering the caller's questions, take a moment to let them know a little bit about your company such as years in business, number of satisfied customers, professional memberships, and any unique services available. This helps to build a positive image of credibility and professionalism in the caller's mind.

Don't fumble for answers or try to second guess what the caller is really after. Answer all questions in a direct manner, using a friendly voice, and

in a speed that is easy to follow. Never hesitate to answer any questions regarding rates as long as you do the following first:

1. Fully understand in exact detail the services needed.

2. Find out when they want the service performed.

3. Ask if they've ever used any other companies and were they satisfied with the work.

4. If the answer to the second part of question #3 was no, then, if possible, find out why.

5. Explain in detail what you offer.

If you require a little time to arrive at an answer, get their number and call them back. They'll wait and will appreciate your concern and effort. If you feel uncomfortable giving prices over the phone, the caller will usually find someone that doesn't. There is nothing wrong or misleading with attaching a contingent phrase to prices when giving phone quotes. A phrase such as, "The final price is best determined when I see the job, but I'll be glad to give you a working price now" addresses the caller's question without locking you into a sight-unseen situation.

If you utilize an answering service or voice-mail, be sure to check your messages as often as possible. Don't wait until the end of your work day to return calls. Returning calls promptly also limits the possibility of losing the job to the competition. Since your telephone is usually the first point of contact you have with a potential customer, every effort should be made to handle calls properly. There are a number of excellent books on the market that will further enhance your phone skills, so check with your local bookstore to see the titles they have available.