Commercial Prospecting

Notes from Commercial Prospecting podcast with Shane Deubell EZmarketingBlog podcast

The first step to closing more sales and generating more revenue is finding people and companies to provide your value to.

In order to start prospecting for clients, you need to determine what market you’re aiming to take over. Start by creating a list of the type of work you want to deal with: geographical location of clients, times of the day you want to work, which days to work, what types of industries do you like to deal with, what types of services are you willing to provide, and what size accounts do you want to work with.

Once your targets have been set on a select group of clientele, ask yourself how are you going to reach them? It may be a trial and error process as each company may have their own way of communication that is most effective for them. Remember when contacting companies that cold emails may be seen as junk mail or spam.

Small businesses (less than 20 employees) grouped together in a geographical location for example, will be easier and more efficient to reach just going door-to-door to each business. Also, many small businesses are now on Facebook. Typically, smaller business clients lead to less appointments.

Bigger commercial companies (20 or more employees) tend to be easier to meet and sell over the phone because there may be a person who has been hired to deal with your specific service or good. Also, bigger companies typically are more able to listen to proposals to find a better value or price for a product or service they use.

When calling and visiting potential clients, be sure to put each contact into one of three categories: open, qualified, and unqualified.

Open: Un-contacted possible client

Qualified: Interested, asks for information, may need more follow ups, tutorials some other information

Unqualified: Uninterested, has done work “in-house” for the past 20 years, set in their ways or has flat out told you no for what ever reason.

After contacting your leads and categorizing each of them, remove any names on the unqualified list as they are not going to bring any benefits to your company and it is best not to waste time on them. Replace however many names dropped from the unqualified list with new names to prospect in the open category. Repeat to keep a fresh list to contact.

It is necessary to keep in mind how much money and time you are willing to spend for prospecting and contacting. Keep in contact with qualified clients at least three times per year by different forms of contact: phone, email, etc.

In Summary:

  • Find your specific target market.
  • Think of the best way to reach them: phone, walk-in visits, etc.
  • Categorize each contact into either open, qualified, or unqualified.
  • Replace unqualified contacts with new names into the open

For more info on this topic, listen to the Commercial Prospecting podcast with Shane Deubell below

Subscribe to EZmarketingBlog Podcast:

Happy Hunting!

Comments

  1. LaToya

    This is great.
    I need more insight on how to bid, I have a walk through next week for a 9000 sq ft daycare. PLEASE HELP!!

    Thank You

    1. Profile photo of Ryan Kettering
      Ryan Kettering Post author

      Hi LaToya! You may try Shane Duebell’s job pricing calculator here: http://methodcleanbiz.com/calculator/

      Remember also that if you can estimate the hours needed on the job, you can use your company’s cost per hour and a desired profit margin to create a retail job price for the customer. To find your hourly cost look at your total expenses for the busiest 3 months of the year, then you can divide that by 520 hrs (avg. number of working hours in 3 months based on 40 hr week). Now you have a cost per hour, you can add a margin to that to find your retail price. For example if your expenses for your 3 busiest months are a total of $25,000 it would look like this: $25,000/520hours = $48 Cost per hour. To find your price for this job you would then multiply by a margin, lets say 60% margin and your hourly rate that you charge a customer would be $120. Now take the estimated job hours and multiply by your rate, lets say this job will take 5 hours.. in that case the price would be $600 (5x$120). If you think the number is too low or too high you can always adjust your margins for the job.

      Good luck! -Ryan

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