Sales Playbook PLUMBERS

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1 Sales Playbook PLUMBERS Contents: SECTION The What 1.2 The Why 1.3 Display Advertising 1.4 The Lingo 1.5 The Economy 1.6 The Seasons SECTION The Conversation 3.2 The Questions 3.3 The Goals 3.4 The Value 3.5 The Expectations 3.6 The Sale 1.7 The Playing Field SECTION 2 SECTION The Decision-Maker 2.2 The Gate Keeper 4.1 The Inbounds 4.2 The Outbounds

2 Section THE WHAT Plumbers work with anything involving pipes and drains for flowing liquids or gases, such as water, natural gas, oil, or coolants. They may be called to repair/replace old or broken pipes, unclog drains, or install new water heaters or other gas-powered household appliances, including ovens and dryers. 1.2 THE WHY Work for plumbers can be erratic. Most work is emergency-based and difficult to anticipate. As a result, plumbers constantly need to be marketing their services, and in the right spot when a potential customer has an emergency. Because of distinct needs for plumbers (water heaters vs. leaky pipes vs. clogged drains), they can actually be split into multiple verticals. Plumbers are used to spending money on marketing campaigns. They need to keep up with their competitors and are always looking for ways to stay ahead. A digital marketing campaign through Propel with trackable ROI may be appealing. The value of the average residential service call the bulk of their business is around $250 - $350. However, plumbers benefit tremendously from word-of-mouth and personal recommendations. Plumbers also have the ability to upsell from emergency repairs to substantial overhauls. New installations or pipe replacement projects can run between $2,000-$4,000. The average commercial or industrial plumbing job could exceed $20,000, but these are typically handled by specialized plumbing contractors. 1.3 DISPLAY ADVERTISING Only the larger, regional plumbing companies would be good candidates for PropelDisplay - not the small one to two man shops. 1.4 THE LINGO Help develop your role as a trusted advisor by familiarizing yourself with some of the industry s terminology: Water Lines Main piping used to direct the flow of water. Leaks Cracks or holes in pipes or at connections that allows water (or other fluids or gases) to escape.

3 1.4 THE LINGO, con t Clogged Toilets A blockage in a pipe connected to a toilet that prevents wastewater and materials from flowing away. Can result in backups and overflows. Sewer Cleaning Service that removes any buildup or partial blockages from pipes that carry toilet, shower, or other wastewater away from the house or business. Camera Inspections Where a plumber will insert a small camera into a pipe to look at its condition or identify the source of blockages. Remodels Where pipes are removed and reinstalled, often in a new alignment, either as part of a larger interior renovation, or to increase flow efficiency. Drain Snake A long piece of thin, coiled metal often with a corkscrew-style tip inserted into a drain to remove blockages. Sump Pumps For residential purposes, small pumps used to extract water from a flooded area. In some homes the pumps are permanently installed in pits and can turn on automatically when groundwater starts to rose to prevent interior flooding. Water Heaters A household appliance that heats up, stores, and distributes warm water. Traditionally, had been a moderate-sized tank capable of storing upwards of 100 gallons+. New, modern tankless models don t store water; instead it heats water up through a series of coils. 1.5 THE ECONOMY Home and business owners run into plumbing problems regardless of how the economy is doing. Since service calls are a plumbers bread-and-butter, plumbers tend to be recessionresistant, although they may face increased competition for jobs. What is affected in a down economy are new construction and remodeling projects which come with a nice profit margin. As the economy improves, and home construction heats up, plumbers will want to make sure they remain competitive, especially for bigger jobs. 1.6 THE SEASONS Because the majority of plumbing calls are emergency-based, plumbers generally make themselves available 24/7, 365 days a year. Business may spike a bit during or following a long cold snap, when poorly-insulated pipes are more likely to freeze and burst. There may also be a need for plumbing services in the fall as homeowners race to install or repair heating systems. (HVAC companies can t do work involving plumbing without a plumbing license.) Another strategy may be to advertise appliance installation services following big holiday-based home appliance sales, particularly dryers, ovens, water heaters, and refrigerators with automated ice makers.

4 1.7 THE PLAYING FIELD Most plumbers have small shops, perhaps with an apprentice or two, and know most of the other plumbers in their area. There may also be a number of larger competitors, or franchises, with the marketing budget to drive up advertising costs. Stressing the need to remain competitive is important. In some regions, a main selling point is whether a plumber is licensed vs. non-licensed. In some states, all plumbers must be licensed, but this isn t the situation in every state. Considering the bulk of repair calls are residential, suburban locations may be the best markets to target, particularly those with older properties. Section THE DECISION MAKER Plumbing businesses typically are owner-operated, but a trusted relative may be brought in for advice. If it s a franchise shop, the service manager may be the one making the decisions. Don t be surprised if you get the plumber directly on the phone, but also don t be surprised if you catch them in the middle of a repair. The nature of the business means they never know when they ll find themselves called into an emergency situation and at that moment, that service call will be more important than your pitch. Plumbers typically are down-to-earth types who may not have extensive familiarity with digital marketing. Be prepared to educate. 2.2 THE GATEKEEPER Many plumbers utilize an office or business manager to field service calls. They often are a relative or close, trusted friend. Some tips on getting through the gatekeepers: Do your homework. Are they listed properly? Could their social media profiles be improved? How do they match up to the competition during searches? Be friendly and explain that Propel can position them to receive more local leads.

5 2.2 THE GATEKEEPER, con t Call early or late! Call at 7:30 AM before the plumber goes out into the field, or at 6:30 PM when the day is done. Show knowledge about the industry and the competition. Name dropping often works. We work with... Make friends with the gatekeeper. Let him/her know how helpful they are and how appreciative you are of their time. Let them know you will share this with the decisionmaker once you meet him! Scheduling an appointment is better than dropping in, as often the plumbers are in the field. Offer to bring coffee and doughnuts to the meeting - the best way to a checkbook is through the stomach. Section THE CONVERSATION Here are some starter questions you can ask the decision-maker to better understand his/her business and his/her marketing/advertising goals. What specific plumbing services do you do? What would you like to focus more on? Do you offer emergency plumbing services? Are most of your jobs residential? Commercial? Where do most of your jobs come from? The City? Suburbs? Describe your ideal customer. What is your typical commercial/residential job financially worth for you? What is your lifetime value of a customer after you do an initial great job for them? How many trucks are you running? Do your guys take them home? How is your yellow page ad working for you? Where are you advertising now? How do you track success? 3.2 THE QUESTIONS How many jobs do you do a week? How many COULD you do? How do you differentiate yourself from your competition? Who is your competition? Do you use coupons or offer any competitive pricing for estimates, etc.?

6 3.2 THE QUESTIONS, con t How are your sales this year vs. this time last year? What is your vision for you business this time next year? Discuss the sheer number of plumbers in the market. Can you be found? Are you able to make your name visible? What is the conversion rate of calls to jobs? Does it differ for emergencies vs. bigger jobs? Who do you consider your direct competition? (Big guys? Small guys? Come prepared to speak intelligently. You should know some of the big names already. They all know each other. So should you.) Do you get co-op money for advertising from any of the products you use/sell? 3.3 THE GOALS Who are they looking to target with their advertising? Emergency repairs vs. remodels? Residential vs. commercial? Urban vs. suburban? Leaky pipes? Clogged drains? How would they define a successful campaign? Increased calls? Different types of calls? Bigger jobs? Increased front-of-mind? Maintain market position? 3.4 THE VALUE Emergency repairs tend to average around $250 to $300. New construction or remodeling may range from $2,000 to $4,000, with commercial jobs running significantly higher. However, lifetime customer value may be difficult to calculate, and will likely vary by plumber. It is helpful to ask these questions: How much of your business is repeat business? How often is your business based on referrals? Are you able to upsell once on site?

7 3.5 THE EXPECTATIONS Many plumbers know they have to pay for leads, whether its through marketing or lead generation services. They typically are looking to spend $30 to $35 per call, and $70 to $120 per booked job. But discuss expectations with the decision-maker directly. 3.6 THE SALE Typically, it is a 1-2 call close over the course of 1-2 weeks, depending how busy they get with service calls. The monthly budget will vary based on many factors, but could fall anywhere between $1,500 and $5,000 per month. Build for the long-term relationship Demonstrate industry knowledge and past Propel success stories Keep focus on long-term ROI Section THE INBOUNDS Angie s List Yodle.com Internet Yellow Pages Other SEM & SEO companies ReachLocal Lead Aggregators, like Service Magic Ideas on speaking about the competition: takes a comprehensive approach to digital marketing, creating uplift across all modes Plumber searches aren t happening on yellowpages.com, rather through search engines, such as Google and Bing. IYPs do not get direct traffic. Instead, searchers get to them through Google, Yahoo, etc. Lead aggregators sell to more than one company - Propel does not share your leads like Homeadvisor (Service Magic). Propel shines a spotlight on your company earlier in the buying process than Angie s List; also allows you to control the message, not a subscription-based online review site.

8 4.2 THE OUTBOUNDS Print yellow pages/directories Direct mail/valu-packs Newspapers Billboards Local Magazines TV/Radio Home Improvement magazines Talking points in regards to offline providers: Discuss growth in Internet search, decline in phone books/yellow pages, particularly among new generation of homebuyers. Difficulty tracking ROI with TV/radio/direct mail. Know when book contracts are up for renewal. Limited shelf life for paper publications. Less real-time than Internet-based.

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