# How many organizations do you belong to?



## RobertCDF (Aug 18, 2005)

brunothedog said:


> why do you automaticaly assume you have better value?
> does the amount have to do with the value you offer?
> 
> so you's automatically better than me( which I must by law provide 10 yrs guarantee on all aspects of my works performed)
> ...


You should actually read my post that you're quoting because your response doesn't really make sense with what I said. 

Value is perceived, it's in the eye of the buyer. 

You obviously didn't read what I posted about low ballers because I wouldn't be one if I was 90% less than you. 

Quality work takes more time than crap work, we should be compensated for the time we spend on the project therfore a higher cost.


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## brunothedog (Sep 8, 2013)

RobertCDF said:


> You should actually read my post that you're quoting because your response doesn't really make sense with what I said.
> _*thats my fault, i lose track after the first sentence*_
> Value is perceived, it's in the eye of the buyer.
> 
> ...


for 300 a year, if true, is cheap publicity for being seen on the favourable list at the bbb


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## RobertCDF (Aug 18, 2005)

brunothedog said:


> ...


You'd understand if you would read and comprehend what is being posted. I answered all your points already you just didn't comprehend it, can't help you there.


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## Jaws (Dec 20, 2010)

Stephen H said:


> John,
> I forgot to mention.
> I spent 20 plus years doing the "Word of Mouth " Thing.
> 
> ...


There is me, my dad, my brother (foreman/superintendent) and a crew. Everyone makes a good living. I make twice what I made as a superintendent, this year, anyway. Lol

The only well off GCs I know personally are all WOM. 

Different market, probably much more rural.


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## Jaws (Dec 20, 2010)

Stephen H said:


> John- you already ARE spending $20,000/year on marketing- you just aren't accounting for it.
> 
> what's the value of your TIME spent in that socializing, association meetings etc?.
> 
> ...


I am not proud of not marketing or anything, I would if I could find something I thought worked. 

Meanwhile, the time spent networking is usually in the evening, and accounts for most of our work for very little actual money. Say I pay myself an average of about $30.00 an hour. Say I network 15 hours a week ( most of that doing my presidential duties, not networking). I guess that would make sense, the 20k. 

But I don't pay myself by the hour. :laughing: I dont get immediate compensation for that time. I get shareholder distribution at the end of the year. Profits derived from that work. I also dont have to write a 20k check. :thumbsup:

No one will sell you the way a friend or happy client will. WOM

(Edit: So in essence, I am paying myself more than 20k for my time to get those leads. I would rather pay me than some marketing dude. Lol)


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## cbscreative (Dec 17, 2008)

Jaws said:


> I would rather pay me than some marketing dude.


Now you've gone and hurt my feelings. :laughing:

Seriously though, I wouldn't be able to say why your marketing hasn't worked without knowing more but since you found something that does it may not matter. Or will not matter. If more volume isn't a priority then I'd put it in the will not matter category.

Stephen's experience is consistent with a reality many business owners never discover. It may have been difficult or even impossible to convince him of that back when he felt WOM was all he needed, but like many others who have made that discovery, he would never want to go back.

That principle is also consistent with the topic of this thread. For the contractors who know how to utilize the benefits of professional memberships, they have clear evidence that it helps their business. For them, it gets progressively easier to write checks for the membership fees. I'm sure many of the contractors who don't see the value have never bothered to verify whether or not they are right.


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## Stephen H (Feb 18, 2011)

Jaws,
when I go into detail about what I do or how I arrived at that decision- it's not meant as any kind of criticism of what anybody else does- it's just really a description of my decision making process------------------------------- because I know other folks out there are going to encounter similar/relevant situations---and it might be helpful to read how other people have handled the same problem/opportunity.

you mentioned perhaps $30/hour ?

your real value in that equation has got to be more than $30/hour- I know I personally account for my OWN time in multiples of that amount/hour- hopefully, so do you.

As a practical matter you could not pay ANYONE $30/hour to have them network ,as you describe-and produce the results that YOU do.

the sort of talent required to produce those results-is worth way more than $30/hour-

by any objective measurement----$30/hour seriously under estimates the actual cost.

Additionally- you do that networking in the eve. and on weekends ?

Personally I am not going to give up an hour of my free time for $30/hour

and when I was YOUR age and had young children at home- my eve./weekends were even MORE valuable.

By any objective measure- you are actually spending a LOT of money on marketing- but it's hidden. you are actually personally subsidizing it.

If you mentally stood outside the situation and looked at it---------- it is similar to the tradesman just starting out who tells the customer that his price is low, because he doesn't have any overhead- his older truck is paid for, his soon to be worn out tools are owned outright,he hasn't gone on a vacation in 5 years and his kids aren't covered by medical insurance . as an experienced businessman-you know that new tradesman is actually incurring those costs and is instead basically subsidising his customers building projects out of his own money

the new tradesman-may only learn that years down the road when he can't afford to replace his truck, his tools are malfunctioning and can't be replaced and his kids can't get the omoxicillin they need . ( been there/done that)

just another way of looking at things John,
Best wishes, Stephen


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## TxElectrician (May 21, 2008)

Stephen,

Jaws and I live in a county that is about a 10th the population as yours and covers an area of about 1000 square miles. Many of the homes are 2nd homes located on the lake or golf courses, or both. Marketing is great, but in this area you just don't get in without WOM.

Not too many people are going to give you access to their million dollar vacation home, while they are away, based off of a mailer or any other direct marketing tool. In this area contacts and reputation are everything.


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