Exhausted from failure

[Kak]

NOTE: By business is NOT failing. Just a lot of my efforts lately are.

I remember this phrase in the book. I am having issues. I try new things all the time and my sales growth doesnt show at all. I am busting my a$$, nothing. It seems like the only thing that works is PPC which is slow to keep my margins comfortable and refferals...

I just want something to remotely start working and growing my business at a higher rate. I am normally the most positive person about my future you will ever meet, but sometimes, very rarely, I have a bad night like tonight.

I am, as MJ put it, exhausted from failure.

How do yall who have had these feelings before cope with this?

 

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[W( )LF]

What are these "new things" you are trying? All of this failure is teaching you that these "new things" aren't as good as you expected or maybe there's another underlying problem. Listen to failure. It's telling you that you need to adjust. The market doesn't like your design, or the check out process is too complicated or the prices aren't competitive. Learn and adjust.

 

[Mike39]

What are these "new things" you are trying? All of this failure is teaching you that these "new things" aren't as good as you expected or maybe there's another underlying problem. Listen to failure. It's telling you that you need to adjust. The market doesn't like your design, or the check out process is too complicated or the prices aren't competitive. Learn and adjust.

Who is the wolf? Introductions & Networking

 

[Kak]

Just promotion methods for sales. If I can get a customer to compare their current bill to my offer, i would wim every time in the price catagory.

Please excuse my mistakes, Im using tapatalk and a mobile device.

 

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[W( )LF]

Who is the wolf? Introductions & Networking

Ok it's up.

I was on here for a while. I just browsed and I only started posting today.

 

[W( )LF]

Just promotion methods for sales. If I can get a customer to compare their current bill to my offer, i would wim every time in the price catagory.

Why are people saying no even though your offer is better than their current bill. It may not make sense from your point of view but it can make complete sense from their point of view.

When those people come to reduce my electrical bill every time, their sales pitch just sounds like they are trying to help themselves and don't care about me.

"Can we take a look at your electrical bill?" (rofl no get your own bill)
"We can lower your bill by switching over to us" (if you're such a god's gift to us why do you sound so desperate)

It just sounds like too big of a hassle to save a few dollars.


But any way. Back to your market. Is there any way to collect more information on why people say no even though it makes no sense at all (people should want to lower their bills). Can you call them and ask why. Don't try to sell again, just try to ask them why and improve.

Maybe there's nothing wrong with you promotion methods but maybe it something else like confusing material. I don't know but something has to change.

 

[Rain]

Kak, I don't mean to sound all self-help-ish, but there is no failure... only feedback.

Ask yourself what this situation is telling you.

Is your industry too saturated?

Is your marketing strategy weak?

Generally speaking, how much can you save people per year on their energy bill? Is it significant?

Is price the only thing you can beat? (commodity vs. brand)

Any other unique selling points / competitive advantages?


Not achieving the success we want is a pain in the a$$; I will be the first to admit it. But all it means is something needs to change: something we're doing, something our business is doing, or our business and/or industry altogether.

Keep us updated.

 

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[CommonCents]

How much can an average homeowner save by switching? There is probably a trust issue in switching to someone new away from long time utility. You need to get them divorced from their current situation before they'll consider something new.

Maybe targeting businesses is better?

Instead of reaching out to customers, try methods to establish your authority so they come to you. Blogs, try getting publicity on local news channel, presentation at local chamber of commerce, presentations at neighborhood association meetings, get video testimonials, facebook, etc...

 

[jilla82]

You have to convince them its not a scam.

I dont know about other states, but in Illionois there are a few companies that go door to door trying to get you to switch utility billers/companies (not sure what they do)...anyway, they say it will save you money...but its really just a scam, and your bill gets higher as time goes on. Its been on the news a few times here, and I know a few people that were taken in by this.

 

[theBiz]

You need to contact local electricians, plumbers, and contractors. They have mailing lists, whether they are big or small it does not matter.

Send a letter to their list. At the top of the letter put their logo on the right side and say A "your company name" Partner


People are highly responsive to this. Have the intro coming from the owners name in the letter introducing your company. You have to give these guys a small cut but MANY of them will say yes. If you find a big local guy it could be a score. You have to write the letter properly, its important. I have seen someone do this in almost the exact same business, and he literally did save them money so it wasnt a hard sale. If you can save people on their bills, and all you need to do is get in front of them... that's not difficult, just a lot of trial and error, phone calls, and showing up at some offices/job sites. I think you are just not utilizing the proper channels and just doing what you think you should be doing PPC etc.

So yeah i said it... direct mail. Print them off your printer and stamp them yourself, you will not be sending out many... but you dont need to. So get on the phone with a guy, or show up to the office, explain what you want to do, how they will benefit, and make a deal with them on commission. I know many people that do 60%-80% of advertising for their product/service through Direct mail and make millions so i would not rule it out, especially in this scenario.

 

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[W( )LF]

You have to convince them its not a scam.

I dont know about other states, but in Illionois there are a few companies that go door to door trying to get you to switch utility billers/companies (not sure what they do)...anyway, they say it will save you money...but its really just a scam, and your bill gets higher as time goes on. Its been on the news a few times here, and I know a few people that were taken in by this.

The bill gets higher as time goes? So that's the thing huh. I didn't know that.

Those guys are so annoying and there's some guys here in Illinois that ask to come in to switch their electricity bill and then rob older people.



But any way. Just because I mentioned the electricty bill, it doesn't mean the OP is doing that. That is what I can relate to about his business. What if he's providing cheaper cable tv with the same channels as the leading providers than the "contact local plumbers, electricians..." advise is useless.

 

[JEdwards]

I was just in Houston last week, and the house we went to had a big no soliciting sign on the door, like big, hand written..

I said is it that bad and she said yes, twice a week someone is coming by to try to switch my electric..

If that is true or not that is what people are perceiving as true. Your industry in that town is becoming way saturated.


As I said before, If I knew sales people were knocking on the doors in a neighborhood twice a week, I would sell no soliciting signs door to door..

Think about the pitch, You are bugging me, go away, Sir I wouldn't even be here if you had a no soliciting sign. Easy Sale.

 

[Kak]

Yep, that is the reason I dont do the door to door crap. Door-to-door energy salesmen have the worst scam perception out of any industry. I am not an energy salesman though. I am a broker with multiple partner providers and a strong reputation within my client base. I facilitate a buyers market. Most of my customers really do save a good 25%.

I only sell locked in contracts. I do not have anything to do with those flex rates and whatnot.

Most of my customers are residential and the only reason I keep doing residential is because it leads to more residential and then maybe commercial customers come out of them.

Most of my money on the other hand comes from commercial.

I am partnered with many of the higher reguarded providers, maybe I should mention it. I am working on getting some press in the Houston Business Journal, am joining a networking group, and I am going to join the chambers of commerce around here.

I am also going to start buying some good business leads and contacting them via email and phone.

Lets see how this works out for me.

Please excuse my mistakes, Im using tapatalk and a mobile device.

 

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[Runum]

When Texas first went to electric deregulation there were several cheap retail providers. Their rates were the best and they were killing TXU and Reliant. Everything was rosy for a while and then the small providers went belly up. The customers lights still stayed on and everyone was still content until the bills arrived. The customers had been switched to a default provider when theirs went bankrupt. The default provider cost about twice what everyone else was charging.

Yes, in Texas, there is a huge trust issue with retail electricity providers and it's about to get worse. Recently, TXU threw out the possibility of breaking existing contracts because the wholesale cost is cutting into profits. Overall, the retail customer does not believe that the cards are being dealt off of the top of the deck.

 

[Kak]

Is your industry too saturated?

Is your marketing strategy weak?

Generally speaking, how much can you save people per year on their energy bill? Is it significant?

Is price the only thing you can beat? (commodity vs. brand)

Any other unique selling points / competitive advantages?

Good post Rain! Here is my answer to basically this whole thing. It really needed to be answered. The most recent post.
blog.wepowertexas.com

I do think it is a saturated industry at the higher price points, however, I really do save damn near every customers around 25%. This tells me either one of 2 things is happening. There is not enough competition, or there is not enough education about the industry. I am trying to do both, this is what makes my business special.

 

[Kak]

When Texas first went to electric deregulation there were several cheap retail providers. Their rates were the best and they were killing TXU and Reliant. Everything was rosy for a while and then the small providers went belly up. The customers lights still stayed on and everyone was still content until the bills arrived. The customers had been switched to a default provider when theirs went bankrupt. The default provider cost about twice what everyone else was charging.

Yes, in Texas, there is a huge trust issue with retail electricity providers and it's about to get worse. Recently, TXU threw out the possibility of breaking existing contracts because the wholesale cost is cutting into profits. Overall, the retail customer does not believe that the cards are being dealt off of the top of the deck.

x2!

I have relationships with the big 2 for one reason and one reason only. Some customers don't trust anyone else. Some have no reason not to be trusted. Some are shady. The shadiest lately have been the big 2 really. I only do business with BBB "A" rated providers either way.

The fact of the matter is that energy companies are just glorified billing companies. Your real energy provider Runum is Oncor. They actually "do the providing". It doesn't matter what provider you pick, Oncor is your company just like Centerpoint is here.

These companies have to have back up money in a trust while they operate in Texas now. It is supposed to be used to back up their shitty forecasting decisions leading to losses every month.

 

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[H. Palmer]

Just my 2 cents.

If there's a trust issue in this industry, I would include stuff in my promotional material that addresses that issue.

For example, stress that you work with the Biggies, include referrals from your happy customers in your commercial material that you use and stress the long term fixed price contracts.

 

[Kak]

Amschel, That is true!

I do address is mildly by saying I only do business with BBB A rated providers. The biggies on the other hand are a strange delimia.

Some people absolutely hate the biggies, and have had a great experiences with companies like the ones that I do my most business with. Other people will trust no one but the biggies and are usually already with them.

So I guess I will announce the partnerships and also mention the less expensive providers.

 

[Vhwin]

Is there anything that can be incorporated like a lowest price risk free guarantee?

If you find a lower price over the next 30 days, we ll match / better it (or contract is voided)

Very few percentage of people will actually bother to price match, its similar to the lines of promotion redemptions for a product brought vs the actual number of redemptions claimed on.

Cheers,
Victor

Sent from my GT-I9000 using Tapatalk 2

 

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[Rain]

Kak, would you consider your website to be a primary marketing method?

 

[Rain]

How do you drive traffic to them, and how much traffic do they normally get?

 

[Kak]

Physical advertisments, ppc, social media, refferal cards, email.

50-70 views per day. 3-5 convert, 1-2 pass credit and become a customer. 0% of customers have paid the deposit when credit isn't passed.

Please excuse my mistakes, Im using tapatalk and a mobile device.

 

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[kwerner]

My perspective on this - It sounds like you're trying to sell your service to someone that's not looking to buy. From my experience it's a hundred times easier to make a sale when people are already looking to buy what you're selling.

 

[Kak]

So should I up my PPC and SEO game?

 

[kwerner]

So should I up my PPC and SEO game?

That's what I'd do. Just make sure you're targeting *buy phrase* keywords and only exact match.

 

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[Fisherman]

In Canada we have companies doing exactly what your company does. 100 percent of their business comes from knocking on doors and asking to see our hyrdro/power bills and then showing customers what they will save face to face.... they also offer customers an to lock in prices at fixed amount of time.

These companies are making a killing... I do not understand why you would waste so much time marketing online because nobody is looking. You need to develop a door to door sales pitch... hire and train a bunch of people on commission... and let them loose... I am guessing this is not legal in texas?

 

[Kak]

Nope it is totally legal. It just has a negative perception that I didnt want. Perhaps I should look into it.

 

[Kak]

That's what I'd do. Just make sure you're targeting *buy phrase* keywords and only exact match.

Im not that knowledgeabke on this. I usually add every keyword that has anything to do with texas energy. What exactly to you mean?

 

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[Fisherman]

Nope it is totally legal. It just has a negative perception that I didnt want. Perhaps I should look into it.

Please excuse my mistakes, Im using tapatalk and a mobile device.

door to door sales is part of the economy... when I started my company most of business came that way... and 90 percent of them turned into repeat customers.

As long as you have something of value people will sign up. The hard part is developing a solid sales pitch... I suggest hiring some experienced door to door sales people along with a bunch of enthusiastic young people.. beware some sales people will try and scam you...

As you go on you can test different sales pitches and scale your business by hiring managers who get paid based on the sales of their sales people...

 

[Rain]

Aside from increasing traffic (which is always the obvious suggestion, though clearly not the easiest), I'd recommend modifying your copywriting if you aren't seeing the results you desire. The guarantees you posted on the first page would be a good direction for you to move in, in my opinion.

"I will beat a current commercial offer or pay you $100."

The primary tagline could go something like [to commercial prospects]: If I can't save you money on your energy bill, I'll pay you $100.

"Residential I say I will beat your offer or find someone who will."

The primary tagline could go something like [to residential prospects]: I guarantee that I will save you money, even if it's not with us.

People love guarantees, man. Of course you can't always provide them, but if you can... then advertise that shit.

Also, simplicity is king. You have a lot of information on your landing page - have you seen the Dropbox thread?