Borrowing An Idea

[duckster]

I learned something new (to me) today and learned it from a customer who sells carpet at Home Depot. I was wondering if anyone else was aware of it.

Home Depot (Crib De Poor) sells carpet. Home Depot also owns Chem Dry. And they use it as a sales tool.
When someone buys new carpet at Home Depot they are told that the mills are impossible to deal with. They tell a customer that unless you have your carpet cleaned and scotchgard treated every year the warranty is dead.

But here comes Home Depot to the rescue. To avoid the warranty hassle, Home Depot offers a maintenance warranty that is even better they think. Yes Home Depot will send the nationally known Chem Dry out to clean the carpet every 6 months for 2 years and take care of any stain problems you have (not sure of what ANY means). Bet they use the dry chemical method for cleaning.

Anyway, instant pay for 2 year 'warranty' is not a bad idea for Home Depot and a cleaning contract (which of course ChemDry will call to offer an extension on the warranty) is great for revenue flow. I heard it also cut down on their returns of new carpet.

Here is a thought. Anyone offering a similar plan to their local carpet retailers? Let the retailer sell the extended warranty and take 20% for themselves, give you the other 80% plus the scheduled cleaning dates?

You should make up a certificate I guess?

Thoughts and feedback please.

 

[alazo1]

I've done a bunch of these Mike. Corporate pays me but the warranty is carried by someone else. Usually it's 500sft or less, after that it's a certain amount per sft. Steps are priced seperately. On the smaller ones it's crap money, sometimes it's decent if they for instance bought the carpet in 2 different occasions and have 2 warranties. You also get them in your database so potential for more business. Bonnet method is not acceptable in the mill's eyes so hwe is a must. Whether other cds use a bonnet..humm, I don't know. Specialty spot cleaning is partly covered, corporate pays $35.00 up to 1 hour and the customer pays $40.00,$75.00 total. Usually the spot removal takes less then that.

I think it's a good idea. If anything to get you in with the retailers. Every little bit helps.

Albert

 

[duckster]

That is good information Albert.

So would you say that overall the program is worth your involvement? I mean, do the gains out way the losses based on job size, HWE over dry, receivables over paid on the spot?

It sounds like corporate keeps most of the E (my wife and I worked retail selling computers and E is real money made in EXTENDED warranty) and they give a small slice to the franchisee. Or am I wrong in thinking that?

 

[danpauselius]

IMO, True marketing power lies in borrowing ideas from outside the industry. Look at how any business becomes successful, the concepts can certainly be altered to fit any business.

I think it may be the biggest mistake most CCers make in marketing, they only look at other CCers. Marketing is everywhere you go ... open your eyes ... learn from all of it.

 

[B&BGaryC]

IMO, True marketing power lies in borrowing ideas from outside the industry. Look at how any business becomes successful, the concepts can certainly be altered to fit any business.

I think it may be the biggest mistake most CCers make in marketing, they only look at other CCers. Marketing is everywhere you go ... open your eyes ... learn from all of it.

I read every piece of junk mail I get... Because I know junk mail works or they would stop sending it.

I listen carefully to radio ads. I pay attention to TV ads too. I pay close attention to magazine and newspaper ads. I watch carefully what my favorite businesses do to make me keep wanting to come back... Speaking of which, I think I'm going to buy another $1.75 cup of coffee at my local coffee shop. I think I'm going to have to hire that chick that works there. Her perkiness might bother some of the grumps, but overall, I can't see anybody not liking or trusting her.

 

[duckster]

I worked for a major direct mail company in the 70s and then dabbled in it myself in the 80s. Yes, the greatest textbook on the subject is those mailers you get and learning from them is so very important.

I really believe it is not so much what you say but how you say it that makes someone stop, take notice and feel compelled to act. How do you take them past the "need" stage and go direct to "want - a burning need"?

Those mailers are created by pros. They know Madison Avenue techniques and they know how to get to the next customers psyche un-noticed. Remember when buying a car meant you got the girl in the commercial too? Come on, I can't be the only one who bought the car KNOWING I would get a girl like that just for cruising. Sell the sizzle and not the steak is Zig Ziglar's famous quote. And sex sells.

So, what is so sexy about what we do? How does a carpet cleaned by you make the woman of the house more desirable? Will her husband shower her with flowers, take her out to a nice dinner and penthouse lodging because your service made her a sex goddess?

How do we sell that to her? Afterall, she is not buying a clean carpet. She is buying what she gets as a result of it. If we stop selling carpet cleaning and start selling some benefit she gets (real or fantasy) as a result we are getting her what she really wants.

And no, its not you in speedos under your beer belly, sweating all over her carpet that will be the fulfillment of her fantasies. Sorry.

 

[Steve Toburen]

"She is buying what she gets as a result of it. If we stop selling carpet cleaning and start selling some benefit she gets (real or fantasy) as a result we are getting her what she really wants."

I agree, Mike. Truer words were never spoken.

But remember the thread was started with comments about HD and retailers in general. For us to tap into Retailer Referrals (a powerful source of work) not only the homeowner but the retailer needs to perceive some benefit in pushing our services. It always comes back to "whats in it for me". (WIIFM.)

One of our SFS graduates shared with me a potentially transformational strategy that I played with a little bit and sent out as a Procedure in a TIPS mailing last Fall to our members. Since I promised Dan (whom I respect greatly for his unselfish efforts in this marketing section) I would contribute, here is the big picture copied straight out of the mailing:

Procedure: FREE 12 Month Carpet Spot and Spill Warranty Program

Purpose: To form new relationships with home owners by tapping into new carpet sales and our retailer network.

Overview: During the point-of-sale/ installation is when the home owner is most mindful of their carpet maintenance and this is when we want to make contact. The challenge has always been how to motivate the retailer to put us in touch with their customers. The normal tendency of the retailer is to not even raise the possibility of the carpet requiring future cleaning as this obviously is a negative for the customer. This procedure gives the retailer a powerful sales tool to include as a bonus for the homeowner and in the process gets us in the door.

Basically folks, you just let the retailer give a FREE 12 month Spot and Spill Warranty to every customer who buys carpet from them. The Retailer "gets the benefit" because they are differentiating themselves from other carpet sellers by INCLUDING AT NO EXTRA COST a spot and spill warranty. The Homeowner "gets the benefit" of freedom from fear of spots and spills for the next 12 months as a free bonus from the retailer. And you? You "get the benefit" of having a virtually guaranteed job twelve months later because the ONLY WAY the homeowner can keep their "spot and spill warranty" in force is to have you clean the carpets and "re-apply" the Scotchgard. Everyone needs to win.

Pretty cool, huh? The actual SFS procedure (normally available only to our members) is five pages long. But just to keep Dan from pestering me I am going to offer it to anyone who writes me at stoburen@homefrontsuccess.com This Marketing Room can be a tremendous resource and SFS and I want to help.

Steve Toburen CR
Director of Training and marketing student of Big Billy Yeadon
Jon-Don's Strategies for Success

PS Now I can hear the nay-sayers already. "What about all the free work I am going to have to do?" Our members who are offering the free "spot and spill warranty" tell me less than two percent of their customers ever use it BUT that it has high perceived value in the mind of the homeowner.

NOTE to SFS members: Feel free to chime in with any of your results. My sneaky feeling is that this Procedure may have gotten buried in the blizzard of info I sent out in your TIPS mailing I sent out last Fall. If so, consider this your wake up call ... (Also remember that this program is a great way to sell the SFS "Stay Beautiful" program immediately after installation.

 

[Don M]

We have been cleaning carpet since 1987. I opened a carpet store , now in my 2 nd year. I offer a free cleaning with purchase of carpet. Free cleaning valid for one year after installation. Works very well. Customer then in data base and mailed to on regular basis.