It's official!

Greg Cole

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Thanks. It's been a ton of work to get ourselves in a position to make this change. While I've thoroughly enjoyed it, my people have toiled away to make this a reality. Ain't gonna be easy.
I broke it down simply:
1. Identify roadblocks and t intersection in the buying habits of my target customer
2. Use that knowledge to provide a better product
3. Develop systems to develop training to deliver that new product
4. Develop a marketing plan and negotiate like hell on price :
I've spent the last two years building the relationships to allow me to make such a shift.
5. Focus on strategies to keep the repeat customer base we currently have.
6. Train. Train, retrain
7. Release any and all those that don't get in line...



I gotta say, Greg's got some pair.

It takes a lotta balls to make the decision to change his business model as he did, and even bigger ones to let this peanut gallery know about it.

Kudo's on having the cullione's.




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Art Kelley

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Not that anyone wants to hear my thoughts, but here goes. After 20 years as a low price, hard upselling, porty out of the trunk of the car subcontractor using company, the public perception of Procarpet is set in stone in it's market. It will take millions of dollars in advertising and high priced spin doctors just to begin to change it, not to mention the actual implementing of a complete change in company culture and practices. I personally think it will be a disaster. But I hope I'm wrong and I wish Greg the very best of luck.
 

Mikey P

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1. Identify roadblocks and t intersection in the buying habits of my target customer-and who will be your new target customer, it sure isnt your old ones
2. Use that knowledge to provide a better product-better cleaning results, quicker drying, no hard sell...what else?
3. Develop systems to develop training to deliver that new product- do you have guys on staff that are up to the very latest ways to really clean REALLY fast?
4. Develop a marketing plan and negotiate like hell on price : what will be your new venue of choice? review sites? direct mail? adwords? inserts/fliers?
5. Focus on strategies to keep the repeat customer base we currently have. -Who is your new perfect employee? Please describe
6. Train. Train, retrain- again, who is doing the training?
 

TomKing

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Art
I respectfully disagree with you. Atlanta is 7 million people. Their are quiet a few residents that have never heard of ProCarpet I am sure. Greg also has not been marketing through the sources that high end work comes from so many of those people will not even be aware he exists.

You also forget about the role of word of mouth referral's and social media. When his team goes in and does a great job that will be the new benchmark for that customer and the people they can refer to.

Referrals and social media will be the driving force for the change and as online reviews change the older stuff that is less flattering will not be looked at as strongly. We live in a world of what have you done for me lately. I have often reviewed services, hotels, product and they have 2-3 years of great reviews but if the last 3 months is crappy and am going to keep on walking.

9-12 months and Greg will have a new image and company online it is that simple if managed correctly.

I do agree with you the porty hard upsell is a poor image if you want to serve high end clientele. Greg has already stated that he has purchased trucks and will require sub contractors to have a better level of equipment or they will not be used.

I do not use sub contractor not because I do not believe in it but because I am afraid I do not have the skills and experience to make it work. Lots of very successful companies use sub contractors to deliver services. Several of the chip companies, bread companies, coffee companies, delivery companies, USPS all use guys who own their own trucks and drive a route daily. I don't hear anyone complaining about those services. If you have good training and systems it seems to work just fine.

We need to think outside of the box in this industry the best delivery method of our services is not a man, a fan, and a van.

If that where true we would still have the single proprietor hardware, sports, fabric, bakery, barber in every small town.

In large metropolitan areas the economies of scale play a major factor on who can compete and win in a market place.

Greg has funding for advertising and capacity for service. What we are talking here is moving off of one super highway and onto another. Greg will drive the bus just fine on the new road he has chosen.

The other large companies who are in that segment will soon have a serious competitor to contend with.

Just my opinion



Not that anyone wants to hear my thoughts, but here goes. After 20 years as a low price, hard upselling, porty out of the trunk of the car subcontractor using company, the public perception of Procarpet is set in stone in it's market. It will take millions of dollars in advertising and high priced spin doctors just to begin to change it, not to mention the actual implementing of a complete change in company culture and practices. I personally think it will be a disaster. But I hope I'm wrong and I wish Greg the very best of luck.
 
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dealtimeman

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Didn't read all four pages sorry.


Greg are you changing your company name or going to battle through to change perception of current company and if so why?
 

Greg Cole

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I am sticking with the old name. This was at the advice of Ken Snow.
Tom was dead on about Atlanta. We have roughly a 25% turn over annually in our population . In the new targeted demographic ( white collar educates) it's actually closer to 33%.
I appreciate Art being the nay sayer. Honestly I don't think he has it in him to say anything positive or constructive. He was right in that it will take millions of $ and years to finally change the perception.
But what you fail to understand is that the messaging in my new marketing is fundamental to the change over in culture.

Mike, I can't post the answers and don't want them posted as they are strategies that are proprietary. Happy to talk to you over the phone if you promise not to publish the answers.

Anyways, I hope everyone has a happy 2014 and a profitable one...

If


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Art Kelley

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Tom, until the time comes when this work can be performed by drones and robots, there is only one delivery method for our service: "the man and the van" at the customer's house. It doesn't matter if the company has 100 trucks; the customer doesn't care about any of that stuff. She just wants the person doing the job to do it right. Economies of scale are nice if you are buying media advertising or perhaps benefits for employees, but they otherwise play an insignifcant role in our line of work. And if you don't have to buy advertising at all, which many O/Os don't, then that is an advantage for the small operator.
But this thread is about Greg Cole, and the monumental task he has in changing his company's image. You started out with a frest clean slate and and grew your company quickly and skillfully, much to the delight of everyone here. Greg is going to have a much tougher time of it this year. But he is smart and if anyone can do it he will be the one.

Art
I respectfully disagree with you. Atlanta is 7 million people. Their are quiet a few residents that have never heard of ProCarpet I am sure. Greg also has not been marketing through the sources that high end work comes from so many of those people will not even be aware he exists.

You also forget about the role of word of mouth referral's and social media. When his team goes in and does a great job that will be the new benchmark for that customer and the people they can refer to.

Referrals and social media will be the driving force for the change and as online reviews change the older stuff that is less flattering will not be looked at as strongly. We live in a world of what have you done for me lately. I have often reviewed services, hotels, product and they have 2-3 years of great reviews but if the last 3 months is crappy and am going to keep on walking.

9-12 months and Greg will have a new image and company online it is that simple if managed correctly.

I do agree with you the porty hard upsell is a poor image if you want to serve high end clientele. Greg has already stated that he has purchased trucks and will require sub contractors to have a better level of equipment or they will not be used.

I do not use sub contractor not because I do not believe in it but because I am afraid I do not have the skills and experience to make it work. Lots of very successful companies use sub contractors to deliver services. Several of the chip companies, bread companies, coffee companies, delivery companies, USPS all use guys who own their own trucks and drive a route daily. I don't hear anyone complaining about those services. If you have good training and systems it seems to work just fine.

We need to think outside of the box in this industry the best delivery method of our services is not a man, a fan, and a van.

If that where true we would still have the single proprietor hardware, sports, fabric, bakery, barber in every small town.

In large metropolitan areas the economies of scale play a major factor on who can compete and win in a market place.

Greg has funding for advertising and capacity for service. What we are talking here is moving off of one super highway and onto another. Greg will drive the bus just fine on the new road he has chosen.

The other large companies who are in that segment will soon have a serious competitor to contend with.

Just my opinion
 

TomKing

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Hey get your self on a plane and join us in Aptos.

I am sticking with the old name. This was at the advice of Ken Snow.
Tom was dead on about Atlanta. We have roughly a 25% turn over annually in our population . In the new targeted demographic ( white collar educates) it's actually closer to 33%.
I appreciate Art being the nay sayer. Honestly I don't think he has it in him to say anything positive or constructive. He was right in that it will take millions of $ and years to finally change the perception.
But what you fail to understand is that the messaging in my new marketing is fundamental to the change over in culture.

Mike, I can't post the answers and don't want them posted as they are strategies that are proprietary. Happy to talk to you over the phone if you promise not to publish the answers.

Anyways, I hope everyone has a happy 2014 and a profitable one...

If


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Greg Cole

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I wish I could but I am headed to Rio for carnival at the end of February.
Besides, this year is going to require me to be a firm hand at the helm to keep things moving in the right direction.

Hey, did I just get a sort of compliment from Art? (Just fell over in my chair. Lol). Seriously thanks.
And yes it will be a planting year with minimal harvesting. BUT it is necessary for another 20 years!

Hey get your self on a plane and join us in Aptos.




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mirf

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How about Logo and printing. I agree with sticking with the nameas the length of time the company has been around counts for a lot too.
However I think rebranding is a good idea.
 

Greg Cole

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Ye to new logo. ( still in the works as I'm picky)

Everything print wise and website is redesigned.

How about Logo and printing. I agree with sticking with the nameas the length of time the company has been around counts for a lot too.
However I think rebranding is a good idea.




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TomKing

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Looks like I will have to jump on the Harley and cruise down to check on you myself.

Yes I believe Art did pay you a compliment and he seems to be looking to move away from portables. Who knew. You live long enough anything can happen.

I wish I could but I am headed to Rio for carnival at the end of February.
Besides, this year is going to require me to be a firm hand at the helm to keep things moving in the right direction.

Hey, did I just get a sort of compliment from Art? (Just fell over in my chair. Lol). Seriously thanks.
And yes it will be a planting year with minimal harvesting. BUT it is necessary for another 20 years!






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Greg Cole

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I look forward to your visit

Looks like I will have to jump on the Harley and cruise down to check on you myself.

Yes I believe Art did pay you a compliment and he seems to be looking to move away from portables. Who knew. You live long enough anything can happen.




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Doug Cox

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Respectfully to Tom, but things are a bit different in the big city compared to the country. We rely on referrals way more than the boys in the city who have way more people to serve. His comparison to the delivery companies are mostly describing the middle man that nobody sees or GAS about until the product doesn't show up. I CHOOSE to service a very small area and rely heavily on my reputation. If I wanted to be larger, no problem, expand my coverage area. Lets remember, bad publicity travels faster than good publicity.
 

Doug Cox

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Like I said, If I wanted to grow, I would expand my area. Currently I am generally within 20 minutes or so of my office. I work
within one county of my state and I don't cover the whole county (100,000), so reputation is important. If I expanded the radius of my coverage by 20 miles, I would add hundreds of thousands of potential customers. That's how I could employ more people if I chose. I WOULD NOT employ people who are not ready to do so. But I , like a few guys here, don't want the hassle of employees.
 

Mark Saiger

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Doug let's say you wanted to put some friends and family to work and run 4 trucks asap..

How would you go about creating the demand?

I looked at the demographics of My area and Doug's are putting myself in those shoes (or challenge). I don't think I would have enough clientele to support 4 trucks suddenly. I sometimes wish I had a 3rd truck to keep up with rushes and last minute "need it today calls", but there would be a lot of driving for me to make this happen.

I really don't think it would be cost effective and emotionally doable for my life right now.

Wikipedia did not list what the median income is for Doug's area, but he might be in an area that could have a more diverse market of employment, and thus maybe more cash available from clients for his service. But then, this could create another challenge of finding more top quality types that want to be carpet cleaners.

This would be quite a challenge....and especially for me, would be an interesting challenge.

I actually will be doing more pondering on this subject just so I am thinking for possible future :)

Nice question that created some interesting thoughts for me.

Thanks!

Mark Saiger
www.saigers.com
 

Greg Cole

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Mark, you get it! doug does not!
Hundreds of thousands of potential customers by adding a 20 miles radius! Glad to see someone here understand demographics!!!!!
And Mike, that was a great question!!! Lol





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Doug Cox

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My area covers working class people to multi billionaires, so whatever. I don't care to go after to upper UPPER class because , to be truthful, they can be a PITA. Ask Nick Paolella if you don't believe me. He has a house where I serve. I do just fine in 1/2 dozen towns I work in. Like I said Mike, call Nick and ask him about his house in WI.
 
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Greg Cole

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Correct me if I am wrong: you are an owner operator ?

My area covers working class people to multi billionaires, so whatever. I don't care to go after to upper UPPER class because , to be truthful, they can be a PITA. Ask Nick Paolella if you don't believe me. He has a house where I serve. I do just fine in 1/2 dozen towns I work in. Like I said Mike, call Nick and ask him about his house in WI.




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Mark Saiger

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My area covers working class people to multi billionaires, so whatever. I don't care to go after to upper UPPER class because , to be truthful, they can be a PITA. Ask Nick Paolella if you don't believe me. He has a house where I serve. I do just fine in 1/2 dozen towns I work in. Like I said Mike, call Nick and ask him about his house in WI.


Papa Nick is great! I know he talked about his place in Wisconsin last time we were at Florida Connections this past Spring. Pretty cool you get to clean for him Doug. Must be a hoot!

Does he make up any of his Hillbilly Lemonade for the cleaning?

Hope you are safe and warm tonight by the way!

Mark
 

Doug Cox

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Greg- Yes I am an O/O.
Mark- I clean the local school district in my area which happens to be a few doors away from Nicks place.I knew him from a trade show in Lake Geneva, WI about 25-30 years ago Anyway, he brought a rug into the school while I was working there, I recognized him right away, cleaned his rug, and that's that.
 
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Doug Cox

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As hard as I might have been on Greg , I am only reacting on personal experience. I would also encourage Tom to rethink his attitude on this subject. Different strokes for different folks.
 

Mark Saiger

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Hey Doug,

Are you going to make Mikey Fest? Would be great to meet up with a fellow Northerner while down there. Would love to meet. Seems like we have similar size towns with a little different market, but similarities.

Would love to hear about the school cleaning job and also hear more about you and your company. We are family owned and run 2 vans currently. Not really planning to expand and as a matter of fact, shut down a bunch of my restoration part of the biz.

Again, hope you are staying warm. We are down to -26 below as I type this and it keeps dropping 2 degrees every 15 to 20 minutes currently.

Mark
 

Dolly Llama

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forgive me if I'm wrong, Greg, but i had the impression you fit the profile of a bait 'n switch outfit
e.g. advertise unrealistic lowball prices that would be impossible for contractors to make any money on, so every cleaning would require an "up sell" of something as basic as using emulsifiers/detergents ..just to break even .
Right or wrong, that's the impression I,(and others I suspect) had/have

I'm glad to see your planed move from that, and sincerely wish you well

I'm curious though, where your new plans will position your outfit in the market.

will you be in the "value" class market, like the Stanley Steemers and Hogopians of the world, that do most of their work by running emulsifiers thru the system and rarely use pre-spray (I call it the McDonald/Burger king/Wendy's market)

will you position yourself in the "mid range" market with pricing higher than the "value" class, use pre-sprays on nearly all jobs and mechanical agitation when needed? (the Applebees, Longhorn, Outback market)

or the top level "highend" pricing market like Mike ,(or DA Burn in the large multi-truck outfits)
where vacs and airmovers are part of every job


curious where you'll be
Value
mid-range
hi-end

thanks


..L.T.A.
 

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