The last several installments have been dedicated to equipping you with proven strategies to recession-proof your dealership and come back strong after the lockdown. This installment features a case study of a dealer who grew his revenue during the lockdown by implementing the strategies I’ve taught here.
Matt Capell owns Capell Flooring & Interiors in Meridian, ID. Like many in our industry, he is a second-generation dealer. His parents began the business, and by the time he took it over they were mostly a new-construction shop. The year he took over was 2008. Perfect timing, right? Within two years his revenue had been slashed to $400,000, mostly due to contractors going bankrupt. Business was so bad that Matt and his wife discussed closing up shop. Ultimately, they decided to keep the doors open, and Matt immediately began to seek out and implement strategies which would give him the quickest results, in the shortest time, for the least money. He was determined to not only bring his business back from the brink, but to put systems and strategies in place which would protect his business from future market downturns.
Matt’s strategies fit into three categories: Before, During and After. I’ve taught this concept in previous columns, and it’s a way of organizing your marketing. Before strategies are used to reach cold prospects, people who have never done business with you. During strategies are used to sell prospects during the purchasing process, and include your sales strategies, showroom strategies, and in-home tactics. After are strategies are used after the installation is complete to increase repeat and referral business.
One of the most important Before strategies Matt implemented was generating online reviews. His business is not located in a high-traffic area, so he needed a way to get strangers to visit his store. He began by generating reviews on Google. Before long he had dozens of 5-star reviews, and it was an almost daily occurrence to have new customers tell him that the reason they were buying from him was his reviews. Matt is now part of my Digital Floor Dealer program, and my team helps him generate new reviews, and monitors reviews across all platforms. He now has over 600 reviews over multiple platforms, over 200 of which are on Google alone. This creates differentiation and makes his business the obvious choice. He utterly dominates his market in reviews.
Matt has a variety of During strategies in place to take price out of the equation, and ensure they buy from him. First, he uses customer testimonials throughout the sales process. He has them posted throughout his showroom, and he gives walk-ins a booklet of testimonials. He also has a proven, step-by-step, written sales process which he and his team follow religiously. He has a variety of strategies in place—such as free beverages and snacks—to make walk-ins feel appreciated and welcome.
After the installation, Matt’s customers get a free gift bag and a thank you letter. His past customers hear from him every single week by email. He is able to stay in front of them this often without annoying them because he uses the 90/10 formula, which I’ve outlined in the previous three installments.
So, was all this work worth it? He is on track to do $300,000 to $400,000 more in revenue this year than last. Yeah, I’d say it’s worth it. Especially when you consider that, unlike many dealers, he doesn’t have to lay awake at night in a pool of his own sweat worrying if his business will survive.
If you’d like help implementing an effective Before, During and After strategy, I invite you to get a free copy of my book: The Independent Floor Dealer Success System. You can find it on this page.
To Tons Of Customers!
Jim Augustus Armstrong is The “Coach”
Jim Augustus Armstrong is the President of Flooring Success Systems, a program that equips dealers to double their profits, cut their work hours in half and beat the boxes! Many dealers have totally transformed their businesses and their lives for the better after joining Flooring Success Systems.
See what real, live dealers are saying!