This is a question I have been asked many times over the years, and recently by two of our building clients.
They both had more work than they could do and they were booked up for the next 12 months.
My advice to them:
– Stopping marketing to save money is like stopping the clock to save time.
Too many good quality leads from marketing is a tremendous problem to have… but keep on marketing. Why?
Because, even if you can’t build their house in the next 12 months:
– Sometimes it takes longer than 12 months from the initial enquiry to starting construction.
– Some clients will wait for a long time for their builder of choice.
– If people can’t have something, they just want it more. Think of the great restaurant that you can’t ever get in to.
– Quality leads generate quality referrals for next year and the year after.
– Marketing is easy to turn off, but difficult to turn on.
One of our builder clients continued their marketing and ended up doubling their workforce from 5 to 10 and being booked up for two years. They were amazed how long clients were prepared to wait.
Of course, if your marketing and sales process is so good that demand exceeds supply, there will obviously be opportunities to increase pricing.
Effective marketing should always generate leads that could convert in to more business than you can do. This gives you the ability to select your clients and to increase prices to give you a profitable and sustainable business. You do need an efficient and effective sales process to deselect the clients you don’t want to work with.