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need strategy advice!!!

 
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junker

posts: 2

Jul 04, 2007 9:26 AM ET    Quote  Report Abuse
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Thanks for the input everybody, I`m really impressed by the volume of responses already!

I know that the amount of information i`ve given you guys is a little bit insufficient, the problem is that I`m worried that one of my competitors or someone who could be in a position to damage my business will read this thread.

MarkB, I like your suggestions, although it`s kind of ironic because a Got-Junk franchise is one of my competitors who came in a few years ago...


Crazydiamond, good idea about repeat customers, if only i had any. Feedback that I`ve got goes mostly along the lines of  "I was satisfied with the service given but it is unlikely I will need it again.


The other responders` suggestions about finding less obvious sources of business like medical waste or contracting companies were good ones that I am seriously considering taking up..


Would anybody be willing to render some advice as to whats the best way to deal with franchises like Got-Junk because they seem to have a lot more money for advertising than I do...


Thanks again!


saxmansteve

posts: 30

Jul 04, 2007 2:28 PM ET    Quote  Report Abuse
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Hey Junker

sorry I`m late to the game here. From what I`ve read above there has
already been lots of really good advice posted.

Like others I need to own up to the fact I know nothing about junk
removal but it sounds to me as if it`s what the economists would call
"perfect competition" i.e there`s no way of differentiating yourself from
the other businesses. Hence why the franchising works - big name,
advertising, standard procedures.

There are some parallels, it seems to me, with the consulting business.
What the consultants do is make there service really personal and use
their clients to do their marketing for them.

I think that`s what I would do, focus the entire business on the customer
and make it really personal.

When a customer calls and says " I need somebody to clear junk" is that
all they want, or are there other dimensions to their problem? I don`t
know the answer, but would try to find out, and then tailor the service
around the unstated needs.

In my book, excellent customer service is the best defence against bigger,
badder competitors.

-------------------------

Serious about focussing your business on customers?
visit us at http://www.frontofficebox.com
CraigL

posts: 9051

Jul 05, 2007 12:51 AM ET    Quote  Report Abuse
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Hmm...one thing you might consider is to get whatever license, certification, or authorization to remove HAZMAT (hazardous materials). It`s related to "junk," but in the nature of the business, requires skill, specifics, and fewer people can do it.

Ergo, reduce the playing field to boost your competitive advantage.

Another interesting idea, coming from my daughter`s endeavors: How about expanding your business into a secondary product line. You could create a line of business for "Organizers."

Consider: Where does junk mostly come from? People are cleaning and re-organizing their living space. Nowadays, many people don`t know how to organize or don`t want to, so they hire professional organizers.

:-) And those Organizers throw away.....................junk. Which you, of course, would be right there to pick up.
nhgnikole

posts: 2660

Jul 05, 2007 1:34 AM ET    Quote  Report Abuse
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Yeah, I was totally thinking of working with other businesses too ... like contractors, construction people, organizers, etc.

Franchises have the advertising budgets, so they often don`t make partnerships.
crazydiamond

posts: 38

Jul 05, 2007 11:17 AM ET    Quote  Report Abuse
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(edit : sorry its a bit long...)

Spending money on an advertising/marketing campaign before you have defined you strategy, your customer profile and your product is simply a waste of money and time. I may have misread you, but it seems to me that you are saying that what you are presently doing is not working – you are having trouble competing.

You need to fix that problem first. Who exactly is your customer, and what strategic assets do you have that can help? Do you have experience in other services that you can bundle? Can you save the customer time? Do you have access to communication channels that other services might not have? Are your customers retired folk, or are they urban professionals? Are they in specific identifiable neighborhoods, or are they linked by religious or ethnic ties? Are they motivated by being green and environmentally conscious, or are they turned off by that theme?

Are you sure that your customer base is mostly one-shot deals, or are they actually your source of word-of-mouth. What efforts have you made to tap them? Do you know which ones you might be able to approach (as opposed to those whose deal went a little off on you…)? Are your customers mostly just doing some spring-cleaning, or are they getting ready to move, or possibly preparing for or finishing a renovation… Are you or can you get affiliated with moving companies, residential cleaning companies, or renovators?

Hmmm – look do your customer profiles.

Type A: retired couple, enormous collection of stuff that they stored in their basement, need stuff moved upstairs and then into truck, enormously time consuming as they dither over what goes/stays, very price conscious (but will give you lemonade), not internet literate, find out through their social clubs for older folks, concerned about having their house cased by criminals, unlikely to repeat, but good source of referrals
Type B: single parent professional, very time stressed, needs dead appliances brought up from basement, plus ex’s free weights removed from living room, bathroom, and kitchen; wants it done now, but cannot be at home during business hours – wants an 8:00 pm call, does not care about price except if its more than $10, if you scratch her wall you owe her $400 to have house interior repainted, and wants a firm price up front.
Type C: a do-it-yourself renovator who decided to rip apart the upstairs ensuite bathroom, and his in-laws called to have him do some hedge planting at their place, so now he does not have time to get the debris removed, and wants you to do it. His son will be at home, come any time you want between 6 am Tues and 11:00 pm Friday; be sure to bring mesh gloves and heavy tote boxes, because the tile shards are sharp – oh and be sure to bring drop tarps so that you don’t damage the finish on the teak floor in the access hallway…

You have a history of contracts – this information is GOLD – use it to crawl inside the heads of your prospective clients. Then look at the Got-Junk site. What do you see…

No estimate provision – what about phone pictures or digital uploads = estimate + or –
Booking hours are 8:30 through 6 pm – why not evenings?
Their system is completely customer initiated, which with the price of fuel, is sub-optimal – find a way to blend loads and reduce travel costs, most other services have this kind of route optimization available to control costs. Consider discounting for bigger time windows…
Got Junk may be good, but they can be beaten – anyone can.

You need to address these issues before spending more money.
_______
Great comments from your other respondents. Ahh, great minds think alike!




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Alexius

posts: 7

Jul 08, 2007 10:36 AM ET    Quote  Report Abuse
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How about expoiting the green environment cause? Just saw the Live Earth event yesterday and I think there is going to have a great movement going on around the globe. I thought of an idea of rebranding your `junk removal` company into `Lets be green` company. Focusing or extending your service to helping citizens on handling recyclable junks. I dont know if my crazy idea will work but it is definitely a great cause and hopefully stimulate buzz for your company.  
CampSteve

posts: 1216

Jul 08, 2007 11:55 AM ET    Quote  Report Abuse
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That`s a great suggestion by Alexius.  Junker, you`d have to evaluate your own thoughts on environmental causes.  Most people think it is important but not everyone acts on it, and I`m not talking about being an activist.

Junk removal as a let`s-clean-up-the-earth message is brilliant!  It`s more than just hauling things away.  Maybe part of your services can be splitting up the junk and taking parts of it to be recycled.  With something like this, you could charge a bit of a premium, rather than compete with the Got-Junk chain and others on price.  Customers would and often do pay more for that extra environmental piece of mind.
CraigL

posts: 9051

Jul 08, 2007 4:07 PM ET    Quote  Report Abuse
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In fact, going further with Steve`s suggestion, how about folding in Recycling as a service?

I think lots of folks would be interested in recycling. But it`s being made so complicated by city ordinances, stickers, particular bins, days, and having to wash your junk.....it`s tiresome.

What if you were to introduce a sort of "concierge-recycling" feature in your business?
Want to recycle but don`t have the time? Call the JunkMan! We`ll take care of it for you.

:-) Like that...or some iteration.
crazydiamond

posts: 38

Jul 13, 2007 5:15 PM ET    Quote  Report Abuse
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Hey Junker - if you are still around, you are getting some thought provoking ideas here. Think you would get even more focused contributions, if you were to give a bit more information. I certainly understand your privacy concern, but I don;t see how anyone can help without some feedback and information.
Every situation is different, and general advice only gets you so far...




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