Message from Doug...




How to Get Referrals

I am often asked how we get so many referrals to our company.  A big portion of our workload is based on these referrals.  Just this year alone, over 31% of our leads – people contacting our company for work – have come from referrals.  Various people have referred someone, and sometimes multiple people, to our company.


We are very fortunate to have a great group of clients, friends, trades, and associates that want to help us succeed.  I am enormously grateful for the work they send to us.

I believe there are four requirements to getting good referrals for your business.  They are:

1. Do Good Work
Do a great job for your client/customer/homeowner.  Give them an experience that they would want their friends or peers to have. 

2. Be Reliable
The great sales trainer, Jeffrey Gitomer, explains that the definition of referral is risk.  When you refer someone to a company, you are taking a risk that they will be treated well by that company.  If the company performs poorly – such as not returning phone calls or making a mistake on the project – it reflects poorly on you.  After all, you suggested that the person use that company. 

In order for people to refer your company, they need to know they can rely on you to be friendly and professional.  You have to be reliable and show up consistently to remove their risk in referring you.

3. Encourage Referrals
Ask people to refer you to others.  Who do they know that want what you provide?  Let your clients and friends know that your business thrives on referrals from people just like them.

4. Reward the Referrers
Reward the behavior you want repeated.  Psychologists call this “reinforcement.”  I call it a “Thank You” note.  Any time someone refers you, be sure to thank that person.  This can be done with a simple, handwritten note of thanks.  It is easy to do, but it has a big impact on the referrer.  That person is much more likely to refer you again. 

Another way to reward referrers is to publicly thank them, which is what we do on the front page of every issue of this Newsletter.  You can also do this on your website, on social media, and in other marketing tools. 

If your projects have a high dollar value, such as a kitchen addition, home renovation, or new home construction, a referral can be very profitable for you.  I suggest you create a formal reward system where you pay the referrer money if their friend becomes your client.  It is more effective than almost any advertising you could do.


To Your Success,

Recent Referrals



Aaahh Summer… longer days, picnics and barbeques, trips to the pool and the beach, and a general feeling of happiness and well-being.  Which means there could be no better time to thank our great friends and customers who have recently referred our company:

Randy Johnson, Men at Work – Roofing Contractor  www.MenAtWorkRoofing.com

Matt Chapman, Thomas Concrete – Supplier  www.ThomasConcrete.com

Wilson Borden, The Erosion Company, Inc. – Landscape Maintenance  www.TECompanies.com

Client Spotlight – Whale Ventures



 
During the development process of turning raw land into a subdivision for new homes, a detention pond is constructed to manage stormwater.  Often, these detention ponds require a concrete wall, which is something that we specialize in.

We recently completed a concrete detention pond wall in the City of Roswell for our longtime client Whale Ventures.  Whale Ventures was founded by Bill Hale in 2000.  Bill and Mark Nichols, Whale Venture’s Development Manager, chatted with us recently about that detention pond project and the general state of building in Metro Atlanta.

Herbert Construction Co.: Bill, how would you describe what your company does?
Bill Hale: We work for a select group of builders and developers.  We work hand in hand with their staff to evaluate raw land’s feasibility for future residential subdivisions. Our work starts even before the land is purchased.  We assist our clients as they make the purchase; we guide the engineer through the development of the land; we assist in permitting and putting together developmental budgets, and lastly, we hire and manage the subcontractors for the site development.
Mark Nichols:  Bill has been in this business all his life.  Clients come to us because of his expertise and experience.


 


 Mark Nichols (left) works with Bill Hale at Whale Ventures to develop land for homebuilding companies.

HCC: Your clients contact you before they’ve purchased the raw land?
Mark: Yes, we act as a consultant very early in the process, identifying any hidden problems, and we help them through the entire development process.  You could say that our job is to resolve any problems that our clients have.

HCC: Bill, what did you do before starting your company?
Bill: Before Whale Ventures, I was a Development Manager for several Atlanta area builders and developers. Before that, I was the President of a Grading and Pipeline Company. And, my Dad was a pipeline contractor, so I grew up around bulldozers and tractors. As a matter of fact, there’s probably not a tractor around that I can’t run.
Concrete pedestals in the level spreader reduce erosion by
dissipating the stormwater as it leaves the retention pond.
HCC: Why do homebuilders choose to work with you over other people that do what you do?
Bill: Because of our track record.  Banking institutions tend to feel more comfortable if they know we are involved in helping a client who wants develop a tract of land. They know that we’ve already addressed potential problems with the site.  And, they know that we’ll develop the project on time, and on budget.

HCC: Who are some of your clients?
Mark:  We work with lots of companies, but some of our key clients are Ashton Woods Homes, Edward Andrews Homes, Ryland Homes and FrontDoor Communities.  The Webb Street Detention Pond project that we did with Herbert Construction is a FrontDoor Communities project.

HCC: During the Great Recession, many Atlanta homebuilding companies downsized or eliminated their land divisions.  Is this still the case?
Bill: The vast majority of local homebuilders eliminated their land divisions during the downturn.  Some have added staff back, but many of them rely on our services to work with their in-house staff.
Mark: When our clients are busy, they tend to overwhelm their own people. That’s when they come to us.

HCC:  What are some of your biggest challenges with the work you do?
Bill: Hands down, the biggest challenges we face on an ongoing basis are the ever-changing municipality inspections.
Mark: When the economy collapsed in ’07, a lot of neighborhoods were left incomplete.  The local cities were left holding the bag on these subdivisions that weren’t finished.  Now, they are being stringent up front so there are no loose ends. Because the municipalities are so cautious, everyone has to jump through a lot of hoops for financing documentation.
Bill: Of course, like anyone in construction, we face other challenges as well.  Weather plays a big role in what we do.  And these days, there are just not enough site development contractors to keep up with the volume of work.  There simply aren’t enough qualified pipe and grading contractors still around.
 
Our robotic total station layout instrument ensured
accuracy and sped up the construction of this unique wall.
HCC: What were some of your challenges specific to the Webb Street Detention Pond project?
Bill: As you know, we ran into a lot of rock during excavation of the pond.  That modified the engineering of the concrete footings.  It also affected how we handled the sequence of construction.
Mark: The concrete detention pond was on the side of the hill and right up against the stream buffer.  It was very tight and required a lot of coordination between the grading contractor, the engineer, and your company.

HCC: What is your outlook for the Atlanta housing market in the next 12 months?
Bill:  Based on the current level of new projects in the pipeline, there is a lot of demand.  We are as busy now as we were in 2005.  As of today, we have 1500 residential lots under contract management.
Mark: I think the next 12 months will be a bit crazy. It feels as though everyone is jumping in right now.  The hottest areas for growth in Metro Atlanta are Forsyth, North Fulton and Cobb Counties.  It’s a good time to be in construction in Atlanta!

Multiple angled corners and sloping walls
were required due to the tight site conditions.
HCC:  Herbert Construction Company has enjoyed a long relationship with Whale Ventures.  How would you describe our company to others?
Bill: I always recommend Herbert Construction for all concrete wall jobs. If it’s poured concrete, I always rely on your company.  Your staff has the ability to figure out complex situations – like working with unsuitable soil – and then adapt quickly.

HCC: How does your company benefit by using Herbert Construction Company?
Mark:  With the Webb Street project, there were a lot of unknowns.  Being interactive with our subcontractors is crucial to the success of any job.  Herbert Construction always responds quickly.  At the end of the day, we save time and money with Herbert Construction.
Bill: Bottom line: we rely on Herbert Construction Company, because we know it’s going to be done right!

HCC: Thanks for your time, Bill and Mark.  We appreciate all of the business you’ve provided over the years, and we enjoy working with you on your development projects. 

And the Winner is...



Congratulations to Jean Vallee of Permit Management Group!  In our April newsletter, we held a contest giving away a copy of the book “Atlas Shrugged” by Ayn Rand. 

Jean has been a Herbert Construction newsletter reader for a few years now, and we are so pleased to give her a copy of this great book.  Jean is a Permit Expediter and can be reached at permitgrp@comcast.net.