Unlocking Revenue Potential: The Options-Based Selling Strategy

Welcome back to the Service Loop Electrical podcast blog! In this post, we're diving deep into the strategy that helped Tactical Electric 10x their revenue: options-based selling. We'll be exploring the core principles behind offering choices to customers and how this can transform your service-based business, especially in the electrical trade. This post is based on our latest episode, S3 EP01 How Tactical Electric Turned Options into Big Outcomes with Sherman Hatley, where we spoke with Sherman Hatley himself. Get ready to unlock the secrets to massive growth!

The Tactical Electric Story: From Humble Beginnings to 10x Revenue

Tactical Electric's journey is a testament to the power of strategic thinking and relentless execution. Sherman Hatley, the founder, started with a clear vision but faced the same challenges many small businesses do: limited resources and intense competition. What set Tactical Electric apart was their willingness to embrace innovation, particularly in their sales approach. Initially, they were like many other electrical contractors, focusing on simply fulfilling customer requests. However, Sherman recognized that this reactive approach was leaving money on the table.

The turning point came when Sherman began exploring the psychology of choice. He realized that customers often appreciate having options, even if they ultimately choose the most straightforward solution. This insight led to the development of their options-based selling strategy. This wasn’t an overnight success. It was the result of a lot of hard work, learning emotional intelligence, building the right team, offering premium service options, and shifting from order-taker to general contractor mindset.

By presenting customers with a range of options – from basic repairs to premium upgrades – Tactical Electric was able to cater to a wider range of needs and budgets. This not only increased their closing rate but also allowed them to upsell higher-value services. The results were staggering, leading to a 10x increase in revenue in a relatively short period. This growth trajectory highlights the transformative potential of a well-executed options-based selling strategy.

The 'Present Over Perfect' Mindset: Embracing Imperfection for Growth

One of the key takeaways from Sherman's story is the importance of prioritizing action over perfection. Many businesses get bogged down in planning and analysis, delaying implementation until everything is "just right." Tactical Electric, however, adopted a "present over perfect" mindset. This meant that they were willing to experiment with new ideas, even if they weren't fully polished. They understood that real-world feedback was more valuable than theoretical planning.

This mindset allowed them to iterate quickly and adapt to changing market conditions. They weren't afraid to make mistakes, viewing them as learning opportunities rather than failures. This agility was crucial in their rapid growth. It's a reminder that progress often comes from taking imperfect action, rather than waiting for the perfect moment.

Embracing imperfection also extended to their internal processes. They focused on building systems that were effective, even if they weren't perfectly streamlined. This allowed them to scale quickly without being constrained by rigid structures. The "present over perfect" mindset is a powerful antidote to the paralysis of perfectionism, enabling businesses to move forward and seize opportunities.

The Power of Options: How Tactical Electric Leveraged Choice to Increase Sales

At the heart of Tactical Electric's success lies their masterful implementation of options-based selling. This strategy involves presenting customers with a range of choices, rather than a single fixed price. For example, when quoting a wiring job, they might offer options for different grades of wiring, different types of fixtures, or different levels of warranty coverage.

The power of options lies in its psychological impact. By offering choices, you empower the customer and make them feel more in control of the decision-making process. This reduces resistance and increases the likelihood of a sale. Moreover, options-based selling allows you to cater to a wider range of budgets and preferences. Some customers may be price-sensitive and opt for the most basic solution, while others may be willing to pay a premium for higher-quality materials or enhanced features.

Tactical Electric also understood the importance of clearly communicating the value proposition of each option. They didn't simply present a list of prices; they explained the benefits of each choice and helped customers understand why one option might be better suited to their needs than another. This consultative approach built trust and further increased their closing rate.

Turning Cold Calls into Gold: The $90K Solar Project

One of the most impressive examples of Tactical Electric's success with options-based selling is their ability to turn cold calls into high-value projects. Sherman shared a story of a cold call that ultimately led to a $90,000 solar project. This wasn't just luck; it was a result of a deliberate strategy.

Instead of simply pitching their services, Tactical Electric used cold calls as an opportunity to understand the customer's needs and pain points. They asked questions, listened attentively, and offered valuable insights, even if it didn't immediately lead to a sale. This approach built rapport and established them as trusted advisors.

When the opportunity arose, they presented the customer with a range of solar solutions, tailored to their specific needs and budget. By offering options, they allowed the customer to choose the solution that best aligned with their priorities. This flexibility was key to closing the deal and securing the $90,000 project. This highlights the power of viewing cold calls not as intrusive sales attempts, but as opportunities to build relationships and offer valuable solutions.

Why Turnkey Service Wins: Catering to the DIY Averse Customer

In today's busy world, many customers are willing to pay a premium for convenience and hassle-free solutions. Tactical Electric recognized this trend and focused on providing turnkey services. This means that they handle every aspect of the project, from initial consultation to final installation, ensuring a seamless and stress-free experience for the customer.

Turnkey service is particularly appealing to customers who are not comfortable with DIY projects or who simply don't have the time or expertise to manage the details themselves. By offering a comprehensive solution, Tactical Electric eliminates the need for customers to coordinate multiple contractors or deal with unexpected problems. This not only saves them time and effort but also provides peace of mind.

The willingness to offer turnkey service requires a commitment to excellence and a strong focus on customer satisfaction. Tactical Electric invests in training and technology to ensure that they can handle every aspect of the project with professionalism and efficiency. This dedication to quality has earned them a reputation for reliability and has contributed significantly to their growth.

The Role of CSRs: Multipliers for Growth

Customer Service Representatives (CSRs) play a crucial role in any service-based business, but Tactical Electric has taken their role to a whole new level. They view CSRs not just as order takers, but as active participants in the sales process. They empower their CSRs to understand customer needs, offer solutions, and even close deals.

This requires a significant investment in training and development. Tactical Electric equips their CSRs with the knowledge and skills they need to effectively communicate with customers and promote their services. They also incentivize CSRs to go above and beyond, rewarding them for exceeding expectations and contributing to the company's growth.

By empowering their CSRs, Tactical Electric has created a team of highly motivated and engaged employees who are passionate about providing excellent customer service. This has not only improved customer satisfaction but has also significantly increased their sales and revenue. CSRs are true multipliers for growth.

Sherman's Advice to His Past Self: Partnerships and People

Reflecting on his journey, Sherman shared valuable advice for his past self: prioritize partnerships and invest in people. He emphasized that no one can build a successful business alone. Strong partnerships with suppliers, subcontractors, and other businesses can provide access to resources, expertise, and opportunities that would otherwise be unavailable.

Equally important is investing in your people. Sherman stressed the importance of hiring the right team, providing them with the training and support they need to succeed, and creating a culture of trust and collaboration. He also highlighted the importance of recognizing and rewarding employees for their contributions.

Sherman's advice underscores the importance of building a strong network and fostering a positive work environment. These are essential ingredients for long-term success in any business.

The Service Loop Method: Redefining Business Approach

The Service Loop Method is a comprehensive framework for building a successful and sustainable service-based business. It emphasizes the importance of creating a continuous loop of customer engagement, from initial contact to ongoing support.

The Service Loop Method involves several key components, including: attracting new customers, providing excellent service, building relationships, and soliciting feedback. By continuously iterating and improving each component, businesses can create a loyal customer base and generate consistent revenue.

Tactical Electric has embraced the Service Loop Method, using it to guide their business decisions and improve their overall performance. This has helped them to create a customer-centric culture and to deliver exceptional service at every touchpoint.

Community Support: Overcoming Burnout and Staying the Course

Building a successful business is a challenging endeavor, and it's easy to become overwhelmed and burnt out. Sherman emphasized the importance of having a strong support system to help you stay the course.

This support system can include family, friends, mentors, and other business owners. Sharing your challenges and successes with others can provide valuable perspective and encouragement. It's also important to take care of your physical and mental health, making time for exercise, relaxation, and other activities that help you recharge.

Sherman's experience underscores the importance of building a community around your business. This community can provide support, inspiration, and accountability, helping you to overcome challenges and achieve your goals.

Featured Guest: Sherman Hatley of Tactical Electric

We were incredibly fortunate to have Sherman Hatley, the founder of Tactical Electric, as our featured guest on the podcast. Sherman is a veteran and a leader, known for his all-in approach, authenticity, and results-driven mindset. His insights and experiences were invaluable, providing listeners with practical strategies and inspiration for growing their own service-based businesses.

You can connect with Sherman and learn more about Tactical Electric at the following links:

• Website: https://tacticalelectrical.com/
• Email: sherman@tacticalelectrical.com
• Call: 208-901-8568

Resources: Taking Your Electrical Service Business to the Next Level

To help you take your electrical service business to the next level, we've compiled a list of valuable resources:

• Join the SLE Pro App Community! SLE Pro App
• Jump into the Million Dollar Electrician Community and connect with real business-minded sparkies! https://www.facebook.com/groups/844859526389567
• If you are an electrician looking for trade-specific business training in pricing, options, sales, attraction, and marketing strategies, Then our Loop Method is your answer!
• Join us and learn how to serve and earn at the highest level.

Conclusion: Transforming Your Service-Based Business with Options

The story of Tactical Electric is a powerful example of how options-based selling can transform a service-based business. By understanding the psychology of choice, embracing a "present over perfect" mindset, and focusing on customer satisfaction, you can unlock significant revenue potential. Don't forget to listen to the full episode with Sherman Hatley, S3 EP01 How Tactical Electric Turned Options into Big Outcomes with Sherman Hatley, for even more insights and practical advice. Remember, it's about serving your customers at the highest level and in doing so, earning at your highest level. Thanks for tuning in, and we'll catch you on the next one!