Stars are Aligning for Contractors; This Year Could Be the Turning Point in Your Business

The economy and the remodeling marketplace finally seem to be improving.  It’s not happening as fast as we all might like, but it is slowly improving in what appears to be a sustainable way.  And, as a result, consumers have been gaining the confidence to once again spend money on and invest in their homes.   If the recession caused your business to downsize or slow down, now might be the time to decide whether you want to and will commit to improving and growing your business.

Indications that contractors and the supply chain are both optimistic

I am still being cautious about making such a statement about the marketplace, but a few key indicators have prompted me to do so.  

First, is the number of contractors not only contacting me for help with their business systems, but actually committing to the investment required to do so.  About a year ago I noticed the inquiries picked up, but after we discussed the typical costs to put business systems in place many contractors decided to hold off, citing concerns about short work backlogs and protecting their cash flow requirements.   Now, with a good backlog of work under contract, both the calls and the commitments have dramatically picked up. 

Second is that the supply chain is finally spending money again on marketing to and investing in their remodeling contractor customers.  Although still not as busy as they used to be, trade shows this past year have grow in size again as more manufacturers and distributors are back participating at the shows.   Also, since about early this past summer, the number of manufacturers, distributors, dealers and trade associations contacting me about speaking at their events has also dramatically picked up.   The supply chain is once again spending money to educate their staff as well as their contractor customers, as a way to grow their businesses as well as their customers’.  The Rhode Island Builders Association Boot CampsThe Rhode Island Builders Association Boot Camps I was involved with is just one example of this trend.

Don’t get left behind

If you’re a contractor thinking about the future opportunities and potential for your business now is the time to act.   As I discussed in a previous blog titled “Generic Contractors Are Fading Away, Brand Names Are Shining”, those contractors who are investing in their business systems and their brand have been capturing good projects with good margins.   Those who have been and continue to protect “their status quo” are going out of business or continue to struggling financially. 

Here’s how I look at it. 

About 75-80% of remodeling consumers buy predominately on price.  Also, my experience tells me, about 75-80% of contractors are generic commodities in their market place.   That means that if you want to capture business from the 20-25% of consumers who select a remodeler for reasons other than lowest price you better get going improving and differentiating your business.  The idea is to build your market share, in your target market, before someone else does.

Here’s a quote by a famous baseball personality that I think sums things up

"There are three types of baseball players: those who make things happen, those who watch it happen, and those who wonder what happens."     

 Tommy Lasorda

Manufacturer, Dealers Partner With Trade Association to Offer Free Education for Contractors

All serious construction business owners have at least two things in common.  First, continuing education is key to improving their businesses.  Because the business world is constantly changing, to remain successful, construction business owners need to keep up with new ways of doing things as well as advancing their business systems and management skills if they want to stay ahead of their competition.   Second, they need to make sure they surround themselves with the right resources so they can get the education they need from reliable sources at an affordable price.

This fall contractors will be able to get both in the same place thanks to window and door manufacturer Andersen® Windows.   Thanks to the efforts of Dealer Account Representative Don Hamel, Andersen® Windows has pulled together a series of five FREE Contractor Educational Boot Camps that will be held at the Rhode Island Builders Association (RIBA) offices in East Providence RI.   I will be the presenter at each of these events.  In addition to the support from RIBA and Andersen Windows several lumber and building materials dealers and product manufacturers have joined together to sponsor these events.

The five boot camps will include the following dates and topics:

9/26/13: Marketing Boot Camp: Targeting the Right Customers

10/3/13: Estimating Workshop: Know What You’re Selling Before You Sell It.

10/10/13: Small Business Finances and Profit Strategies for Non-Accounts

11/7/13: Sales Workshop-Smart Selling for Tough Times

11/14/13: Production Workshop-You Sold It Now You Need to Build It

Why these topics?

The list of topics above was put together to help give contractors a comprehensive exposure to several important areas in their businesses.  The content of these sessions will include valuable and timely information that will help contractors differentiate themselves in the marketplace and make more money.  Also, each of these sessions has been approved for two continuing education credit hours towards renewal of a Massachusetts Construction Supervisor's License (CSL).   If you are a licensed Massachusetts contractor make sure you let RIBA know you want a certificate of completion for CSL credits when you register.

Who is sponsoring these events?

Here are all the logos of the businesses that are sponsoring these events.  You can click on the logos to go to the web pages for each of these businesses.

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Don't miss out, register now!

If you would like to attend one or all of these boot camps you need to register for them individually.   Seating will be limited; so make sure you register right away.  Click on the links above for the class or classes you would like to take to see class descriptions and find the registration links.

I hope I’ll see you there!

Guest Blogger:  Nicole Allen is the Social Media Manager at R2R Marketing where she is responsible for maintaining and executing a clearly defined social media strategy to increase brand equity and awareness for current clients.  She is also the group manager for “Home Improvement Industry Specialists” group on LinkedIn.   Nicole is an expert in Social Media Management and has a military background as an Aircrew Survival Equipmentman.

Joining A Contractor Trade Association Should Be An Informed Decision

There Are Many Reasons to Join a Professional Organization…and many questions you may want to ask before you join.  Here are some things to ponder.

Membership in a professional organization is an investment in your professional credibility.

• There are many organizations out there that will help your credibility. However, there are a few out there that do not. Check them all out before you join no matter how cheap the dues are. Are their agendas in your best interest? Are the key members upstanding in their field and community? They are the face and voice of the association and if they are unprofessional or unethical in their choices, you will be seen the same.

 

It’s an investment in personal development, and growth.

• Choosing the right association should involve doing a little fact checking. Does the association promote and foster a learning environment or does it seek to push its own agendas on you? Does it offer you training materials that are relevant to your company? Does it offer you a place to network with your industry peers? What is the overall tone of the association? Above all, does it portray a professional appearance? If their agenda is not in-line with yours you may want to re-think your membership.

 

It’s a place to get and expand your knowledge

• Membership is a way to stay connected to your professional peers who are going somewhere, and don’t mind sharing knowledge on the journey. The age old adage, “If you want to be successful, surround yourself with successful people” applies here. The association you join should promote professionalism, ethics and training to help you succeed. Many say this is what they do- make sure they actually do it.

 

As a professional association, they should work hard to help you succeed.

• You should receive tools (including a high-quality member website) and training to help you grow. They should offer support as you meet professional challenges, and opportunities to develop your business.

 

Here is an example

As a member of the Associated General Contractors of America (AGC), for example, a contractor has access to all-inclusive member resources and tools through the AGC Legislative Action Center and receives member discounts on AGC products and services. Additionally, with a nationwide membership of more than 32,000 firms and a network of 96 chapters, AGC offers its members the opportunity to meet and build relationships with fellow professionals, owners and suppliers.

Can the new association you are checking into offer you something that is comparable? Even if they are charging you low or a no-fee membership, is it really worth it if they cannot help you succeed?

Last thoughts

Membership in trade associations can not only benefit the employees of your company, but it can also project a positive image of your firm to your customers; if you choose your association wisely.  Membership in associations shows a business’ initiative, its engagement in a particular trade and its commitment to staying abreast of current developments in the market. It can also affect you negatively by conducting itself in an unprofessional manner and by throwing business and moral ethics out the window. Look closely at the way their key members hold themselves in a public forum and ask yourself one question- Is that the way you want yourself and your company to be seen?

Free Webinar: Help For LBM Dealers Planning Contractor Education Events

One big win-win for building material dealers and their contractor customers is offering contractor education.  By helping contractors improve their businesses, and advance the trade skills of their employees, contractors can do more business and improve profitability.   If the contractor can increase the amount of business he or she does, the supplier benefits as well because that contractor will likely need to buy more products and services from the dealer.  Helping contractors grow their business is also a great way for LBM dealers to initiate and expand upon the creation of mutually beneficial relationships with their contractor customers.

For suppliers and manufacturers, planning a successful educational event for contractors takes a lot of work and time.   Many factors go into planning, promoting and executing an event that will provide value for the attendees, the dealer as well as any event sponsors.  However, if planned and executed correctly, educational events for contractors will not only attract attendees for the first time, the events should also make attendees want to keep coming back for more!

If you are a LBM dealer thinking about holding your first educational event, or want to improve results at your next event, consider attending an upcoming webinar I will be presenting on April 11^th, 2013 titled “Planning and Delivering Educational Events to Maximize Your ROI”  The webinar will be hosted by BuilderLink.

 Click here now to register for the webinar

If you are a contractor looking to encourage educational events at your lumberyard or supplier, consider forwarding this article to them.  By attending the webinar dealers and their staff can learn how to plan a great event, choose topics and speakers that will help you grow your business, and make sure the event will be fun and entertaining to attend.

Here’s a partial list of how attendees will benefit by attending this webinar

• Learn some creative ways to promote the event, attract contractor attendees and get them to show up!
• We will explore seminar topic ideas that can be beneficial and profitable for the contractors as well as the dealer.
• Learn several very important things to consider before choosing a presenter/speaker.
• Learn several ways to maximize the investment for the dealer and sponsor(s); before, during and after the event.

Other LBM Dealer Related Articles:

Lumberyard Ambassadors - Partnering With A Lumber Dealer’s Yard Staff

Understanding and Selling the Many Shades of Green