The Design Builder's Blog

Guest Blogger:  Jayme Cook loves DIY projects and previously worked in the home building and construction industry. Jayme studied writing in Wales, UK and is now an English instructor living in Phoenix, Arizona.

Where Craftsmanship Matters the Most: Assuring Quality on Your Remodeling Jobs

Author and computer software consultant Robert C. Martin once said, “How can we make sure we wind up behind the right door when the going gets tough? The answer is: Craftsmanship.” This statement rings true in many fields, but especially so for remodelers. Craftsmanship is what's behind our sense of awe and admiration when we look upon a job well done—it's one part knowledge and one part art, with a bunch of pride, planning and elbow grease bringing up the rear. Every job is important, but some require a higher level of craftsmanship than others. Here's where a master's touch really counts.

Green Roofs

A growing trend in residential design is green roofing. These rooftops integrate actual foliage into the roof structure in an attempt to keep interior rooms cool in warm weather and warm during the cold. Most professionals use modular systems composed of individual plastic trays pre-lined with plant life and a non-soil base lined along the rooftop. Growth occurs at a rapid pace, creating an organic canopy to shield the home from the elements. A large-scale installation of a green roof requires an expert—this isn't something you want to tackle if you've no experience under your belt.

Insulated Water Pipes

Insulated water pipes will boost a home's energy efficiency. This sustainable feature will add to the life expectancy of the pipe system as well moderate the water temperature throughout the residence. Foam tubes made of rubber or polyethylene encase the metal piping to offer better quality and use—just make sure an expert does the insulating.

Energy-Efficient Windows

High quality, energy-efficient windows are essential in designing a masterfully crafted home. Many contractors provide windows that help keep heat inside of the home during the winter season and keep indoor temperatures cool during the summer months. Alternatively, poor quality windows can result in as much as a 30 percent loss of energy for consumers. Not all windows are created equal—while many can help reduce some of the energy loss, only high-quality selections installed with skilled precision and the proper equipment can fully protect against heat and cooling leakage. Contractors take note. Check out the windows section on the Champion Home Exterior webpage. This company displays its window offerings clearly and also provides helpful information on the left side of the site. Setting up your offerings in a style like this makes it easy for consumers to navigate your webpage and deliver the craftsmanship they are looking for from a contractor.

Solar Panels

More and more homeowners are requesting installation of solar panels to save money and energy. Photovoltaic panels harness the power of the sun and deliver it straight to the home on which they are installed. Solar power adds value to the property and usually comes with tax incentives, but it should only be installed by those with experience. There are lots of DIY kits out there, but we don't personally know of any that produced craftsman-like results.

When it comes to remodeling jobs, there is no replacement for quality craftsmanship. From the foundation up, work of integrity guarantees high-caliber results. With the right planning, the expertise of professionals and personal commitment, your work will reflect nothing but the best.

The Advantages Of Design/Build For Remodeling Clients

Selling Design/Build isn’t easy. Many consumers haven’t heard about it and most of those who have really don’t know that much about it. If you want to sell Design/Build, or for that matter sell any product or service, you must let the buyer  know what benefits it will have for him or her.

Rather than put on a dog and pony show for your clients, take time to uncover their real concerns, underlying motivations and project requirements. Then share with your clients those advantages of the Design/Build process that address what you have uncovered, provided you are confident in taking on those responsibilities. As more contractors and consumers come to understand and realize the benefits of the Design/Build process, selling and buying the concept will become easier for everyone.

To be successful with Design/Build consider the client’s advantages and the Design/Builder’s responsibilities described within this article as interdependent.

Single Source Responsibility

Perhaps the most appealing and easy to recognize advantages that Design/Build offers are the convenience and comfort of one-stop shopping. The client looks to a single entity to take full responsibility for design, construction and satisfactory completion; delivering the project on time and on budget. As a natural consequence there is less finger pointing because as ideas are generated, all team members make decisions with a cooperative approach. This means greater efficiency, cooperation instead of conflict, and a better project for the time and money invested. When this team approach works well, it fosters an enjoyable and mutually beneficial way of doing business for the client and the Design/Build team of professionals. As the design phase of the project moves forward, all parties get to know each other while working out and establishing the terms of the relationship. This establishes trust as well as a mutual respect for the realities of living through a project, long before the dust takes over, rather than trying to do so while the dust is created. These advantages are often removed or compromised if those involved, including the client, work separately of each other during the design stage.

Cost Control

Trust is the key consideration here, and can become the client’s most valued benefit.  Provided that a realist budget is established and agreed upon prior to entering into a Design/Build agreement, the Design/Builder takes on the responsibility of protecting the budget as design happens. Do not sell this as an advantage unless you are confident that you and the client agree on the scope of work. Savings and or budget control are then achieved through better planning. The Owner can exercise his desired degree of control over design, with the added advantage of knowing the cost implications of each decision as it happens. In the client’s eyes, the trust will be broken if he or she sees the Design/Builder as the cause for going over budget. It’s their money, not yours. To avoid this perceived breach of trust, before you offer or entertain alternate design ideas that will increase costs, ask your client for permission to spend more than the agreed budget.

Promising your clients cost control must be backed up with design and construction expertise, as well as the company systems required, to know what should (or will not) be included and how much it will cost. By having this ability, professional fees such as engineering or surveying are kept to a minimum as they can be determined before beginning design of the project. The client benefits by having a guaranteed maximum price that is set as soon as the scope of the project is determined.

Quality Control

Quality of the design and construction of the project can happen by default if the Design/Builder’s team is working “together” to meet the client's performance requirements. The architect, engineer, and contractor are able to focus on the project, with an emphasis on quality, rather than protecting their own individual interests. The lines of communication are simplified and the chances for misunderstandings are reduced. The construction expertise of the contractor and the design expertise of the design professional are melded together to produce a greater value for the owner than that which might be realized if both were working independently, perhaps in a vacuum. Additionally, quality is maintained by the discovery of most problems before starting and the implementation of real solutions.

Quicker Delivery Time

The client saves time and trouble by dealing with a single source for all matters rather than separately with a contractor, an architect, an engineer, and subcontractors. Bidding periods and redesign time are eliminated. Overall time to design and build the project is substantially reduced because design and construction activities overlap. The contractor can proceed with early procurement of critical materials and scheduling of labor and subcontractors for greater effectiveness. This means the project can be on the contractor’s production schedule sooner.

If it is necessary to meet client’s deadlines, Design/Build lends itself readily to "Fast Tracking", where construction begins while detail drawings are still in process. The project can be completed in less time because work can begin before all the elements of the design are complete. For example the foundation can be completed to beat the frost, while the selection of windows and doors and how they will be detailed have yet to be completed. This fast tracking can reduce the owner’s interim financing costs and will permit the owner to occupy the project at an earlier date.

How A Contractor’s Web Site Marketing Can Speed Up The Sales Cycle

With the right marketing strategy and tools a contractor can turn his or her web site into a lead generation machine as well as a selling tool.  That's right.  Think of your web site as not just a place for consumers to find your business, but also a place where you can help them buy.

Make it a place where they can educate themselves

Educate them about your business as well as the many things they will need to consider about their project and about choosing the right contractor to partner with for their project.  By helping them do this at your web site two different outcomes are possible. 

1. One might be that they realize your business is not right for them.   This can save you and them a lot of time because you won’t need to get together in person to figure this out.  
2. On the other hand, because of your content, the right prospects for your business will be much closer to making a confident buying decision by the time they ask you to come out and meet with them.

Every consumer has their own buying process

Research shows that consumers spend anywhere between 38-114 days doing their research and due diligence before they make the decision to go forward on a significant investment.   If you think of their buying process as their buying cycle, broken down into definable stages, you can strategically align the content of the marketing on your web site with what your target customers need to help them as they move through these stages and their research. 

Here are the typical stages of a remodeling consumer’s buying process:

1. Awareness stage:
2. Research stage
3. Comparison stage
4. Purchasing stage
5. Repurchase stage
   

In this follow-up article I explain how to strategically market to these consumers during each stage.

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Keep in mind that due diligence will be personal to every consumer. 

Never assume what they should do or tell them what to do.   A key to this strategy is to offer options within your marketing and clearly explain the differences between them so prospects can confidently make their own decisions.   Remember, it’s all about them, not about you.   Helping them along and being a resource, rather than telling them what to do, will make you stand out as a trusted advisor.  Often times, because they are typically the main decision makers when it comes to purchasing remodeling, this strategy works particularly well with women.  Think about it.  How did it go the last time you told a woman what to do!  It’s about options and helping them compare them.

Summary

To help speed up the sales cycle with your prospects your goal should be to help them buy, not sell them something.  Put yourself in your prospects shoes.   Would you want to be sold?

Guest Blogger: Ruth Ann Monti is the founder of TimeStorm Communications, which provides original content, copywriting, social media and marketing services for entrepreneurs and small business. She lives with her son and two dogs in sunny Scottsdale, AZ.

3 Ways Contractors Can Become a Trusted Customer Resource

A recent survey by Planese found the home improvement and remodeling industry earned a customer service score of 4.5 out of 7 in 2013. Not bad, but it could be better. More worrying is our industry's score for meeting expectations, which is just 36 percent. Comparatively, banking scored 61 percent, which is pretty good for an industry that isn't exactly the most popular.

A little bit of work to understand what your customers or potential customers want and offering yourself as a good resource can help you improve your customer service outlook and give yourself a competitive advantage.

First, Understand Customer Expectations

Many customers turn to online resources to find out the things they should anticipate during their remodel; usually these sites warn about delays and unexpected problems during the remodel like unusual plumbing and wiring. Dust and noise are hard to control, but this is a great opportunity to exceed expectations by taking an extra step or two and providing a little what-to-expect education beforehand.

Exceeding customer expectations is a strategy entrepreneurs should embrace, whether they run an auto repair, medical practice or remodeling business. Richard Branson, found of Virgin Group, says this is why his business stands out from the competition. If you are about to bid on a project, he says, "deliberately move your customers' expectations up a few notches and consistently over-deliver on your promises"

Use Your Proposal to Provide Customer Education

Begin offering customer education right from the start in your written proposal or estimate. Here are a few ideas about what to discuss that demonstrates your knowledge and experience and can help you shine:

• Timeframe. It's difficult to nail this down but if you're considering a project similar to ones you've tackled in the past, provide a sample schedule. Note items that can slow things down or build in time to address them. There's nothing wrong with over-delivering by completing a project ahead of schedule because you foresaw potential problems that did not materialize.
• Access to Specialized Equipment. Let customers know you have access to equipment that isn't part of the standard remodel kit. Provide links to specialized tools like lifts for second-story projects or insulation removal and installation.  Explain why they will or might be needed.
• Discuss materials options. Customers want energy-efficient and environmentally friendly materials. Explain the differences between standard drywall and plaster, for example, and the different grades of insulation. Tell them about green materials you've worked with.

Don't Be Shy: Advertise Your Work

Remodeling magazine urges contractors to advertise and enlist past customers for testimonials. Start by sending thank you notes for trusting you with their remodel and ask if they would send a review you can post on your website.

Speaking of: don't shy away from online review sites. Register with Google, Yahoo, Yelp and Angie's List, which is highly recommended for its popularity with consumers. In addition, by registering with these sites, you can respond to reviews and ensure that the information out there is accurate and complete.

Guest Blogger: Brian Altmann, CAPS is the president of DBS Remodel, Inc.a full service residential remodeling company in LaGrange, NY. He frequently speaks at the Remodeling Show and JLC Live. Brian has over 28 years of experience in the remodeling industry. At JLC LIVE in Providence RI this spring Brain shared his experiences with me about doing consumer seminars as a marketing tactic.   He agreed to contribute this guest blog to help other contractors do the same.  He can be reached at Brian@DBSremodel.com

How To Be Successful Using Educational Seminars As A Marketing Tool

In my 28 years in the remodeling business I have seen many relationships go south between homeowner and contractor! All too often the homeowner is in a position where they don’t even know what they just purchased from their remodeler. Whose fault is this? The remodeler was not paid as a consultant so possibly inadequate time was spent creating a job scope and contract. And of course, the homeowner only wanted to know two things…when can you start and how much is it going to cost! The blame should be spread evenly. I have always wanted my clients to understand EXACTLY what they were purchasing and felt that educating them on the process would be win/win for everyone.

This is why I started to offer seminars to teach prospects “What They Must Know About Hiring A Remodeling Contractor”.

Here are some details on how I do it

I always hold these seminars at a local hotel.  The seminars are complimentary and I always provide coffee and donuts. The duration of the seminar is 2 hours. During this informal, relaxed session we will discuss The Top Ten Questions To Ask A Remodeler During An Interview, how to handle extras, a well written contract, the value of a pre-construction meeting among other topics. I usually ask attendees in the beginning what they were hoping to learn and that helps me drive the content as well. We leave plenty of time for Q&A at the end.

Marketing these seminars presents the biggest challenge, but, not one that is insurmountable! Many homeowners fear being sold at such an event. The key here is to keep all content objective and make this about the homeowner and their needs and not an infomercial for your company. Our seminars are sponsored by 16 local companies that are either vendors or trade partners. This allows us to create objectivity in our marketing efforts as well as help to subsidize the marketing budget.

Benefits of doing the seminars for remodeling consumers

The biggest benefit of conducting seminars is that DBS Remodel is perceived as the local expert in our industry. It is a great platform to create trust with those in attendance. We feel that if we give as much knowledge as we can to our prospects and sincerely help them…good things will happen! 

The short video below will give you an idea of some of the content we include in our seminars

The seminars are fun and quite easy to deliver

Many companies would balk at the expense of putting seminars on and those that do will be missing a golden opportunity.  Last year 34% of our gross sales came from homeowners that attended our free educational seminars. We have 15 scheduled for this year with two of them already complete.

Instead of waiting for the economy to turn around we are taking matters in our own hands!

7 Steps for Creating A Lead Generating Web Site For Your Contracting Business

Don’t just do a web site for your construction business so you can say you have one!

Instead, put together a lead generation and prospect prequalifying machine.  And, make sure you choose a good web site designer to work with who can be a resource both during and after the initial build.  Consider the seven steps listed below before have your web site created.

The Seven Steps to Building a Contractor web site that generates leads:

1. Commit to doing it and paying for it.  Expect it to cost you about $3-6K if you use a pro
2. Do a marketing plan so you know your targets, your purpose, your messaging, your tactics and the metrics you will use to make sure it’s working and measure ROI.  If you can’t or won’t do this you may be wasting all your money because you won’t know what to measure to verify your ROI.
3. Identify the pages you want to have on your site, as well as the sub pages needed to support your marketing strategy. 
4. Then identify the functionality you will need behind the scenes.  For example things like the Content Management System (CMS) you will use to add and edit pages, smart call to action buttons so you know what pages visitors clicked through from, landing pages, a blogging tool, automated lead nurturing ability, analytics and an email marketing tool.  You will need to consider these kinds of things to get a price from a web designer for the work to be done and the CMS you will use.
5. Identify what you will expect of your web designer.  See this blog for help with qualifying a good one.   Just like home owners choosing a contractor, think past just the cost.  Also consider what kind of help, expertise, time frame and working relationship are you looking for.  Will you need help with site design, layout and colors?  Choosing a CMS?  SEO and Social media advice and assistance?  Templates for certain pages you will eventually create yourself, artistic abilities if you will need graphics (you will)?   Help with creating lead nurturing strategies and campaigns?  Make your list (“Job description”) before you contact web designers.
6. Choose your designer, create an agreement, pay the money and get the process going.
7. Start pulling together the content you will need.  This includes text for the pages, photos, your blog topics, logos, strategic links and so on.   You will need to decide what you can do yourself in house and what you will need to hire out for.   Be practical; consider both the time it will take and the expertise needed to do it well.

Now you have a web site!

Make sure you also have a plan to keep it fresh, keep adding content, and use your metrics to make sure it is serving the intended purpose for why you created it.  I hope that purpose will be to capture qualified leads based on your target customer and project types.

Check out this blog for more on targeting.

Fleet Cars, Company Mobile Phones & PCs: Choosing the Right Tools for Your Construction Company

As a business owner, it's important to have your company and employees set up with the proper machinery and technology needed for success.

Here are a few things to consider as you seek out the right tools for your business.

Selecting Fleet Vehicles

When choosing a company truck, you have to make tough decisions about which employees will be driving the vehicles and how they will be used. Consider these three things: the primary cost of the vehicle, the secondary cost, and what kind of image you want to project.

Primary costs include the monthly car payment or leasing fee. Secondary costs include insurance, fuel, and maintenance costs. By leasing a vehicle, you can typically avoid maintenance costs, but you may face mileage overage charges or other fees. Crunch the numbers before buying or leasing to ensure that you're getting the best deal possible.

Think about the message your vehicle will send to potential customers. If your company is environmentally-conscious, consider a hybrid vehicle to stress those values. Consider the time you and your employees will be spending on the road, and consider vehicles that have your company name, logo, and contact information. Keep your vehicles clean and properly maintained to project an organized, professional company.

Selecting the Right Phones

If your employees are expected to check email and take calls regularly, equip them with smartphones like the iPhone 5s, which will allow them access to apps that could make them more efficient. Look for unlimited data as well so your team can receive documents, edit them, and perform other critical tasks on the go. Stress your company guidelines for phone usage and expectations, and enforce those rules.

Consider these apps for construction companies:

• The Aconex Mobile app lets users capture photos, videos and audio on site. It also allows access to project documents, with view and edit features.
• The iBlueprint app allows users to create and export custom floor plans. It’s handy for contractors and real estate agents who want to access blueprints on job sites.
• Procore puts construction management at your fingertips, allowing users to create and manage punch-list items, access contacts, share and store project photos and log timecard entries.

Selecting Laptops or Tablets

When choosing laptops for your team, consider both cost and functionality. If your team can exist exclusively in the cloud, desktop software may be redundant. Speak with your team about what tools and software they need to complete their jobs effectively. They'll be able to provide the best insight and recommendations, and will be aware of new programs and software that might make the company more efficient and productive.

Consider tablets for employees on-the-go, and have them pre-loaded with client-facing software that will project a professional image. The lightweight Windows 8 Lenovo IdeaPad Z500 Touch is a good option to consider for maximum storage. It's a good idea to invest in protective covers that will help extend the life of your tablet.

Guest Blogger: Marnie Smith is a freelance writer for a few San Diego publications, though she is based on the Los Angeles area.

Guest Blogger: Graeme Owen, based in Auckland NZ, is the builders' business coach.  Since 2006, he has helped builders get off the tools, make decent money, and free up time for family time, going fishing, and enjoying sports.  Get his free ebook: 3 Reasons Builders Lose Money and How to Fix Them for High Profits at TheSuccessfulBuilder.com

To Close More Free Estimates Be There for the "Which Builder?" Decision!

Are you wasting time preparing building estimates for jobs you don’t get? Frustrating!  And costly!  Maybe you are like so many builders making one of the most common estimating mistakes: Not being with the client when they are deciding which estimate to accept!

There is no doubt that the builder who is with the client when they are deciding on which estimate to accept is highly likely to get the job.  Wouldn’t it be great if you could be that builder? The thing is...you can.

Here are three keys to being present when the client is deciding "which builder" to hire,

1. Discuss Other Estimates

In your first meeting with your client make sure that you discuss with them how many other estimates they are planning to get. Even though they may like you and tell you you are the only one, it is highly likely that they will consult another builder - if only to check that you are not “ripping them off.”  Also, if they are borrowing money for the build, they may be required to get multiple estimates.

2. Set the Estimate Close-off Date

Having broached the subject, discuss the close-off date for accepting estimates.   Make sure that you give yourself enough time to get your estimate together and enough time for your client to talk to other builders.

3. Position Being There

Finally, in your first meeting ask permission to be with them when they are making their final decision. Set the date and time for that meeting on your first visit.

Here is an example

You say, “Will you be getting other estimates?”

They say, "Yes."

Accept this graciously with something like. “That’s great.” Then say,

“When do you think is a good date for us to have all the estimates together?”

“What we request is that when you have all the other estimates together we meet and go over them with you. This way you can be certain that you are comparing apples with apples. Now I know that you are probably quite capable of doing this yourself, but we have had cases where people have accepted estimates they have later regretted. They did not fully appreciate exactly what was covered and ended up paying more than they had expected. So it’s our company’s policy to do this. Is that OK?”

“When would be a good time for us to meet?”

Summary

Follow this simple procedure and you will increase the number of times that you are able to be with your client at the strategic time when they are making their decision on which builder to use.   Some will not agree.  But if you don’t ask, none will agree!

Post and share your comments below.

Would you try the scenario described above?

So, how many of the last 5 estimates did you close?

What have you found to be the best key to turning estimates into sales?

Tips For Contractors On Ball Park Pricing and Charging For Estimates

Any contractor who has been in business for any length of time has probably had to deal with Ball Park pricing and charging for estimates.  Home owners always seem to want one but not the other.  Rather than risk letting a Ball Park price make them look bad, savvy contractors can use the request for one to help cause the other to happen.  If interested in how to do this, read on.

Let’s start with Ball Park Pricing

How many times in your career has a homeowners asked you for a “Ball Park” price for their project.   And, how many times did your Ball Park price end up being nowhere close to the actual price of the project? 

I find the whole idea of Ball Park pricing comical. I’m not saying it doesn’t have value in some selling scenarios.  I am saying however that when contractors offer a Ball Park price more times than not they strike out rather than hit a home run.

So, when I was selling remodeling and a prospect asked me for a ball park number, I would respond by asking them which ball park they preferred; Fenway Park or Yankee Stadium. That usually stopped them right there in their tracks and helped them think about what they just asked for.  And, by asking that question, I was able to get them into a much more meaningful conversation about their project.  Let’s face it; a "ball park number" really doesn't have much value unless there are some specifications to help give it any relevance.

Try asking them about which Ball Park they are looking for.  Feel free to substitute the parks you use. I think you will find doing so to be a great conversation starter. 

Then there’s the whole idea about charging for estimates

As contractors we know estimates are not free.  Somehow the cost of creating an estimate must be recouped by the contractor. 

Some contractors may say they don’t charge for estimating.  If that is true they are working for free and the cost of estimating is not included in the price quoted to the prospect.  I don’t know about you, but in my opinion if you do estimates for free you are undervaluing your worth and might also be putting your professionalism in doubt.  If you are not charging for estimates, and you also are not accumulating enough money to someday retire, working for free might be a good part of why.  And, contractors who do so are making things challenging for those who do charge by helping consumers think they should get estimates for free. 

On the other hand many contractors who tell their prospects they do not charge for estimates are actually not charging for the estimate in advance, they recoup the cost of estimating through their markup; but only if they sell the job.  

It’s OK if they don't want to pay, but why get offended? 

So why do prospects get offended when you tell them you charge for estimates?  Did they expect you to work for free?   Do they work for free at their jobs?  I doubt it. 

When I was selling remodeling and homeowners asked if I would do free estimates I would say yes and give them an estimate right then and there.  I would say something like “I estimate the bathroom project will cost somewhere between $15 and 25, 000”.   Then I would just wait.   When they asked why such a big range I would simply ask them why they thought I had to give such a big range.  It usually led to meaningful conversations about the fact that an estimate is really just a guess and may not have any relevance to the true cost of what they would actually want to buy.  And, as a result, having this conversation helped them discover the need for plans and or specification so I could give them a fixed price in place of the “estimate”. 

After all, that’s what most remodeling consumers really want; a fixed price for what they actually want. 

One option you can try if the Home Owner can’t understand why you charge for estimates

Next time a homeowner wants a free estimate, or is upset about charging for one, why not suggest bartering?

"If I spend the time to collect all the info about your project, seek pricing from my vendors, meet with my subs to get accurate pricing for their work, and then assemble an accurate cost and proposal; how about we do a trade? Maybe while I'm doing that stuff you could either babysit my kids or cut my lawn? What to do think Mr. Home Owner, would that be a fair trade?"

A point of clarification which should already be obvious

If you choose to go down the “Which Ball Park” or “Let’s barter” path make sure you do it in a respectful manner and your purpose for using this analogy is appreciated by your prospect. 

How you say it can make the difference between being the contractor of choice and being shown the door!

Need help with estimating? 

Checkout this Estimating Workshop for Contractors

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