Contractor Marketing Blog

How to Win with an Internet Lead

Renee — Tue, 30 Jun 2009 17:50:37 +0000

As the digital age continues to expand, more and more homeowners are using the Internet to research remodeling projects and potential contractors. Now it’s no secret that business isn’t exactly booming at present, yet many homeowners want to remodel. Homes still need repair and while the slumped housing market is discouraging selling, it is encouraging home improvement.

So we have a market that encourages remodeling, however hesitant consumers are to spend, and an Internet that is fast becoming a home improvement tool in its own right. This combination has spawned a major rise in online referral services. These companies, such as CalFinder, offer homeowners an online resource on a smorgasbord of home improvement topics and an easy-to-use link to contractors in a given area. You, the contractor, pay to have these homeowners connected to your company, in the form of their contact information.

Working with these Internet leads can be a bit tricky, requiring more work on your part than traditional leads. As Dave Lupberger pointed out in a related post for Qualified Remodeler, an Internet lead will likely fall short, in terms of information provided, when compared with traditional referrals. Unless you work with a service like CalFinder that pre-qualifies every lead, you generally won’t have a personal view of the homeowner, you won’t know how serious they are, you won’t know their budget situation, and you won’t know when they want to start.

What you will have is their contact information, which is something to work with. Homeowners are generally serious about wanting to remodel, but they may be very hesitant, given today’s economy, to jump right in. Therefore Internet leads may require a little work on your part, some more aggressive marketing. Lupberger put it very nicely when he stressed the importance of developing “a good marketing pipeline.” (more…)

The ABCs of Your USP

Dan — Tue, 23 Jun 2009 17:42:29 +0000

What is it that makes your company so special? What sets you apart from the competition? The easy answers are hard work, dedication, and quality. But these are not the most unique characteristics of a successful company. In fact they are the backbone of every successful company, and in a slow market many successful, quality companies are competing for the same jobs, wooing the same clients.

That means that contractor-seeking homeowners are likely bombarded with lines like, “We do quality work” or “I have years of experience” or “I am honest, I work for you!” Nowadays it takes more than a smile and a handshake to get work. It takes some creative selling. So the question becomes: What is your unique selling proposition? Your USP?

The USP is not new to marketing. Today a number of businesses and corporations search for and use their USP to the fullest extent. And in a highly competitive market it is vital that you realize and utilize your company’s unique selling point. A recent post from Qualified Remodeler offered some good advice for contractors seeking out their own USP.

That advice includes something that many of you are likely already doing — contacting past clients. But instead of contacting them simply to maintain a relationship and check on past work (an increasingly important approach in its own right), you can use them as a marketing research tool. Surely there is some reason that those past clients chose you in the first place; something about your company that somehow appealed to them more than your competition.

So the deal is to call some of your favorite, most successful clients past, of course check up on the finished project and offer any assistance needed, but also schedule a rendezvous (i.e., dinner, lunch, etc.) where you can probe them as to why they hired you. As Qualified Remodeler suggests, do this with about five of your favorite clients and look for a theme to arise, the odds are good that you will find one. This may very well by your company USP. (more…)

Pitfalls of Low Bidding

Dan — Mon, 15 Jun 2009 13:00:39 +0000

As I’m sure the vast majority of you are aware, the depressed home construction market has spawned a good deal of low bidding, even going so far as to spurn undercutting between contractors, forcing many qualified contractors out of seemingly solid leads. In such a climate it may be easy to fall into the web of low bidding. Indeed it is often hard to lay blame when considering the desperation that many contractors feel — contractors who were thriving just a few years ago.

Low bidding is not without its pitfalls, however, and it is vital that no contractor bid lower than his or her means allow, especially within the realm of remodeling.

Pitfall #1: Losing Potential

Low bidding can easily lead to taking a loss. A contractor, in the oft mad drive for work, might look at a job — quickly measuring up the job and the homeowner — and feel confident enough to bid lower than normal for the work. The general gamble here is that the job will run smoothly and according to plan, despite experience of the opposite. We often counsel homeowners to be prepared for just about anything when “opening up” their home. In this case, the same advice is useful for remodelers seeking to outbid the next guy — simply having work does not necessarily spell success.

Pitfall #2: Labor and Manpower

Labor is another key issue. You, the contractor, are responsible for paying your employees, whether the job is over budget or not. Low bidding combined with unforeseen circumstances can spell disaster for your job, finances, reputation, and that all-important relationship with employees. Furthermore, should circumstances send the job behind schedule, you won’t have the resource to recruit the manpower to get it done in a reasonable amount of time.

Pitfall #3: Reputation

Reputation. Low bidding is often looked sternly upon by other contractors and trades within the community. It may seem like the short road to ongoing work, but in the long run it can be more damaging than helpful. In tough economic times all contractors are forced to lower their bids, there is no denying that; we all have mouths to feed, and that includes homeowners. But on top of all the other risks involved in low bidding, which can also hurt your reputation, tarnishing the company name is not one to ignore. (more…)

Online Education for Contractors Who Want to Go Green

Beth — Mon, 08 Jun 2009 21:28:47 +0000

The demand for sustainable building is pushing architects, commercial developers, contractors, designers and others in the industry to look for ways to gain or increase their knowledge in green building.

The competitive arena in the green building market is rapidly expanding and in order to keep up you need to achieve accreditation under Leadership in Energy and Environmental Design (LEED) and become LEED certified.

Finding the time to take classes isn’t always easy. And, if you want your employees to become LEED certified, it can cause job delays and travel expense. So, what can you do?

The most convenient way for you and your employees to become LEED certified is via online classes. There are several LEED educational classes available online, including the LEED AP test prep class. Both the Green Building Council and The Association of Interior Designers offer classes or webinars and LEED AP study guides online.

Earning a LEED AP designation or getting your feet wet with the LEED Green Associate accreditation? You can do it all online.

As a LEED AP your clients automatically earn an Innovation in Design point when working with them on a LEED Certification project – automatic point. As a General Contractor with a LEED AP designation, you’re able to handle the entire LEED Certification process for your client. This designation also enables you to gain recognition as a LEED AP on the USGBC web site. Their online accredited professional directory is where consumers will go to identify and contact qualified service providers.
The LEED Green Associate accreditation is a great place to start and provides an excellent platform in which to grow.

(more…)

Door-to-Door Lead Generation

Dan — Tue, 02 Jun 2009 16:57:30 +0000

In hard times, and with an unfortunate amount of time on their hands, more remodeling contractors are turning to canvassing in order to generate leads for work. But don’t think that door-to-door canvassing is only some desperate act relegated to recessions. That only increases the focus on a proven lead generating tactic, and one employed by many contractors for many years.

Yet canvassing is not easy work, and successful programs require trained canvassers (often the contractor personally) to be effective. That is why many didn’t think too much of it during the housing boom when competition existed more between homeowners trying to find quality contractors than between contractors trying to find work. But now the tables have turned and competition abounds in the home improvement market, and door-to-door lead generation has its unique benefits and requirements, such as:

Instant leads. You never know who awaits behind the next door, especially these days when the need for home repair is growing as yesterday’s homes age. The economy is weak but homeowners still want to remodel and repair, they just tend to be indecisive about it, enough so to hesitate in making the call to a contractor. But if a contractor knocked on the front door?
The trained eye. Hitting the streets can be an eye opening experience. As you stroll up to a house you might see a sagging gutter, peeling paint, or a shoddy roof. Immediately you know how to angle your pitch. You can focus simply on what the house needs to generate your leads, leads which would have gone unfound but for the art of canvassing.
Determination. Door-to-door lead generation requires a healthy dose of perseverance. In many cases, realizing a lead will require one or several call-backs, not to mention knocking on a heck of a lot of doors. (more…)

The Psychology of Selling

Dan — Fri, 29 May 2009 17:03:34 +0000

What if the art of soliciting work was less about what you say but more about what you ask? Instead of always focusing on what to say next — talking to yourself rather than truly listening to the prospective client — you would be actively engaged in the process by focusing on client needs.

This and other key points for Psychology and Strategy of Sales are addressed by Shawn McCadden in a recent spot on Remodeling TV. In the short excerpt from his seminar, McCadden points out that a real understanding of sales, understanding “the psychology of this dance that’s going on,” can make a world of difference to your company.

As McCadden summarized, “The questions that you ask will be far more valuable in proving your value — the difference that you bring to the table — than the answers you give.” (more…)

Recession Busting 101: Six Lessons Builders Can Glean from the Housing Bust

Dan — Tue, 26 May 2009 16:24:53 +0000

We stand in the depths of a recession, caused by a housing bust and shady bank dealings that have been the downfall for an alarming number of builders and contractors. Slowly, however, the mood is turning less sullen, consumer confidence is gradually returning, and homeowners and builders alike are starting to look to the future as potential salvation peers over the horizon.

In the chaos and hysteria that followed the bubble-burst last fall, there was a good deal of panic and a lot of shoulda-woulda-coulda talk. Well there’s no preventing what has already happened. We can, however, begin to do something about, as well as make absolutely sure that we learn from past mistakes. The building industry has a proven cyclical nature; a nature that many builders failed to recognize during the lucrative boom that preceded the equally destructive fall.

In order to help builders avoid another crash, or at least find a way to weather the next drop (assuming an impending rise), Builder Online has compiled a list of lessons for builders to take away from the current recession. Designed to illustrate some rare recession successes and prepare for a smarter boom the next time around, the six lessons are summarized below:

Build Smarter. Think energy efficiency, renewable energy, and smaller, lower maintenance homes. These will be key attributes of the recession-era home for the eco-conscious consumer and a government likewise determined.
Limit Land Holdings. Some builders were buying up every site in sight during the boom, many of whom have been left holding their hats. On the next go round builders should be thinking twice about purchasing land before its true value is known.
Find New Cash Streams. Banks have folded their arms and zipped their books shut in the wake of mass failures. Therefore credit is rather hard to come by these days, so some builders have been searching outside the banking arena, even overseas, or signing deals to finish projects acquired by lenders via foreclosures.

(more…)

Deep Discount Remodeling Puts Contractors Back on Job Sites

Beth — Mon, 18 May 2009 17:16:29 +0000

The word was slow to get around but homeowners are now beginning to see that the time is ripe to remodel. Deep discounts are very tempting and some homeowners who fear a worsening economy are taking the risk and taking advantage of great deals.

Many homeowners who received remodeling bids a year ago are finding that the same project today would cost thousands less.

Take for example Michael Perkocha and Tina Stott from Oakland, who just purchased a bungalow for $630,000. Last year they were getting quotes in the $250,000 range and decided to postpone remodeling because they couldn’t afford it. This January they got quotes ranging from $102,000 to $170,000 and ended up going with a contractor whose bid was $129,000. That’s a $121,000 savings!

Such deep discounts allowed them to upgrade their flooring from laminate to oak and upgrade their countertops from Formica to granite. They’re also able to add crown moldings and energy efficient windows.

Besides saving a huge chunk of money, the work is almost complete at three months, opposed to the six months they had figured on, and they’re under budget. These are huge marketing points for contractors: big savings, ahead of schedule, and under budget. (more…)

Stimulus Advice from the NAHB

Dan — Thu, 30 Apr 2009 15:58:48 +0000

Federal funding for energy efficiency will be a big incentive, if not the primary reason, for home improvements this year. As a contractor, knowing the ins and outs of these incentives could make all the difference in client interviews. Because tax code is never the easiest thing to read, the NAHB has put together a website to explain the details. (more…)

The Sweet Spot’s List of Remodeler Marketing Tactics

Dan — Mon, 20 Apr 2009 19:14:27 +0000

We here at CalFinder know as well as any that there are a wealth of remodeling bloggers cruising the Internet, and we cross paths with quite a few of them at one time or another. With such an overwhelming amount of material to peruse, we find it important to single out those that excel above the rest.

For some time we’ve been keeping an eye on Jonathan Sweet and his remodeling blog, The Sweet Spot. As senior editor for Professional Remodeler, Sweet keeps a close eye on the state of remodeling these days. And he does good work in disseminating not only his opinion of the times and trends, but solid information as well. (more…)