Stacey Freed
In December, Stacey Freed of Remodeling Magazine profiled four remodeling companies of different sizes and strategies to identify how some are navigating the murky marketplace. Freed participated in a live chat Tuesday at the Integrity Facebook page to share findings about what the best remodeling companies are doing not only to survive, but thrive.
When you look at the four successful remodeling companies profiled in your piece, as well as other remodelers you’ve recently interviewed, what seems to be the special sauce? What are successful remodelers doing to make themselves better?
Freed: One thing I learned from my interviews was the importance of marketing. The companies we featured all had either increased their marketing during the downturn and/or better focused it.
There’s no real “special sauce,” per se, but successful remodelers said “No” to the recession. They just didn’t give up. They may have had to lay off employees, move back into their home office, return to working in the field, or canvas neighborhoods house by house but they maintained a positive attitude — and kept getting their name out there.
Take Anthony Slabaugh, who was featured. He determined where his real target market is and stopped advertising/marketing to a broader audience. He reached out to his specific target market. Ken Spears Construction knows that KSC sports fans are their bread and butter. They advertise on the JumboTron during games and sponsor a “Coach’s Corner” TV show.
Anthony Slabaugh Remodeling & Design, the smallest business you profiled at $500,000 in volume, has invested in smartphones for its employees with iPads supposedly on the way. It seems an odd time to invest in personal technology, but what’s the payoff for a remodeling business?
Again, Slabaugh refuses to back down. He’s moving forward and knows that the personal technology for employees will help them better interact and service clients.
Slabaugh also mentioned his company had “re-focused” marketing efforts in the past year, focusing advertisement on a single upscale town instead of 10 surrounding cities. It seems counterintuitive to traditional marketing strategy. Why should remodelers consider focusing their efforts to smaller audiences?
You really want to market to your “ideal” client. If you’re sending a postcard to everyone in your state it becomes hit or miss. You need clients who are a good fit who will buy from you. How do you determine a good fit? Go back and look at all your successful jobs. Find out what the clients had in common. All doctors? All teachers? Many live in the same housing development? High or middle income levels? Figure out who you work best with and focus advertising/marketing dollars on them.
Another company you mentioned, Ken Spears Construction (KSC), claimed it earned six jobs valued at $200,000 in work simply by sending letters, knocking on doors and leaving door hangers – a very traditional marketing approach by today’s standards. What can remodelers learn from KSC’s humble approach?
People want connections. KSC returned to neighborhoods where they were working or had worked and introduced themselves to people. If you have a chance to get in front of a homeowner and introduce yourself and your company, it’s a great soft sell. No pressure to buy. Just let them know you exist. Maybe point out some of the projects you’ve done in their neighborhood. Leave your contact information. Ask if you might have their email address.
In your article, Kathy Spears, treasurer at KSC, said her firm is “hunkering down for a long siege.” KSC chose to boost its marketing budget from 2 percent to 5 percent – a considerable hike. With fewer jobs out there, would you encourage remodelers invest more in marketing or spend smarter?
You’ve got to do both — invest in marketing AND spend smarter. I think that’s what the four featured companies are doing. Again, marketing doesn’t have to be expensive. Kyle Hunt, a marketing consultant, has a blog post today telling people about a video he saw on Pinterest that shows a remodeler giving an outdoor faucet protector to clients — it will help keep pipes from freezing. It costs about $2, takes half a minute to install, and it gets you in front of people who know, like, and trust you but who may have put you on the back burner.
