So, right now I’m very busy but I know how quickly I can go from hero to zero. I have a lot of experience in putting together good marketing items (have done a lot of print, postcards, websites etc). My question for you all is what venues have you found effective for upscale remodeling? I’m looking to do more kitchens, baths and attic conversions for an afluent clientele (a lot of em around here). I don’t like the idea of “Pennysaver” weekly newspaper ads, maybe the local artsy newspaper? Have thought about putting together a website for once I’ve gotten their attention, and have a friend who has much the same customer base I’d want to target who has offered to let me put some POP kind of thing (maybe color “postcards”) at his business.
Love to hear what’s worked well for you guys…
Thanks and Happy Thanksgiving!
PaulB
Replies
I've had good luck with postcards, and I've found that people call if they are interested in something that looks a lot like the picture. I've done two, a kitchen and a bath, and both times people called asking about similar projects. Professional photography is a must (but you already knew that) and a website where they can see more is also important.
Use bulk mail to get them out. It's about 13 cents apiece and there is a bulk mail acceptance clerk at your post office who can help you target the zip codes or neighborhoods you want. Buying a mailing list is possible but then you're paying the 23 cents or whatever the address rate is now. Modern Postcard and similar places do work plenty good enough for marketing.
I'm not sure the exact nature of your business.
For me, networking has always turned the trick. I know people and people know me. This happens by being involved in things other than my work like church, political and service groups, volunteering, and via loyalty relationships. By this I mean that I get referals from my subs, and from the lumberyars where I am frequent.
Iget postcards and see mail advertising this and that. most of them go in the round file or make good firestarter. The only ones that get my attention are from a car dealer and it comes every week and is expensive for them. My u87nderstanding of the kind of contractor who garners his primary contects via mass mailings and newpaper ads are that 40% of gross is a minimum advertising budget and prices ar3e bumped up to copver that. They need a new customer every week.
I do larger jobs mostly and only need a few customers a year, but other contrractors who operate similarly will still tell you that word of mouth advertising is the best you can get.
If I get a call-back, it is a marketing opportunity. I jump right on it. That enhances the reputation, but it never fails me that when I am there, something alse comes up that is a paying piece of work, and/or their neighbor needs something done or estimated. I can gaurantee that the neighbor will never get refered to me if I shun the cal-back.
The point here is that your current customers are your besst voice in the marketplace. When you start to see yourself getting slow soon, start calling them or sending them cards of appreciation and then call them. Not to be pushy, but if they are satisfied with your previous work, they will mention something else...
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40% of gross is a minimum advertising budget
I'm not doubting what you said, cuz I have no other info, but that sure is a big chunk of the cash flow.
"When asked if you can do something, tell'em "Why certainly I can", then get busy and find a way to do it." T. Roosevelt
Maybe more like 4%?
Going by memory from articles, but that was my impression. it was re the kind of companies that only close on 4-8% of their leads, advertise everywhere to keep generating new leads, and pay no attention to customer satisfaction but keep cultivating new customers instead of taking care of the ones they already have. They have high prices, high pressure salesmen, offer financing to boost profits and do moderately qualified work, at best. Use a big advertising budget to create branding and create the illusion of quality instead of letting the work itself shine.
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Direct mail (postcard) to targeted neighborhoods you want to work in that then points the potential clients to your company website.
Very effective.
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I joined ServiceMagic several months ago and I'm very pleased.
They've sent me very qualified leads on countertop jobs for about $30.00 each.
They mistakenly billed me for a higher rate countertop install lead that turned out to be a lower rate repair. They made it right without arguement.
I published a free ad on CraigsList and got a do-it-yourselfer who wanted me to come out and give him a "free estimate" (translation= have expert explain how to fix problem without paying him). I told him I needed $150.00 to come out, estimate and perform the repair. He said he wanted to get some more estimates and I haven't heard back from him, thank God.
ServiceMagic will waive the $99.00 sign-up fee if you agree to get $500.00 worth of leads a month. However, they only bill you for the leads you get, not $500.00 come hell or high water.
If you go newspaper or direct mail, you're going to get an awful lot of tire-kickers. This is impossible with ServiceMagic. You only pay for the leads you get and the leads are excellent quality.
Interesting idea KB...I'll look into them.
Thanks
PaulB
Paul:
I just signed a $4,300.00 contract tonight for an engineered stone countertop job on a lead from ServiceMagic.
I paid $30.00 for two previous leads and $6.00 for a repair lead, so with the $30.00 for this lead, I paid $96.00 for a leads that gave me a $4,300.00 job.
You don't have to be a real mathmatician.
Appreciate the info KB, I've sent them an email for more info... I'll let ya know what happens!
PaulB
Let me tell you about something that didn't work for someone.
I have a gate across the driveway to my house, locked with a padlock when nobody's on the site. I came up one day to find that someone had placed a business card advertising kitchen design services on the gate. It was a very nice card with a photo of a custom kitchen on it that looked great.
Later that week, the individual who placed the card came by while I was there. He said that he did both design and construction of custom cabinets, and was just getting started. We talked and I explained I was doing my own kitchen design and construction, but thanks anyway. I asked whose kitchen it was that was on the card, I might like to refer him to some people I know.
"Oh, I grabbed that photo online."
Moral of the story - don't put photos on the card or postcard or marketing brochure that aren't your work.
Guffaw!"Yeah, I just stole that from somebody better'n me, but I'll be honest with you and do a better job that that on yours..."Sure!;)
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In the late 70's and most of the 80's I had a small business called Clasic Renovations. I had 5, 30's vintage Ford pickups and they were the best advertising I could have ever gotten. I purchased the first 2 because I thought they would look neat and through Hemmings they were a third the price of new trucks at the time.
In the early 90's I went into semi-retirement in a different area of the country and wanting to find something to keep busy I did the mail adds to a few local zip codes. The response caused me to have to change my phone number, just more calls than I could have ever returned.
Word of mouth has always been my most reliable source of good dependable customers. It's great to be able to be a picky busness person, everyone comes out ahead. Good honest service will always sell at a fair price for both parties. Somehow his country got to the moon and back on low bidders but I sure have never gotten a job as low bidder.