Message to all:
I’d appreciate your perspective on an idea I’ve got.
I’ve been contemplating starting a marketing agency for contractors. The way it would work is that I would handle all the marketing, promotion, and sales materials for your business. This would free up time for you to do what you’re all experts at – your craft!!!
The idea came to me when my wife and I have major remodel work done at our house 3 years ago. We had a crew of pro’s from all trades there so I had a chance to pick their brains about it a little bit. Every last one of them said there was brealy time in the day to do what they were hired to do, let alone promote their businesses.
Being in the marketing field now, I think it’d be a great opportunity for me as well as my clients….pro’s.
Replies
I don't know.
Seems to me if you don't have time to scratch your head, you don't NEED to market.
If you're not working, then you have PLENTY of time TO market!
LOL!
If you're talking about a person who is providing a job for themselves, then they don't need marketing.
If someone is running a business, then marketing is the most important (IMHO) need they have.
Jon Blakemore
Nino - the joke you made is actually the way some pro's think. Also, regarding your comment "Seems to me if you don't have time to scratch your head, you don't NEED to market."
McDonald's didn't stop advertising after thousands served.
I didn't mean anything by the joke, but part of my point is you would use marketing to get more work. I would think that would depend on a few factors.
As a sole proprietor that's constanly busy, I don't see why I would need to market as I have all I can handle and more. However, if I had a few crews I had to keep busy, I can see the need for marketing done on some level.
If this service is not for free, which it will not be, and since construction is very competitive, you will take the subs profit, unless of course, you market someone who has specialty with little competition. I don't see a normal sub giving up his little profit.
Try to look at it as a revenue-generating investment as opposed to a cost.
I don't know what you service you provide but if working with me brings you one big job...isn't it worth the investment?
Ron,
Other problems come into play:
- finding qualified people to do the increase in business - that's the tough one!
_ more overhead.
- most GC's look at the bottom line, will get the cheapest one. Not many have long lasting relationshsips.
Yes, it may be worth the investment for a big job, it all depends on how much you would take and what the profit margin is on the job. Construction is very competitive, not much money to give away. If your good, you will have work most of the time. My theory is to find good 10 builders or GC's and keep them happy and the hell with the rest.
If you decide to start a marketing agency I wouldn't limit yourself to contrators. Don't exclude them but as far as marketing goes there are a lot bigger fish in the pond.
Kevin Halliburton
"One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man." -Elbert Hubbard-
Thanks for the point of view. You're right. My observation is that many owner-operated businesses have a great opportunity to present themselves better to their target customers.
The reason I'm zeroed in on contractors is because I'm a huge fan of what they do. Also, I think they could benefit greatlty from a service such as this.
Nope.
Half of us are too cheap......and the other half think we can do it all ourselves.
One of us married a public relations/ marketing chick....
Jeff
Buck Construction Pittsburgh,PA
Fine Carpentery.....While U Waite
I guess it would depend on what you bring to the table.
There is a company doing something similar, though he concentrates on one trade. he has been adding services and it seems to be taking off.
View Image
This is from an electricians perspective, so it might not apply to other trades but every boss I ever had, as an electrician, had some way of expressing a common truth:
"The problem is not getting the work. The problem is getting paid for the work you do."
Service electrical contractors do most of their work as small jobs without a written contract. Pay, or an arrangement for payment, is expected after the work is completed. Most of the work is billed. Many of these bills get ignored, half paid or negotiated down to a smaller amount to get the deadbeats to pay anything at all.
If you really want to help these contractors start a collection agency. Preferably one that can forgo the weak legal protections. Liens don't work. Most of the deadbeats are very careful about not having property in their own names.
ron,
The guy who took a look at the vast, disparate and independent group of business people who comprise Real Estate Brokers figured he could organize them into a marketing force, for a franchise fee, and he was right! It's called Century 21.
The same guy, (his name escapes me), having made his millions, decided that contractors, yes, by golly contactors, needed the same. He called it Mr. Build.
Check out your yellow pages.
skipj
I currently do that very thing and have found it rewarding. You must work with a contractor that understands the concept of "Owning and growing" a business. Most contractors and sub-contractors don't! They have a job - working for themselves and most will never get beyond that.
If, though, you can help the contractor understand the value of marketing and managing his business for growth - which is what I do, then he can quickly see paying you a "commission" on the customers that you bring in.
Good luck!
DAVE
Where are you located?
I'm in the Dallas/Fort Worth area. I currently represent a General Contractor and a commercial cabinet shop.
I'd love to find out more about the services you provide to your clients. Is there a phone # I can call you at?
Ron,
I used or should I say tried to use a similar service. Improve Net.com The promise was they would send "qualified, pre-screened contractors to bid on my job. It turned out to be a joke. After the normal frustrations of trying to get them to even keep an appointment to give me a bid, I hired a local guy with excellent references, referred by a friend. I think they list any licenesed tradesman who is willing to give them a percentage. I'm not to sure about the "pre-screened, qualified" pitch. I was not impressed by their service or the quality & reliability of the contractors they put me in touch with. I figure if a contractor is not even responsible enough to keep an appointment to give a bid or call and re-schedule, how responsive is he going to be if I have a call back or a problem?
Sorry, I'm just venting personal experience with some flaky contractors. I do think there is a need for this service. Those of us who are regular home owners are constantly trying to find good craftsmen to do the jobs we can't do. Good luck, I admire your entrepenural spirit!
Actually, the service I'm talking about providing is very different from Improvenet.com or any of the other local "Services Guides". Really, I'm talking about offering a whole host of services to my clients that would put their businesses top of mind with potential customers...way beyond the ever-powerful word of mouth.
The short list includes: advertising and marketing plans, logo design, company image consulting, naming and tagline development, sales training, upsell techniques, phone skills, time managment consulting, etc.
So far, the general response to this idea has been "great idea but I wouldn't want to pay for it". I'm even more encouraged by this. Who'd have thought we'd be paying for water in bottles just a few years ago!!
Thanks for the homeowner POV.
"The short list includes: advertising and marketing plans, logo design, company image consulting, naming and tagline development, sales training, upsell techniques, phone skills, time managment consulting, etc."
Seems to me the biggest gripe people have with builder/contractors/remodelors is shoddy workmanship and not completing the job in a timely manner. You seem to be concentrating on "order winners," not "order qualifiers." Nothing wrong with that, but if the second is not in place, pushing/ promoting the first will just lead to customer dissatisfaction. Reputation is a strong selling point, especially if you can deliver more than your implied promise, not less.
"Who'd have thought we'd be paying for water in bottles just a few years ago!!"
By the way, we buy bottled water. Why? for the convenience and it does taste better than our well. That adds value. Is it pricey? Depends on how much value you place on your time. Certainly feel like I'm getting my money's worth.
T
Well ya just lost me!
..."way beyond word of mouth"....
Nothing goes beyond word of mouth. A word of mouth customer is practically pre-qualified.....usually come to you with some grasp of what things cost......knows how you operate.....knows your personality.....knows of and has most likely seem your work up close and personal.
They don't have to read a marketing ad with quotes for "another satisfied customer"....who may or may note exist..they get to feel the emotion of a satisfied customer sitting across the coffee table from them.
This is all sales. And emotion sells. Easier to have emotion with human contact than without.
You can never underestimate the power of a word of mouth referal.
Not only does it give the customer info about the contractor....it gives the contractor valuable info about the potential client.
I'd spent 8 yrs in sales before getting back to my roots in remodeling..and I've seen a ton of money sunk into the very same "image creating" items you list..and I've seen that same money wasted many times over.
Unless the product is there......no amount of organization and window dressing is gonna make it fly. Maybe for "one time" deals....like some roofing/siding/window companies. "Hit the customer once..hit them hard....not like they're gonna want new siding next year too" guys.
I can see the point that those items listed.....mainly business awareness and skills...should be aquired before you go out on your own....I just don't think anyone....most contractors at least..would pay for them.
Those that don't think about such things don't think ya need them..those that do think of such things probably are more than half way there on their own.
Just my opinion after sitting thru more BS sales seminars than I'd like to remember. Consulting is one scam I wish I'd gotten into years ago! Get to wear nice suits too!
Jeff
Buck Construction Pittsburgh,PA
Fine Carpentery.....While U Waite
As somebody pointed out before, the biggest problem is not getting the work as much as it is finding qualified people that can get the job done. Construction isn't like a business where you can buy a bigger machine to get more productivity. PEOPLE still need to do the work!
On the surface, the idea of growing a business is a fine one. But my question is, how are you going to handle the extra work coming in if you can't find the proper help to do it? Screw up a few projects with shoddy workmanship or not getting them done in time, and all the marketing you ponied up for will be down the drain.