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:

1. 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?
2. 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.
3. 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…)

I recently read this blog about soliciting bids in the midst of our current “housing bubble.” The article advised homeowners against low-balling when examining contractors’ bids for their work. It reminded me of where I was working when the housing boom finally started to go flat. At the time I was working in southern Oregon. It was a hotbed for new construction during the boom as retirees and newlyweds flooded the area, known worldwide for its landscape and moderate climate.

The town also flooded with contractors. Anyone with a hammer and a pick-up truck was in the business. But when things started to collapse (last I heard the number of homes on the market was up roughly 1000 percent), many contractors were left holding their hammers. That’s when the undercutting started. Bids dropped like Wile E. Coyote off a cliff.

Suddenly we were losing work, right out from under our noses, because everyone was trying to cut costs. For a time, quality of work gave way to quantity of work, often awarded to the lowest bidder. Not surprising, this only complicated things. Just a few months later we found ourselves being hired to finish work left incomplete by low-balling contractors who were either fired or just disappeared.

The moral of the story here is that underhanded bidding is not only unfair but unhealthy as well. Unhealthy for business, unhealthy for everyone involved. Even in a time of recession, the traditional rules of bidding still apply and contracts are not won, nor is work retained, simply through low bids. (more…)