Such a question can be easy or difficult. Take remodeling contractors; for you the answer is probably simple — expansion. The reason being that remodeling inherently involves many different facets of construction from carpentry to electrical to plumbing and more. Being able to offer experience, knowledge, and advice in many of these areas is a big plus.

However, if you offer a unique service, one which sets you apart from the field, then specialization may be your best route. Say you’re a custom tile setter or mason with your own formula for creativity, something that is a valuable selling point. It makes sense that you would want to hone that skill and accentuate it during interviews.

At the same time homeowners and their remodels can be very fluid things, changing as the days go by. While it is generally accepted that a well-planned remodel is the smoothest remodel, that is not always how it goes. Therefore an extensive list of skills and services, including a heightened ability to think on your feet, may be the best way to go.

Another way to expand your offerings is to expand your knowledge of new building products, especially the eco-friendly ones. As remodeling gets greener than ever, there are a lot of well-hyped products coming out to fill the need for better energy efficiency. So in these tough times, if you do have free time on your hands, feel free to spend it researching appliances, building products, and other trends that are dominating trade shows and expos. Today’s remodeling homeowners are bound to have more questions regarding the quality and longevity of these new products. Can you answer them?

How could eliminating the desires of homeowners from sales pitch succeed? For a few reasons, said Richardson:

• People are conserving their cash right now,
• But they are also motivated to protect their most worthwhile asset: their house.
• The average U.S. home is at least 32 years old and coming due for repairs or upgrades.

Essentially, in tough economic times, with less money and higher energy costs, recreating a home to perform better for its owners is a wise sales approach. Sure the homeowner may want a new bathroom or kitchen, but that’s just not in the cards right now. But efficiency upgrades — insulation, windows, doors, passive solar design, and other remodeling projects that could in fact save money and preserve the home in the long run — these are winning points.

Via Qualified Remodeler

Tell me about your book and who it’s written for.

“I started my real estate career in 1987 with CB Richard Ellis Commercial Real Estate. They taught a very specialized system to brokers. The system was based on product and geographic specialization. The system worked in every market. In 2000 I started investing in Real Estate and added a design/build business. I got into decorative concrete and coatings as an inexpensive curb appeal solution to rehabbing properties. I found that most contractors just took business where they got it, with no business plan. The book is written for any trade within Real Estate. I use Case Studies in The Guide of decorative concrete applicators, but it’s written for every contractor. I’m considering writing a version for Real Estate brokers.”

How did you gather your research?

“What inspired me to finally write The Guide was a marketing project (I’ve evolved to the Internet as well) I did for a company with a new coating. They developed a product for resurfacing concrete. Excellent product for floors over 1,500 square feet. The product is a one-day application, which is fine for small floors. They based their business on the one-day application. Problem is, small floors lose money. They never did the financial analysis to determine profitability. I realized they were doomed to failure because they were targeting the wrong market. Once I saw this I realized that the market needs The Guide.

“Here’s a company with a superior product and tremendous knowledge. They have exactly what it takes to be extremely successful, but they are targeting the wrong market. This is why I wrote The Guide. 99% of all contractors have the ability to be financially successful but don’t know how to go about it. The 99% of contractors who break even or fail have just as much talent as the successful 1% and work just as hard breaking even as the 1% who succeed.”

Tell me about the system for success that you describe in The Guide.

“The system is based on being the expert in a market. Let’s say a contractor identifies 75 Grocery anchored shopping centers. Now there are a few different kinds of shopping centers. I’m choosing Grocery anchored for a reason. Every successful investor specializes. So when it comes to Grocery anchored centers, there might be only 15-20 owners of the 75 targeted properties.

There is a good chance that the same property managers run the properties, the same architects, electricians, plumbers and frequently tenants. Many of the tenants are frequently local instead of national, so it’s easy to get to the owner. Now if a contractor stays focused and turns away all business other than the 75 properties, they will capture a large market share. They become much more efficient, they don’t have to travel far, they will control their expenses and manage their books easier because they have a specialized business.

Consider that 75 Grocery anchored centers have 20 tenants minimum per center, that’s 1,500 stores. 7% annual vacancy yields 100 new stores every year. You can see the program can work for architects, general contractors, flooring applicators, electricians. That’s how a contractor controls business. Another basic is that ‘people do business with those they like and trust.’
By specializing, contractors can charge a premium and still get the business because they have developed a relationship. Without a targeted plan every project is like the first. This strategy applies to every trade and market.

Specialization is a science and an art. It’s not hard when you know how but you have to know the process. It starts with the economics of a trade or specialty, then the target market like Grocery anchored centers or office buildings or single family homes. Learning to use the proper marketing tools properly, like newsletters, blogs, and websites to pre-sell services. Presentation packages, contracts, communication logs. They all work as one. This is how a quality profitable business is built. I might point out that this is how a contractor brands their business and gets lots of Word Of Mouth Business. Word of Mouth will lead to other like kind business.

They surmised the following reasons for this unexpected behavior.

It is difficult for homeowners to sell their homes.

They realize this, and are looking for improvements that will make their homes more appealing and competitive with other homes on the market.

When unable to sell their homes, some people opt to improve the one they have to better accommodate their family.

If more space is needed, they add an addition, or they try to improve the areas that made them try to sell in the first place.

There are a growing number of homeowners preparing their homes for retirement and their later years.

This trend is called “Aging in Place,” and entails revamping the house to accommodate their changing lives. Whether it is wider doorways, more conveniences or walk-in showers, they are doing their best to plan ahead.

The article also touched briefly on the growing number of homeowners converting to a greener lifestyle. They are looking for ways to make their homes more energy efficient with alternative energy, along with more eco-friendly materials throughout the home.

One point the article didn’t mention is that with the slower construction industry, contractors have more time and more competitive rates. How do you compare?

The key to an effective contract is covering everything clearly. With all of the details you’ll need to remember, it is very common to overlook something.

Here are a few tips offered by Builder News Magazine:

• The Price Escalation Clause (PEC). In a world where the lowest estimate normally wins, most remodeling contractors quote a fixed price. In many cases this doesn’t allow for the unforeseen price increases in materials or building permits. A way to get around this without scaring the client off is to include a price escalation clause. You can word this clause in a way that allows for you to increase the cost of the project only if materials increase by a certain percentage.
• Bankruptcy Avoidance. Desperate times call for even more precautions, such as a bankruptcy avoidance clause. This situation might come into play if you signed a contract several months ago with a fixed price quote. In the meantime, costs have gone up significantly, leaving you in the red if you even attempt the project. A PEC in the contract or some other clause can help to prevent your company from taking so large of a loss that it puts you in jeopardy.

These are just two examples of how lacking the proper language in a contract can get you into trouble. Another quick suggestion to protect your bottom line: include a statement that deals with when the client causes the project to last longer than you had projected and agreed upon. This can end up costing you an untold amount of money if it conflicts with your other projects.