Generating leads is an artform in remodeling. There are plenty of ways to do it, from retaining past clients to advertising, and these days how you do it can make all the difference. In 2003, Remodeling Magazine conducted a reader panel asking all about leads. At that time, and likely even more so now, the majority of contractors relied on past clients and word of mouth for lead generation.

The concept is simple. Past clients are a familiar resource whom you’ve worked for in the past. Their repeat business or recommendation to a new client has a certain, predisposed measure of validity that is just not possible with strangers. Now, in 2003 when the original survey was taken, times were very different. The housing boom was coming into its own and contractors had more freedom to pick and choose projects.

Those times may have come and gone but the fundamentals of remodeling and lead generation remain, even though it may be contractors calling past clients to check in rather than the other way around. Yet despite the fact that homeowners are in the driver’s seat, you are still more likely to generate quality leads from past clients because both homeowners and contractors tend to trust the word of a friend or known client than a phone book or random ring of the phone.

Another interesting trend that came out of the 2003 survey and remains relevant today is the need for personal interaction. Most contractors surveyed stated that they put “gut reaction” and face-to-face conversation on a higher pedestal than any number on a lead sheet. The lead sheet may itself lead to the interview, but it would always be the interview that took precedent.

Again, now that the tables are turned and it is often the contractor doing the hunting, the same rules apply. Better leads come from past clients and should be prioritized. Homeowners running through the phone book or search engine are essentially window shopping. That is not to say that every lead isn’t important — there is a contractor for every job regardless of lead origin — but the odds are much better when familiarity is involved, not to mention contact onsite. (more…)

No matter the niche, all contractors experience losing a job to a lower bid. It’s frustrating, especially if you know your competitor has a rotten reputation. But it’s a problem that’s been around forever. So, what can you do about beating lower-priced competitors without lowering your rates or your standards?

First off, really get to know your prospect. Understand their needs, wants and top priorities. The industry is what you know best – you can relate to homeowners and really level with them. The better you understand the clients, the better your suggestions for their living space will be.

I had my house painted recently and the bid came in 60% lower than the other bids. I took the bait because it’s human nature to want to save money. I’m not experienced in house painting, so I didn’t know what kinds of questions to ask to ensure the job was done right – and on time. (more…)