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…)

Earn more per project by seeing possibilities that the homeowner can’t. I recently went through a home renovation that included two complete bathroom makeovers and a partial kitchen remodel.  During the interview and bid process, I related to the contractor my specific needs and design plan. He suggested a few minor changes that would be more suitable and cost-effective, but other than that, he simply did what I asked him to do.

My friend, however, who is also the realtor who sold me the house, made a smart suggestion to seal a hallway closet that abutted the bathroom and use that space for bathroom shelving. This made perfect sense because (a) there were too many doors in the hallway, making the space look smaller and (b) I desperately lacked storage in the bathroom.

Why didn’t my contractor come up with the brilliant idea? Perhaps it’s what we call tunnel vision. You go into the project by first listening to what the customer wants, you tell them whether or not it’s doable and then you create their vision. But if you looked around, you might get ideas that will greatly enhance the space and make it more functional for the homeowner. (more…)