Top 7 Ways to Eliminate the Competition
Friday, October 06, 2006
If you are in the construction, remodeling, or repair business, then you have competition. What's the best way to stay in business? By being better than your competition. And, if at all possible, eliminating your competition.
1) Discover Your Specialty - create a niche for your company that allows you to be a specialist in your category. If you are concrete contractor, perhaps you become the acid stained concrete specialist. Install flooring? Perhaps you are the Travertine or Bamboo Wood Flooring Installation master.
2) Do Your Research - Whether you can afford to make your business a specialty or not, talk to your current customers and find out what they are truly looking for from their service professionals. Find out what they want and make every effort to give it to them. If your customers want itemized billing statements or 24 Hour Service Calls at no extra charge, try to make sure you can accommodate their needs. They’ll be talking about you to their friends and family and not your competition.
3) Focus Your Company Goals - to be the best in a market, you need to know what you are doing and how you're going to do it. Having a business and marketing plan that clearly states your goals and when you want to reach them - over the next quarter, year, and 5 years - will give you a course to follow. For example, you could plan to expand your business by adding a showroom within 2 years. Or you plan to increase your marketing budget by 10% in the next quarter. It will force you to make necessary changes to reach those goals. And keep track of your goals. It doesn't do any good to set a goal and not measure your results.
4) Market Your Specialty - if you've chosen to develop your niche specialty, don't forget to let people know about it. How you're different from your competition is what sets you apart and makes customers want to choose you. Put it on your website, business card, and yellow pages ad. Don't just tell people you're a plumber; tell them why you're the best plumber for the job.
5) Monitor Your Competition - your competitors will constantly be making changes. It's important you know what they're doing so that you can be prepared for it. If they're working on Saturdays, you'll work on Saturdays and Sundays. If they redesign their website, you add new functions to your site. One company brings in several new trucks and you can't afford to do the same? Make sure you let your prospective clients know that your company won't be spread "too thin" like some other company that-shall-remain-nameless.
6) Ask More Questions - your competitors talk on the phone with prospective clients and they hear about their needs, tell them approximately what time they'll show up, and that's it. If you make sure to ask questions, on the phone and in person, you'll be conveying that you are the expert. Many people think that by answering questions they'll prove they're an expert, but that's not always the case. When you ask questions, it means that you know the subject thoroughly enough to know what their answers will mean about the job. If I take my car to a mechanic, tell him the problem and he says, "Huh. Never heard of that. Okay, I'll take a look" - I'm worried. If he says "Did it go click-click or did it go bzz-bzz? And were you in gear or neutral?" - I've got the feeling that he knows my car, knows the problem, and can fix it. Which mechanic do you think I'd recommend?
7) Tell More Stories - you can share your skills, your specialty, and your plan with a prospective client. And you might win the bid to do the job. But when you tell stories, you'll turn your service into an idea. You've been on the job a long time and you've seen a lot of things. The best way to convey the remodeling or building project into an emotional need for your clients is to wrap it in an entertaining tale from your past experience. You can talk about how your last kitchen renovation transformed the clients' lives. It doesn't have to be a long story, just a few sentences about something that did or didn't work out on a past project. It focuses their attention on you, allows them to know the depth of your experience, and makes it more personal for them. And I bet your competition isn't doing it.
To stay ahead of your competition, register with ConstructionDeal.com for free, to see what remodeling, construction, or repair job leads are available in your neighborhood.
1) Discover Your Specialty - create a niche for your company that allows you to be a specialist in your category. If you are concrete contractor, perhaps you become the acid stained concrete specialist. Install flooring? Perhaps you are the Travertine or Bamboo Wood Flooring Installation master.
2) Do Your Research - Whether you can afford to make your business a specialty or not, talk to your current customers and find out what they are truly looking for from their service professionals. Find out what they want and make every effort to give it to them. If your customers want itemized billing statements or 24 Hour Service Calls at no extra charge, try to make sure you can accommodate their needs. They’ll be talking about you to their friends and family and not your competition.
3) Focus Your Company Goals - to be the best in a market, you need to know what you are doing and how you're going to do it. Having a business and marketing plan that clearly states your goals and when you want to reach them - over the next quarter, year, and 5 years - will give you a course to follow. For example, you could plan to expand your business by adding a showroom within 2 years. Or you plan to increase your marketing budget by 10% in the next quarter. It will force you to make necessary changes to reach those goals. And keep track of your goals. It doesn't do any good to set a goal and not measure your results.
4) Market Your Specialty - if you've chosen to develop your niche specialty, don't forget to let people know about it. How you're different from your competition is what sets you apart and makes customers want to choose you. Put it on your website, business card, and yellow pages ad. Don't just tell people you're a plumber; tell them why you're the best plumber for the job.
5) Monitor Your Competition - your competitors will constantly be making changes. It's important you know what they're doing so that you can be prepared for it. If they're working on Saturdays, you'll work on Saturdays and Sundays. If they redesign their website, you add new functions to your site. One company brings in several new trucks and you can't afford to do the same? Make sure you let your prospective clients know that your company won't be spread "too thin" like some other company that-shall-remain-nameless.
6) Ask More Questions - your competitors talk on the phone with prospective clients and they hear about their needs, tell them approximately what time they'll show up, and that's it. If you make sure to ask questions, on the phone and in person, you'll be conveying that you are the expert. Many people think that by answering questions they'll prove they're an expert, but that's not always the case. When you ask questions, it means that you know the subject thoroughly enough to know what their answers will mean about the job. If I take my car to a mechanic, tell him the problem and he says, "Huh. Never heard of that. Okay, I'll take a look" - I'm worried. If he says "Did it go click-click or did it go bzz-bzz? And were you in gear or neutral?" - I've got the feeling that he knows my car, knows the problem, and can fix it. Which mechanic do you think I'd recommend?
7) Tell More Stories - you can share your skills, your specialty, and your plan with a prospective client. And you might win the bid to do the job. But when you tell stories, you'll turn your service into an idea. You've been on the job a long time and you've seen a lot of things. The best way to convey the remodeling or building project into an emotional need for your clients is to wrap it in an entertaining tale from your past experience. You can talk about how your last kitchen renovation transformed the clients' lives. It doesn't have to be a long story, just a few sentences about something that did or didn't work out on a past project. It focuses their attention on you, allows them to know the depth of your experience, and makes it more personal for them. And I bet your competition isn't doing it.
To stay ahead of your competition, register with ConstructionDeal.com for free, to see what remodeling, construction, or repair job leads are available in your neighborhood.
Remodeling Business Slowing?
Thursday, October 05, 2006
The Record.net. “When the home-sales market is hot, the remodeling business usually is, too. But home sales began slowing last fall, and a downturn is starting to show up in the renovation sector, say local contractors.”
Business is still good, just not as good as last year, said Rick Fooy, owner of Silver Fern Construction & Remodeling in Stockton.
The local remodeling business roared in the previous five years along with the existing and new-home market, Fooy said, but this year, work has slowed to perhaps 80 percent of last year's pace.
‘”I think people are a little unsure of finances,’ said Rick. ‘It’s all about money.’”
Daniel Maloy, of HandyDan Construction in Stockton, said there's still a lot of work out there, but he has noted that a lot of customers are concerned about the scope of remodeling projects and pushing their lines of credit.
"Everybody's needing stuff done," he said. "They're just more concerned about what they want to spend."
Plus, with home prices flattening or even sinking in a slow housing market, there’s more concern about whether the cost of a remodeling will be recovered when the house is sold later, he said.
“Julie Anderson said she also has been getting calls from real estate agents looking to fix a house up for sale. During the housing boom, sellers could often sell ‘as is.’ Real estate agents and brokers now say that increasing competition is forcing sellers to get their properties into top shape if they wish to sell.”
“Fooy said he hasn’t found that most people are downsizing jobs, there are just fewer customers. ‘There were just so many people borrowing money,’ he said. ‘Everybody was in a big flurry to do it.’”
Business is still good, just not as good as last year, said Rick Fooy, owner of Silver Fern Construction & Remodeling in Stockton.
The local remodeling business roared in the previous five years along with the existing and new-home market, Fooy said, but this year, work has slowed to perhaps 80 percent of last year's pace.
‘”I think people are a little unsure of finances,’ said Rick. ‘It’s all about money.’”
Daniel Maloy, of HandyDan Construction in Stockton, said there's still a lot of work out there, but he has noted that a lot of customers are concerned about the scope of remodeling projects and pushing their lines of credit.
"Everybody's needing stuff done," he said. "They're just more concerned about what they want to spend."
Plus, with home prices flattening or even sinking in a slow housing market, there’s more concern about whether the cost of a remodeling will be recovered when the house is sold later, he said.
“Julie Anderson said she also has been getting calls from real estate agents looking to fix a house up for sale. During the housing boom, sellers could often sell ‘as is.’ Real estate agents and brokers now say that increasing competition is forcing sellers to get their properties into top shape if they wish to sell.”
“Fooy said he hasn’t found that most people are downsizing jobs, there are just fewer customers. ‘There were just so many people borrowing money,’ he said. ‘Everybody was in a big flurry to do it.’”
U.S. Economy Update - Will the Housing Bubble Lead to Recession?
Wednesday, October 04, 2006
The economy and the housing market have been doing very well the past 10 to 15 years. The new housing construction and remodeling industries have been riding a wave of high growth and maximum earnings (despite an economic slowdown at the beginning of this decade.)The biggest problems that have arisen during all this time are that incomes have grown but have not kept pace. Also, fewer jobs have been added within that same time frame. Now, that could mean that our current workforce is more productive, but it's bad news for our real estate market - fewer workers means they need fewer houses.
Our new Federal Reserve Chairman, Bernanke, could be the deciding factor on how our economy performs over the next two years. Bernanke's policies and communication style are much different from Greenspan's (the former Chairman.) If he focuses too much on stifling inflation, he could create a serious recession in the coming year. If he lets the economy grow again, inflation could skyrocket (and higher prices will also have the effect of lowering demand for materials and labor in our construction industry.)
What has many concerned is our bond market. The bond market pricing has been showing to a very high, very flat yield rate (with little or no difference between the 3-month T-Bill and the 10 year bond.) Every time this has happened in the past (the early 70's, 1975, the early 80's, early 90's and 2001) the economy has ground to a halt and we were mired in a recession.
If the economy is going to slow down, and it looks like it will, the degree of the slowdown is going to be determined by the real estate/housing market. Housing prices are not going to fall like crazy but they will not appreciate for a while and will drop in many areas across the country. The question is: how many people will be hurt by a loss of equity in their homes or a rise in their interest rates? There are also many jobs tied to the real estate and construction industries and the loss of jobs could continue to pound down any economic growth. Many consumers have been overspending, having gotten used to the years of successful prosperity, and it could come crashing down. Fuel prices have lessened somewhat, but most agree that they will rise again by winter, so consumer confidence is shaky and could get worse with any more economic bad news.The one good area of possible growth for the construction industry? Commercial. Retail may suffer if there is an economic downturn, but office construction and multi-family unit construction should grow in 2007. Apartment construction should be strong - if interest rates rise, it will become more affordable to rent than own. And many apartments were converted to condominiums to cash in on last year's real estate boom. The shortage of apartments will create strong growth as demand continues to rise.
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Read Top 10 Tips to Surviving an Economic Slowdown with your Small Business.
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