Do We Really Need To Be Everything To Everyone?

buildpinnacle

As I was posting in another area today, I wrote down a thought that provoked this question. I seem to be reading alot of contractors on here and even in articles in QR about us expanding our services in tough times. My question is, 'Is that really what we want to do?' I have actually shrunk my company down to only doing what we do best. Don't you think it would serve us best to stay with what we know and put our resources into becoming more efficient, marketing harder to our niches and trying to make more money off becoming better or the best at we are?

Let me have it!

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nlgutters

I agree for most cases. But say in the case of a concrete guy who just did new construction. Maybe their is not a market left so yah he should switch to maybe stamped concrete walkways?

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rbsremodeling

The most profitable remodelers focus on a specialty, Kitchens, baths, etc. Once you find your work and profit groove you need to make it your niche and go for the gusto.

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buildpinnacle

My point exactly, Rory....roofers should roof, painters paint, fence guys fence, kitchen guys do kitchens, etc. However, I am not seeing that trend with a lot of the things I am hearing and reading. As I think that is the best path to success in a good economy, it is even more critical in a questionable one.

I lost a bid a couple weeks ago on a 100k renovation/addition that i really didn't want to bid anyway, but my secretary is on the board of this local water supply company. What was interesting is how the bids came in:

Bid A: $110K
Bid B: $109K (mine)
Bid C: $105K
Bid D: $92K

Bids A, C, and D were all from new home builders local to the area. Bid D is a very local 'new' home builder who actually wrote the specs. I don't want to get off track here....my point has nothing to do with being outbid, or close to the mix or anything like that. It has to do with my previous comment on people expanding their business to get work. Here is an example of three new construction builders who are starving moving into a renovators market. Maybe I'm the guy whose got it wrong, but I firmly believe that there is a huge difference between the following:

Track home builder
Custom home builder
Commercial finish out contractor
Commercial building contractor
Remodeling Contractor
ReConstruction Contractor
Specialty Contractor
Handyman

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WarnerConstInc.

Hey, I resemble that!!

Where I am you would starve if you only did baths, or decks, or roofs, or siding.

The big companies from the major city to our south will be up here every now and again but, it seems people in my town like to have the guy do the work that can handle the whole job. Guess it makes them feel more comfortable.

Tinstaafl

I'll certainly agree with that--in a well balanced economy, and when that particular contractor has not only found his niche, but has built a reputation and customer base in that niche.

But above all, we have to be flexible and able to adapt to the times and economic conditions. That's not as much of an issue for roofers and painters, as they will always be needed for maintenance if nothing else. But fences, kitchens, bathrooms and so forth are optional work that tends to go by the wayside when the wallet is thin.

So there is really no definitive answer to your question; it depends upon one's specialty (or lack of one). As a general remodeler, I wear quite a few hats depending on the situation, and it does behoove me to be able to provide whatever service the client needs. I'll sub out when necessary, but I'm always working on ways to keep the work in house.

buildpinnacle

I agree there is no definitive answer, but I thought this might provoke some thought. Think about this carefully before you answer. Are we really doing our clients a service if we take on sectors of work that we do not do much or wouldn't do much if the work was not getting thin. My OP really wasn't directed towards how many hats we were, etc, but more towards our bretherens opinions on how we stretch our services and whether it is really a profitable decision in the long run. Albeit, those who are general remodelers have to wear all the hats and provide a wide array of services. My question was moreso, if you make the most of your money on whole house remodels and additions why wouldn't you concentrate on cornering that market and giving up the deck and siding jobs that you may not make as much on...hypothetically speaking.

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easymoney

I think your absolutley Right!... in theory, in principal.
People should stick to what their good at, and I beleive most contractors do, however in reality (as even you mentioned when you said you didn't even want to bid on that 100k job) contractors when asked to do something, rarely turn down an opportunity, especially in these slow times.

I'm a drywaller by trade, worked for a general contractor and now I work in a different state as a painting supervisor, all I can say is when a door closes, you sometimes have to go through a window.

Tinstaafl

Gotcha. Yes, in those terms I certainly agree. But until I do get that market cornered, which realistically is no sure thing, it behooves me to offer a wider range of services, even if some of them are less profitable.

As long as I don't sacrifice quality in doing so, it keeps me busy in lean times--and more importantly, keeps my name/presence out there for when those higher-profit jobs are available.

threaderman

I have entertained the thought of getting a hvac license but I think that would spread me too thin,and I prefer to do plumbing and pipefitting.I only care to have 2 or 3 trucks on the road,I'm not that ambitious where I feel I need a whole fleet of service vehicles like some companys.Like you said,some are over extended and they have weak spots in their service because most can not be everything to everyone.

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Joe ---International Code Council Member

Your plumbing & gas specialist proudly serving Oklahoma City OK, Moore, Warr-acres, Norman, Midwest City, Edmond, Bethany, Forest Park

buildpinnacle

Threader,

Nice to see a fellow (at one time anyway) okie on the site. I know Joasis up in Hennessey posts here from time to time. I grew up in the Helena area and now the folks live in Enid. We did quite a bit of commercial roofing in OKC and Tulsa when the last big hailstorm came through a few years back. The old man up in Enid is thinking about coming out of retirement to dust off the old sales boots from this latest one. I do remember it was very hard keeping my salesmen out of the Lucky Star, though.

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WarnerConstInc.

threaderman

I'm actually a transplant after owning homes in Chicago and Clearwater,Fl.,but I really enjoy the climate and the countryside here.I own a few acres in Oklahoma county and plan to retire here.There's always coffee brewing here if you're in the area.

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Joe ---International Code Council Member

Your plumbing & gas specialist proudly serving Oklahoma City OK, Moore, Warr-acres, Norman, Midwest City, Edmond, Bethany, Forest Park

rbsremodeling

Very few contractors can do multiple types of remodeling well or actually profitably I should say

Most think they can but when you look at the profit you will be surprised.

I always do well on kitchens and whole house renovations. I do well on very big projects because I believe I started out doing large commercial renovations.

The sweet spot in interior renovations are kitchens and baths. Get a some guys that can follow a layout, do tile work, drywall and remodeling carpentry and you can make really good money on these.

Exterior work Roofing, Siding windows and decks are king. But you make the most money subbing out most of the work on these in my opinion.

All that multiple and different trade work is not very productive, do it if you have to, but learn what you guys are good at and focus on it if you can.

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EricTheHandyman

I've actually narrowed my focus this year, all of my promotion is toward painting. It's getting me some estimates to look at that I wouldn't have had otherwise. Like another poster said, I'm not turning down anything, but I felt it was time to choose one thing that I'm good at and try to focus on it.

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Bathroom Remodeling in Inver Grove, Eagan, Mendota, & Woodbury
Kitchen Remodeling in Inver Grove, Eagan, Mendota, & Woodbury
Deck Builder in Inver Grove, Eagan, Mendota, & Woodbury
Handyman Service in Inver Grove, Eagan, Mendota, & Woodbury

mark the coach

Great point. Since last fall I have seen several contractors try to make the switch from larger remodels to handyman. Many are finding that they are not set up properly and they are frustrated with details of running multiple small jobs. Some are losing money because they are not increasing their margin to cover the variables and minimums.
A large builder just closed shop after he tried to take on remodeling projects after his new construction business tanked.
Another recent event, the ice storm of 2008, created a ton of insurance jobs that many design build contractors are trying to win. The margins on these jobs are low and dealing with the insurance adjustors is challenging. They don't like to pay for design build, supervision, job set up and they don't accept lump sum bids, only broken down line item estimates.
We need to market what we do best and provide stellar service to our customers. Working outside of your competencies can work against you.

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mark the coach

Tinstaafl

So? The fact that they're finding it necessary to make the switch says one thing; the fact that they find it difficult or impossible says another.

There's absolutely no doubt about it; making a living on a never-ending series of small jobs is most certainly high-energy and ulcer-provoking. But the fact of the matter is that some can do it and actually seem to thrive on it. Others try and fail miserably. There's just no way you can make a blanket statement about this and be providing the best answer for any given individual.

But just for the sake of filling the internet pipes if nothing else, what does the Coach recommend for those who would like to stick with their core competencies (and are truly competent at them), but find that route untenable under current circumstances?

buildpinnacle

Tin:

Don't get me wrong. I think there are companies out there who can handle 10 different facets of remodeling with efficiency and great profits. I am speaking more to the lot of us who try to be the jacks of all trades but masters of none because we don't take the time to properly develop certain realms of our business so it will grow. We get so busy doing everything and get so wrapped up in fear of our next project that we do have a bid anything approach. I just hope this doesn't happen in the medical field because I don't want to have my dentist operating on my heart....get my drift.

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EricTheHandyman

The trouble that I was having when trying to do "everything" was bidding jobs. Because there are so many things that I don't do regularly, I would factor extra time into the job to make up for all the head scratching time involved, and my bids were usually higher than others.

I've done so much painting that I can figure my quotes pretty easily and competitively, not to mention that's what I'm most skilled at.

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Bathroom Remodeling in Inver Grove, Eagan, Mendota, & Woodbury
Kitchen Remodeling in Inver Grove, Eagan, Mendota, & Woodbury
Deck Builder in Inver Grove, Eagan, Mendota, & Woodbury
Handyman Service in Inver Grove, Eagan, Mendota, & Woodbury

Skip Borders

I would like to get some opinions on my overreaching plan.

There are many things I do well, and fewer that I like to do and do very well. My plan is to continue to develop a network of fellow contractors that work in areas that I am either deficient in, ill equipped to perform, or simply do not enjoy doing and have them work as subs for me.

I in turn will do the same for them where our skills and capacity will permit. I would expect to see a small discount for providing the lead for these other contractors and would like to be able to tack on 10% to 15% to their bill and submit this to my customers.

My thinking is:
a). The customer knows that one call to me can take care on nearly anything that they may need.
b). We build a complementary network of different trades that can work to keep busy when things get a little lean or share the load when business is good and scheduling gets too big for capacity.

I would like to hear form others that employ this line of thinking and get your take on how it is/has worked for you.