How Can You Compete?

Tom M

The computer with all this information sharing, the do-it yourself boom. Come on its getting more expensive to build anything. Even small jobs that take a day or two to complete cost over a grand plus material.
What happened?
When I opened the local paper I see:
Cape cod roofs replacement/tear off 12sq/ 2400.00 complete.
$7500.00 for a full bathroom gut and change out new fixtures,tile the works. $3995.00 Up to 20 combined square of siding replacment
Buy 12 windows get 1 free.
I say dam I used to roof for that much 13 years ago, I dont think I could ever side for that cost or afford to give away windows. I have been bidding on a few baths and each cost roughly 5 K just for plumbing and fixtures.
What next?

Celtic

What are the ads NOT telling you?

Take the 12 sq. roof for $2400 for example (BTW, is that Carlson Brothers ad?)....does it include a dumpster, permits for both the job and the dumpster?

What about sheathing replacement?

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A W Smith

Tom now you have to be a salesman. You have to sell yourself. You have to be outgoing and receptive to the clients needs. But be careful, Don't be boastful or come across as a know it all. You may be perceived as a Bs artist. If a client starts to tell you about what a butcher some other contractors are try and change the subject. Explain to them that you do not make a habit of criticizing others work that you let your own work stand by itself. explain to your prospect clearly the features and details of what you are selling. Go the extra mile and explain to the prospect how you would go about avoiding pitfalls by explaining some of the details you would perform. many guys you are competing with will just drive up make a list, hardly interact with the client and just drop an estimate in the mail. Thank the prospect for considering you. Be a good listener. If you know someone in their neighborhood ask them if they know them. be friendly. be interested in them, If they are friendly and offer you a cup of coffee or soft drink thank them and mention to them that they are considerate and you would love to have a client like them. If they offer alcohol decline, This may make an impression on them as it could be a test to see if your a drinker. Try to make the prospect comfortable. Do not talk over their heads by being overly complex. If they have questions you cannot answer tell them that you will research for them and get immediately back to them.

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Al Smith
http://www.awsmith.com

wizendwizard

It really comes down to 1 thing. You are not competeing against those ad's in the paper or on the net. You have to show the customer everything they get up front and honest. Don't hide behind a price that is misleading. These ad's are just that. The customer is going to have those salesmen come out and then they get the full story: Oh its extra for the container, Extra for permits, Extra for a different material, Extra for so much more sq ft.

You mentioned a full bathroom gut and remodel with new fixtures and tile and the works. Do you think that $7500 is going to be cheapest possible fixtures and tile, midrange? Highend? These places that offer the discount is a tool for dishonesty.

Look at lowes and the $199 whole house carpet install. Read the fine print.
Offer only good on "special order" carpet. What is Lowes' markup on that material and we all know they use the cheapest labor. Who is making money. Lowes only. Customer actually pays higher price for the carpet, but lowes was able to get their foot in the door by saying, "whole house carpet for $199"

Don't let it get ya down just sell yourself and keep plugging away. True customers that care about their homes know a real contractor when he makes his sales pitch.

Best of luck and don't give in to the b/s!

__________________
"If you start the grout process over, you too could use sparkly grout!"
There is no such thing as an illegal immigrant, they are either illegal or immigrants.
I'm Retired, or a student, don't really know anymore.

Tom M

Could be You must know the area. You must also know this ad has not changed in years.

The sickening thing to me is the tremdous amount of riff-riff associated with the trades I came up doing. Roofing, siding, windows, bla, bla, bla. I always knew I didnt want to deal with this. It was go big or use them as stepping stone to larger projects. I figuire I would continue to provide these services as I evolved into "construction" as opposed to cut-throat home improvements. I dont know all the trades as well as I would like. There is much to know and I am still learning as much as possible. Especially bidding things in which I have no lengthy track record. Along the way I need to still compete and feel like I cant. Its a lost feeling sometimes.

Tom M

I recently decided to advertise to only my data base with brochures. As I was going through that list I realized I have done so much repeat business with my customers the list is not that long. Regardless I sent out over 100 brochures and got not one call. All my customers love me and my work. I feel either I have gotten to expensive or there is little left to do for these people. Selling myself or the work has never been an issue till this past year. There are so many houses being knocked down and McMansions being built that it just seems people have little intrest investing too much into a small foot print.

MIbeachbuilder

Living in SW MI I listen to Chicago talk radio all the time and I hear advertising about a company that does a complete kitchen remodel for 10k including "cherry cabinets and granite countertops". I have wondered myself how that works because a homeowner can easily spend 10k just for cabinets not including anything else.

If there were ads like that running in my area for a complete roof install for that cheap i would call them to get an estimate and see what the hidden things were....there is almost always a catch...

Celtic

Service Magic seems to the flavor of the month on the radio here.

Service Magic also seems to be a popular flavor on this forum....

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MIbeachbuilder

Less is more i say!

Tom M

There is surely a catch to some degree but its the volume generated for these sales is what enables these people. I dont pay that much cheaper for materials than a homeowner going to home depot. The pitch for these peoples is the ability to churn out a repetitive service volumn based on discounted supply cost.

Celtic

Not me!
Favorite colors?

Cinder/Cement block?

BUT....once I am done with this shack, it gets sold and we see if I get the McMansion ~ that my ONLY plan on work revolves around painting, crown mold, upgrading the lighting (int/ext ~ landscape). These tasks will probably be done quite poorly by yours truly.

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MIbeachbuilder

Celtic...service magic the website for referring contractors?

ChrWright

All excellent advice.

There is no such thing as something for nothing.

There is no such thing as something for nothing.

There is no such thing as something for nothing.

You've heard the story of the competing barbers haven't you? Competing across the street from each other--with dueling cost reductions in an effort to steal business from the other.

Finally, when one puts up a sign cutting his prices to $2 per haircut--The other wisely changes his to read "We fix $2 haircuts".

The first mistake is thinking you're competing against those ads in the first place. The second is not recognizing the value of what you give to your clients. Professional work has to be done at a professional rate. If it's cheaper, there's a reason--and that reason usually means taking a big risk if you're the consumer.

__________________

Christopher Wright, CR: President @ WrightWorks, LLC/President @ Central Indiana NARI, Named to the 2010 REMODELING Big50
www.WrightWorks.net - Facebook - Twitter - Carmel Remodeling
Indianapolis Kitchen Remodeling Contractor - You Can Get There From Here

Celtic

That'd be the one

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MIbeachbuilder

If your going to sell it, think about keeping it neutral. Linen, beige and grays appeal to more buyers. do you have a photo of your house? what kind of siding is on it now?

Celtic

As long as we are talking hairdo's...

The town has 2 barbers.
Both barbers charge about the same.
One barber has messy hair, the other has perfect hair.
Which barber do you chose (messy or neat) and WHY?

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MIbeachbuilder

do you get a lot of referrals from them? i have talked to them a couple of times but im not sure....

Celtic

...it's too embarrassing to show

Seriously...it's a hovel.


But that's another thread ~ let's let Tom have his 15 minutes

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Celtic

Do a search for "Service Magic" on this forum BEFORE you decide anything.

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ChrWright

The messy one, of course...

With only two barbers in town, the messy one obviously cut the other's hair-and vice versa.

__________________

Christopher Wright, CR: President @ WrightWorks, LLC/President @ Central Indiana NARI, Named to the 2010 REMODELING Big50
www.WrightWorks.net - Facebook - Twitter - Carmel Remodeling
Indianapolis Kitchen Remodeling Contractor - You Can Get There From Here