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Florida Market

 
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Old 05-17-2019, 08:14 AM   #1
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Florida Market


Hi everyone.
I'm looking to expand to the Ft Myers/Cape Coral area in remodeling of kitchens, baths room additions etc. I'm trying to get statistics like amount of dollars spent on remodeling in that area. Can anyone fill me in on that market. if you call businesses in that area, they all say there is plenty of work right now. But that doesn't tell me if it is a market that can be profitable.

I looked at the U,S. Census Bureau Report for that market and one thing jumps out at me. The median income per household is between $41k - $50k. That doesn't seem to be an income to support a lot of those larger projects with larger margins. Am I on to something here, or am I looking at this wrong. Are there other reports out there that I can access?
Thanks ahead of time for any help I get.
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Old 05-17-2019, 09:39 AM   #2
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Re: Florida Market


Quote:
Originally Posted by jerryham2 View Post
Hi everyone.
I'm looking to expand to the Ft Myers/Cape Coral area in remodeling of kitchens, baths room additions etc. I'm trying to get statistics like amount of dollars spent on remodeling in that area. Can anyone fill me in on that market. if you call businesses in that area, they all say there is plenty of work right now. But that doesn't tell me if it is a market that can be profitable.

I looked at the U,S. Census Bureau Report for that market and one thing jumps out at me. The median income per household is between $41k - $50k. That doesn't seem to be an income to support a lot of those larger projects with larger margins. Am I on to something here, or am I looking at this wrong. Are there other reports out there that I can access?
Thanks ahead of time for any help I get.
Look at the disparity between high income and low income earners. Most are retired in the expensive areas so income is low. Look at median household cost in certain neighborhoods. Ft Myers is exploding right now. Naples even moreso.

If you are even relatively decent at remodeling you can make a killing in Ft Myers. I have some friends down there that are talking about being close to 2 years out. High end market is tough to break into though. Once you're in, you're golden.

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Old 05-17-2019, 12:44 PM   #3
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Re: Florida Market


I started with one of my marketing clients in Cape Coral in 2018. He was doing OK but wanted to capture the high end market place. Check out the About Us page to see how young he is. Seems the area is so dominated by contractors that are so weak at marketing that it is was easy for him to establish himself in a short time. Lot of hard work went in to making it happen, but now he is connecting with the types of clients he wants.

I am not sure what type of work you are capable of, or are targeting, but my instinct is he is turning down some type of work that may be your target. Hard to know without really seeing the strength of your work and customer base.

Perhaps you just contact him and let him know you learned of him via this forum. Just say the Toolbox guy indicated it was worth a shot at reaching out. Good luck.
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Old 05-18-2019, 08:47 AM   #4
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Re: Florida Market


Thanks to both of you for your insight. It will be very helpful. I certainly will be contacting the individual that is in Ft Myers. FYI, We do primarily kitchen and bathroom remodeling with a few decks thrown in as well. We are in the St. Louis county area. Our kitchens are very good quality. The problem we have is that we can't get the margins necessary to justify the quality of work. everyone wants a $70,000 kitchen for $40,000.

My son who is my partner, really wants to move to Florida. I am not opposed to it as well. I just want to be sure that if we do this it is monetarily good from a business standpoint. Therefore I'm trying to research the market to find out as much as I can about Florida. One of my biggest concerns is that apparently there is a lot of work to be had in that area, but what kind of work is it? If it is lower end work, i.e., small kitchens with lower margins, then I'm not really gaining anything from where I am now.
Thanks ahain guys. If you have any other info, I'm all ears.
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Old 05-19-2019, 09:19 AM   #5
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Re: Florida Market


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Originally Posted by jerryham2 View Post
One of my biggest concerns is that apparently there is a lot of work to be had in that area, but what kind of work is it? If it is lower end work, i.e., small kitchens with lower margins, then I'm not really gaining anything from where I am now.
The market is saturated with all sorts. The tire kickers. The cheap folk who want the world for nothing. The ones that who honestly desire a 10K Kitchen. The ones who want a 10-25K Kitchen. And the ones who want 50K Kitchen+. I was about to work with another remodeling contractor in the area who was claiming there were too many people wanting a 50K Kitchen for 25K. But the bottom line is, the contractor's marketing STINKS so he gets what he deserves. Of course he tells me he is the best in the area (with no good pictures) and everyone is happy with him (with no proof online) and then he wonders why is he getting these types of leads.

Before thinking about what you want and deserve in this are, look at yourself and think about how you present your image. It matters more than you can imagine, especially if you are new to an area.

To create a simple analogy, make believe one single man says to another single man "Hey let's go hang out and meet some women after work" and that is all he says. So perhaps you go home and shower and clean yourself up. He gives you the address and you meet him. As you walk in you realize you are in Jeans and a nice shirt, but your friend is in Slacks and a Sports Jacket. The address he gave you was for a wine bar, so the women are dressed a little better. Now imagine being a woman looking to meet a man. They look at you and your friend. Perhaps you are better looking and wealthier and even smarter and nicer. At the end of the day your friend dressing the part for the right environment will get more of a first shot. I realize this is not the best analogy, but my point is, coming to this area in Florida is no less than the wine bar, so you better play the part, or you will get the tire kickers versus the people who just want to associate with quality. You are talking about a very ritzy area with money all over the place. Don't come to the party without being dressed to be there. Hope this helps.
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Old 05-19-2019, 02:15 PM   #6
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Re: Florida Market


The biggest thing isn't what they are paying, it's do they know what the price includes. Most contractors suck at communicating the differences.

I can understand the frustration of a HO when they think they are getting a 25k kitchen and it is priced at 50k.

This is all my opinion of course.


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Old 05-19-2019, 05:45 PM   #7
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Re: Florida Market


You're also going to want to look at the barriers of entry for becoming a GC in Florida. It's quite tough. No reciprocity with other states licenses and you have to know the laws here or they will come after you.

FWIW I dont do any marketing. Dont want to. There are islands in our areas all along this coast that have multiple homes worth 10-25 million in less than a 5 mile radius. Its unlike most places

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