Contractor Talk - Professional Construction and Remodeling Forum banner
1 - 20 of 55 Posts

·
Registered
Joined
·
77 Posts
Discussion Starter · #1 ·
I have a small painting business with three employees. I am know paying $2400 a month in marketing but the business is more profitable then ever. I do lose a lot of bids but the ones I get are very nice high paying jobs....

How do you guys feel about this topic? :eek:
 

·
Balding quickly
Joined
·
954 Posts
We don't pay for advertising now, but when we did we were paying about 15k a year, including the phonebook, which I still get calls on those ads like 3 years later. Seems to me like the advertising did work well. Just wasn't an instant response.
 

·
Master of none.
Joined
·
85 Posts
Referrals/word of mouth and reputation. Advertising costs me next to nothing. I have my cards, which last me a LONG while, and my truck signage which was a once and done cost. So I have no annual or monthly advertising costs.
 

·
Registered
Joined
·
2,055 Posts
I have a small painting business with three employees. I am know paying $2400 a month in marketing but the business is more profitable then ever. I do lose a lot of bids but the ones I get are very nice high paying jobs....

How do you guys feel about this topic? :eek:
we market through direct mail.
currently I am spending about what you are for marketing.

I am VERY happy with the results.--- Extremely happy.

We have been using direct mail for 4-5 years now---and increased our budget every year based on the results.

Previous to using direct mail----- I relied almost entirely on word of mouth-----and earned a comfortable living for 20 years or so within a 10-12 block radius of my home. 5 years ago I decided to focus on Slate & Ceramic tile roofs---- which previously had been a very small proportion of our work. Slate and tile is now virtually 100% of our work thanks to direct mail. we also now cover 5 counties instead of a 10 block radius----- it would have been all but impossible to develope the business like this using word of mouth.

using word of mouth-----we had a comfortable living for one household----- now we have more than comfortable livings for 3 households----and we fully expect to hire a new apprentice in spring of 2015. Everyone gets full medical,dental, vacation,holiday pay, profit sharing. ( my best guy used his profit sharing from 2013 as a downpayment on his house---- moved in june of 2014 )

in my opinion----word of mouth is great---- up to a certain point.

however, well executed marketing gives you MUCH more control over your own business because you can literally make the phone ring, almost on command----and you can shape WHO is calling you---and WHAT kind of projects they are going to want you to execute.

Best wishes,
stephen
 

·
Registered
Joined
·
65 Posts
Small company here, me and 2 employes, I pay around 100.00 a month. Really have more work than I can do now, so mostly advertise with product give aways.
 

·
water re-locater
Joined
·
7,511 Posts
Small operation here. Me an two guys . Spend about $400 month on local newspapers and we average 35,000 a month in sales Referrals and my small group of contractors keep me as busy as I want to be. Prefer the simple life. To each their own
 

·
Registered
Joined
·
7,181 Posts
Depends on the time of year for me. From a few hundred in winter to 3-4k a month in summer months.

Then again, it's all relative to the amount you make back on your advertising dollar so asking amounts doesn't really mean much.
 

·
Super Moderator
Joined
·
28,905 Posts
Few thousand a year, tops. Magazine ads in local magazines, brand recognition. Truck signs, job signs, cards. Website, not sure if we pay anything for it. All our work is WOM and referrals. Small GC here, 2.25 office, 2 PMs ( my brother and I) and 9 hands currently. Booked to next year, but have plenty of room for some service and small jobs in the fall to fill in on larger projects, and can stand one more good project around November 1. If not, not a big deal.

I donate and cook Bbq for some civil functions sometimes, meet people that way, laid back, no pressure. I do the Remodelers Showcase when time is right, might put a Project in the parade next year.

I think it is important to keep your name out there and keep people seeing your logo , but dont expect calls off it. Most work I got off a printed anything was when I was in the paper for shutting down impact fees as president of the HBA, and the article covering my installation as president. Older folks out here still have a lot respect for trade organizations and chambers and whatnot.

Im considering buying some marketing in a neighboring municipality where marketing works. Doesnt seem to out here, none of the GCs I know who stay busy get work from marketing except the Parade and Remodelers Showcase.

I dont really do any SEO, but should probably get on that before we are a dinosaur. Lol
 

·
Marketing Consultant
Joined
·
35 Posts
It all depends on the size and nature of the business. Specialty contractors like waterproofing, roofing. fencing and painting, working mainly in projects with a quick turnaround usually need to run more leads that those who tackle big remodeling jobs. To grow the business, specialty contractors often need to have more crews working different jobs at the same time, and sales people to run leads to keep everyone busy year round.

So for these type of companies, it makes sense to spend more in marketing to get the leads they need. How much more? We advocate spending at least 8% of your ADL (average dollar per lead) if you have an established company, a bit more if you are just starting up. We also suggest having a very good system in place to track leads by source, to make sure you are spending your marketing budget on the right things -- the ones who bring you more leads within your allowable cost.
 
1 - 20 of 55 Posts
Top