Choosing Your Customers

I hear more and more customers talking about the number of appointments they needed to have and the number of contractors they had to meet with before finding the right person for the job. Whether I'm the 6th person in a two-month search for drywall work, or the first contractor a customer is meeting with for a flooring project, there is always one consistent aspect to the process – customers and contractor both have a perfect fit. A contractor with multiple employees, multiple vehicles, a warehouse and a materials distribution division will always cost more than an installer working solo to complete the same project. Flooring is a great example of this. It's the most basic idea of strength in numbers due to the tasks involved. If an outfit has three employees and is being run efficiently there will be an installer who assembles the flooring, a cutter who runs the saw, and a runner/assistant.

When I first started in residential remodeling I was installing windows and doors. It was not uncommon for us to have 3 or 4 installers on site, with each taking on a separate task. Our installation rates were higher than small firms but we could offer better prices on materials through a distribution agreement and we were able to accomplish whole-home installations in a week's time (sometimes less). If I were to accomplish the same number of tasks on my own the resulting quality of work would be just as good but the time it would take would be considerably higher. (For more on this please read my article on “Good, Fast and Cheap” by clicking here.)

Because of these ideas it's very beneficial for the customer to think about aspects such as cost, time-line and quality before looking for a contractor. Does your project require intricate tasks and a higher level of craftsmanship than basic installations? Are aspects of your install custom, requiring a higher level of knowledge than the basic install? How much time do you have before you need the job completed? Once you have a basic answer for these questions you can begin to look for the right person for the job. Use previous project photos to find the quality your project requires. Match styles and materials to what you see in a company's portfolio. Is their quality great but the specific style you're wanting isn't represented in their portfolio? You may find that their prices are cheaper than their competition and the quality is matched but there can be a considerable amount of extra time needed.

As contractors, we have to find customers that fit the description of what we're looking for. Not all business is good business. It doesn't benefit us any to commit to a project we will be unable to complete to the customer's expectations. Don't take projects you're not confident in. Don't accept every project that comes across your desk.. some will require more than you can give or some won't pay what your business needs to thrive and grow. This doesn't mean I would suggest being greedy. We should always find ways to offer competitive rates without undercutting ourselves, our competition or our customers. It never works out and always gets worse as the situation progresses. What I would suggest is to find your niche, which I look at not only as the trade or specialty you find the most talent and the best results in, but the trade or specialty that allows you to display your talents in the most competitive, honest and professional way. Consider the time it takes you to complete a task, the going rate for the service you're providing in your area, and the cost for you to complete the job. (Find more on setting prices by clicking HERE). If you're in the same ballpark as the competition, or even under the going rate, you will most likely find success in the industry. There are many ways of finding new leads and growing your customer base. To find out more click here to read our article on finding customers and contractors.