Media bullies remodelers

(Warning: This post is a rant. Read on at your own risk!)

There’s a newswire story making the rounds.

The title? “With business off, remodeling gets cheaper.”

Cheaper?? Cheaper for whom?

The story originated in California but has been picked up all over the country, even by our own Housing Zone . You can read the story here on the original wire service.

The newspaper in my area that picked it up added their own special twist to the title:
“With business off and the economy in a downturn, remodeling gets cheaper.”

Jeesh. Can we catch a break? Now the media is telling consumers that our prices should be lower!

I beg to differ! I have not had one single call or letter from one single vendor that any of our remodeling company’s overhead costs are being lowered! Sure there are some material costs that are lower – take lumber and sheetrock (hopefully not the Chinese-made variety). But even the price hikes on materials over the past couple of years that were due to the increased cost of petroleum have not been reduced.

For the most part, our operating expenses are higher! Insurance has increased, rent has gone up, the postage rate is rising soon, employees expect raises, advertising costs are growing to bring in the same number of leads. I’m sure you have the same issues.

Where would the decrease come from? The only place left – your company’s margin. But don’t do it! That is a sure way to a quick death.

Don’t let the media scare you into cutting your margins. Instead, work even harder on setting your company apart from the competition. Make it almost impossible for someone to choose any company other than your own.