Economy finally back in gear . . . according to CNN

Great news today! According to CNN, "Government says GDP grew 3.5% in third quarter, ending a year-long string of declines and coming in better than forecasts."

Read the entire article here.

I know that we are seeing more activity in our own local remodeling business. Sales are up in both September and October. More calls coming through. And people are thinking about doing more than just repairs.

For those who have continued to market through the downturn, you are in the right place at the right time. For those who haven't, you've got alot of catching up to do.

Regards,
Annette

Are you using the Energy Efficiency Tax Credits to your advantage?

By now you’ve probably heard about the Energy Efficiency Tax Credits. Those are the credits that consumers can take for buying and installing energy efficient products in their homes. The products include replacement windows and doors, insulation, roofing, HVAC, water heaters and bio-mass stoves. (In addition, there are some geothermal and solar products that qualify for credits, too, but we will limit the discussion to retro-fit products).

If your remodeling or home improvement company specializes in any of these types of products, you are missing a big boat if you are not offering products that qualify for the credits. Just about all manufacturers in every one of these product lines are now offering products that qualify.

To learn more about the tax credits and what products will qualify, check out the government’s Energy Star website.

Remodeling magazine has a great section about the entire stimulus package. Check it out at http://www.remodeling.hw.net/green/stimulus-tax-credits/ for a comprehensive guide about the credits.

And you can check out our remodeling company’s blog, Manassas Remodeling Contractor, to see how we have been promoting the credits to our own customers.

But don’t wait for your customers to ask you about the tax credits. Bring it up in your sales presentation. I am still amazed by the number of consumers who are not aware of the credits or don’t know what products qualify.

Regards,
Annette

Networking Can Work

I found a great article for you on networking in Replacement Contractor Online. It touches on business networking, such as BNI and your local Chamber of Commerce, and how to do it.

The article also goes into networking with your current and past customers as well as your suppliers, contractors and others. There are some great examples of companies using these techniques.

In our own remodeling business, we network on a regular basis with our past customers as well as homeowners around a jobsite. We find this to be a great source of leads. I've also networked in the past with a local leads group as well as our Chamber of Commerce. Again, excellent lead sources if done correctly. A waste of time, if not.

Check out the article at: http://www.replacementcontractoronline.com/industry-news.asp?sectionID=316&articleID=1061829&artnum=1



Enjoy,

Annette

Award Competitions Are a Great Marketing Tool

A great marketing tool for any remodeling or home improvement company is to enter award competitions. Depending on the type of competition, awards can showcase the beautiful work of your company or the organized and professional nature of your business. Winning an award or many times just being nominated for an award increases the company’s brand in the marketplace and provides a third party endorsement of the company.

An award or the nomination of an award can boost your company’s credibility with customers and potential customers. Homeowners love to do business with an “award winning company.”

An award or nomination can get publicity for your business. Send out a press release about the award and you could find yourself in your local newspaper with free publicity. And once the media is aware of you and your company, they may contact you again for input on additional stories.

I’ve compiled a list of upcoming awards in the remodeling and home improvement industry. And if you’d like to learn more about awards, check out my article 4 Reasons Award Competitions Should Be Part of Your Marketing Strategy.

To Your Success,
Annette

Do You Know Who Your Buyers Are?

Demographics are the characteristics of populations. You’ve probably heard that word thrown around a lot. Maybe your yellow pages rep came in and asked you what the demographics are for your remodeling or construction company’s market. Or you might have read an article that talked about your market’s demographics.

The truth is it’s an extremely important statistic for you to know. And if you don’t know who your customers are, chances are you are wasting an awful lot of time and money trying to get customers for your remodeling or construction business.

Because once you know who is most likely to buy your remodeling or construction services, the easier it is for you to find them.

Now your demographics are not the same as ABC Construction down the street or XYZ Remodelers up the block. Every business is different.

Find the demographics for the jobs that are in your sweet spot. The ones that are produced on time, on budget and with the least amount of problems. The ones where your company makes the highest gross profit.

So what do you need to know? Here are some items to get you started:

Where do they live?
Are they male or female?
Are they married, single, divorced?
What is their economic status?
What problem are they trying to solve?
Or what pleasure are they trying to gain?

Add to your list.

To Your Success,
Annette

Help your remodeling customers feel good about their decisions

There’s a great question and answer on the HGTV Pro.com site that I want to share with you today. It characterizes how our remodeling customers and potential customers are feeling right now. They are afraid, scared, frightened. This state of fear makes it difficult for them to make a decision. So they continue to sit on the sidelines waiting. They’re not sure what they are waiting for. But they are waiting.

We need to convince our potential customers that they are making the right decision. We can do that through our marketing and sales processes. Help your customers feel good about the remodeling decisions they are making and you will see more projects come your way.

To Your Success,
Annette


Ed Del Grande: Ask Ed
April 6, 2009
Recession Remodeling: Money Down the Drain?

Q: Hi, Ed. My husband and I are loyal readers of your column, and we both decided we would follow your advice on the following matter. For the past several years we have been saving up to remodel our bathroom, and the highlight of the job will be installing a big, beautiful whirlpool tub. Now that we actually have the money to do the project, we are hesitant to start the job because of the slow economy. Is this a good time to remodel the bathroom, or should we wait? -Tina, Nebraska

A: Tina, you're not alone, and it seems with all the bad economic news being reported by just about every major media outlet, we've become a bunch of deer stuck in the headlights. I believe that if we all take a break from the doom and gloom and start living our lives again, we may actually get things moving!

Day after day, the news tells about the bad loans and how houses are losing money. However, what you don't hear is that now may be the best time in years to invest in your home if you have a little cash or equity built up.

For the first time in a long time, good contractors are readily available and are aggressively working with homeowners to keep labor costs down. Materials are also coming down in price, especially for larger luxury items. Also, investing in your present home with a big remodeling job or addition can give you the dream house you always wanted without the hassle of moving. So, if you like your neighborhood, have the room to expand, and have some cash on hand, I say go for the whirlpool tub!

I recently spoke to a friend of mine who is completing a gourmet kitchen addition to his present home, and he told me the toughest part was getting over the uncertainty of going forward with the project in an unstable market. Now that it's nearly complete, he and his wife are thrilled with the job and have no regrets. Also, since they will be able entertain at home in the new kitchen, they have no plans to move and feel confident it was a safe investment.

Isn't it nice to hear good real estate news for a change? So, let's all get moving with our own dream projects. Whether it's a kitchen, a bathroom, or even a swimming pool, now is the time to jump in the deep end instead of drowning in fear!

Source: HGTV Pro.com, Ed Del Grande: Ask Ed, April 6, 2009

Being all things to all people

John and I went out to dinner last night. On our way to the restaurant, we happened to be on the interstate. Both of us chuckled about the same time as we passed a construction vehicle. It was a large white panel truck nicely labeled with the company’s name and contact information, followed by what the company did. It was a good thing that it was a large truck, otherwise, the entire listing of this company’s services would not have fit!

Immediately under the company name was a line “Heating and Air Conditioning Contractor.” Another line under that spelled out Plumbing Contractor. And then came a paragraph about the other services this company offered – Custom Home Building, Remodeling, Siding, Replacement Windows, Handyman, etc., etc., etc. The list was pretty lengthy.

Trying to be all things to all people doesn’t work in this age of specialization. Just attempting to devise a marketing strategy for all of these services would make anyone’s head spin! And I can’t imagine the cost of trying to reach an audience in every market either.

Instead, focused specialization will help you to keep your marketing costs down while you reach buyers who are truly interested in your services.

How to create marketing content for your remodeling business without writing one word!

When you give your prospects and customers valuable information, they immediately consider you an industry expert. And consumers feel more comfortable buying from those they consider to be experts. In fact, when your prospects are looking to you for advice and information, it's a much easier sales process.

You would probably love to have more content to give to your customers and prospects, post on your website, or include in your newsletter but maybe you don't have the time to create it yourself or you really don't like to write.

Now there is a way to give your customers and prospects valuable information and post content on your website and blog, without writing one single word!

The solution is Marketing Packs - articles for consumers specifically targeted to home improvement and remodeling. You can use and re-use these articles for just about any purpose--your own newsletter content, website content, blog posts, consumer reports and much more.

Click here to find out more and learn how you can use Marketing Packs in your remodeling business.

March Madness and Marketing

I have been a college basketball fan ever since my alma mater, George Mason University, made an inexplicable run to the Final Four in 2006.

Before that? Couldn’t care less.

Why the change? Because I got caught up in the Cinderella story of GMU, a sleepy, commuter school in the Virginia suburbs thrust into the national spotlight after beating teams like Michigan State, North Carolina and Connecticut. Now, not only do I follow GMU hoops, I also follow some of the other local college teams. I enjoy sitting down and watching a game. And I’m looking forward to March Madness.

That might be a little odd for a middle age woman who never played basketball. (For the record, I could play a mean game of horse with my brother and his friends!) But the point is we never really know what is going to capture our attention. And the same holds true with our prospects.

Our prospects move along through their busy lives until, one day, they begin to think about a remodeling project. We don’t know what starts the thought—a television show, a friend’s project, a lifestyle change. It truly could be a thousand different reasons. It may be the beginning of a plan to remodel, one that gets tossed around for quite some time. Or the idea may take hold and become uppermost in our prospect’s mind immediately. We really don’t know when and why the idea comes to mind. Just that it does.

And once it does, we must capitalize on that attention. And build on it. And that’s where our marketing comes in. We need to be “out there” so that when the prospect begins to explore the idea of remodeling, our company pops up. It might be in the form of an ad in a newspaper or magazine, or maybe a postcard, possibly our website comes up during a search. And it’s not going to be just once. The prospect will need to see us over and over again. That’s where our marketing plan helps us to be seen by as many prospects as possible and in a variety of venues.

Make sure that your marketing plan gives you the most bang for your buck. And be ready for the madness to begin.

See life from your customer's view

Take a moment to daydream.

Close your eyes. Think about your customer. Who is he? Where does she live? Work? Play? What is he or she looking for?

Next (and here’s the hard part) step into your customer’s shoes. I mean really see yourself as your customer.

And then imagine the world through your customer’s eyes. What are the unique problems that he or she faces? Really see their point of view. If they are frustrated, why are they frustrated? If they are angry, why? Sad? What is it that makes them so?

Understand their emotions and their desires.

Now step back into your shoes and fill the needs of your customer.

Post your ad on craigslist

Here’s a free lead source for you: craigslist.

You can post an ad there for free. Using html, you can even post your logo, photos, and create a nice graphic. Although you don’t even have to use html if you don’t want to.

Oh, and did I mention that it’s free?

Market to prospects you want to do business with

I recently read an article about a contractor (I can’t remember his name but lets call him Bill) who was lamenting that he couldn’t compete against a company that employed illegal workers. He gave a specific example of a prospective customer who told him that he knew the other company used illegal workers and he didn’t care. He was willing to accept that for the cost savings.

Bill’s rhetorical question was “How do I sell someone who doesn’t see the value in doing business with me over a company that employs illegal workers?” The short answer is, “You can’t.” And the long answer is “You don’t want to.” Market your business to those customers you want to do business with. Don’t waste your time on those who don’t see or care about your value. It’s futile.

Looking for work? Think outside the box

Like this young man in Seattle, Washington. He has developed a unique and low cost way to gather leads for his architecture firm. John Morefield has been laid off twice but he’s not letting that stop him.

What unique ways can you think of to bring in more leads?

Don't Participate

Don’t let this current recession determine your fate! Choose not to participate in the current economic crisis.

Now I’m a sales guy but I know that my company has to keep marketing in order for me to get in front of someone to make a sale. The more people I’m in front of, the more sales I make. It’s a pretty simple formula.

December is turning out to be a pretty good sales month for me in my remodeling company. That’s because I’m not letting the recession or the government or the media tell me what I’m going to do. I’ve got some pretty good leads because my company has been marketing all along. I’m selling and that’s that!

A Boost for Remodeling in '09?

Diana Olick of CNBC’s Realty Check blog released her Predictions: 9 for ’09 in Real Estate . Among her predictions: existing home sales will bounce back in 2009 but at much lower prices. Could that mean more remodeling work? All the more reason to keep marketing. Read her report and decide for yourself.

Vanity Awards

The other day our remodeling company won an award! It’s not just any award, mind you. It’s the Best of Our Town’s Award in the Bathroom Remodeling Category. But wait, I didn’t enter. And I’ve never heard of the sponsor, the prestigious sounding U. S. Local Business Association or USLBA, for short.

I googled the name and quickly found this to be a marketing ploy. The scheme was outed in The Responsible Marketing Blog this past summer.

What’s the catch? I buy one of their plaques to display in my office. Over-priced, of course. But they do provide a press release I can use!

Be careful about unsolicited awards. Like the Who’s Who Directories that try to get us to buy a high-priced never-to-be-opened book just because it contains our name, these schemes are only after our hard-earned money.

If you really want to win an award, enter one of our industry’s fine competitions. There are many to choose from such as The Chrysalis Awards, Qualified Remodeler’s Master Design Awards, and Remodeling’s Design Awards . You can even find local contests such as NARI’s COTY Awards and your local Chamber of Commerce probably has some small business awards.

They're Back . . . Energy Efficient Tax Credits, That Is

Part of the economic bailout package signed last month were new energy efficiency tax credits for homeowners. The tax credits begin in 2009 and are mostly the same as those that were in effect in 2006 and 2007.

Check out this article from the Alliance to Save Energy for a great run-down.

If you are a contractor involved in any energy efficient products or equipment such as replacement windows, insulation, roofs, doors, water heaters, heat pumps and much more, you should familiarize yourself with these credits. You can help your prospective customers make a buying decision by pointing out the economic and environmental benefits of installing these products. You can also give your customers all the necessary documentation they will need to take advantage of the tax credit. Use the tax credits as a way to add value to your company.

Ask Your Remodeling Customers For Referrals

Here is one marketing idea that won’t cost you anything! Ask for referrals.

Of course, you should always ask for referrals, regardless of whether the economy is up or down. But in case you haven’t, now is a great time to start. Why? Because customers who come to you through a referral are often already sold and ready to use your company. That makes it all the easier to close the sale!

It is important to create a formal referral generating system. Create a system and assign someone to complete the steps. And then follow up to be sure it is being done.

One of the most important things you can do is to acknowledge the referral from your customer. Immediately send a hand-written thank you card, signed by you. Your customer needs to know that you acknowledge and appreciate his or her efforts.

Once the job is complete, you have a perfect opportunity to ask your customer for referrals. Don’t be shy. If you’ve done a great job, your customer will be happy to send people your way. Be sure to mention referrals in your customer newsletters and subsequent mailings.

Referrals can be a simple and cost-effective way to add more leads.

Keep In Touch With Your Remodeling Customers

Now more than ever it is important to keep your company in front of your customers. After all, they have already done business with you. They know you, your company, your work and have seen the value of continuing a relationship.

How can you stay in touch? Commit in your yearly marketing plan to contact your customers during the year. Based on your type of business, you may decide four times is enough or seven or eight may be the magic number.

Then decide how you will stay in touch. Newsletters are a great way. So are holiday cards, special customer only sales and promotions, we miss you letters. The list goes on and on. Be creative and be yourself. Your customers will appreciate the attention.

What About Your Bailout?!

Bailouts! You may be wondering why no one ever bails out the little guy. The small business that supposedly has made this country what it is today. The entrepreneurs who perpetuate the American Dream.

That’s because what today’s small businesses (and your remodeling company) need the most are customers. Customers who will open up their wallets and exchange money for your valuable products and services. Once a business has customers, the money follows.

Congress is not going to help you out. And the media certainly isn’t either. All of this economic crisis talk has put consumers on edge and forced them to tighten their purse strings.

So you need to help yourself. And you can do this by marketing. Don’t stop marketing. Look for ways that you can reach your prospective customers through low and no cost methods. Show your value.

Here’s a marketing tip that won’t cost you a single cent: Return all phone calls. Preferably the same day. If not, by 9 a.m. the next day.

When you return a phone call immediately, it shows the prospective customer that you value and respect them. They begin to think this is how you will treat them during the project.

Start working on creating more customers for your remodeling business. They are out there. You just need to find them.

P.S. Marketing bonus tip #2: Show up to all appointments on time! This one won’t cost you anything either.