And I’m not talking about the weather!

It is a tough time to be in the home remodeling business. Average job size is down, financing is harder to get, and the phone just isn’t ringing like it used to. I have been talking with other remodelers about the situation and they are really starting to worry. Everybody is looking for the magic bullet- the secret to creating more opportunities. The problem is that they are approaching the situation like it was still 2006. Unfortunately, the world has changed; the strategies and tactics that used to work just aren’t cutting it anymore. Direct mail, ads in local magazines and other general marketing efforts just don’t work. All the easy stuff is done.

So what do we do? I think there are two choices- stick with the old ideas and sit by the phone or change the strategy. If general marketing efforts are failing, it’s time to get personal. Host a Project Celebration party at a completed project. Where else are you going to get the opportunity to meet a large group of people who are marveling at the quality of your work? Mine your past clients, they have trusted you before and they can play an important role in your future- if you keep the relationship alive. Reward them with a gift of your services or product, especially if they refer someone. If you have done a great job for them they will be happy to promote your company. Find the right tools/ strategies to keep them as advocates long after the project is finished.

At first glance, these are pretty simple concepts. But dig a little deeper and it’s a huge cultural shift (at least for us!). The shift is to move away from general marketing efforts being responsible for creating opportunities and move toward salespeople creating their own leads. The salesperson cultivated the relationship with the client. Who better to maintain it and have it grow to include their coworkers, family and friends? If this more personal approach is going to get us through this storm, the salesperson needs to be at its center.

This transfers quite a large responsibility to the salesperson- are they up for the challenge or will they be left behind in this new world? There’s more to the story too- the days of ordering taking have ended. Salespeople need to sharpen their skills in this new environment. But that’s a topic for another day….

What are you doing to create business for your company?

There are days right now that all I see are trees – the bark, the leaves, the roots. And it takes that focus, attention to detail and can do spirit to keep the ship afloat and moving in the right direction. But I need to force myself to take a step back, inhale slowly, exhale slowly and to see the big picture…at least once in a while.

When there is scarcity it is imperative that limited resources go to the core – the heart and soul of your business. Why did you start the business? What are your personal goals today and in five years? How do those goals tie into the direction of your company? Answers may include key people within your team, key clients, your family and/or key initiatives.

Seeing the forest through the bark, the leaves and the roots is refreshing and inspiring. Not to mention it keeps you and your company moving in a unified and effective direction.

Each of our businesses has an ideal blend of doing work with in-house labor vs. with subcontractors. It is a critical mix that affects our client experience and our quality of work. It is also a critical mix that has a direct impact on our cash flow and bottom line. Expect to pay a premium of about $10,000-$20,000 per year for work done in-house vs. by subcontractors (assuming they move at the same pace) – for insurance, time off, etc. There are times this premium is worth every penny. There are other times it is not. Take inventory of when it is worth the premium and when it is not.

As you see your production lead times shorten with winter, the holidays and the market; keep this critical blend in check. Do more work with in-house labor to keep your A-level carpenters busy and productive. But don’t swing too far that way or you will be putting at risk your entire team.

This market is going to take some time to rebound – too long to have this blend and other key metrics of your business not be balanced.

I’ve spoken to a number of remodelers over last couple of weeks and when I’ve asked what their biggest challenge is, the answer is the same; “I need more leads”. Inevitably that statement is followed up by “what are you guys doing?” I try to answer the question by telling them what works for me may not work for them (keep this in mind when you read below) among many other things, I share our current approach with past clients.

I believe that consumers today want to buy and they don’t want to be sold. To take that a step further, I believe more than ever that in today’s economy the “personal approach” is the key to success. The days of sending a letter or e-mail out to past clients is over. People have always bought from people. Today people respond to people and not pieces. As a result my advice is simple:

Eliminate all mass messaging and make your messages personal – Try not to have anything come from your company, but from you directly, add a headshot like Realtors do to remind them.

Create excuses to see them face to face – Stop by your past clients home and tell them that you happened to be in the neighborhood and were thinking about them. Simply wish them a happy holiday season. Even phone calls are easy to avoid.

Give them a gift – Your past clients should be your treasure. Think of creative gifts you can send to your clients, but make sure they are personal. If you know they are big Dallas Cowboys fans look for something online.

Have a call-to-action – It isn’t enough to have your website and phone number on something. Make sure everything has a call to action. It can be as simple as “take a look at my websites for tips to get your home prepared for winter” all the way to “I will give you a call next week so we can arrange a day to meet for lunch”.

Consumers have changes and your strategies to reach them must change with them.