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Remodeling Trends That Will Drive 2020

From three-tone kitchens and porcelain slabs to ultrathin materials and custom-colored appliances, this list of 34 trending design ideas should spark your creativity.

Read the complete article by Mitchell Parker on Houzz: Click Here

Are you a remodeler or residential GC looking for ways to improve your business practices and profitability? Check out this FREE report from the Aspire Institute, Business Strategy for Contractors: Download Here

Learn more at an Aspire Institute one-day business workshop: Click Here for Schedule

Generation Z is Expected to Dominate Home-ownership

A recent study by research firm, Pulsenomics, found that Gen-Z members will own more homes than millennials in 15 years. The study surveyed more than 100 economists and 45% of those polled believe that 60% of Generation Z members will become homeowners when they reach 35 to 44 years old.

Pew Research Center defines Generation Z as roughly anyone born after 1996, so they’re now 23 and younger. Millennials were born between 1981 and 1996, so they’re now between 23 and 38, according to Pew.

Read the full story from MarketWatch: Click Here

Targeted vs. Re-Active leads

The first approach results in mostly reactive leads. Reactive leads are leads that are not necessarily a fit for your business. Reactive leads come from Word-of-Mouth, Referrals and Online Lead Generation services and undifferentiated websites. Leads like this may not be what you want or need. And leads like this have a low hit rate of matching what is special about what you offer with what the potential customer cares about; wasting their time and a lot of your time.

Targeted leads are different. Targeted leads match what is different or special about you with people looking for that difference. All marketing strategies require you to feature something that is special about you. This is called your Value Proposition. If you haven’t identified and promoted a strong value prop, then the default becomes your value prop — and that is price.

Reactive leads naturally skew toward price priority customers. A steady diet of reactive leads will surely convince any contractor that their whole market is about price and they dare not charge fairly.  Word of mouth and referrals are valuable, of course – but they should not constitute more than half of your total lead generation. The other half must come from targeted leads.

Generating targeted leads requires a different process.  It isn’t that it’s hard or costly, but it does require some marketing knowledge to create the targeted lead generating processes.  Once accomplished it can be life-changing.  In a reactive lead generation approach, only fewer than half of the leads will be from the clients you want.  And of those that you want only about a quarter of them are looking for your unique value prop.  With an effective program churning out targeted leads you can end up with about 70% of your sales calls being with qualified leads who care about what is special about your company. It answers the question in advance as to why a customer should choose you over others and be willing to pay a premium to get what is special about you.

Learn more at an Aspire Institute Workshop: Click Here

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The Cost of Competitive Pricing

Does a near break-even profit level work for you?  If not, then what is a contractor to do? Can you make a meaningful bottom-line difference by acquiring materials cheaper than your competitors?  Can you pay less for labor?  Can you find cheaper subs who will do good work and be loyal?  Of course not.  The good news is that you don’t need to be competitively priced.   However, to charge 5 to 10% more than the market average you have to increase the value you deliver. Then you can increase price based on value delivered, not cost alone.

Sometimes a contractor’s business model is off-target and results in a reality distortion field through which the contractor becomes convinced of certain things that simply aren’t true.  Like the requirement to be competitively priced.  Look at the availability of store types – low end, mid-level, and high end.  How about restaurants, a dinner out can cost 10 dollars per person or 100 dollars per person.  When you are driving down the road are all the cars and trucks you pass the lowest priced model or is there a range from high to low?  How can it be any different for your potential customers?   Even with small and rural markets, there is enough “segmentation” to have buyers wanting better service, a better experience, and better quality and they’re willing to pay a bit more for it.

The first challenge for contractors to charge better is to have a clear and effective difference from competitors.  The second challenge is to develop a marketing plan that connects them to potential clients looking for the things that are special about that contractor.  This is neither hard nor expensive but it does require a knowledge of marketing most contractors don’t have.

Keep in mind at a 5% increase in price with no change to the project cost basis will almost always double a contractor’s net profit. 

Learn more about differentiating yourself in our free report, Business Strategy for Contractors: Download Here

Learn more at an Aspire Institute one-day workshop: Click Here for Schedule