Image via WikipediaWe have been working with high quality residential contractors in the Denver Metro are since 1999. Contractors have unique challenges that other businesses do not face. The first is high pressure from the consumer market on price, and that ties to the ease of entry into the business from new contractors.It only takes a few hundred dollars to become a "licensed contractor". So you always see many new contractors who wither through lack of experience, or just wanted to build a customer base will offer a really low price. Nothing wrong with this, but it keeps the prices in the general market artificially low. Once a contractor has a few years of projects behind them, you will see their pricing increase. It happens every time, and if anyone one can show me an example of it not happening please email me!
The reason the pricing increases is the contractor has learned that it always cost more then they thought to do a job, and that any job can turn into a loss if just a few things go wrong. They also find that a 15% margin will not sustain a company, and they learn that the money they make is not profit. Profit comes after their fair salary, or management fee to run a project, just like the manager at the local coffee shops salary comes before profit.
The next challenge is marketing their service. After they have run through the normal friends and family, and word of mouth, they will have to start competing more aggressively for new prospects. That is where we come in. We generate new prospects at about half the cost of a contractor doing it on their own, so they can continue to be competitive in price, and build their company. There is a misconception in the market that a contractor who uses a marketing firm is more expensive than the contractor that does there own. Because we are really good at knowing how to find the right customer, we actually can reduce the project cost for home owners.
You can see some of our contractor marketing programs
