I wanted to send a follow-up note regarding some video segments on working with distressed real estate. I’m highlighting this because while remodeling is a good business, it doesn’t allow business owners to build wealth. This was made abundantly clear several years ago when I was speaking with a very successful remodeling contractor who had begun rehabbing old homes. He had been doing this for years, and I was curious about it.

Referrals are the strongest business leads we can get. When a past customer sings our praises, we can get no better recommendation. In light of this, I want to show you how to transform ordinary business relationships into extraordinary ones. I want to encourage you to create actions that are designed to be so exceptional and different from what is expected that your customers are pleasantly surprised, to say the least. These actions generate such good work-of-mouth advertising that it’s the best form of advertising you can buy regardless of cost.

I had a wonderful breakthrough in my remodeling business when I discovered that I could set project rules that homeowner would agree to follow. Now, I learned from practical experience that I couldn’t set these rules after the project had started. No, any rule setting had to be agreed upon before the project started. I understood that I could do this after I spoke with a psychiatrist who had just completed a 6-month remodeling job. After his project was complete, he told me that “parental transference” takes place on many remodeling projects. In many projects, a good contractor takes on a parenting role to the clients he or she is working with. Interested in reviewing an agreement for House Rules?

I have been writing for several years now about how to be more successful in the remodeling industry. With over half of the nation’s homes being built prior to 1980, there will always be a remodeling industry because homes around the country are aging just like we are. They will continue to need work, love, and attention. Remodeling is a good industry, and anyone reading this will usually share positive stories from their experience while working in this industry. It is fulfilling work, but it doesn’t build wealth.

With business getting harder and harder to find, you should be leveraging every appropriate marketing opportunity you can find. Referrals are always best, but since the market downturn, there are less and less referrals available. Truck signs, jobsite signs, and “pardon my dust” mailing are a great way to expand your exposure in areas where you are working. Internet-based lead referral companies are another way to maximize your exposure with potential customers.

OK, it’s a dumb title. If you’re in the home improvement industry, you either learn how to sell your services, or you go out of business. Here is the key point – some contractors do this better than others. In this market, with all the changes taking place, sales is something you better be good at. John Henry is good at selling himself. He credits Michael Stone’s book entitled “Profitable Sales, A Contractor’s Guide” with giving him the direction he needed. He has learned how to sell. John runs Majestic Fences and Decks just outside Austin, TX. He is staying busy. Very busy. I called him to ask him about his ability to sell so successfully, and here are some things he reviewed with me.

Let’s begin by reviewing the standard rules of remodeling. What are they? When I ask this during seminars, I let about 15 seconds pass and no one says a thing. In reality, it’s a trick question. There are no standard rules of remodeling. That’s one of the reasons that the remodeling industry has some of the problems it has. It’s one of the reasons that consumers are never really sure what they are going to get. But there’s one person who steps in to choreograph this dance that we call remodeling. That person is called the general contractor.
You’re the Coach

Marketing is a numbers game. The more people you can talk with, the more work you will sell. It’s a simple numbers game. You want to leverage and optimize the relationships you already have with homeowners, trade contractors and suppliers. You already know that. What I want to highlight here is the opportunity to work with additional home service professionals who provide a raft of additional services to homeowners.

Believe it or note, a housing shortage is looming. That’s not common knowledge, but it’s coming. Consider the following:
In July 2008, the U.S. Census Bureau released some incredible population projections. Take a look at these numbers:

David Lupberger Remodel Force Contrator Connection Win Rates

I have a wonderful story about good marketing. It’s about a barber, who has a successful barbershop until a discount hair salon moves in next door, and offers haircuts for $10. After building a business for over 20 years, the barber feels he’s going to lose what he has developed for over 20 years. As several of his customers begin to sample the services of the discount barber next door, he calls a marketing expert. He explains what is happening, and the marketing expert says “I know what to do”. The very next day, the marketing expert shows up with a new sign that is posted in the barber’s front window. It says “We Fix $10 Haircuts!”