The home improvement sector has not been spared from the country-wide sweep of inflation and supply chain issues. The economic restraints of today’s market are forcing homeowners to reconsider projects and costing contractors sales opportunities. These next few months may prove to be challenging ones for the industry, but savvy contractors can continue to experience business growth by taking steps to stand out from the competition.
Some of our top tips for growth in today’s market include:
- Become an expert or specialize your practice
- Offer financing options to fit customer budgets
- Offer high-quality products and get certifications when possible
Become an expert or specialize your practice
- Specialization can help contractors become experts in a certain area of repair, helping them stand out among competitors.
- HVAC dealers may choose to specialize by brand, technology (i.e., geothermal or splits) or product class to get the best buying power.
- Roofing contractors can specialize in certain types of repair such as emergency repairs, TPO repairs or solar panel installation.
- Focusing on one skill doesn’t mean that contractors forgo other skills; rather, they can be seen as the best in one area and bring in more business from it.
Offer financing options to fit customer budgets
- In a recent 1,600-person survey by Mosaic, 35% of homeowners said that financing options are an important factor in their hiring decision and that they could not take on projects without financing.
- Today, the consumer mindset is geared toward monthly payments. Presenting the project in “low monthly payments” takes the stress out of a grand total and provides an easy path to the best solutions or upgrades.
- Without financing options, customers may look to other contractors who can help them start projects with respect to their budget.
- Financing options allow homeowners to take on bigger and better projects, giving them access to the best products and increasing contractor margins.
Offer high-quality products and certify when applicable
- Selling the best products can benefit both contractors, who receive higher margins, and homeowners, who receive energy-saving upgrades that will need less repair over time. These long-term savings can justify a new purchase and installation, even in the midst of inflation.
- It’s estimated that point-of-sale loans increase retail conversion rates 20% to 30%, and lift the average ticket size between 30% and 50%. Financing is essential in helping homeowners afford more reliable and higher-quality products.
- Certifying with programs like NCI’s HVAC certification program or GAF’s roofing certifications is a great way to guarantee product quality and gain an advantage over competitors. The third-party certification assures homeowners that their products are professionally vetted and held to the highest standard.
The majority of home improvements remain a necessary expense, but presently, homeowners may be more cautious to spend. Contractors who specialize in their practice, certify high-quality products and offer financing options can prosper despite economic restraints.