Mark Q. Kerson wrote the book on the business of building. No, really, he’s the author of The Elements of Building: A Business Handbook for Residential Builders and Tradesmen.
Ask Kerson the heart of the problem for most contractors’ business, and you’ll get no hesitation: marketing. “It’s easy to ignore and hard to keep its value in focus,” said Kerson, who recently spoke at JLC Live in Portland, Ore. In fact, he feels marketing is so important, he’s thinking about writing an update to his book that focuses just on that. In the meantime, here are some of his thoughts on the elements of marketing:
Why do so many contractors either shun or ignore marketing?
Marketing is intangible, and while there are so many more seemingly real and pressing demands. It takes long-term persistent effort and the value of it easily slips away as we get busy with new work. Contractors often work at their trade rather than doing the less tangible but more fundamental tasks that are required to make a company succeed, like marketing. For some reason, tradesmen also often think of marketing as sleazy; the image of the worst possible used car salesman comes to mind. I know that my friends and I used this exact example when we talked about why we avoided marketing. It was painfully naïve and caused years of unnecessary struggle, yet, I know people who have the same conversation today.
I think it is also because there is a myth in the industry of the perfect craftsman whose product is so good they do not need to advertise. Although this does happen, it is a rare confluence of the right contractor at the right time in an unusually strong and steady market: circumstance, which most contractors will rarely or never encounter. But the myth persists.
Why should contractors care about marketing — even those whose businesses are strong?
A clear and persistent marketing program allows contractors to define and then attract the type of work they want to do. It also ensures that there’s enough work to keep a steady cash flow and the crews working. Not marketing means they accept what comes and the company is shaped by happenstance.
When starting out, new contractors often find they are “amazingly busy” and you will often hear them say something like, “And I did not advertise at all!” If they are lucky enough to survive this startup period, what they will likely learn is that they were they were “amazingly busy” because they were giving their away work far too cheaply. A good advertising program allows contractors to charge enough to pay wages and overhead, while earning a profit. Attracting the work you want means that it will be more profitable — and doing it will be more enjoyable.
What are the biggest misconceptions contractors have when it comes to effective marketing?
Too many contractors believe that marketing is somehow sleazy or dishonest. They think they don’t need to do it because they tell themselves if they are good enough at their trade the work will come. They also mistakenly think:
1) I don’t have or can’t afford the time to do it.
2) It’s pointless and does not work.
3) It costs too much.
What’s the best gauge for a contractor to know whether they’re doing sufficient marketing?
There’s often some confusion here. Getting jobs—that is, signing contracts—is about sales and estimating/bidding, not marketing. Marketing is about getting leads. So you have to ask yourself if you’re consistently having calls come in? If not, then your marketing is not working
What are the biggest marketing mistakes contractors are making today?
There are many, I’ll list some big ones:
· Marketing in fits and starts.
· Marketing just long enough to get some work and stopping.
· Spending large sums of money without knowing what works and what does not.
· Not doing it at all.
What are some simple marketing techniques contractors can start doing today?
There is no one size fits all answer to this question. Depending on the trade and market, contractors must test the water and learn what works for them, [in their area]. Begin a program and stick with it long term. Learn what works and put most of your effort into that area, but keep an eye on it because what works today might not work next year. Get your feet wet with small campaigns then monitor them closely, and focus on what proves itself. Don’t spend more than you can afford. Consider hiring someone part time to focus on marketing. And stay in touch with past clients a few times a year. Happy clients are the best source of new work!
