Other research sources include your state, county, or city’s economic development commission or chamber of commerce, the local Hispanic chamber, other professional Hispanic organizations in the area, as well as state universities and even convention and visitors’ bureaus. “Go to the local planning agency and talk to someone about the racial and ethnic population in the area, what it was five years ago, and [whether] anyone has done projections on the growth,” Baker says. Or go directly to the planning agency’s Web site for the information.
Once you discover that there is a Hispanic market for your business, don’t stop there. “It’s difficult to generalize about the ‘Hispanic’ market,” Montelongo says. “Remodelers must know the specific demographics of their market. For example, some Hispanic markets will be mostly Mexican, others will be mostly Puerto Rican or Cuban. Learn the nuances of the specific group.” To do this, Montelongo suggests remodelers survey either the local populace and/or their existing customer base, perform interviews, and set up focus groups. Or a remodeler can make inquiries and start a dialogue with local, regional, or national Hispanic business organizations.
What if no Hispanic market currently exists for your business? “You need to think about it,” Montelongo says, reiterating Baker’s sentiments: “Not only will the Hispanic community keep growing in numbers, but also in earning power, social influence, job skills, and education. You want to anticipate it and be the leader or one of the first to capture it.”
MARKET AND SELL TO HISPANICS One of the best steps to take for marketing to Hispanics is to hire Hispanic employees, especially project managers, salespeople, and internal office staff. “Competitive advantage is when remodelers have Hispanics in positions of contact with the customer,” Montelongo says. “In a heavily Hispanic-populated area, hiring more Hispanics helps customers relate better to you.” In such an area, Montelongo recommends adding the phrase “Habla Español” to all marketing literature and learning enough Spanish to be able to say the courtesies, such as please ( por favor) and thank you ( gracias). When a location isn’t heavily Hispanic, hiring a Spanish translator on a job-by-job basis helps the minority who don’t speak English feel more comfortable.
Oddly enough, it’s not necessary to advertise in Spanish for a Hispanic audience, even in a market like El Paso, Texas, where 80% of the population is of Hispanic descent. “Hispanics are now second and third generation, and they’re citizens,” says Julius Lowenberg, an El Paso–based remodeler. “Their parents couldn’t speak English. The second and third generations are losing their Spanish. I don’t try to do anything different [in my advertising] than if I were marketing to Anglos.”
On occasion, especially when business is slow, Hector Loya, president of El Paso–based Armor Construction and the son of a Mexican immigrant, runs ads in local Spanish newspapers. “It is important to put some advertising in the Spanish newspaper to attract the older generation and the new immigrants,” he says. All of Loya’s marketing brochures are in English. “[Spanish] brochures don’t work, and I don’t know why. My generation speaks English, so I do brochures in English to appeal to everyone.” Loya’s other ads, such as those placed in local football programs, are also in English. About 35% of Loya’s business comes from Hispanic customers.
When creating ads for a Hispanic audience, make sure that you have the cultural nuances right. “Don’t put a Cuban in an ad targeted to Mexicans, because they know the difference,” Lee says. Possibly the most effective method of marketing to Hispanics is by getting involved in the community, so that potential customers see your involvement and get to know you. Besides running English-language ads in local papers, Peter Fontanes, chair and founder of the National Association of Hispanics in Real Estate and Construction and president of Long Island City, N.Y.–based The Fontanes Groups, says that his company takes part in events at churches and with unions and professional groups.
Fontanes also sponsors activities, such as first-time home buyer design workshops and tables at expos. At both types of events, Fontanes will offer prizes or certificates. For example, if a customer contracts with him for a remodeling job, he or she is entered in an annual raffle for a free trip to a place such as Mexico, Puerto Rico, or the Dominican Republic; they may also get a certificate for a restaurant meal, a television, or other incentive. A prize might be a bathroom makeover, valued at about $3,000.
Fontanes began marketing to Hispanics five years ago, and today, about one quarter of his customer base is Hispanic. “I do about $1.5 million in business a year from Hispanics,” he says. “The average job is about $40,000 to $50,000, although they can range from $10,000 all the way up to $150,000.”
Once you’ve gotten in the door, take care closing the sale. “Hispanics are very relationship-oriented,” Lee says. “That means you probably won’t be able to do a ‘one-sit’ close. It may take two or three visits, but once you build this rapport, you’ll get referrals to friends and family for a lifetime. Those referrals are likely to be one-sit closes because they already know you and trust you.” Lee acknowledges that meeting with a client on several occasions before closing a sale can be frustrating and time-consuming. “Think of it as a long-term investment,” he advises. “If you want to target this community, plan for a long-term commitment.”