I think that all contractors are familiar with this story. A prospective customer is interested in working with us. But he emphasizes from the outset that he does not have a large budget – or he is looking for something low cost as he has already gone over budget in his project.
And we contractors are nice people, and we empathize with him, we like him so we try to come up with a low budget solution.
In the process we sell our selves short. Because even though we know that that project should be priced at $6000 we come up with a solution to do it for $4000 instead. We believe that we are doing the customer a favour and helping him out. So we squeeze ourselves, we keep our costs low and we deliver the project at the agreed amount. However what ends up happening is this $4000 job is not to the customers expectation.
Now the customer has all the power. He complains about your work, completely oblivious to the fact that you went under budget just to help him out. He realises that...
Having spent over 15 years in the construction industry, I have seen many contractors come and go over the years. Some appeared out of nowhere to grow some impressive businesses. Others again made an impressive splash and then literally disappeared overnight leaving very few traces
I have been trying to distil the key reasons why contractors go out of business. These are the key reasons that I have identified
1) They don’t know their numbers
Contractors may be very good at their craft and putting together complex projects but they severely lack good book-keeping skills. They forget to track ever single expense to understand if they actually made a profit on their project. Even worse many contractors forget to calculate overheads when pricing projects.
If you want to build any sort of serious contracting business you will have significant overheads. Whether this is the administrative staff required to operate the business and man the phones, or the upkeep of your...
I have been meaning to write this article for a long time. Every contractor will in his lifetime experience that customer that seems to be micro managing the whole project. The over controlling customer who seems to be obsessed with every little detail. Every time he sees you, he calls you over to point out some random detail to distract you from your work... If you are not available he will find someone else on your team to harass.
The Micro managing customer is not always visible from the start. When you first meet him he tends to be very polite and friendly. He wants to build up good rapport with you so that you take him on as client. When he first starts requesting little things from you shrug it off as just something that's important fo your customer.
But slowly this customer chips away at you, one chisel at a time. He calls you all the time with no respect for weekends or late hours. He will of course, always apologize for calling you and interrupting your day (sometimes he...
My name is Akis Apostolopoulos. I have been involved in the construction industry over 15 years. I own a coatings manufacturing company in Athens, Greece. In 2015 I started a second online business, training applicators all over the world in the use of epoxy floor coatings.
Through my work, every day I come into contact with many contractors throughout the world. Over the years I am seeing the same pattern repeating itself. Too many contractors are living feast to famine and always seem to be dependent on their next job to survive. Contractors go broke and close up shop, because they went without business for just a few weeks.
When I speak to contractors and ask them how they get new customers, I realise that most are not equipped with the skills to develop a proper arketing strategy. Throwing money at advertising and hoping that it works is common in our industry. Furthermore, many construction professionals entrust their hard earned money to fancy “digital marketing...