Home Improvement Industry Factors: Real Vs. Imaginary
What are the key factors affecting the home improvement industry? From our experience, what our clients present as their primary problem(s) typically end up being far different from what they actually are.
Here are some of the notable issues that our clients reported that they are facing:
- Leads are down, but the “cost per lead” is up
- The demand on one’s time seems overwhelming
- Interested parties are harder to get together (leading to one-leggers)
- Keeping up with home improvement regulations is difficult
- Hard to find workers without “baggage”
- Higher turnover in sales force
- Customers seem to complain more than ever
This is a wide array of issues that paints a picture far worse than what may actually be occurring. After conducting a client observation, we typically find that:
- Selling methods are incongruent with the customer’s decision making process
- Improper training is taking place, stemming from a lack of coaching
- Salespeople are being hired with the wrong criteria
- Business owners spend their time managing instead of leading
- Improper compensation methods are in place
So what are the keys to improvement? Here are just a few that we stress our clients to abide by:
- For every ¼ HOUR spent in planning – 1 hour is saved in operations
- Find the right people and systems to improve the bottom line
- Balance the amount of time spent on calculating the cost of your home improvement leads, the type of products/services being offered, the potential profitability of each, maintaining cash flow, and lowering the turnaround time of production. Putting these things in the order of importance is key for the company to prosper.
- Remember the 4 P’s: Pricing – People – Products – Production
Contrary to what you might hear or believe, these elements do not change depending upon what geographical market you operate in or what products/services you offer. There is a proven formula for success within the home improvement industry, and by following specific guidelines you increase the likelihood that your company will flourish for years to come.