What’s Your Specialty? — Really
 I’m sure you’ve seen those ads that say so much but tell so little. You know, the ads that read something like, “John’s Construction, We Specialize in Additions, Remodeling, Baths, Kitchens, New Construction, Commercial and Insurance Work.”
Well, where’s the specialty? The proprietor probably could have added auto tune-ups, too. As the demand for remodeling grows, should you find a niche? And how would you identify it? Maybe the real questions that need to be answered are, “What don't you do very well?” And why not? What Have Been Your Best Jobs? Like the start of any problem solving session, you have to start with a history. That is, can you track what jobs have been best for you? Which prospect type has the highest closing ratio? Which job type has the highest gross profit? Which referral type has the highest gross profit? Which demographic? Which geographic area? What color house? (Okay, you can probably skip the last one.) The point is, you need to be able to look back and see where you’ve done best and, quite frankly, where you really stank and didn’t do very well. If the poor performance was an anomaly, fine. But if it's part of a trend or pattern, you certainly don’t need to continue to force that square peg into a round hole, do you? Track Your Closing Rates You can begin reversing that trend by carefully tracking your closing rates by job, lead source, customer type and more. Then reference that by gross profit. Now you have a starting point. Factor in Your Costs Add into that mix how much it costs you to develop each type of lead/customer on that list. In other words, if a client of type A is your most profitable, but you spend a huge amount on marketing to land an A client ― well, then, maybe that client is not as good or as profitable as you may initially think. Perhaps two B customers gained at a fraction of your marketing expenses are just as good and easier to get. Now that I’ve talked to you about defining your best “type,” let me share with you our philosophy. You’re going to think I’m being totally contradictory, but I contend that I’m not. It's just that I define my “best” customer not by a category or categories, but more by a sum total of attributes. It goes something like this: our niche really is not having a niche. Sounds like I’m taking the easy way out, doesn’t it? Let me explain. If the Job Fits, You Must Permit I believe that if we identify a need, can meet that need without going outside our normal procedures and business practices, offer the service for a fair profit and produce a great product and satisfy the customer, it’s a “go” for us. Looking at the last somewhat verbose statement, I think what you’ll see is that you judge all those things I first mentioned — customer type, expectations, job type including your familiarity, resource availability, geographic area and resource availability, etc. — and then see if there’s a good fit. Gut Check Oh, there’s one other thing that should probably be taken just as seriously, maybe even more so. I call it the “gut” factor. How did you feel with that prospect? Did you walk away thinking it was the start of a friendship? Or did you think, "It’s going to be tough, but we can do it?” There are no medals or rewards for proving that you can work with anyone. Remember, this business has enough challenges without taking on those we don’t need. Just identify, historically, where and with whom you’ve done well and go for it. Me? I’m off for another bathroom/kitchen/addition/remodel/office/car tune-up. Greg Miedema, CGR, CAPS, is president of Dakota Builders in Tucson, Ariz. He is chair and founder of his local Remodelors™ Council, a member of the NAHB Remodelors™ Council Board of Trustees and currently serves as the chairman of the Remodelors™ Council Public Affairs Committee. The Southern Arizona Home Builders Association (SAHBA) has named Dakota Builders, Inc. Remodelor™ of the Year in 1998, 1999, 2000 and 2003. For more information, send him an e-mail. | 
