General Contractor Advertising

General Contractor Advertising

If the subject of remodeling the kitchen or adding a bathroom is not a significant part of your regular conversations at home, you probably won’t even notice the amount of times you’ve been solicited by home improvement companies. Unless of course, that solicitation interrupts dinner or your favorite television show. If you’re really bored sometime, keep count of what comes to your home in the various lead generation forms we’ll talk about – what I conclude in this article will make a lot more sense.

The most common forms of solicitations include:

  • Printed advertisements; usually including a coupon or sale
  • Brochures, ads and pamphlets sent via regular mail
  • Flyers left on (or in the general vicinity of) your door
  • Radio and television ads
  • Neighborhood canvassers using various approaches (“doing a job nearby”, “we have a special running for you and your neighbors”, “I’m a student trying to earn ____”, etc)
  • And of course, the phone solicitors who compete with the canvassers to see who can interrupt the most dinners

These and other methods are the ways that companies (contractors and others) yell “Here I am! Hire me!” They count on the very real advertising fact that something in one of the approaches (like a coupon or special) or something said by the phone solicitor will make sense to you and you’ll respond and ask for a proposal.

Tremendous amount of ads on a regular basis.

These forms of advertising work as evidenced by the tremendous amount of ads each of us receives on a regular basis. There’s nothing wrong with responding to an ad or other form of solicitation as long as you conduct proper due diligence and follow the procedures designed to protect you, the consumer.

Ever really look at one of the home improvement ‘magazines’ that homeowners receive each month in the mail? Some of them may have an article or two buried in page after page of advertisements while others don’t even bother with the articles. In one of those publications, I saw five ads that would loosely fall under the category of general contractor services; and all five had a coupon or other enticement for $750 off (if you acted now of course).

12% to 15% of total revenues goes into lead generation

Whether using any or all of these techniques, everyone in any kind of business knows there is a high cost to these types of activities. Assuming that business is making a profit, then any intelligent consumer knows that the cost of those activities has been passed on to them in the product or service they buy. One of the largest home remodelers in Southern California told me that they estimate 12% to 15% of total revenues goes into lead generation (not sales) activities. Sales commissions are another major slice of the pie.

My conclusion is that’s a lot of money to spend on something that doesn’t contribute the cost of a nail to the consumer or a penny of profit to the contractor. So how do many contractors keep their prices and costs down while still finding a way to reach out to potential customers? Read on.

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