Residential construction niches are probably the most profitable way to run a business, but it makes it so much easier to find clients and sustain your business if you can tap into the right kind of residential construction niche for your company.
And if you’re just starting your construction business, then you can expect to attain new customers for much less than you thought possible by focusing on a residential construction niche for your business…
Residential Construction Niches: Niche Within Your Trade
Most electricians think that they should be taking all of the work that comes their way… And although this may be true if your struggling to find clients, chances are this will make your life very hectic and very stressful… One thing that I’ve watched our electricians do is narrow in on specific niches like ceiling fan installations for their local market.
This may sound crazy, but our guys get anywhere from 100-150 call per month just for ceiling fan installations… And out of those calls they close about 120 ceiling fan installation jobs per month… Essentially, they’ve set up a version of a funded proposal and are now having their clients PAY THEM to market other services and products besides the ceiling fan install.
Think about it… Our electricians are making approximately $12,000 to market their services to their current clients… It’s like me telling you “hey, I’m going to give you $12k right now, and then tomorrow you can start selling to me…” It pays for all of their advertising, travel and meals for the month…
But then the magic happens when they start talk1ing to the homeowner once on site. They have mastered the art of salesmanship and begin upselling their ceiling fan customers to much bigger jobs like panel upgrades, etc. And if you know anything about electrical, panel upgrades are big business.
But these guys also sell solar backup generators, which is another high ticket, high profit item for them to sell. And they sell about 5 a month to all of their “ceiling fan” clients, which nets then about $10k per month with very little added work…
When our company was looking into residential construction niches, we decided on sticking with one brand of kitchen cabinets to build our business around. And with educating our clients on these cabinets, plus giving them TONS of solid advice on saving as much money as possibly on a kitchen remodel, or getting a kitchen remodel completed as fast as possible, we were able to get our foot in the door.
99% of our clients call us about the cabinets… And then we sell them on everything else under the sun that goes into a kitchen remodel project, like quartz or granite countertops, flooring of any kind, tile and backsplash, lighting, etc…
But its the brand of cabinet niche that we’ve focused on that has allowed us to keep our business running at full steam with high profits, all while the rest of the construction is industry is actually down at an all time 5 year low (as of writing this article)… Everyone’s asked us what we’re doing, and when I tell them that we only take certain clients attached to a certain brand of cabinets, they are in disbelief… Especially when we were able to build a $600k company in our first year of business.
Not bad for a guy that just learned how to use a hammer 10 minutes ago 🙂
Residential Construction Niches: You Can’t Do It All, So Don’t
Focusing in on a certain niche in any market is a phenomenal way to generate new business relatively quickly, but if you’re not careful, it can kill you…
I’ve watched general contractors take on residential construction niches only to find them a few months later pulling their hair out because they can’t manage their business anymore, clients are pissed at the quality of work being done because their so busy, and of course not having ANY time to spend with friends, family and to really enjoy what we’re all in business for…
My dad is a prime example of this… He loves to work and staying busy (he was retired for only 2 months before he almost lost his mind lol) is definitely a must for him, and we first started working together, he was all over the place with what jobs we were taking… I mean, I was doing crazy stuff like building decks, installing irrigation and sprinkler systems, etc (all with ZERO experience on my part)… Doing whatever we could get our hands on…
In all honesty, it saved my butt tremendously as I was able to not only get my car out of repossession twice, but then was then able to pay it off the second time it was taken (FYI they won’t give your car back if you just pay your late payments the second time… It has to be paid off in full… Yikes!)
But in the midst of doing what we had to do to survive, it was VERY stressful as although both of us can sell virtually anything, we were stressed out because once it was sold, we didn’t really have the expertise to do the job efficiently & effectively. And it cost us tons of what we can never get back, time…
But we learned our lesson and quickly thereafter found ourselves brainstorming on residential construction niches and how we could alleviate most of our headaches and increase profits, which is every business owners dream 🙂
So when you’re looking for a niche to stake your claim into, keep in mind that less is more and that you don’t have to do it all to be a successful construction company or contractor.
And if you’d like more information on residential construction niches, or you’re tired of spinning your wheels and would like to sign up for a free marketing strategy session, simply enter your name and best contact into in the form below…
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