Greetings,
I’m in the midst of building my first custom house after years of doing smaller projects. I have thoroughly enjoyed the project as being a general seems to really suit my career objectives. I’m on the tools for a good part of the day and on the phone with subs for the other part. The project has stoked my enthusiasm for building custom residences. My question; how do I continue along in this vein? I have never advertised as all of my projects over the years have come via word of mouth. I’m wondering how to get word out or to get my name out there as an option for people who are interested in hiring a building contractor. My current clients and past clients will do some advertising for me but I’m wondering if there are other effective methods that I’m missing? Any advice would be most appreciated. Thanks.
Replies
There's no doubt that saturation advertising works. If you've listened to the radio in Denver for more than a day or two, you know that "Now YOU have a friend in the diamond business," and that his name is Tom Shane. I understand Cal Worthington achieved similar blanket coverage in the LA area. I once heard that one night, by accident or design, every commercial TV station in LA was playing a Cal Worthington ad at the same time.
Name recognition may or may not translate to more business. I've lived in Denver and Boulder and listened to the Shane Co. ads for most of 30 years, and if I met Tom Shane in person, it would be a real struggle not to break both his legs.
Edited 12/15/2003 1:37:08 PM ET by Uncle Dunc
"Name recognition may or may not translate to more business. I've lived in Denver and Boulder and listened to the Shane Co. ads for most of 30 years, and if I met Tom Shane in person, it would be a real struggle not to break both his legs. "
No, please, you break one and let me break the other one! Honestly, if I were unfortunate enough to have to buy a diamond, I'd go find a store that hasn't subjected the entire world to years of incredibly annoying ads.
It is not uncommon for builders to build a model home and, after showing it off, to sell it at a discount. Usually these homes have all the currently fashionable features and selling points and just about all of the eye candy that can be stuffed into them. This gets the name of the builder known in a favorable light.
Frequently the home is built on a plot with multiple lots on it and markings indicating 'your custom home here'.
On a smaller scale contractors specializing in renovations will sponsor a model project. The HO gets a top of the line job done at a favorable price. The contractor gets tour rights for some period of time. I took part in one of these featuring a kitchen remodel. Looked nice and got all the associated construction groups names heard in a favorable light. I have seen the same thing done with outbuildings, decks and home additions.
You can advertise in local media, newspapers, radio and home shows come to mind, but nothing sells like people being able to walk into a home and see, and touch your work in context. Massaging your potential clients visual and tactile erogenous zones while adding subtle hint about all this could be yours, at a nominal cost, while they are receptive can work wonders.
Once you have the leg up and over you can work on adding features while soothing them with the incantation 'easy financing, low monthly payments, friendly bankers standing by'. Before they know what hit them they are looking at a $500,000 of payments on a $200,000 house and you have commitments for a decades work at favorable rates.
OK, got a bit carried away. This type of enthusiastic log rolling is heady stuff but you get the idea.
I assume when you say "custom" house, you're not talking about "spec house." If I'm reading your post right, I would suggest you find out what lending institutions in your area are financing most of the residential building, get their contractor approval package, get it filled out and submit it. I did that a couple of years ago and have been buried ever since!
I get my referrals directly from the bank and advertising, in my case would have no purpose. (And it also helped when I put the loan officer's son to work on my crew!)
Have fun!
I'm not sure that after a single house and some advertising you will be a custom home builder. People that are looking for such homes don't play hit or miss in the yellow pages. I think you'll find that word of mouth will still be your most effective job getter, but having your company name out there, on your trucks, on the jobsite and in the local paper supporting little league teams or such, will bring name recognition. You will earn your way into that market with hard work and experience. Something is wrong if you are on the phone half the day. A two minute call to your electrician or other sub in the evening should be all it takes especially on one house. Remember you make the business go, if you are out running around playing big shot and wasting time from the job you are doomed.