Qualified Remodeler Magazine

NOV 2018

Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.

Issue link: https://qualifiedremodeler.epubxp.com/i/1054775

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Page 33 of 76

BIG CHALLENGES of verticals where it is connecting homeowners with professionals. Initially the service was limited to eight: locksmiths, plumbing, HVAC, electricians, garage doors, painting, house cleaning, and appliance repair. Now 15 additional verticals have been added, Bairstow says, in- cluding handyman, home improvement pro, roofer, water damage and window service provider. In particular, window service provider and roofers are facing the greatest threat. Bairstow is helping several home improvement •rms work with Google to become approved local service providers. It's a lot of work, but it is likely to be necessary in order to maintain lead €ows and also help manage lead costs. | Effectiveness of leads is a different story. Referrals and past clients are most effective, followed by those generated on the internet. Source: }ƚ±ĬĜĀåÚ åĵŅÚåĬåų, 2018 HIP 200 ranking PERCENTAGE OF REVENUE BY LEAD SOURCE MARKETING EFFECTIVENESS (Scale of 1 to 5, with 5 being "most effective") Repeat business Referrals Internet marketing Home shows Web-posting services (Houzz, Angie's List) Signage Canvassing Direct mail TV advertising Radio advertising Newspapers Magazines Yellow pages Billboards Manpower is in short supply, and the challenge of finding people is a concern for 53.3 percent of the 2018 HIP 200 firms. Source: }ƚ±ĬĜĀåÚåĵŅÚåĬåųØ 2018 HIP 200 ranking Opportunities abound: The HIP 200 is finding opportunity in larger lead volumes, higher margins, improved strategy and expansions of both territory and products. Source: }ƚ±ĬĜĀåÚåĵŅÚåĬåųØ 2018 HIP 200 ranking TOP OPPORTUNITIES 28.1% 25.1% 34% 23% 22% 21% 18% 15% 11% 11% 9% 6% 6% 6% 21.6% 4% 4% 2% 4.5% 8.5% 4% 5% Finding and hiring employees Retaining key employees Overall higher volume of leads for new business Adding a new or expanded service area Higher demand from small projects, under $5,000 each Higher prices and net margins Better marketing overall Adding a new high-demand product or service Increased throughput without adding more overhead Better sales strategy and management Better recruiting and hiring Discontinuing unprofitable products or services Better referral business Better internet marketing Other Reduced profitability due to operational inefficiencies Higher material prices Increased regulation from government High labor costs Other Keeping up with increased demand Finding and hiring trade contractors Generating leads for new business More repeat business 1.0% Internet leads have only grown in importance to home improvement pros. A bump in referrals is also significant. More pros are mining past customers for leads. Source: }ƚ±ĬĜĀåÚ åĵŅÚåĬåų, 2018 HIP 200 ranking Internet marketing Repeat business Referrals Canvassing Home shows Other TV advertising Web-posting services (Houzz, Angie's List) Direct mail Radio advertising Signage Magazines Yellow pages Billboards 14.9% 14.9% 14.4% 15.4% 12.6% 11.3% 9.1% 9.8% 7.1% 5.9% 5.2% 5.4% 4.2% 4.1 4.2 3.3 3.6 2.7 2.5 2.2 2.1 1.9 1.7 1.5 1.6 1.6 1.6 1.3 1.4 1.0 1.1 0.9 0.7 1.3 2.0 4.1 4.1 3.1% 3.6% 3.5% 2.3% 1.2% 0.9% 0.9% 0.4% 0.3% 1.1% 2.9% 6.7% 8.5% 10.5% 19.8% n 2017 n 2018 n 2017 n 2018 0.5 0.6 0.4 0.4 1.5% QualifiedRemodeler.com QR November 2018 33

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