5 Ways Contractors Are Thriving Not Just Surviving in The Low Touch Economy [On Demand]

Home renovation is making a significant comeback. According to this CNBC article “Pandemic home remodeling is booming”  published August 7th, 2020, a recent Houzz analysis reported a 58% annual increase in project leads for home professionals in June. Exterior home improvement contractors – roofing, siding, pool, deck, and landscaping – are seeing an increase in demand many times over the same period last year. Kitchen and bath remodeling contractors saw a 40% jump in demand in June compared with a year ago. A lot of this demand is driven by the sudden change that consumers faced when they started working from home. Making their homes more comfortable for prolonged work from home is now a priority.  

Leap’s usage data also shows a similar pattern. After an initial dip in April, sales transactions are at an all-time high. (See image) 

The National Association of Realtors reported a surge in existing-home sales following other bullish indicators such as rising new-home sales, robust home-builder activity, and a flood of mortgage applications. The low interest rates also give homeowners a financial cushion to refinance and use the money for renovations they may have put off earlier. 

According to USA TODAY: Americans are sitting on record cash savings amid pandemic and uncertain economy. The article gives an example. 

“Anne Parducci, 59, a multimedia content producer who lives in Manhattan Beach, California, says she and her husband largely have stopped traveling, eating out and buying clothes during the pandemic. So, they recently used their savings to add a $4,000 fence to their yard and plan to spend $30,000 on new bathroom shower tiles this fall.” 

The outlook is good for contractors in areas like fencing, decks, patios, flooring, bath, and kitchen remodeling. There are some factors that are making some contractors see more business than others.  

5 Reasons Why Successful Contractors Are Thriving Not Just Surviving  

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  1. Reputation: Homeowners dread the possibility of interacting with an in-home sales call or a canvassing call.  
  • We have noticed a trend where homeowners are shopping less for contractors and instead, they are choosing the businesses that they have earlier experience with or have found through an online search or a recommendation from local online forums on Facebook or Nextdoor. 
  • Successful contractors are using multiple marketing channels to inform homeowners of changes they have made to their processes and the safety practices they have adopted.  
  1. Rethinking the In-Home Experience: There is enough technology that contractors are already using that helps reduce the face-to-face interaction with the homeowner.  
  • Ordering aerial measurements with tools like EagleView. 
  • Taking photos and marking them from the outside and creating accurate measurements using tools like HOVER.  
  • Training their sales team on the best practices for COVID-19 and informing the homeowner in advance of these safety practices, including calling the homeowners to let them know that they will be doing the work externally.  
  • One large company now equips their sales team with a foldable chair so they can practice social distancing and discuss with the customer outside the home. 
  1. 100% cloud communication of documents: Keep it simple: Audit your process and think about what truly needs to change in making document exchange electronic. 
  • Send contract documents electronically 
  • Ask for electronic signatures versus asking for paper to be signed 
  • Get payment securely using secure payment methods 
  1. Payment terms: 73% of homeowners are planning a home improvement project this year. Two-thirds of homeowners planning renovations will use savings, according to an article in the Columbus Telegram. Those who do not have savings or choose not to spend it will need to weigh their options for financing their renovation projects. 
  • Contractors can consult and present options for homeowners  
  • Contractors should offer multiple financing options 
  • Be prepared to present the advantages of each method of financing 
  • Do the transactions electronically without requiring paper signatures 
  1. Increasing their service area: A virtual sales call can be done from anywhere. Contractors are using virtual sales to expand the territory. Their sales team do not have to travel far and can do more sales calls virtually and over a larger area. 

Technology can help your business be recession-proof. To thrive you should look at your business and make changes where you can make the most impact and do well despite the circumstances. 

We discuss topics like these at our free workshops for contractors. Register here and looking forward to seeing you! 

About Leap

Leap is transforming the home services industry as the first complete point-of-sale application, digitizing every stage of the in-home sales process including estimating, financing, contracting, and real-time communication. Created by veteran home services professionals, Leap’s application helps businesses eliminate errors and increase efficiency by simplifying and automating the day-to-day sales process. To learn more, fill out the form below.

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This blog post reflects the opinions of the author and may or may not reflect the opinion of Leap (Leaptodigital.com).

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