July 17, 2017 Miriam Rothman
  1. Source of Business

Talking to a contractor about where the bulk of his business comes from can tell you a lot about the company. Some contractors don’t know where their business comes from and have never bothered to figure it out. Some companies only have a couple of customers and all of their business comes from them. Some companies have a lot of past customers and their business comes from past customers or referrals from past customers. Some companies advertise all over the place with big splashy ads and must rely on a lot of new calls. What about repeat business? Shouldn’t a contractor who does quality work eventually not have to advertise as much as a new contractor due to repeat business and referrals from past customers?



Every successful contractor, without exception, has satisfied customers by providing a good value. Providing a good value should lead to referrals and a consistent base of customers. Good leads are the lifeblood of every company. Without this base, a contractor cannot succeed. Most established contractors’ primary source of new customers is word of mouth. While every contractor has occasional customer problems, if a company gets too many unhappy customers, no amount of advertising dollars can overcome this situation. Unsatisfied consumers tell too many others of their misfortune.




Unacceptable: The contractor does not know where his business is coming from. He does not know why you called him or where you got his name.


Good: The contractor understands the importance of the lead source. He tracks leads and knows where his leads are coming from. He values leads that come from one source over leads that come from another source.


Better: In addition to the above, the contractor tracks leads and has a lead qualification system that helps him understand better which leads are right for his company. He knows the percentage of leads that convert to sales calls, the percent of sales calls that convert to sales, and works leads based on the anticipated fruition.


Best: In addition to the above, the contractor focuses his marketing and advertising strategies to attract the kind of leads that best suit the company. He has come to realize that everything he does creates a perception, and he is careful that the perception he creates is aligned closely with the direction the company wants to go.



Check out the other 24 factors that every smart house-owner use when they consider their remodeling contractor here.