Thursday, January 14, 2010

Why the home improvment business stinks...

   We read this blog by a colleague of ours, Mike Bruno at Stone Creek Builders in New Jersey, and we wanted to share it with everyone and get your feedback!

"I was just thinking that I have been in the home improvement business for almost twenty years. In that time I have had some great experience's with clients. Experience's that have not only led to a satisfying career but also great friendships.


When I think about why I got into this business to begin with it was because I love working with people. Of course I love the craft as well but there is something special about building projects that enhance peoples lives. If you have ever crafted something with your hands you can understand the great feeling when you step back and admire your work.

To some old timers, 20 years may seem like a drop in the bucket but during that time the remodeling industry has seen the most dramatic changes due to the advances in technology, product development and the internet. However due to the economic fall out: consumer credit is tightened and some are choosing contractors purely on price instead of quality, experience and professionalism.

So as a result many great craftsman are going out of business. The sad thing is many of them probably went into the business for the same reason I did. And its almost a guarantee that the contractors who low bid the jobs will be out of business too. So what happens next?

  • Does the home improvement industry reinvent itself?


  • Does some sort of standardization happen so all professional contractors can compete on a level playing field?


  • Do we out source all the construction to India :)

Who knows but I look forward to meeting new people, more projects, new friends and the ride..."
 
So what do you think? Aside from outsourcing remodeling to India, we have seen and had many of the same experiences as Mike. Professional, qualified and trustworthy remodelers like AK and Stone Creek are concerned about the state of the industry where price rules.
So what do the "good guys" do to reinvent themselves? What sort of standardization would you like to see in the industry? We'd like to know!

1 comment:

  1. I had the pleasure of attending a business seminar this past week with the owner of a moving company www.bdmovers.com Tony Baumer. There was some brief discussion regarding price objections. One of the attendees mentioned that a client called and said ”we have a price from another company which is cheaper can you match it” Tony, said when he hears a similar objection regarding price he tells them “So you are asking me to match the price of a company you would rather not do business with” I run into the same issue quite frequently. If you think about it there is a reason why some companies are so cheap (maybe they are not insured, maybe they have high debt, maybe they are not paying their bills etc…) I think the moral of the story is that in sour economic times some companies are so desperate they will work for under cost to get the sale. So next time you have to make a choice over price alone—stop-drop and think--- would you rather do business with a healthy professional company like Tony’s or a desperate business that may not be here tomorrow…

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