Feb 23, 2010 11:20 AM

Remodel Your Business Through Relationships

By Building Experts Team

As you might have already heard, more negative news for residential remodeling was released last week with the announcement of new figures from the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI). According to the updated RMI, the market conditions index fell to 36.4 from 39.8 in the third quarter.

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The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. Any number below 50 indicates that more remodelers say market conditions are getting worse than report improving conditions. The RMI has been running below 50 since the final quarter of 2005.

These figures, measuring perceptions of the remodelers, contradict the most recent Lowe’s earnings report and leading industry indicator, the 2010 Leading Indicator of Remodeling Activity (LIRA). In January, the LIRA forecasted consumer spending to grow up to $105.5 million in the first quarter and rise to $107.6 million in second quarter 2010.

Just because current remodeler perceptions continue to dip doesn’t mean that a rebound isn’t possible, it will just take time, and more proof of an impending recovery. Maybe we just need an attitude adjustment? As we wait for more positive news, here are a few easy tips to help remodelers, and other battle-tested professionals, build new relationships that will support the future of their business:

1. Join Regional Building Groups – Regional building groups are a great way to grow local roots. Development of friendships with regional builders and architects offers the opportunity for referrals and other mutually beneficial, long-term relationships.

2. National Association Membership – Membership with national associations like the National Association of the Remodeling Industry (NARI), allows for the sharing of case studies, best practice for marketing your business and opportunities for continuing education. Many trade associations, like NARI, do a great job of adding value to members with real benefits, including industry research, public recognition, certification and most importantly, lead generation services. And most likely you’ll find dues cheaper than they were a few years ago.

3. Trade Show Attendance (Regional and National) – Attendance at trade shows are a terrific opportunity to, again network with peers, but in addition, take advantage of developing relationships with product manufacturers and suppliers. These folks will be able to keep remodelers up to speed on the latest products and trends and help customers with personalized services, including discounted pricing.

4. Customer Referrals – Maintain regular “check-ins” with past customers. Staying connected with past clientele keeps you top-of-mind for future projects and those customers are more likely to refer you to friends and family. This can be done through a simple phone call or sending a regular eNewseltter to past and potential clients.

5. Social Marketing – Using online applications like LinkedIn and Facebook can be a great, inexpensive way to gather customer testimonials/recommendations into a single mainstream, intuitive channel. It’s also a great way to attract new customers if the channels are used properly and align with your business strategy.

So what have you found to be a successful marketing strategy in this tough market?