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Updated: July 8th, 2008 05:26 PM EDT

Using Your Competitive Advantage

Business management

Ron Roberts

Why do builders or homeowners hire you instead of your competition? Did you answer that with a claim of "better quality"? Try again. All contractors think their work is of superior quality. I've got a secret to tell you. Are you listening closely? Unless your competition is really messing up, your clients can't tell the difference.

Surely you've discovered that most building owners have totally unrealistic quality expectations. Your clients probably aren't going to be wowed by anyone's quality. If an architect or engineer is involved, their specs probably border on unreasonable standards for finished concrete. They certainly can't tell the difference between contractors who are performing to standard practice and those who are not.

Now, back to the original question - why do your clients hire you? Here are some of the possible reasons your customers choose you:

  • You are the first to respond.
  • You are easy to work with.
  • You give them the lowest price (that's the lip service excuse).
  • You are courteous.
  • You are funny.
  • You help them budget.
  • You communicate well.
  • You are attractive (don't underestimate the impact appearances have on homeowners' buying decisions).
  • Your pre-construction services are helpful and well thought out.
  • You have a flawless, on-time completion record.
  • You perform superior quality work (it can be the reason, it just isn't often the reason).
  • Your crews and equipment look clean and professional.
  • Their friend recommended you.

The competitive advantage
That's a long list and it certainly isn't complete, but it's absolutely essential that you learn the real reason your clients hire you. It's your competitive advantage, and it is the one thing that you do better than your competition. You need to embrace your competitive advantage and emphasize it because your future success depends on knowing, maintaining and aggressively marketing your competitive advantage. It's the one aspect of your service for which your clients are willing to pay a premium, and it's the one aspect that will grab their attention in advertising.

You will never learn what your competitive advantage is unless you ask your clients why they hired you. And you need to ask them because you'll never be able to guess. Take another look at that list of possible reasons your clients hire you. Do you really believe you know why they hire you? I didn't know why my clients hired me, and I am tuned into this stuff.

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