The U.S. economy seems to be affecting almost all aspects of our daily lives, from massive foreclosures, job layoffs, difficulty for consumers and businesses to obtain credit and soaring fuel prices. Most of us cannot help but wonder, "When is it all going to end and start getting better."
The concern for most contractors as it pertains to business is how is the state of the economy will really effect the decorative concrete industry and the businesses that installers own and operate. We have said for many years that the decorative concrete overlay industry is not affected by slowing economies but those comments didn't specify how bad the economy could get before it did become an issue.
Everyone understands that in most parts of the U.S., new home construction has come to a screeching halt and new commercial construction has slowed down. However, there has been a surge in the restoration and remodeling aspect of the decorative concrete industry that we simply could not have predicted.
Looking back over the past 20 years, historically years in which there was a presidential election were the only years that Elite Crete Systems sales did not surpass the previous year. However this election year has proven to be a stronger than expected year with sales actually higher than we anticipated. The question that many of you surely ask is, "How is that possible?"
Aggressive contractors in most areas of the country are still busy. Many are busier than they ever have been. Sure, some contractors aren't making it and this is where Authorized Distributors need to step in and assist with marketing and business development assistance.
Why are some installers struggling? To understand this, you must first ask, "What are successful installers doing to succeed in this business during this economy?" We have published for years that one of the unique aspects of the decorative concrete overlay industry was the ability to modify the product offerings as well as the service type.
Example:
When the economy is good - Property owners spend money on more expensive construction products such as elaborate landscaping and interior design, expensive and exotic floor coverings, custom faux finish painting, etc. This even applies to new construction because when consumers financial confidence is high, they are more open to buying luxury items for their homes and businesses.
However, when the economy is struggling - Pennies and dollars start being pinched. If new construction is going on, property owners as well as their builders or architects want to look for cost savings, inexpensive alternatives to building exteriors, flooring, landscaping, etc. In addition, remodeling projects although not halted become more of a budgeting process as well. But in either case, construction projects new or existing don't just stop.
Being aggressive and understanding when and how to market decorative concrete services is really the key to survival as a contractor. When the economy is good, contractors can and should market their services as high end finishes in the same breath with marble, Italian slate, European cobblestone and exotic hardwoods. However, explain the benefits of decorative concrete overlays being more durable, extremely customizable and completely unique.
When the economy is struggling, contractors need to emphasize that decorative concrete overlays are very cost effective alternatives to tearing out and replacing deteriorated concrete because these products can transform old, pitted concrete to the look and feel of a new fresh pour for considerably less expense.
As it pertains to interior flooring, not all of the available finishes decorative concrete overlays create can complete with the low cost of tile, carpet and wood flooring but many applications are more cost effective. In addition to a cost savings, none of those flooring options can compare to the overall strength and durability of a decorative concrete overlay interior floor finish.
Don't forget public awareness. Just because the economy is slow doesn't mean people let their property's appearance and value intentionally drop. Flooring stores still have customers shopping for tile, wood, carpet, linoleum looking to remodel and improve their property. Exterior deteriorated concrete still remains a problem and property owners continue to be in need of solutions. It is simply up to contractors to inform potential property owners of alternative, cost effective solutions to their problems and needs.
How does a contractor on a tight marketing budget do that? Well, we are not going to tell you to take out expensive full page newspaper ads or sign up for a yellow page advertisement. Successful contractors have to get creative in their marketing plans and be aggressive in their advertising. We have a plethora of proven suggestions for contractors with none of them being the only answer but when all used together solidifies a contractors success in any economic climate.
Want to learn more about how decorative concrete overlay contractors are not only surviving but earning more profit than ever before? Here are a few links that are worth checking out:
Contact us today and we will be happy to discuss your business model and marketing advice with you.
