Prospective homeowners trust their builders with an insane amount of money to put up their houses. It would be therefore prudent to live up to clients’ expectations if you are to give your business an edge on the market.
It would cost the average Australian $320,000 to put up an average of 251 square meters notes a leading supplier of concrete reinforcing mesh. That works out at an average of $1270 per square meter, which is pretty penny.
Despite the spiking cost, there’s a spiking demand for houses as people work towards realising their lifelong dream of becoming homeowners. That spells great news for construction companies as it translates into booming business. To ride this wave and grow your business, you need to take a few proactive measures.
Watch the timelines
Given the princely asking prices on houses, most of your clients will take out construction loans to fund the projects. Unlike a conventional mortgage, such loans involve a progress draw that is predetermined. The lender releases the money in bits throughout the construction process in accordance to the set time frame.
Falling behind on these timeframes can cause considerable blowback for your clients and you by extension. See, the lenders must inspect to ascertain that you’ve kept your end of the bargain. Banks won’t release any additional draws if you’re running behind the set schedule, which could leave cash-strapped.
Delays on your side not would not only inconvenience your clients but cause them financial losses as well. Such development can ruin your reputation and cost you new clients. On the flip side, adhering to such tight schedule buoys your reputation, increasing your chances of success.
Polish your customer service
If someone is choosing to trust with hundreds of thousands of dollars to build them their dream house, you’re better off treating them like royalty. Most people stake their financial wellbeing when buying a home. One wrong move can have them plunging to a financial crisis that could ruin their lives.
With stakes this high, you need to make every effort to do it right by your clients. That means bringing your A game at all times while delivering a project and living up to expectations. It would mean keeping the customer in the loop at all times and responding to inquiries they make.
Keeping them in the dark about your progress would only subject them to unnecessary bouts of worries, panic, and anxiety. That would be unfair and unprofessional conduct that could come back and bite you when the word gets out.
Learn your target market
To stand out in a sector with a high level of competition, you need to find creative ways to differentiate your services. The most efficient way to rise above the crowd is to build resonance with a specific niche market. Contrary to popular opinion, there more advantages to niching down than there are drawbacks.
If you wanted to build a mansion, would you hire a builder skilled in building warehouses? The chances are that you would want one with extensive experience building mansions. Great insights into your target market can help you pick a lucrative line of specialisation.
Detailed market research can help you zero down on the most in-demand and profitable sector in your regions. Of course, you’d need to ensure that you have the necessary skills and equipment to handle the jobs.
Building a house is a capital-intensive project that requires many people to take out huge loans. As a contractor, you must help your clients achieve their homeowning goals with the least amount of pain or inconvenience. Such an approach not only gives you an edge on the market but all a roster of satisfied clients who can attest to your proficiency as a builder.