Remodeling Contractor Marketing Plan

by John Jantsch

Remodeling Contractor

This sample marketing plan was written by John Jantsch of Duct Tape Marketing. This sample marketing plan can be edited directly in Marketing Plan Pro software.

Ideal Customer

You would spot our ideal customer in an older, established neighborhood sending one or more their children off to college and making plans for tomorrow's volunteer board committee meeting. They subscribe to urban living, entertainment and design magazines and entertain often. They belong to an area country club, may own a lake home and attend church on Sunday. They have remodeled before and are probably looking to stay in their home for at least 10 more years.

2.1 Market Needs

Let's face it, the remodeling business has its share of less-than-ethical participants and there are plenty of remodeling horror stories.

While we focus on high-style design and craftsmanship, we know that the process of completing a project, cleaning up every day and paying attention to the homeowners' input is what the market needs.

2.2 Market Trends

People want function from every room in the house. It needs to be stunning and it needs to perform. Electronics, computers, audio/video are standard in today's upscale home. Design is a core strength.

Increasingly, our ideal customer is attracted to upscale condos in converted buildings in their neighborhood. We are aware of the need to communicate our skills in working in older buildings and creative space planning.

Growing numbers of our ideal customers are also expressing their desire to be more earth-friendly through the use of green products and contractors who utilize green building practices. This aligns with our vision as well.

2.3 Market Description

Our ideal customers are homeowners living in upscale, but older, neighborhoods. They value the remodeling process and creating space for entertaining and large family gatherings. They are often self-employed with flexible schedules and enjoy playing an active role in the design phase of their project. The average project size with our ideal customer is $75,000.

2.3.1 Demographics

Our best customers are homeowners in ZIP codes with average home values above $150,000. Often they are couples with high school age children or recent empty-nesters. They tend to be self-employed or in professional services businesses with flexible working hours. They are often college educated but not necessarily advanced degrees.

2.3.2 Psychographics

Our ideal customers are belongers and emulators - they entertain and love to have family around. A big draw for remodeling is to create space to entertain and host large family gatherings. They are very community-oriented and tend to participate heavily in school, religious, civic and nonprofit organizations.

2.3.3 Behaviors

Our ideal customers have remodeled before. We have found that once you have been through a large remodeling project you understand all of the dynamics and what a good and potentially bad experience can really cost.

2.3.4 Geographics

We have identified 13 areas and suburban ZIP codes based primarily on average home age and value.

2.4 Market Growth

While overall growth in the remodeling industry is always linked to interest rates, home value appreciation and the economy as a whole, growth in the upper end is very strong. This market is often funding the cost of remodeling from sources other than loans and income and is less impacted by an economic downturn. Our ideal customer is also very attached to older neighborhoods and will often invest in remodeling projects that might initially exceed the surrounding home values.