By marketing to remodelers, building material suppliers can tap into a growing market and bring in a new stream of customers.
During periods of less new construction, the remodeling industry tends to flourish. This phenomenon is not merely a coincidence; it reflects the natural ebb and flow of the housing market. As new build projects become scarcer, many homeowners focus on remodeling to enhance their existing spaces. Building material suppliers can leverage this trend by implementing strategic marketing approaches to capture a growing market of remodelers, both professional and enthusiasts.
Why Remodeling Thrives During Construction Slowdowns
- Interest Rate Fluctuation: Economic downturns compounded by high interest rates often accompany new construction slowdowns, making large-scale new construction projects riskier for both investors and builders despite low market inventory. Affordability is another factor, with the typical cost-to-income ratio rising to around 45% according to John Burns Research & Consulting. In contrast, remodeling is seen as a more secure and cost-effective investment. Home and business owners may prioritize upgrading their current spaces over committing to new, potentially expensive construction projects.
Although the Fed has signaled that they will lower the interest rate in 2024, it is expected that the current high interest rate will have lagging effects on affordability and new constructions.
- Maintenance and Efficiency: Regardless of the number of new construction taking place, many existing structures and properties still require maintenance, repair, or efficiency improvements. Remodeling provides an opportunity to enhance the functionality, energy efficiency, and aesthetics of a space without the commitment of constructing something entirely new.
- Enhanced Property Value: Property owners often see remodeling as a means to increase the value of their investment. Investing in renovations and updates to make their properties is an easy way to make them more attractive to potential buyers or tenants.
Remodeler Marketing Strategies for Building Material Suppliers
- Identify Target Audience: Begin by identifying your target audience among homeowners, businesses, or contractors looking to undertake remodeling projects. Tailor your marketing efforts to address their specific needs and preferences. If you only sell to builders at this time, you will need to expand to include small- and medium-sized remodelers. You could tap into an entirely new market in your local area just by expanding your marketing to include this audience.
- Educational Content: Create content that educates potential customers about the benefits of remodeling and the products you offer. Inform them about trends in remodeling, energy-efficient solutions, and cost-effective upgrades. Blog posts, e-books, and webinars can be excellent resources.
- Train Your Sales Team: Do you know who the largest remodelers in your area are? Train your sales team on reaching out and nurturing relationships with these major players. Simply picking up the phone and calling a large remodeler could open an entirely new avenue of business for your building materials company.
- Showcase Product Range: Feature your building materials and products relevant to remodeling prominently on your website and marketing materials. Offer a diverse range of materials for different project types, from kitchen renovations to office expansions.
- Before-and-After Examples and Testimonials: Share inspiring before-and-after remodeling project photos to illustrate the transformative power of your materials. Include remodel customer testimonials and case studies to build trust and demonstrate the impact of your products to other remodelers in the area.
- Local SEO and Online Visibility: Optimize your online presence, including your website and social media profiles, for local search engine optimization (SEO). This ensures that potential customers can find your business when searching for remodeling suppliers in your area. Include content specifically geared towards remodelers to help outrank your competitors, research the right keywords to include on your website, and make sure your Google Business Profile is updated to accurately reflect your current operations and offerings.
- Networking and Partnerships: Build relationships with local contractors, remodelers, architects, and interior designers who work on remodeling projects. Collaborate with them and offer special incentives for partnering with your company for material supplies.
- Special Offers and Promotions: During construction slowdowns, offer special promotions, discounts, or package deals for customers undertaking remodeling projects. These incentives can attract cost-conscious homeowners and businesses.
- Customer Engagement: Encourage customer reviews and referrals. Satisfied customers can be powerful advocates for your business, particularly during slower construction periods when word-of-mouth recommendations carry extra weight.
- Easy Financing: Ensure remodelers can access the materials they need when they need them with easily accessible financing options, like BlueTape lines of credit.
By adapting your marketing strategies to align with the rise in remodeling, building material suppliers can tap into a growing market and bring in a new stream of customers. Address the unique needs of remodeling enthusiasts, emphasize the advantages of remodeling, and showcase your materials as the ideal solutions for their projects. Through effective marketing, building material suppliers can maximize opportunities and maintain a steady flow of business even when new construction activity is on the decline
At BlueTape, we specialize in helping building material suppliers offer easy financing to their customers, builders and remodelers alike. Ready to take your business to the next level? Create a BlueTape account
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