Contractor Marketing

When contractors think about contractor marketing, they are usually thinking primarily about how they can get new customers. As a contractor myself, and as a consultant to other contractors, I agree that this is probably the biggest concern for most contractors. However, there is more to marketing than simply finding new customers.

The Merriam-Webster dictionary defines marketing as the process or technique of promoting, selling, and distributing a product or service. For contractors I would add to that definition, in a way that makes the contractor a profit. This last point seems pretty obvious, but it needs to be made.

As most contractors have discovered from hard-earned experience, there are countless ways for contractors to spend their money on marketing. Unfortunately, few of these marketing methods actually result in the contractor making a profit. In fact, from my experience, the majority of marketing methods used by contractors will actually cause a contractor to lose money.

The sad truth is that successful marketing can remain elusive to the average contractor throughout their entire career, and a contractor’s inability to employ successful marketing techniques will limit their company’s growth or even eventually cause them to go out of business. My goal in writing this is to briefly go over the basics of contractor marketing and to share with other contractors some of the marketing techniques that have worked and continue to work for me.

To introduce myself, I own a 30 person electrical contracting company in Los Angeles. When I started my company over 35 years ago, I didn’t know how to properly market my contracting company. As a result, I lost money. Over the years I learned some marketing techniques that worked for me. Now my contracting company grosses millions of dollars each year.

Contractor Marketing can be broken down into four main parts:

  1. Promotion – Attracting potential customers to your company
  2. Sales – Converting a potential customer into a buying customer
  3. Production – Delivering the product or service that the customer bought
  4. Making a Profit – Managing steps 1-3 in a way that results in your company making a profit

In order to have a successful marketing campaign, these four parts – Promotion, Sales, Production and Making a Profit need to work together to get good results.