Combat Remodeling Market Pullback with Increased Marketing
Predictions for Company Growth in 2024
We’re planning for solid growth at 13%. Prior to the pandemic, our average growth was about 10%.
We’re focused on what the consumer is interested in buying and how they buy. For example, interest in remodeling kitchens slowed for most of 2023. As a full-service remodeler, we can easily pivot to the interest in complex custom remodeling projects, bathrooms, doors, windows, and siding. Providing the client with alternative cost-saving options will contribute to growth.
Tackling Cost Escalation
Rising materials and labor costs have plateaued. There’s an opportunity to negotiate pricing down with manufacturers.
We plan to lean on vendors for volume discounting, which is new for us. Promotional marketing will return as well, which we have not done since pre-pandemic. Another downward pressure we’re feeling is increased insurance costs ranging from 13-35%.
We plan to spend 5% of our revenue month over month, compared to 3% when leads were more steady.
Plan of Attack
We plan to combat challenges through increased margins based on better production performance, not necessarily an increase in the sold margins.
We’ve implemented new training and process improvement plans. We’re looking at how to get more done with less. This means eliminating and outsourcing duties. For example, using a courier service instead of a project manager running material to a jobsite.
Our Approach to Marketing
We held back our marketing spend last year, and now we’ve pushed the pedal down more to combat any slowdown with significant investment in marketing.
We plan to spend 5% of our revenue month over month, compared to 3% when leads were more steady.
