How do you pick products to sell or service in your contracting business? I believe it is important to have a good product mix. There are some contractors out there that have only one product or service they offer.
This to me is nuts because you limit yourself on any type of growth. Your niche can change quickly, leaving you out if the market changes.
Let’s think more of building profit pillars for your contracting business so that if part of your market slows down a bit, you are still able to survive.
I like to call it general contracting because you can have several products or services that you offer and this sets you apart from the other contractors in your area and opens the door to do a lot more work.
A diverse product mix is good because you will be able to hire employees or subcontractors much easier when you have several different lines of products or services.
I like to pick out products that have a good profit margin and no major service issues, and I always try to get something that is easy to install. Plus you need to also make sure your choice is wanted by your clients.
I also like to think about contractor safety when picking out my product choice. A product that that is hard to install or handle, or is very heavy might be best passed up.
It’s good to have 4-6 different profit pillars to work from. You will see the ups and downs throughout the year but this is OK because of your mix of products and services.
Now I am not saying to add a lot of products all at once. This is something that you build over time and you add more as you see the need and your help can handle the additional work load.
Most of the time when you are out selling, your own clients will ask you if you handle this or that. This would be a time to look into more products or services.
Becoming a contractor is a great life for you and your family, but it’s important to make your life as easy as possible. Picking the right mix of products and services will have a lot to do with it all. So do your homework and run the numbers and talk to your clients.
Happy Selling
Glen
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