Steve Ramaekers is trying to stay positive in the Detroit market but is fighting homeowner fear of layoffs and daily negative news about the status of the area’s largest employers — the Big Three automakers. “We have so much uncertainty. We have the highest unemployment rate in the country. It’s no longer hitting just the line workers. It’s also hitting white collar workers employed by the Big Three,” says the owner of MainStreet Design Build.
Ramaekers has switched his remodeling company’s target work to reflect changes in the market, shifting from large projects to kitchens, baths, and maintenance work. “Our handyman division is the biggest thing we have going right now,” he says.
Some of the work consists of necessary repairs, for example, fixing ice damage from winter storms. Other work includes carrying out small projects that are within the homeowner’s comfort zone, such as spending $1,000 to spruce up a fireplace area.
The smaller jobs are coming both from past clients and from leads from door hangers the company is using to blanket target neighborhoods. The remodeler is also promoting small jobs and repairs on the company’s website.
When Ramaekers speaks to potential clients on the phone, he asks if they have secured financing. Many think they will easily be able to get home equity loans, but due to declining house values, they find that it is more difficult than they anticipated. Ramaekers asks prospects about any recent house sales in their neighborhood, so he can estimate their home’s current value. He also tracks home sales in various Detroit neighborhoods.
To cut business expenses, Ramaekers has been renegotiating his company's vehicle leases and rent, and keeping his insurance company informed of any current or expected staff changes. “Even if you don’t think they will [renegotiate] — ask,” he says. “You’d be surprised at how many people are willing to renegotiate.”