Barely 29% of remodelers surveyed prepare a marketing plan and budget each year, and 80% spend 3% or less of annual revenues on marketing.

What's holding them back? Well, nearly 20% say they have more leads than they can handle, and 72% either say they can't afford marketing or don't have the time for it. About 60% develop their own marketing ideas, and 75% spend three hours or less planning or working on marketing each month. And of those who do market, 31% say they don't market frequently enough.

Those who market their business find that the most effective methods are job signs, direct mail, and newspaper advertising.

Web sites also are becoming more of a factor in winning business.

What Is Marketing? Definitions & Costs

How do you define a lead?

Annual marketing expenditures, as a percentage of revenue

Average cost per lead (marketing cost divided by total leads)

Cost per sale (marketing cost divided by number of sales)

Do you spend enough money on marketing?

What's The Plan? Creating & Tracking

Who creates your marketing materials?

How do you track your leads?

If you market, do you market frequently enough?

Top 7 most effective marketing methods
  1. Job signs
  2. Referrals/word-of-mouth + other
  3. Direct mail
  4. Newspaper advertising
  5. Yellow pages
  6. Home shows
  7. Web site


Top 6 months for advertising (if marketing once a year)
  1. January
  2. March
  3. February
  4. October
  5. November
  6. December

How do you determine who your best client is?

“We have a strict, six-question form that we complete when we sit down with our prospect. Based upon certain responses, we ultimately determine our ability to pursue that prospect.”

John King, Blueline Building Systems, Bristol, Conn.

“My best clients have me back every 12 to 18 months for new projects and each of them has given me at least two referrals that lead to new jobs with new clients.”

John Kreamer, John Kreamer Wood Craftsman, Middleburg, Pa.

“Clients who challenge us usually are deemed to be the best. Clients who were more involved and pickier about their selections, the procedure, forcing the original timeline, etc., were the ones who ended up being the happiest. That's what makes an excellent client: They know what they want and they make sure we provide it.”

—Patty Naughton, Walter H B Platt Architects, Remodelers & Cabinetmakers, Groton, Mass.

How has your target client changed over the years?

“I have gone from a wide range in age — young to older clients — and now look for empty nesters because they have the income and usually need larger, whole-house remodels.”

Jim Nowlin, CGR, CAPS, Remodeling Concepts, Richmond, Texas

“We've been targeting people who know quality workmanship and are willing to pay for it. ... In the past, we had no specific target market and did little pre-qualifying of leads.”

Gary Line, Custom Finish Carpentry, Crystal Lake, Ill.

“Clients are becoming younger, because parents are starting families [earlier] and mortgages have become extremely easy to get.”

Amanda Perry, D & D Home Service, Lambertville, Mich.