subject: Small Company Successes In A Ever Changing Financial Environment And Their Secret To Success [print this page] I am right here in Capecod, Massachusetts talking with Derrick Schmidt of Schmidt Painting Contractors Capecod. Mr Schmidt how has the home painting business changed within the last 2 years amid the oppressive competition. Well I'm glad you talked about the amount of competitors we've faced this year and last. New construction is really way down forcing painters from the new construction market into our renovation market. Most general contractors are running out of work for their workers so their taking over more of the project personally including the house painting. Individuals who lost their jobs in different sectors of the economy are moving into our industry. These new repaint contractors are ill equipped to compete with our painting company on experience alone, so they typically go the one route they have to them to get work and that is by going cheap. These painting services are sometimes the cheapest painting company around however as everyone knows within the business world, that cheapest is usually not the best. Inside the house painting business community we always say "Cheap paint ain't good and good paint ain't cheap!" a similar thing might be said of these cheap painting contractors. I tell potential clients there is two kind of painters you will have come here to present you an quote. The 1st will come up in a brand new truck with out a drop of paint on their clothes, this kind of contractor has by no means painted in his life you'll be paying for his truck and all his workers. The 2nd kind is the painting company that provides a price that is way too low this is because he has no insurance protection, little or no experience and he'll use Walmart paint. I will say that the massive competition has pushed prices down, but generally yearly earnings are way up.
Mr Schmidt what has set your company apart from the others? I would prefer to think that our 12 years experience in this industry is the #1 contributing reason. Our clients know after they contract us that they will see me and my wife on the job site working everyday. However I will say we have had to modify our business model to a extra lean company, at times by increasing the price we pay for paint and spending more money on new tools. Are you able to elaborate more because I am confused? Did you say you grew profits while increasing your cost to do business? Well sort of, what I did is spend more on products and supplies that enhanced production. Such as? Well we use to use Benjamin Moore Solid Body Stain that cost $35 per gallon. Now we use a new product Benjamin Moore Arbor Coat that cost $40 per gallon this new stain is a revolution in stain blocking technology featuring the new gen x color pigments that they use in Aura. I can get 2 times better coverage with this stain which allows me to finish faster and use less product, usually 40% less. For me the choice is simple and the home owners love that it's guaranteed against fading.
Mr Schmidt when talking to potential customers what do you say to them to get them to trust you more than different companies? Once I go to a bid I give the client one hour of my time. In that hour I am going over the customers concerns by asking questions most painting companies do not. I address any problem areas on their home and the steps we take to insure the problem does not occur again. I let the consumer know what paints I'll use and why their higher quality. Along with a price comparison between paints that maybe listed in other estimates they receive. Potential clients are very skeptical of painting contractors as they should be that is the Number 1 most complained about industry. I encourage the consumer to do the research on the products that are on the estimate in writing. The consumers that do take the time to do the research go along with us ninety nine percent of the time. In any case a painting contractor can ask his employees to do a three step strategy of sand, prime and paint but if he is not there then there is no way for him to know if his painter skipped something especially if the boss didn't get on a ladder and check. To many times I go to a house and the highest part of the painting done by the previous painters, usually on the roof, the place you can't see from the ground is just the preprimed wood and no paint. Eighty percent of the work we do is correcting the work of other painting contractors. Clients tell us all the time they've had to repaint every three years and for us that is just not acceptable. These sort of paint jobs are done by those who need to make quick cash and then they shut their doors or probably reopen under new name. That's why it is vital to get a licensed contractor, the state will not permit them to keep altering names and can hold them responsible.
Mr Schmidt is there any suggestion you would like to provide small business owners? Sure, at all times give your customers more than they anticipate and treat your customers like their friends. A client will give you there business sometimes however a friend always desires to do business with a friend. Treat people fairly and always come when needed to service your work.
Small Company Successes In A Ever Changing Financial Environment And Their Secret To Success
