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Home Improvement Sales


By jeglasgow - Posted on 02 April 2008

Home Improvement Sales. I was in this business for 10 years. Home Improvement sales is a good business for anyone with some sales training, and if you can picture a projects out come in your head. Cost to start the business is very low, and profit margins can be quite good. If you stick with exterior home improvements, you will find the jobs get done quickly, and you avoid most of the problems associated with working on homes when the customer lives there.

This business has a low start up cost. You will need a home improvement contractor's license. Check with your city, most have very few requirements for home improvement contractors. It is best to start with the simple jobs such as carports, patio covers and screen rooms. As your experience grows you might tackle the larger more complicated work. You can learn what to look for when measuring a home for a carport, or patio cover, and what is needed for installation by one of the following methods. Work for a company as a salesperson for three months. Have your installers instruct you on how to measure a job, or work with them on a few jobs, and lastly, your suppliers can help advice you if you ask them. When I started twenty years ago I went to the suppliers, and picked up installation instructions, I then worked with the installers that my supplier recommended for a week. By selling the jobs, and helping the installers you learn what to do, and what not to do.

 You need very little money to start this business. Your customer's deposits can cover most, or all of the material cost, and the installers have their own tools and equipment. You will need a sales book to use in the home, made up of the brochures and pictures you get from your suppliers. As you complete jobs, add you own job photos to your sales photo book. If you run ads to get sales leads, you will need money to pay for the first couple of months advertising. If you are going to advertise by putting fliers on doors, you maybe a little less money. You can also find jobs by setting up a booth at the flea market to get leads. You could start this business with a little as $1,000. A pick up truck is helpful, although your installers will pick up and deliver materials for the jobs.

Suppliers: Every major city has wholesale suppliers for vinyl siding, aluminum carport materials, patio cover kits, replacement windows, and other home improvement materials. Check the yellow pages, and look for wholesalers under the home improvement heading. The suppliers can help with product brochures, installer recommendations, samples of their product,s and installation instructions. Also ask the wholesale house's manager what the going rates are for labor, and what retail prices their products are being sold at. If you have no suppliers look to the next large city chances are they deliver to your area.

Installers: Installers are the key to your success. When you find a good installers take care of them, and they will take care of you. Most installers have standard rates that they charge for the different types of jobs, sit down with your installer and make a list of their labor rates. Installers are sub-contractors, and as independent businessmen they pay their own taxes. Be sure you have a signed sub-contract agreements on each and every job.

Products To Sell: Start with patio covers, screen rooms, carport covers, and decks. There are many style choices, and combinations with in these product categories. See www.homeimprovementkits.com to get an idea of what is available. That web site sells kits to consumers and is not where you want to shop if you plan to be a home improvement contractor, but it has a lot of information that will be of help to you.

Most home improvements sales are made (sold) as installed sales, by a home improvement sales person, taking the order in the home and arranging for installation. Depending on where you live some products will be more popular than others. In Florida screen rooms are very popular, in Texas carports are popular because of the heat. Your suppliers will tell you what sells best in your area. Advertise only what sells best in your area.

Advertising: We found that the best place to advertise was in the TV guide. The best ads read, "20% off carports, screen rooms and patio covers, free estimates call xxx-xxxx". The next best way to advertise was to put up full size carport displays at busy highway intersections with signs saying CAR PORTS & PATIO COVERS CALL XXX-XXXX.

Pricing: Different contractors use different pricing formulas. The most common are.

1. Material cost, times three, equals the sales price.
2. Material plus labor, times two, equals sales price.
3. Material plus labor, times 1.67, equals sales price.

There are some H.I. Contractors who use much higher prices, and some who sell so cheap that they cannot afford to advertise, or grow their businesses past the start up stage, Charge a fair price, and stand behind every job you do. If you do that your business will grow. There is a lot more to this than what is given here, and you will need to learn as you go.

Our how-to-manual goes into detail on what to do, including list of suppliers, advertising samples, plans, photos, ad copy and the manual covers all areas of the business. How To Run A Home Improvement Business Manual $59: (call 1-888-814-7531 ext 1382) it includes how to design and sell steel patio covers, and carport covers. Information that cannot be purchased from the local home improvement contractor sources. If you want to save thousands of dollars in trial and error learning, as well as jump-start your Home Improvement business, order the manual. You can be successful with out the manual, I was. Even if you order the manual it will not help, if you do not get out there and get started. So however you do it, the key is, DO IT! (paid adv.)

How the Internet assists this business: The Internet gives you a way to find suppliers of products to sell. It also allows you the use of smaller display ads because you can direct people to a web site for more information. The web allows you access to all manner of business forms and contracts to use in operating your business as well as business how to information from bank and other web sites.

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