Buddy For Business

Not all projects are right for all contractors, but that doesn’t mean you should turn away the business. Networking with other professionals can direct those customers to the proper source. That not only may bring back the customer when they have a job that’s right for you, but it also may lead those colleagues to send business your way.

“We have customers tell us another contractor referred them to us, and sometimes the contractor calls to tell us about the job, so it happens both ways,” says David Cerami, president of Home-Tech Renovations in Philadelphia. “We also will refer customers to other contractors. Our goal is to ask how we can best serve this customer, and sometimes that means referring him somewhere else.”

There are a variety of reasons why work may need to be referred, contractors agree. Those reasons can include a job that’s too far outside of the normal geographical range; a type of work the contractor doesn’t typically perform; a schedule too booked up to handle the project in the desired timeframe; and the scope or size of the project, which may be too small or too large to fit with the contractor’s business.

To be on the receiving end of such referrals requires networking and sending out the word to the proper locations. Some of those include:

• Local associations. Contractors agree that the No. 1 place to gain referrals is through participation in a local association. “I like to refer customers to people I know well, and those in NARI (National Association of the Remodeling Industry) are reliable,” Collier says. Cerami agrees. “The more people participate, the more of this business comes their way, because other contractors are familiar with them,” he adds. “I want to know that contractors I send referral work to know their business and that they will reflect well on me. I know that contractors I see at meetings will do that.”
  Customers often make their first call to local contractor organizations, which can provide referrals to their members. The Tampa, Fla., NARI office, for instance, lists all members on its site by type of work so users can pinpoint the best options. Consumers also can post information about their projects, which can be viewed privately by members, who then contact the customer.

• Subcontractors. Everett Collier, president of Collier Ostrom Inc. in San Francisco, works closely with a number of subcontractors who refer work to him when the project is larger than they can handle, such as when a customer realizes he wants to remodel the bath rather than replace a fixture. Collier likewise refers customers to the proper subcontractor for smaller work he learns about. Contractors stress that such referrals often bring that customer back to the company when they have a larger project that fits the contractor’s services. Referring these customers to subs you know do good work ensures the customer is treated well and solidifies the relationship with the subcontractor, too.

• Suppliers. “Lumberyards and distributors make great referral sources,” Collier says. Some dealers keep referral lists of their good customers that they use when a homeowner is looking for contracting work, especially when considering kitchen and bath remodeling or deck products.

“The key to finding this kind of work is to take stock of who you are and what work you do, and invest time in an association of some kind that will expand your network,” Cerami says. “The more involvement and time you put out, the better you’re known and trusted.” Spreading the word of your interest to subs, suppliers and others in your network also will bring in more work and give you a way of satisfying customers who don’t fit your clientele—but may do so sometime in the future.