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A pricing strategy is one of the most crucial business policies a contractor or builder needs to establish. As nearly everyone in this industry can attest, it’s a decision fraught with uncertainty. After all, no one business model governs all circumstances, leaving the builder to rely on everything from analytics to competitor intelligence to gut feelings before rendering the policies and procedures that could permanently impact profitability. Phrases such as “cost basis,” “market basis,” “value pricing” and “psychology based marketing” can lead to endless second-guessing even after the key decisions are made.

I’ve often considered myself a problem solver. As a student of architectural engineering at Penn State, I was constantly searching for shortcuts to solutions. I found that with a large course load I needed to develop tools and tactics that gave me the greatest chance for success.

If you’ve looked at the construction numbers the last few months, chances are you’ve found yourself mostly checking to see if things have gotten better or worse in the industry. But what if things didn’t really change at all?

When was the last time you took a comprehensive and objective look at your website? Sophisticated web analytics can tell you who is clicking on the site, the length of each stay and the pages that attract the most number of visitors. All well and good, but the question re­mains whether the website is giving visitors what they want and need. If not, the company is not getting the best bang for its buck.

In most industries, generating new business can be a very costly venture. The effort to bring in just one new customer can range from hundreds of dollars to produce a simple business letter to thousands or tens of thousands of dollars for direct mail, advertising, and other sales and marketing programs. As a result, the reoccurring expenses sustained when companies implement these types of activities can dramatically affect profit margins.

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