Competing with confidence: 8 strategies for established contractors facing new competition

So, an up-and-coming builder just started a new business in your town. What do you do?

1. Panic
2. Close up shop
3. Sabotage them
4. Improve your business

Hopefully you picked D. But, if you thought about picking choice A first, that’s understandable. Just don’t let the panic consume you. And don’t pick options B or C.

Sure, when there’s a new builder to compete with in the market, it can feel stressful. Are they going to steal your customers? Will they be better than your company? Will they poach your team members? Will you have to lower your prices?

There are a lot of questions that might run through your mind as a business owner.

The good news is new competition doesn’t have to be a bad thing. In fact, it can actually drive your business to be better than ever.

We’ve got a strategy-packed article that you can turn to every time you feel that wave of panic when a new builder comes to town. So, take a deep breath, take notes and get ready to take the competition head on.

Should established builders be concerned with new competition?

The short answer? Yes. Established builders should maintain a level of concern when it comes to new competition entering the market.

While older firms have the advantage of experience, reputation and long-term connections, new businesses often bring fresh perspectives, innovative technologies and different approaches to the industry. Ignoring or underestimating these new players can lead to laziness, preventing your ability to adapt and improve in response to changing market dynamics. Young businesses also tend to introduce competitive pricing or target niche audiences that established builders might overlook.

This is why it’s important to view new competition as motivation for improvement. Reassess your strategies, enhance efficiency and explore new opportunities for growth to maintain your competitive edge.

But there’s no reason to panic when a new builder comes to town. We’ve got plenty of strategies to help set your business apart from the competition.

8 ways to differentiate your experienced company from new businesses

When a new company pops up in your market, think of it as a time to re-strategize and leverage your strengths.

By acknowledging their presence and responding the right way, you can prevent potential threats and uncover avenues for growth and innovation in an ever-evolving construction landscape.

Here are eight things to focus on that can differentiate your company from new businesses:

Reputation and track record

Highlighting a long history of successful projects and satisfied clients can instill trust and credibility in potential leads. Established contractors should leverage their track record to showcase their reliability and expertise.

Specialized expertise

Demonstrating specialized knowledge or expertise in specific construction niches or techniques can set older businesses apart from newer competitors. Whether it’s green building practices, historic restoration or advanced construction methods, showcasing this expertise can attract clients seeking specialized services.

Robust network and relationships

Experienced builders often have extensive networks of subcontractors, suppliers and other industry pros built over years of being in business. Leveraging these relationships can lead to better project outcomes, faster turnaround times and access to resources that newer businesses may not have.

Financial stability

Stability and financial strength are crucial differentiators. Established contractors can demonstrate their ability to withstand market fluctuations, access capital for larger projects and provide assurances of project completion even in challenging economic conditions.

Technology adoption

Embracing cutting-edge construction software can enhance efficiency, accuracy and project management capabilities. To keep up with new competition, older businesses should invest in tech like Buildertrend to streamline processes and deliver better results.

Quality and craftsmanship

Emphasizing a commitment to quality workmanship and attention to detail can differentiate an experienced builder compared to a less experienced one. Clients value reliability and superior craftsmanship, and contractors with a reputation for excellence can command premium pricing and repeat business.

Strong brand identity

Investing in branding, marketing and customer engagement efforts can help create a recognizable identity. A strong brand presence reinforces trust and loyalty among clients and positions the company as a top choice in the market.

Community involvement and sustainability

Engaging in community initiatives and promoting sustainable construction practices can enhance the reputation of a builder who’s been around for a while. Clients today value companies that prioritize environmental friendliness and community involvement, giving established contractors a competitive edge in attracting socially conscious clients.

How to showcase your expertise the right way

One of the best ways to stand out from your competition is with proof of work.

Proving your experience, craftsmanship and service is how you attract new clients – and keep past clients coming back. Here are several unique ways to showcase your business that will set you apart from new players in the market.

Before-and-after portfolios

Every home builder and remodeling business needs a portfolio. Whether on your website, social media accounts or a physical photo album, create visually striking portfolios showing before-and-after transformations of homes and spaces you’ve built. Highlighting the dramatic improvements achieved through these projects can effectively demonstrate your expertise and craftsmanship.

Virtual reality tours

Use VR technology to offer immersive virtual tours of your completed projects. This allows potential clients to experience the quality and design of your work firsthand, without ever stepping foot on the property.

Client testimonials and case studies

Share compelling quotes and detailed case studies that highlight your ability to meet and exceed client expectations. Real-life stories and testimonials can provide valuable social proof of your expertise and customer satisfaction.

Educational workshops and seminars

Host in-person sessions or virtual webinars on topics related to your specialty. By sharing your knowledge and expertise with the community – rather than hoarding your secrets to yourself – you can position your company as an industry leader and trusted advisor.

Collaborations with industry leaders

Partner with renowned interior designers, trusted brands or well-known tech companies on high-profile projects. Collaborative efforts can elevate the quality and creativity of your work and attract attention from potential clients seeking top-tier design and construction services.

Community engagement and philanthropy

Get involved in community projects, sponsor local events or support charitable initiatives. By giving back, you can showcase your values and demonstrate your commitment to making a positive impact beyond your construction projects.

Why your marketing strategy is the key to standing out

If you’ve been in the construction industry for a while, you know competition is fierce and margins can be tight. So, if you don’t have a robust marketing strategy, you’ll struggle to stand out against your rivals.

A well-crafted marketing plan allows construction firms to effectively communicate their unique value proposition, distinguishing themselves from competitors in the eyes of potential clients. By showcasing their expertise, reliability and quality of work through targeted messaging and branding efforts, construction companies can establish themselves as trusted authorities in the field. This is what fosters credibility and trust among clients.

Plus, a strategic marketing approach enables builders to identify and target unique markets, carving out a distinct competitive advantage that resonates with specific audiences.

In an increasingly digital landscape, a strong online presence is crucial for construction companies looking to remain competitive. Through digital marketing channels such as social media, search engine optimization and content marketing, contractors can amplify their visibility, engage with target audiences and generate leads more effectively.

By showcasing past projects, sharing valuable industry insights and leveraging customer testimonials online, construction businesses can build brand awareness and establish themselves as leaders in their market.

A comprehensive marketing strategy not only helps construction companies attract new clients, but it also fosters loyalty and repeat business. By maintaining ongoing communication and delivering exceptional customer experiences, you’ll solidify your position against the competition.

Ready to crush the competition?

Panicking at the thought of new competition is a thing of the past.

Now that you’re equipped with a full arsenal of actionable strategies, the next time a new builder shows up in your town – you’ll be ready.

So, if you’re a home builder or remodeler who …

• Has an established team
• Wants to go from making six figures to eight
• And is looking to perfect production timelines

… then schedule a demo with Buildertrend today. We’re the premier construction management software for premier builders who welcome a little competition in the industry – because it helps them grow.