Finding the best niche market for your company is as simple as answering a few questions:
- What area of remodeling does your company excel at?
- Do you want to specialize in commercial or residential remodeling?
- If you chose residential –
- Do you want to work with the general public?
- Or do you prefer to work with investors who have rental homes?
- Or perhaps you’d prefer working with realtors who work with sellers or buyers of properties that need real estate improvement.
- Do you want to do jobs all over your state; if not, define a specific area of your state, city or community that you ideally want to service.
- If you want to stay within a certain radius of your office, look at the composite of that area –
- Is it mostly businesses, homes, rental properties?
- And within that composite, what types of customers and jobs are possibly available?
- Do you want to do remodeling jobs of all sizes or stay within a certain price range?
As you answer these questions, you’ll get a clearer picture of the type of jobs you want to do, in what radius you prefer to work and the type of client you want to work with. Creating a niche market does not mean that you’ll turn away work that doesn’t fall into that niche, it means that your marketing dollars will be spent attracting a particular group of consumers which can in turn help grow your company more efficiently.
Let’s say that in answering the questions, you’ve determined that you want to specialize in residential remodeling within a 50 mile radius of your office. And within the first 10 mile radius of your office, there are at least 100 real estate offices. You might decide that your niche market will be to work with realtors who can help you connect with buyers for remodeling kitchens and baths in homes that are currently for sale from the $200,000 – $500,000 price range.
Now you’ve got the first step to your marketing plan: marketing to realtors within a 10 mile radius who handle home sales in the $200,000-$500,000 price range. And the specific service that you’ll be selling is the remodeling of kitchens and bathrooms in those homes.
Once you know the people you want to work with, the area that you want to service and your ideal price range, you can continue asking yourself questions that will help you zone in on your ideal customers and the specific services you’ll offer them.
- Is there a niche that your competition has failed to fill?
- Is there a strong market for that product or service?
- Can you, perhaps, become a specialist in an area where there are many generalists?
- Finding your own niche is often a matter of putting a new spin on what you already do. Ask yourself, how can I differentiate my business from others?
- How can I create the perception that my market simply cannot live without me?
- What do I have to offer?
If you’re having problems defining what you do better than your competition, start by examining the needs of your best customers – especially your repeat customers. Why do they keep coming to you? What do you do that puts you at the top of the pack when they need remodeling done?
Once you’ve determined the niche on which you want to concentrate your marketing efforts, it’s time to get specific about why these customers will want to buy from your company. If you don’t have that piece of the puzzle defined, you won’t be clear on what you’re offering; and you have to know specifically what you’re offering to convince the buyer that you’re the best option.
To help create your marketing approach and to sell your company and its products and services to your niche market, define the answers to these questions:
- Why should your ideal customers choose your company?
- What makes you stand out from the crowd of other companies that offer remodeling services?
- In using the realtor niche example that we chose earlier in this chapter, what service do you offer that will make the lives of the realtor and seller easier?
- Or in general, what does your company do that will enhance or simplify the remodeling process for your niche market?
Stepping away from the scenario of remodeling kitchens and bathrooms through realtors, let’s say that your answers determined that you wanted to specialize in building decks for lake homes in the $500,000+ range because your business is in an area that has a lot of high-end lake homes. Your questions to yourself would be similar:
- Why should these homeowners choose you?
- What makes you stand out from the crowd when it comes to building a deck?
- Do you offer design services that will help the homeowner create a unique deck for their home and their particular setting?
- Do you have a faster turnaround time so that they’ll be enjoying their new deck much quicker?
Niche marketing or specialization is used by industries of all types because doing a few things with a high level of expertise will bring recognition and a reputation of excellence quicker than doing many things well. The medical field is a good example of an industry that is filled with niche marketing. Most doctors specialize, and in their specialization they limit the scope of patients to whom they market. For example, an orthopedic doctor wouldn’t market to people who had skin issues – his general training gave him the ability to recognize and perhaps treat skin problems, but he has specialized and taken additional training to excel in bone issues so that’s where his marketing focus is.
The travel industry is another example of niche marketing. There are travel agencies that specialize in cruises – their expertise may be in Caribbean cruises and as a special service, they may be able to directly book air as well. Therefore, they’re not going to market to people interested in going skiing. If someone going on a ski trip calls them, they can book a ski trip, but that’s not where the majority of their focus and experience is and that’s not where their marketing dollars are being spent.
Have you defined your niche market? I want to hear from you below!