Will Specialization Boost Your Bottom Line?

At first glance, specialization can seem like a risky proposition that could cause you to miss out on opportunities. In reality, positioning your firm to stand out from other construction professionals is one of the most effective ways to both attract more clients and increase your profit margins.

A Reputation That Precedes You

Your would-be clients aren’t looking for a “construction firm,” but for a company that can provide the exact service they want. If your firm is strongly positioned as a leader in that area, you’ll be the clear first choice. Keep in mind that it’s far easier to rise as a leader in a defined niche than in a broad market. You’re also more likely to receive referrals from construction professionals who remember your firm’s name in connection with your specialty.

Generally speaking, whatever you do best will become your specialization, but there’s more than one way to approach defining your specialty.

• Building type: medical facilities, office buildings, custom homes
• Customer type: entrepreneurs, homeowners, developers
• Location: urban or rural, neighborhood, topography
• Contract type: bid or negotiated, design-build or plan-spec

Having more than one specialty extends your reach in the construction market. If you go this route, though, segment your client base and target your marketing to each one.

The Perception of Excellence

Your specialization is evidence you’ve invested time in developing your knowledge and skills. It displays the kind of focus, hard work, and commitment we all admire in a professional. The very fact you’ve made the effort to specialize inspires trust, which in turn helps you win over more clients.

Clients also know that effort pays off. Specialists nearly always provide higher quality with greater efficiency than generalists. They hire foremen and subcontractors with a deep knowledge of their individual areas of focus. They’re experienced at managing the challenges that come with their specialty. When you offer this level of service, you can command premium prices because your clients know you’re worth it.

For more information on specialization for construction professionals, contact Construction Monitor today.