In this episode
Mark G. Richardson shares 5 factors that he refers to as “tail winds” that forecast success and profitable years for those in the remodeling industry.
#1 – Home Appreciation continues to be strong. Of the top 25 markets in the U.S., 23 of them are continuing to appreciate. It was only just a few years ago that these same markets were all depreciating. A strong home appreciation gives homeowners the confidence to want to remodel and upgrade their homes.
#2 – Interest Rates. The reality is that interest rates are still at historic lows. In the 80’s, interest rates were 14 to 15%. Today, you see interest rates at 4 or 5%. Turn the clock back a few years, and people would be amazed at the interest rates seen today. However, as interest rates inch higher, it creates a sense of urgency for the remodeling industry. Homeowners want to cash-in now and start their projects sooner rather than later.
#3 – Unemployment. It’s not a question of whether someone has a job or not right now, but their confidence of knowing they’ll have a job next year and after that. When they have that degree of confidence, they are far more willing to invest in their homes; knowing that they’ll be financially secure.
#4 – Stock Market continues to be very strong. This is a great indication of overall wealth that homeowners can invest back into their homes.
#5 – Housing Market. The ability to build new homes and the demand for new homes has created a gap that is pushing people to focus more on investing in their home, rather than selling and buying.
What do these tail winds mean?
These 5 factors combine to result in high consumer confidence. These tail winds likely have made your phones ring off the hook. But just because the phone rings, doesn’t necessarily translate into high sales.
There are obstacles (cost increases, price increases, labor shortages, etc) that make it difficult on your business to make a profit. In order to find success, Mark encourages you to focus on how you can control the process and understand these tail winds. Ask yourself, “Am I seeing the results I have because of skill and expertise…or is it more of an effect from the remodeling industry today?
Cautionary Tips
These tail winds are out there and will energize your business. However, just as you’re flying a plane or steering a boat, you need to pay close attention to the details in order to be successful and profitable. You need to:
- Make a plan and stick to it. Planning and being able to predict trends and changes is more important than ever before.
- Control your business. Everyone is strapped for time today, but you want to make sure you’re the one controlling your business and not the other way around. It’s about how you can become more proactive and less reactive to events, trends, and new technologies.
- Understand this is a time where hardwork pays off. If you put in the time and attention and really drill down into what success means to you, you’ll be rewarded.
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