Competitor differentiation is an important aspect of marketing for any business.
What makes you different from the construction firm situated at the other side of town? Why should potential clients come to you, rather than them?
Many construction firms make the mistake of dropping their prices in an effort to remain competitive. This is not differentiation, this is simply an involvement in a price war, squeezing profit margins to the extent that many projects end up providing little profit at the end of the day.
Differentiation should be based on such aspects as a specialisation in a particular area, provision of services to a niche market or some kind of added client value, which no other competitor currently provides.
So, as a construction professional, you could perhaps ask yourself, are there any other like firms in your area marketing themselves as affordable housing specialists and introducing themselves to the local authority? Or perhaps you could pair up with a respected architect and planning professional to provide a “one stop shop”, saving clients time and potentially money on sourcing appropriate professionals and project management. If your cashflow allows, you could offer clients a “payment by instalments” scheme, particularly useful as the property market slowly begins to take up the pace once more.
By singling out your construction practice and placing it firmly in the spotlight, you can begin to build a solid reputation, which will in turn trigger word of mouth referrals and more leads. Don’t simply assume that your current or past clients will automatically stay loyal to you. You may not be the cheapest practice in the area, but you need to demonstrate why new projects should come to you.