There has been a lot of talk of the ‘credit crunch’and the knock-on effects for business and consumers. Share prices have dipped, and banks have tightened their lending criteria. What might this mean for tradesmen over the coming weeks and months? ProblemSolved has been examining the potential impact on your business.
In a recent survey, the Federation of Master Builders found that 40% of its members have reported a slowdown in the rate of enquiries, whilst Travis Perkins recently admitted to the Guardian that the home improvement market is slowing.
However, this may not tell the whole story. Tim Foley, MD of Kitchens Fitted Ltd points out “Businesses who are offering quality products at competitive prices will be best equipped to cope. The sociological result of the credit crunch will be that people will invest in their homes rather than sell them. In times of crisis, the home becomes a castle.”
The result would indicate that rather than reign in their home improvement spend completely, homeowners are more inclined to go the extra mile to find a professional who can do a good job for a fair price. In other words, homeowners will spend more wisely.
From a tradesperson's point of view, in times like these it is tempting to view marketing spend as discretionary. In fact, this may be THE most critical moment for small businesses and sole traders to push through the crowd and ensure that they are seen first and in the best possible light.
Brian Berry from the FMB comments “It is worth mentioning to clients and people enquiring about your services that although putting off home maintenance and repairs may seem like a good idea, it can cost them in the long run. When left undone, simple maintenance repairs can spiral into more serious problems costing the homeowner much more to fix. Ultimately it could also make selling their home harder and with the current ‘buyers’ market’ this is to be avoided at all costs.
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