# To Specialize or Not to Specialize



## BradingCon (Dec 17, 2010)

Hey everyone,

I am sitting here looking at an overview of my company and I wanted to ask a question...

We are general remodeling contractors in East-Central Illinois. We do ALL types of remodeling. In the winter we do lots of kitchen and bath remodels. In the summer we seem to do mostly exterior remodels. 

I am beginning to think that possibly I should begin to specialize in the kitchens and baths (since that is something we seem to do a lot of.) My thoughts are that possibly by specializing, we could develop efficiencies and become known in our area for quality kitchen and bathroom remodels. We could possibly focus all are energies on this area and not be so spread out. 

Anyway, if anyone has any advice on the issue or has succeeded in making a switch from general to specializing, I am all ears. Thanks in advance for any responses.


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## katoman (Apr 26, 2009)

I do it all also, so can't advise on specializing.

But here's an example - while working for a new home builder, the kitchen company couldn't get any of their installers to come to the site because it was out of town.

So we hired some local carpenters and the best they could do was one kitchen a day install for one man. And there were always deficiencies.

So we put the heat to the kitchen company. They said they had one installer who was willing to come but insisted on having 3 kitchens ready to install or he wouldn't come. 

We said great! Send him out. So they did. Guess what, he and his wife installed 3 kitchens and 6 vanities in one day. And not one deficiency.

I was amazed. I'm a carpenter, and I couldn't do that. I watched them work and they didn't waste a moment, or miss a step. She prepped for him and he assembled. What a pair :thumbsup:

So, it goes to show that if you do only one thing, you can get really good at it. 

Just thought I'd share that.


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## HomeSealed (Jan 26, 2008)

We used to do it all, and then I took a little time off to analyze which projects were the easiest and most profitable, and then we completely changed our direction. Renamed the company, offered only select services, etc. BEST decision I've ever made. Whether its business or life, the most successful people are those who are ELITE at one or two things, rather than trying to be "good" at everything.


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## BradingCon (Dec 17, 2010)

It looks like 2 yesses for specialization. Interesting. I have read several times that it takes years of hard work and a laser-like focus on a particular thing to be a success. So, maybe that means to focus on a specialization in the construction industry.


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## ApgarNJ (Apr 16, 2006)

I think it's easier to specialize when the economy is booming and the work is there. when things are slower like they are for a lot of people right now, specializing is just reducing your overall jobs to bid on. If you are swamped right now and think you can succeed in specializing, go for it. 

I don't see anything wrong with sticking to remodeling and just picking/choosing which jobs you want to do. remodeling has many different aspects, i would say if you do remodeling, pavers, roofing and fencing, then narrow things down. I do plenty of different jobs but there are still many that I won't do. 
I'm happy doing variety and still being good at it.


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## BamBamm5144 (Jul 12, 2008)

For the first time, I am thinking about subbing out everything except roofing. We are just so much more efficient at that then anything else.


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## katoman (Apr 26, 2009)

BradingCon said:


> It looks like 2 yesses for specialization. Interesting. I have read several times that it takes years of hard work and a laser-like focus on a particular thing to be a success. So, maybe that means to focus on a specialization in the construction industry.


I wasn't saying a 'yes' for specializing, just giving an example. 

I specialize in doing top drawer work for my customers. It gives them 'one stop shopping'. I'm ELITE at everything I do. That means having great subs for the work you don't do yourself.

I'm not saying to specialize is wrong at all. Do what works for you. What I am saying is that another way to specialize is to specialize at being the best.

It's harder for sure. But generaly speaking, it's what my clients want. They want to phone me up and know that whatever they need I will get it done in a first class manner. 

Example - one customer just in the last 2 months - bathroom remodel, paint their offices, strip and refinish 2 oak desks. One client, three jobs, price is not an object. It's about service.

After all, we are in a service business.


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## HomeSealed (Jan 26, 2008)

Every business is about attracting, and keeping clients. The best way to do so in my experience is specialization. I found that I got MORE leads, when I narrowed the array of services that I offer. People are more likely to call for windows when it is the only (or primary) service that I offer, rather than offering windows, kitchens, additions, etc. Will i perform those services for existing clients?- yes, on occasion I do. Getting the phone to ring is based more on the perception of being a "specialist" imo... I think thats where a lot of guys go wrong- they think that the more services, they offer --the more leads they'll get. This couldn't be farther from the truth. There is something to be said for diversification and the offering of complimentary services, but that is the extent of it.


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## DaVinciRemodel (Oct 7, 2009)

I think there are older threads regarding this - I think one was real good/long.

If you're going to specialize - install dog doors - the SOB just got me for $550.


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## katoman (Apr 26, 2009)

Homesealed, good points for sure. But expand on that. What people also want is TRUST. This is what we all strive for when we meet the client. If they don't have faith in our ability to do the job they won't hire us.

So, in my case (only as one example) my clients trust me. So rather than go to the specialty window company whom they don't know from adam, they just call me and say "get 'er done". 

It is then up to me to either purchase the windows myself or sub it to the window company. Either way I'm on the hook to the customer. 

Another advantage for the HO is that they don't know squat about windows. I do, so they call me and let me worry about quality, install, etc.

Once again - service.


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## HomeSealed (Jan 26, 2008)

Thats all true kato, but if you notice the first part of my post suggested that "attracting" potential clients is imperative. If you run a "one man band" or do projects that last weeks or months, then you dont need to worry about attracting as many new clients. Personally, most of our jobs take a day or two, and we run multiple crews, so the ability to attract new clients is of the utmost importance... I think it all depends on the type of projects that you take on, as to which way you can/should go. My point is that if attracting a high volume of new clients is the goal, then specialization is the way to go.


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## katoman (Apr 26, 2009)

HomeSealed said:


> Thats all true kato, but if you notice the first part of my post suggested that "attracting" potential clients is imperative. If you run a "one man band" or do projects that last weeks or months, then you dont need to worry about attracting as many new clients. Personally, most of our jobs take a day or two, and we run multiple crews, so the ability to attract new clients is of the utmost importance... I think it all depends on the type of projects that you take on, as to which way you can/should go. My point is that if attracting a high volume of new clients is the goal, then specialization is the way to go.


Totaly agree with that. If you're doing that kind of volumn/turnover, then I wouldn't want to be doing GC work.

I agree with specializing in that situation. A lot less headaches and things to look after. If, for example all one sold was windows, that would simplify things so much.


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## Gus Dering (Oct 14, 2008)

I went from being a GC to specializing in custom cabinetry. It has been good for me to make the switch over to specializing in one aspect of the process rather than the complete process.

I think you would need to look closely at what you want to get out of the change and also what you may want to leave behind. 

For me I was always atracted to the finer points of the carpentry. I could really dive into a nice project that showcased well executed carpentry skills. So moving into cabinetry certainly filled that bill.

What I looked forward to leaving behind was fighting the weather, forming and pouring concrete, having to "live" with a client for months on end, begging subs to do what they said they would do, ect....

I guess in a nut shell, it was more about a quality of life issue for me than it was a business decision. I always have done well when I am happy.


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## Tech Dawg (Dec 13, 2010)

I haven't installed a kitchen or basement since I've been in business... I'm fighting the same dilema since all I get called for is bathrooms. At least if I gotta take a wizz, I don't have far to go


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## Mike Finley (Apr 28, 2004)

BradingCon said:


> Hey everyone,
> 
> I am sitting here looking at an overview of my company and I wanted to ask a question...
> 
> ...


Specialization doesn't work.


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## Mud Master (Feb 26, 2007)

Mike Finley said:


> Specialization doesn't work.



Especially bathrooms.


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## Hmrepairs (Sep 11, 2010)

Interesting thoughts here. There is an electrician where I live, he has about 5-6 guys working for him. His radio ad says "Specializing in your residential, commercial, and farm electrical needs." Guess that doesn't leave much out! 

I would agree with an earlier post, if times are booming, specializing might be easier. I do alot of different things, or sub those things out, but I seem to keep working for the same people over and over, so I guess I specialize in taking care of clients, whatever they need.


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## BradingCon (Dec 17, 2010)

Mike Finley said:


> Specialization doesn't work.


Care to elaborate?


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## skcolo (May 16, 2009)

I have been wresting with the same dilemma. For years, I built specs after scraping existing houses. For the last few years, I have been thrust almost entirely into the remodeling end of things. It seems that about 70% of my business has been kitchens and baths, which I enjoy much more than trying to figure out how to reconfigure structural components in a 1950's ranch so that an addition doesn't look like an addition.

But I too, am concerned about the economy and limiting jobs, which also limits potential and future customer contacts. So for now, I focus towards what I want to specialize in, but still leave the door open for most types of work. Gotta eat.
-------------------------

CapStone Home Renovations


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## englishdave (Apr 14, 2008)

Hmrepairs said:


> There is an electrician where I live, he has about 5-6 guys working for him. His radio ad says "Specializing in your residential, commercial, and farm electrical needs." Guess that doesn't leave much out!


I've ended up like that. On my van it says specializing in carpentry, painting and renovations! :clap: Its been on there for about 11 years now.

The reason I came to this thread is that I got back from a 5 week holiday and just spent 8 full days sorting out my van, garage and carport. 

Everything, every screw, piece of sandpaper, washer, hand tool, role of teflon tape, knee pad with straps missing from 5 years ago etc...Was ridiculous, I have 7 gas cans, but yet I couldn't find one! and they're all bright red, so not hard to find.

It's been exhausting. I threw 3 trailer loads of junk on the dump. Now I'm looking at my business and how I go about things and wondering how do I streamline this puppy? I feel like Sisyphus.

For my first 12 years in construction I was a mason. Simple, all my gear fit in a couple of buckets.

I moved here to Vancouver where it rains half the year and figured I'd get out of the masonry game.

Nowadays I have the masonry tools + a full range of carpentry tools, pressure washer, paint sprayer, 7 ladders, drywall tools, plumbing and electrical tools. Tile saw and tools, a ton of miscellaneous nails, washers screws. Wheel barrow, shovels garden and concrete tools.

These all have to be stored, and maintained and kept tidy, transported to the job. Also of course I had to purchase all this stuff.

It's hard to find people to employ that can do all this stuff.

whereas I'm thinking that if I was say still just a mason. When I get busy I need to employ another mason. Easy.

But now when I get busy I need a handy guy who can paint, do carpentry, bit of plumbing and electrical. Gets sketchy.

Also pricing all that stuff accurately is a drag.

For me if I was starting out again I would definitely specialize. But now I'm in the middle of it all I really don't know what to do for the best.

Biggest kicker of all seems to be that even though you have this big broad knowledge of renovation and all the tools. You earn less in the end than a guy with one set of tools and one trade. In my experience they get more respect too that way.

http://en.wikipedia.org/wiki/Sisyphus


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## Tech Dawg (Dec 13, 2010)

Mud Master said:


> Especially bathrooms.


Don't know where that figure came from... that's like saying a plumber won't get any business! Last year I won a few jobs over other companies that "do it all". Why you ask, the homeowners were impressed that I had samples, liturature and all my sh*t together for the appt. The others just told them to pick they're crap out from lowes.
My motto: your always gonna have to sh*t, shower and shave!
I also get referral bathroom leads from a company that specializes in kitchens and basements and one of my best sources is through a tub refinisher.
I've been fortunate so far and if I need to expand, then I will and spend an extra 15k on tools


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## Subia29 (Feb 18, 2007)

I specialize in one trade. but there are other trades related to mine.

I would have to take the writtin exam, Pass it ,

Change my company to: So and So Bathroom remolding and masonry.:thumbsup:


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## Acres (Feb 12, 2011)

> We used to do it all, and then I took a little time off to *analyze which projects were the easiest and most profitable*, and then we completely changed our direction. *Renamed the company*, offered only select services, etc. BEST decision I've ever made. Whether its business or life, the most successful people are those who are ELITE at one or two things, rather than trying to be "good" at everything.


Amen brother..:clap:



> So, it goes to show that if you do only one thing, you can get really good at it


 
To add you can get EXTREMELY efficient also with , equipment, bids,travel time, billing, contacts, advertising etc etc... I pick up non-specialized work usually only for requirement.


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## Stephen H (Feb 18, 2011)

In my experience specialization has BY FAR been the way to go.
Keep in mind---that while you specialize--- you can still also pick up work tangent to your specialty
I specialize in roofing---particularly on houses built in the 1920's--- but we also pick up chimney repairs,spouting,siding repairs as part of the package.
By specializing I can charge higher rates,do better work, do LESS total work, and make MORE money

I know countless operations that do a MUCH wider scope of work---and in fact take a deal of pride in having broad based skills--- but they are often oblivious to the truth that they aren't quite as GOOD at as many things as they think they are---and that the more services they offer--- the more low paying work get pulled into the mix bringing down the average.
best wishes all,
stephen


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## kcbasements (Feb 5, 2010)

I specialize in basements which is almost like not specializing in anything at all.:w00t:


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## flashheatingand (May 3, 2008)

I remember one post that went something to the degree, "tell em your a licensed electrician, and you get all kinds of jobs installing cabinets" it was kind funny/true.

But, we gotta seek the jobs that are to our strengths. Doesn't mean to turn down what isn't strength #1, but for marketing purposes, I say specialize.


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## rallen (Sep 19, 2010)

I do it all. It has worked out quite well for me. I find there are more opportunities in this economy being able to cover a broad spectrum of jobs.


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## BradingCon (Dec 17, 2010)

flashheatingand said:


> I remember one post that went something to the degree, "tell em your a licensed electrician, and you get all kinds of jobs installing cabinets" it was kind funny/true.
> 
> But, we gotta seek the jobs that are to our strengths. Doesn't mean to turn down what isn't strength #1, but for marketing purposes, I say specialize.


This is kind of what I was thinking. I agree completely with what you said. I believe that, for marketing purposes, it is a good idea to specialize. It allows you to take on more work that plays to your strengths. It allows you to do more of the same kind of work and to develop efficiencies and such. Thus, allowing you to do the specialized work faster and at greater margins. 

That being said, I do not believe that you should be turning down work outside of your specialty (unless you are extremely busy doing specialty work at higher margins.) So, in short, good answer.


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## Metro M & L (Jun 3, 2009)

I think if it all possible some rough # crunching should be done. If you specialize you gotta make sure the focus isn't too narrow for the market your working in. If you're only going to do windows in a town of 20k it's probably going to be tough to make a living. 

You can pull up the census data, which was just collected so its pretty accurate. Zillow has some pretty good demographics broken down by neighborhood and/or zip code. Take that and some county tax assessors information and you'll be able to figure out the population density and total population and the kinds of housing built during a given era. Leading to targeting advertising of course.

I was watching This old house and there was a plumber doing a repipe project on a given type of older system. He new exactly how many of the systems had been installed in the town and that was all he was doing tracking down the homes with that particular type of faulty plumbing. Figured he had another 20k of them to do. That's doing your homework.


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## Stephen H (Feb 18, 2011)

Metro M & L said:


> I think if it all possible some rough # crunching should be done. If you specialize you gotta make sure the focus isn't too narrow for the market your working in. If you're only going to do windows in a town of 20k it's probably going to be tough to make a living.
> 
> You can pull up the census data, which was just collected so its pretty accurate. Zillow has some pretty good demographics broken down by neighborhood and/or zip code. Take that and some county tax assessors information and you'll be able to figure out the population density and total population and the kinds of housing built during a given era. Leading to targeting advertising of course.
> 
> I was watching This old house and there was a plumber doing a repipe project on a given type of older system. He new exactly how many of the systems had been installed in the town and that was all he was doing tracking down the homes with that particular type of faulty plumbing. Figured he had another 20k of them to do. That's doing your homework.


 that plumber is on the right track. I am doing something locally with slate and tile roofs.- the county to my north via property tax records tracks exactly how many houses and where they are( with slate/tile roofs). I am currently developing data myself for 3 other counties trying to compile all slate/tile roofs-and have started direct mail marketing ONLY to my target customers
imagine you are a kitchen/bath guy? wouldn't you preferr to market and sell ONLY to customers you KNEW were planning $80,000 kitchen remodels- vs. customers planning Lowes particle board and linoleum remodels?
stephen


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## englishdave (Apr 14, 2008)

I think specialize is the way to go. 

Just today I somewhat fudged an estimate by being asked to quote on something that I didn't do for a while.

The estimate was done in a hurry and became more of a gusstimate and now I've got to put it to the HO that I'm looking for more money if she wants the job done.

This last couple of weeks Ive priced exterior painting of a large house. 
A bathroom remodel in a nice house, includes ceramic tile, 
a bathroom fix up in a rental house. 
Sheet metal fence cap and rot repair to a fence and custom make a mail box for a housing complex 
and make custom shelving and drawers. 
Interior painting. 
Install chair rail and trim around windows in an apartment.

To do an accurate estimate for all these different tasks takes time and effort, and I find I can be off by a lot if I dont take an accurate measure, sit down, phone around to price the gear, that can take hours and all the time I'm thinking I should be at work earning some $

And then theres the 'how long will it take question'

Question is what do I specialize in?


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## kcbasements (Feb 5, 2010)

My word of mouth and repeat business is all across the board. I usually turn down most of my word of mouth because they are not basement finishes. Basements just work well for me. I do most of the work myself and it's easy to keep a schedule.


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