Broadband Tech > General Questions > How to get more customers for excavation business?

How to get more customers for excavation business?

I just shut down my Hardscaping Business last fall due to lack of work. Well in truth lack of profitable work. When I first started I got a website up and posted in CL for work. Cl would direct people to site and all was well. The rate of return on this was high for any marketing scheme. I had a 10% capture rate. If I went on 100 bids I got 10.

Get used to lots of tire kickers, people that have no clue on what things cost and just want a price to see. The jobs you do get will lead to more jobs over the years. This takes a while to really make a difference. It will start out as 1 extra job a year and grow to 5-6 over 10 years.

Common mistakes for new businesses is not having a business plan. Where do you see yourself this year next year and the year after? Does your budget allow for any advertising? Have you made a budget for this year? What is your bottom line labor/equipment costs? Knowing your numbers is the most powerful thing for a business owner.

All those questions lead to answers, You need to be able to know at what level you are able to compete in the local market.

Best advice I can give to an excavation company try to get hooked up with other type construction companies. Wall Builders, Home Builders (watch out their slimey), Concrete companies. They bid what it costs for them to do the excavation when in most cases its cheaper for a true excavating company to do it for them. If they can have you do the work and put 10% in their pocket for your work they jump at it.

Good Luck hope some of this may help.

reply to icex
Construction business is still slow, although picking up from what I've heard. Depends on where you are I guess.

Anyhow I would say to start pounding the pavement. Just putting up a few signs won't cut it, you have to be pro active and look for jobs/work and not wait for it to come to you. As mentioned by sancraig, hook up with a lot of construction contractors that could maybe throw you some work. Pool companies are another avenue to look into.
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reply to icex

reply to icex
If you are licensed then put a real ad in the local paper not some junk paper most people just toss in the trash!

Actualy people buy the weekly trader to look for services/products to buy. Its like a fleamarket thing.

reply to icex
Attack the problem from a different angle. Instead of excavating, be the guy who fills in holes.

reply to icex
But, I doubt they reach as many people then the local paper does!
People that look for services in papers like the weekly trader are looking for cheap work as you already know from the people that called and didn't want your service this paper is not the way to go!
How about sub-contracting with construction companies?
Call them all and let them know you have your own equipment!
You are licensed and bonded aren't you?

reply to icex
Have you gone down - in person - to every general contractor you can get in touch with; meet the principals, and ask to be put on their bid list?

Do you read regional trade & business magazines to find out what projects are upcoming and who the contractor is? Just putting an ad in the paper, and the phone book is not going to cut it (unless you are running a hobby, not a construction business. Signs on poles are for fly-by-night contractors that have no license or insurance, work for cash and pay no taxes.) General contractors with work to bid aren't getting their subs from signs on poles, or pennysaver ads. They already have a list of qualified excavators that are given chances to bid on the work.

First find out who the principals of the general contractors are. Then call and ask to set up a brief meeting to discuss business opportunities. Bring a short presentation, with references, portfolio, license & insurance certificates. Be able to state why you will be competitive over the firms they are using now. (Know your competition.) The presentation should be in the form of a color paper handout. (They don't have the time for you to set up a projector, etc.) Do you homework. If you are getting the run-around when you call; remember, persistence pays. Your goal, is to simply have an opportunity to compete for bids. Let them know what kind of jobs you are looking for; what size jobs your company has the capacity to handle; and what your plan is to scale up to larger projects. If your pricing is competitive, and you can supply references & portfolio so they believe you can handle the work - they will hire you. Then you have to work at it and keep your portfolio, references & presentation up to date.

If you don't have work, I suggest you spend 8 hours a day professionally marketing and making contacts as described above. Hopefully, you will get busy. Then when you find you have a few hours unoccupied with work; spend these the same way. If it were me, I would stop until I hit the top 1000 contractors in the state. And then I would start again with the ones that didn't bite. You have to realize that as a business owner, your priorities in this order are: sales, getting paid, doing the work. Anything else is wasting time. Get someone else to handle the stuff that doesn't bring in money, as soon as you can afford to.

Well I drive a truck (rollback) about every day, this is realy just trying to expand this business on the weekeneds and even on days when the rollback doesen't have work.

I think I am going to try to change direction and get contracted with coal companies. They are always looking for contractors, its just hard to get on their vendors list.
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reply to whizkid3