Top Reasons Why Electrical Contractors Should Find Their Niche

One big question that electrical contractors face when they start their business is whether or not they should specialize.  It can be a tough decision, considering how fast the industry changes and how trends come and go so quickly.

As tempting as it is to market yourself as a jack of all trades, this approach simply can’t provide you the benefits that comes with establishing yourself as an “expert” in a specific market.  If you need further convincing, here are the top reasons why you should consider finding your niche as an electrical contractor:

You Can Target Customers More Efficiently

It may seem like offering your services to a broad market would give you a better chance to land more business, but targeting a niche and marketing directly to these customers is a much more efficient use of your time and money.  Being able to focus on a specific customer base, and learn more about their wants and needs allows you to promote your specialty more effectively.  This will help you win more jobs within your specialization and satisfy your customers.   

Potential to Increase Your Revenue

Carving out a niche for your business gives you the freedom to set higher prices and potentially increase your revenue big-time.  If you have the specialized knowledge and expertise that is hard to come by, you can and should set your prices to reflect this—especially if you have the licenses and certifications to prove your skills.  Customers are willing to pay higher prices for those who have superior expertise and know what they’re doing in a specialized market. 

Helps You Remain Competitive

The electrical contracting industry is constantly changing, and it takes a lot of work to maintain a competitive edge over others.  One key way to put your business above the rest is by offering niche services to your customers.  If someone needs to install electrical distribution equipment at their wastewater treatment plant, you can make it easier to beat out your competition if you have expertise within this area.

Boosts Your Marketability

If you offer services that not many people offer, you can use it to your advantage in your marketing strategy.  Finding effective ways to market yourself when you offer the same services everyone else does can be difficult.  However, marketing a unique set of skills can make you stand out from the competition.  Additionally, you can save money on your marketing efforts because you will stop wasting your marketing budget on targeting such a broad customer base.

On the other hand, you could also stand to lose money if you market your niche services incorrectly.  Be wary of saying how many areas you specialize in.  Claiming that you specialize in a long list of services can make you lose credibility, because it appears as though you aren’t specializing anymore.  While expanding your skills and continually learning is critical for business growth, contractors need to avoid appearing as a jack of all trades if they are targeting a customer with unique requirements.

You Don’t Have to Stick to Your Niche

No one says that you have to stick to your niche once you find it.  In fact, moving from one niche to another is normal for contractors.  Trends come and go quickly, making once-profitable niches become obsolete in a relatively short amount of time. 

Easing into another niche can be a natural progression for your business, just as it was for an electrical services company called Young Electric Co. featured in Electrical Contractor Magazine this year.  The company wasn’t necessarily looking to get into distributed antenna system (DAS) work, but meeting this demand allowed them to establish themselves as leaders in the industry. 

In order for your business to profit, staying on top of the latest industry news and trends is important.  Just because you have established yourself as an expert in one field doesn’t mean that you must remain in that niche forever.

Find Your Niche to Grow Your Business

Whether you stumbled into a niche by accident or did your diligent research, specializing can help you by boosting your customer base, referrals, and revenue.  If you haven’t found your niche, and are intimidated by the initial investment of training and certifications, consider the benefits that can come from offering specialized services to your customers.  By tailoring your services, you help satisfy your customers, earn an excellent reputation in your field, and make your business more profitable.

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