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  • Writer's pictureYvonne Root

Choose a Business Model

Three Familiar Business Models in Construction

While there is a plethora of business models from which to choose, construction contractors typically fall into one of these three familiar categories:

  • High End

  • Middle Market

  • Lowest Price

High End

Some examples of those subcontractors who dwell in the high-end construction space include:

  • Dramatic pitch roofing specialists

  • Historic restoration plaster professionals

  • Electricians dealing with installed technologies

  • Custom glaziers

  • Level 5 drywall authorities

Notice that each of the examples above deals with specializing within a specialty. While being a part of the high-end market in construction is aided by specializing, other factors are in play.

They are:

  • High-quality materials

  • Excellent craftsmanship

  • Exceptional service

Retail example: Neiman Marcus

Middle Market

Most construction contractors fall into the middle market category as in other industries. Commonly these subcontractors are known by their trade.

Some examples are:

  • Roofers

  • Plumbers

  • Electricians

  • Painters

  • Flooring installers

These are the construction subcontractors who do well serving the vast number of owners and general contractors meeting the needs of middle-class America.

Naturally, the factors involved are:

  • Average materials

  • Capable workers

  • Ordinary service

Retail examples include: Macy’s, Target, Kohl’s, Belk, and Dillard’s

Lowest Price

This group of construction contractors is also typically known by their trades as in the middle market example. They set themselves apart from the middle market players by offering the lowest price.

The factors involved are:

  • Low-quality materials

  • Able workers

  • Minimal service

Retail example: Walmart

Know Your Model

As you can see from the retail examples listed in each category, all three business models “work.” The most important idea to understand about these models is they don’t comingle. Neiman Marcus does not sell low-quality items at high prices, nor does Walmart sell high-quality items at low prices.

A Final Example

Think about the materials and joinery techniques involved in making and installing cabinets.

  • High End: Solid wood and specialized joints

  • Middle Market: Plywood and average joinery techniques

  • Low End: Particleboard and plastic joints

Where The Profit Constructors Stand

The goal of Profit Constructors is to aid our clients in running with the big dogs and making a profit in whichever business model they choose. Clean and simple – that’s what we do.

Construction Contractors look to The Profit Constructors to provide advocacy in dealing with:

  • Clients and customers

  • Employees and subcontractors

  • Vendors and service providers

  • Governmental entities

Working with The Profit Constructors gives Construction Contractors the means to organize their operations in ways that help them:

  • Remain informed

  • Avoid hassles

  • Reduce risks

  • Be future-ready

Ready for action? Or want to know more? Get in touch today to schedule a complimentary discovery call. 866-629-7735


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