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Combat Remodeling Market Pullback with Increased Marketing

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Combat Remodeling Market Pullback with Increased Marketing

Mosby Building Arts' president shares his expert predictions and approaches to remodeling in 2024 for Pro Remodeler's Thought Leader predictions series


By Mark McClanahan | President, Mosby Building Arts February 5, 2024
remodeling thought leader
Mark McClanahan
This article first appeared in the January/February 2024 issue of Pro Remodeler.

This is a snippet of Pro Remodeler's annual Thought Leader Predictions round-up featuring 11 remodeling leaders. Click here to read the whole story.


Predictions for Company Growth in 2024

We’re planning for solid growth at 13%. Prior to the pandemic, our average growth was about 10%.

We’re focused on what the consumer is interested in buying and how they buy. For example, interest in remodeling kitchens slowed for most of 2023. As a full-service remodeler, we can easily pivot to the interest in complex custom remodeling projects, bathrooms, doors, windows, and siding. Providing the client with alternative cost-saving options will contribute to growth. 

 

Tackling Cost Escalation

Rising materials and labor costs have plateaued. There’s an opportunity to negotiate pricing down with manufacturers.

We plan to lean on vendors for volume discounting, which is new for us. Promotional marketing will return as well, which we have not done since pre-pandemic. Another downward pressure we’re feeling is increased insurance costs ranging from 13-35%. 

We plan to spend 5% of our revenue month over month, compared to 3% when leads were more steady.

 

Plan of Attack

We plan to combat challenges through increased margins based on better production performance, not necessarily an increase in the sold margins.

We’ve implemented new training and process improvement plans. We’re looking at how to get more done with less. This means eliminating and outsourcing duties. For example, using a courier service instead of a project manager running material to a jobsite.

 

Our Approach to Marketing

We held back our marketing spend last year, and now we’ve pushed the pedal down more to combat any slowdown with significant investment in marketing.

We plan to spend 5% of our revenue month over month, compared to 3% when leads were more steady.

 

 


written by

Mark McClanahan

Mark McClanahan is president at Mosby Building Arts, and founder of the company’s Futures Committee. 


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