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How to be successful in the high-end residential market

If you want to run a company by the numbers and quantify your work, then the high-end residential market would not be your first choice, according to Scott Byron, president of Scott Byron & Co., Inc., in Lake Bluff, Illinois. Byron, who will celebrate his 25th year in business next year, refers to this market as high-quality and high-touch, which means that predictability, systems, and procedures take a back seat to offering exemplary service and making a commitment to fulfill nearly any customer request.

“From my perspective, being a success in this market requires developing a brand and then keeping it by providing great service,” Byron relates. “I also believe that contractors in this market have to be focused and absolutely have a passion for what they do. We say we have to ‘stick to our knitting’ and be willing to provide the level of service that will ‘make our customers rave.’ Both can be difficult to do consistently. There’s always a tendency to want to branch out and try something different, but that will only dilute your brand. Making customers rave about your work is not all that easy to do, either, especially in a very demanding market.”

Byron’s company targets the high-end residential market exclusively and divides its service offering by 30 percent landscape management and 70 percent design/build.
“You can’t compete in this market on price,” he emphasizes. “You have to understand the market, be patient, and build your reputation through good work. Everything is a trade-off, too. Contractors who would like to be in this market look at the revenue potential, but often overlook the fact that with the price comes demands — that phone call to move a tree one foot to the left or repair a roof, or a request of your on-site foreman to watch a couple of children while the mother goes to play tennis.”

Byron continues, “This is all part of the territory, and we have an attitude and culture that encourages employees to want to be challenged and solve problems for our customers.”

The right people

Developing brand loyalty, providing top service, and creating trust cannot be accomplished without your front-line employees. Byron says he looks for people who have a passion for what they do and who are dedicated. He also looks for indications that an individual will fit within the company culture. “Your culture is such an important part of your business no matter what type of service you provide,” Byron emphasizes. “I can’t say that any one culture is better than another, but the people you hire have to fit. In our company, in our market, our employees have to put on a good face day-in and day-out and do what the customer demands. In some ways, it’s a can-do culture and anything else, any other attitude, won’t do.”

Even though the high-touch, high-quality market is less price sensitive than others, Byron says it can still be unpredictable because being a contractor in any service industry can be a “crap shoot.”

“Some jobs, hopefully most jobs, you will win on and make money,” he emphasizes. “Then, there will be those unprofitable jobs. Our goal, win or lose, is to make sure the customer is happy, and, again, to be in a position to rave about our work to someone else. If you’re on a money-losing project, and the customer is unhappy, you’ve just experienced the old double whammy. We don’t advertise, don’t make cold calls, and do very little marketing. Our satisfied customers make up our marketing and sales team.”

Do you want a share of this market? Byron says there’s always room for good competition. One way to help ensure success in the market is to borrow his company’s template: Have a singular, simple focus to serve the customer; maintain that focus no matter how tempted you are to do something else; and find people who share your passion and commitment for the work.