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Value Proposition: How Contractors Can Create One for Their Business

March 02, 2021

A value proposition is a promise of the value your company delivers to your customers. An essential part of a contractor’s business strategy, a value proposition forms the reasoning for how to make your business stand out from competitors it is not your company’s slogan or tagline.

You can have a value proposition for your whole business or for each type of service you offer. For example, if your company provides both roofing and siding services, you may need a value proposition for each.

To create a value proposition, you need to think about the top five things your target customers need to know about your business. Consider these questions:


1. What services do you offer and how do they solve your customer’s problem or improve their situation?

Don’t be too literal when thinking about the services you offer. You are selling more than a new roof or siding; you’re selling a solution, outcome or feeling.

For a contractor who primarily offers remodeling services, for example, your service might provide a new start in an old home or allow people to achieve their dream house without moving.

Your customer’s problem is often straightforward. Consider why a customer would call a contractor. Do they need their roof replaced? Are they building or remodeling a house?

For ABC Supply, our contractor customers need the right building materials delivered on time, so they, in turn, can serve their customers.


2. How does your business benefit your customers?

Your customers benefit by getting a solution to their problem. Emotions are tied to purchasing decisions, especially for purchases as substantial as a new roof or siding. What emotions are your customers experiencing when they receive your services? Factor them into your benefit. Also consider the reasons you want these customers to recommend you to their family and friends.

If you’re an insurance restoration contractor, you respond quickly to your customers’ needs, such as providing tarps or plywood for damaged areas of their homes. Perhaps your benefit is providing your customers a feeling of relief after a storm.


3. What differentiates your business from competitors?

It’s essential you’ve researched your competitors and understand what they offer before you create a value proposition. Next, consider how your business is different. At surface level, other companies might offer the same services as you, but is your service superior in some way?

  • Do you have more experience than your competitors?
  • Do you use higher quality materials?
  • Do you maintain an exceptionally neat and clean jobsite?

Some differentiators of ABC Supply, for example, are our wide selection of products and our best-in-class Customer Service Delivery System. Contractors can work with us to order all their materials rather than shopping around to multiple distributors. We’ve pioneered the industry’s best delivery practices, including using photo delivery verification, to make sure contractors get all the materials they need, complete and on time.


4. Who is your target customer?

Consider the demographics of your target customers. What’s their age, gender and income level? What is important to them? What do they do for fun? What are their dreams? What makes them happy or frustrated?

Think about how the answer to these questions can factor into their experience with a contractor. Do your target customers enjoy activities like boating or camping? If so, they may want a large garage to store their boat or RV. Each generation is unique in their home building and remodeling habits—knowing the age of your target customer can provide insight to their habits and needs.

Put all of these answers together and you have a value proposition, which you can use when communicating with prospective customers or considering how to market your business. A value proposition can even help you break the price barrier with customers. Use it to show them why your business will offer the best experience for them, even if another contractor might work for less. Having a clear idea of your value proposition is an essential part of your business strategy and will help your company stand out from the crowd. 

Check out our blog for more tips on conquering business challenges.