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Think Small, Grow Big: The 4 undeniable truths behind niche marketing

Think Small, Grow Big: The 4 undeniable truths behind niche marketing

Based on what I know about our readers, there’s a 72% chance that you are a self-proclaimed “full-service remodeler.” But what I don’t know is, what are you known for?

Are you the “bathroom guy?” The “kitchen gal?” Or are you “the remodeling dude?”

If it’s the last one, then you might be doing yourself a disservice — especially if you’re looking to grow. The truth is, if you’re looking to grow big you might want to start thinking small.

Going niche can be a powerful marketing strategy, particularly for smaller remodelers forced to compete against the relatively massive marketing budgets that larger competitors afford.

To help you see the power of niche, we’re going to play “Imagine This…”

But before we do, a word of warning: Don’t confuse your niche with your target market . . .

  • Your target market defines who your ideal customer is.
  • Your niche is the specific service you are offering them. Your niche is what you want to be known for.

The fear

Whenever I talk about niche marketing, I get a lot of push back. “I don’t want to lose customers,” they say. Most remodelers want to be everything to everyone. Especially the smaller companies. The thought of turning away perfectly good work is ludicrous to most.

But there is a method to the madness.

Narrowing your focus broadens your appeal.

Here’s what I mean.

Imagine for a moment there’s an accident on one of your projects. After the dust settles OSHA smacks you with an unwarranted citation.

You’re going to fight this to the end! So you take to the internet to find an attorney and these are your top two choices:

 MILES LAW – specializing in OSHA Related issues including: OSHA Citations, OSHA Litigation, OSHA Regulation, OSHA Petitions for Reconsideration, OSHA Appeals, Safety Risk Analysis, Workers’ Compensation Discrimination Claims

THE BIGG GROUP – specializing in construction law including: Collections (Commercial Debts above $75,000), Contracts, Employment Law, Franchise Law, Litigation, Mechanic’s Lien Filing, OSHA Related Legal Problems

Who do you want to hire?

Did you choose Miles? Most people do. It’s “obvious” that they would do a better job, isn’t it?  After all, they only focus on the very thing you need help with.

Which brings us to the first undeniable truth…

Undeniable Truth #1: A niche business is perceived to be able to do it better than a general purpose company

Now, the assumption that the first firm of Miles Law is best is not necessarily true, but that’s how our brain works. And I’m not just talking about our logic: this perception impacts both logic and emotion.

It’s only logical to think that doing one thing makes you better at it. And admit it, it’s comforting to see the exact item you need help with on their specialty list.

Now consider this…

Imagine you call both firms and learn that Miles Law charges $475 per hour and The Bigg Group charges $200 per hour.

What do you think about them now? Who do you think would do a better job of defending your company?

For most, the price difference only strengthens the impression that Miles is the better attorney.

Which brings us to…

Undeniable Truth #2: A niche business can charge a premium for their services because they are “the expert.”

Okay, so, armed with what you now “know” about these two firms who would you choose? Well, that depends, doesn’t it? How much does this mean to you? Is it a slap on the wrist citation or a hefty fine that could cripple your company?

The truth is, whatever is at stake will play a huge role in your decision. Miles Law “obviously” the best, but you don’t always need the best.  In this case, maybe good enough is good enough. So depending on your needs, you may decide to go with The Bigg Group.

Which brings us to …

Undeniable Truth #3: It can help you land better clients.

If executed correctly, niche remodelers have clearly set expectations before the phone even rings. That means niche remodelers will typically have a higher close rate than the “we-do-it all” companies because their leads are pre-qualified. For small companies that don’t have the time to chase bad leads, this is a huge benefit. And for larger companies this is a great way to increase efficiency.

And this brings us to the final undeniable truth…

Undeniable Truth #4: Your marketing dollar goes much further with a niche business

Imagine for a moment you and a competitor both have a $40,000 marketing budget. She spends the entire $40,000 promoting her niche: luxury bathroom remodeling. You, however, have to promote bathrooms, additions, kitchens, finished basements, whole house remodels, roofing, decks, and new home construction. That leaves you $5,000 per category to reach the eight target clients you’re trying to find.

You’ve put yourself at a significant disadvantage. How can your $5,000 compete against her $40,000? Now consider for a moment that there’s also be a kitchen remodeler with a $40k budget; and a deck remodeler, and a new home builder, and a roofer, all with $40k budgets. Your $40k isn’t looking so great right now, is it?

The ability to fine tune your message to a razor sharp focus means you can expect higher returns on your investment.


By no means will the choice to pursue a niche marketing strategy guarantee success. And there are certainly some pitfalls. For example, choosing to be “too niche” can be disastrous. You have to be sure that there’s enough demand for your niche to support a growing company.

So don’t rush into it. Like all business decisions, it requires in-depth analysis and critical assessment. But for some, having a niche can be just the shot-in-the-arm your company needs to grow.

What about you?

Do you currently use the niche marketing strategy? Are you thinking about it? Let’s start the discussion below!



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