Extensive research conducted over the last 18 months has revealed two things: market viability, and characteristics of the industry.
Since Handy Canadian.com’s pilot launch in January 2006, we have had ongoing interaction with many existing members to collect feedback; provided input on the web site’s existing features. Including ways to improve service provided by the web site and current renovation/construction trends.
Industry Size
According to Canada Mortgage and Housing Corporation (CMHC) statistics, it is estimated that in 2004 Canadians spent over $24 billion in home alterations and home improvement projects. Over $8 billion was spent making home repairs. All signs indicate these numbers will continue to grow over the course of the next 10 years.
The CCA estimates that more than $123 billion in goods and services was spent in 2003 for commercial construction and renovation purposes. Canadian construction is a lucrative business, and contractual labor among one of the top paying employment positions.
According to the 2005 Labour Force Survey, there are over 589,000 employed contractors and construction service providers in Canada, responsible for 124,928 paid ads in the Yellow Pages. If only 10% of these contractors were reached through extended marketing efforts, Handy Canadian Inc. could easily realize $16 million in revenue generated from annually paid premium membership fees.
According to Overture.com’s key-word monitoring tool, the following list reveals the number of times each industry-related search term was generated during the month of July, 2006:
Home Improvement - 224,555
Home Renovation - 11,557
Kitchen Remodeling - 80,146
Bathroom Remodeling - 35,279
Residential General Contractor - 128,228
Contractor - 94,115
Remodeling Contractor - 58,050
General Contractor - 30,403
Construction - 130,223
Construction Company - 25,885
The above list is but a small indication of the wide-spread interest in home improvement and construction, and the immense popularity of online searches conducted on the industry.
Key Product Segments
Handy Canadian.com provides custom tools for over 130 different categories of service covering nearly all segments of the home improvement, new building construction, and maintenance industry.
Jobs and services posted range from small maintenance projects such as leaky faucets and squeaky floors, to kitchen renovations and new home or office construction. In addition to services currently covered, members are invited to suggest new services for inclusion.
Key Market Segments
The main focus of Handy Canadian.com is in recruiting Canadian business owners, homeowners, and contractors. Our service is not limited to specific market segments, it extends all areas of residential and commercial renovation, maintenance, and the construction industry. We service project owners and contractors from all across Canada. From the heavily populated cities in Ontario, to small towns located in Nunavut.
Because our service is free to business and homeowners, with only minimal fees are applied to contractor and larger construction company members, any project owner or service professional can benefit from joining Handy Canadian.com
Purchase Process and Buying Criteria
Consumers are looking for new, time-effective ways to locate reliable contractors and service professionals to fulfill project needs. Contractors are looking for more efficient, cost-effective advertising solutions to market their services to consumers. Both project owners and contractors are turning to the wave of the future, the Internet, to meet these needs.
Handy Canadian.com bridges the online project owner/contractor
gap that currently exists in Canada. By providing a high volume
of potential business to contractors via our lead generation service
for one low fee of $305 (+GST) per year, Handy Canadian.com helps
contractors realize a greater monetary return for less money, compared
to other forms of advertising.
It is an undisputed fact that yellow page and other forms of print advertising require large spending with no guarantee of results, and a high ratio of contact from unqualified prospects. Handy Canadian.com provides a lucrative form of high-profile advertising, with targeted leads only from business and homeowners who are in the market for the type services our members specialize in.
Key Industry Trends
As popular as computers already are, as online technology improves, and computers and associated purchases are made more affordable, Internet use will only increase. In short, the “World of the Web” is here to stay!
Research reveals the following: according to Ipsos-Reid findings in April 2002, an estimated 6.7 million Canadian households owned a home computer in 2001, an increase of 7% from the year before. Data collected from The Household Internet Use Survey, Statistics Canada, found that 75% of all Canadians had access to Internet use by 2003.
This suggests the percentage of Canadian homeowners with home computers and/or regular Internet use present day has drastically increased. Few other forms of advertising can match that type exposure in that many households - 7-days a week, 24-hours a day.
In an up-to-date news item posted on SMB, a respected online news source for businesses, Senior Vice-president of Marketing at DirectoryM Inc., Chris Hill, revealed findings from a recent pole on advertising trends.
The findings were this: small to medium businesses were spending an average of 52% of their total advertising budget for online advertising; 37% said they planned to increase that amount within the year. The reasons most often given for preferring online resources to other modes of advertising included:
- Affordability
- Visibility
- The fact that online advertising reaches a targeted, not random, audience
Undoubtedly, advertising online is becoming increasingly viable for all companies, including contractor and service professionals. It is a highly affordable way to advertise, with maximum exposure to a targeted group.
Handy Canadian.com maximizes the online advertising experience for project owner and contractor alike. The site is well maintained, reliable and housed on an up-to-date server equipment, with the added benefit of high-speed Internet connection.
As the volume of users increase, adjustments will be made in the number of server units, databases, and Internet connection speed required to support the demand. Increase in users will also result in an increase of customer support queries online and off. Appropriate steps will be taken to fulfill the needs of users, to keep customers satisfied with our services, and to maintain an edge on competition.
Industry Outlook
Home improvement, new construction, Internet usage, and online commerce all continue to grow at a steady pace, with no indication of decline in sight. With each new day, more and more people are using the Internet to explore options and find products and services. Handy Canadain.com can only benefit from the results.
Target Markets
Handy Canadian.com will secure customers and users from every aspect of the residential and commercial renovation and construction service industry throughout Canada. Our broad geographic scope, wide range of services, and highly-affordable membership fees gives us an opportunity to cater to an entire industry, and an impressive edge on our few competitors.
Analysis of Competitive Position
While most competitors have limited system features and small geographic target areas, Handy Canadian.com offers state-of-the-art user tools and lead generating services. Providing a complete matchmaking service that instantaneously connects project owners from across Canada with contractors in any given area.
Handy Canadian.com enjoys high ranking positions with all the major search engines; generating an increasing number of targeted traffic to our web site each week. By combining talents, owners Max Sheppard and Mike Taylor have the experience, technical know-how, SEO intelligence, and Internet marketing savvy to effectively keep the web site’s system and services harmonious with current trends.
Pricing Strategy
Because we have purposely kept overhead costs low and have utilized our aptitude for effective, strategic marketing, Handy Canadian.com’s pricing is set considerably lower than current market rates. This not only allows us to penetrate the market, but establishes us as the most cost-effective resource online with the best tools, and increases our chances of displacing existing competitors.
Competitors charge $600 to $800 for a one-year membership package
with restrictions on category placements and coverage area. Other
competitors also chare lead fees or project win fees. Handy Canadian.com
offers a one year membership package of just $305, with unlimiated
access to all leads and no restrictions on category placement or
coverage area. Our low rates save members over $400 per year
over competitor’s rates.
It also makes high profile advertising online more affordable to new contractors just starting out with limited funds – increasing their chance of success. |
