Author: Brett Knox
April 4, 2024 - 5 MIN. READ
Most commercial electrical contractors face fierce competition. A great way to differentiate your company and reduce competition is to specialize in market segments. Yes, it may require specialized training, but the financial rewards can be significant.
Commercial electrical contractors have many market niches to choose from because electricity is the “fuel” for the majority of new technologies. Your options include:
Finding the right fit will require you to do considerable market research but a number of these specialty segments provide very profitable work.
Whatever market segments you pursue, win more jobs and increase your profits by paying less for electrical equipment, materials, and supplies.
How? Join a purchasing program like Raiven. Companies like Raiven combine the buying power of all their members and negotiate deep discounts, service terms, and supply chain priorities so you pay less on automation controls, EV charging stations, lighting, wire, panels, conduit, and more. Since Raiven does all the supplier negotiations, you don’t have to spend time negotiating with suppliers.
Gain access to pre-negotiated discounts of 7%-30% from industry-leading manufacturers and distributors like ABB, alpscontrols, ChargePoint, Ferguson, Grainger, Graybar, Home Depot, HD Supply, Lowe’s, Schneider Electric, Sunbelt Rentals, United Rentals, and more. This extensive network of suppliers can help you reduce out-of-stock situations and save money.
Raiven is dedicated to serving electrical contractors, offering special pricing agreements on electrical equipment, parts, and maintenance supplies, along with a streamlined purchasing platform for swift and efficient purchasing. Other key benefits:
You must build a strong reputation and marketing portfolio to establish yourself as a highly sought after commercial electrical contractor. Specializing in market niches helps you deliver both.
Your marketing portfolio should make clear the types of services you offer. It should feature past projects that illustrate the quality of your work. Relevant project pictures and enthusiastic client testimonials will clarify your qualifications.
You will also want to highlight your certifications and safety record. Compliance and safety are critical in the electrical industry. A strong safety record can be a competitive advantage. No commercial client wants production interrupted or the liability for accidents on their job site.
You and your employees can take training in regulatory compliance. To secure jobs, you will need to make sure your training and certifications stay current. These are vital for your bids, especially if you are working in a highly regulated industry or in a hazardous environment.
Networking and Relationship Building
The availability of commercial opportunities is often shared by word of mouth. That makes face-to-face networking indispensable to your success.
Enhance your credibility by becoming a member of an electrical contractors organization. The National Electrical Contractors Association, NECA, is one possibility.
To become known to potential clients, attend industry events. These include conferences, trade shows, and seminars specific to the market segments you are focusing on. These are also good venues to meet general contractors.
Trade shows invite interaction with end customers as well as professionals in the trades, such as facility managers, architects, and engineers.
These sessions are a great place to make connections. Put on your sales hat, strike up conversations, and exchange business cards with those who may be able to refer you to their existing clients. Follow up with calls or other communication even if your colleagues don’t have meaningful opportunities for you just yet.
Join a professional organization to extend your reach even further. You may even find groups that are specific to the niche or niches you’re most interested in specializing in. Whenever possible, attend the organization’s meetings and events.
Finally, be sure to leverage social media platforms. LinkedIn is excellent for professional purposes. Using X (formerly Twitter) also works. Whichever platform you choose, set aside time every day to post or interact. Simply posting a profile won’t likely to generate results.
New Products
Automation and Control Systems, Electrification solutions, and Technology Integration are all expanding in functionality. Using innovative tech ensures your business will be cutting-edge, efficient, and cost-effective. You'll want to keep up with industry trends, especially with these three technologies. As the usage of the IoT and AI grows, so does the variety of equipment that uses or requires it.
Internal Operations
As your business grows, you will cope with increased demand. To map out a plan, you'll need to make sure you'll be able to sustain and repeat your internal operations. If not, they won’t efficiently scale up. Your three most important things to consider are:
AI technologies will change the way electricians operate. AI-based software will improve troubleshooting, automate load calcs, detect faulty wiring, and more. Augmented reality will increase the effectiveness of training for you and your employees. Online learning platforms allow you and your employees to stay up-to-date anywhere and anytime that fits into the work schedule.
Financial management software designed for a small shop may not adequately serve the needs of a larger one. Ensure that your digital tools can handle business growth. You will also want them to integrate with your field service management software system.
Whichever market segments you specialize in, you want to leverage software and technology to drive efficiencies and higher profits. These are wise investments over the long-term.
Effective copy and other tools tailored to your audience are essential for selling your services. Whichever market segments you pursue, you need to showcase your expertise and experience. A strong web presence with targeted SEO is essential to gaining business from potential clients online.
In the scant seconds it may be viewed, your website must communicate your professionalism, reputation, and capabilities. There are plenty of website builders that can help you design a professional-looking site, but you may also wish to hire a professional to create and update what may be your most important marketing tool.
You may also be considering social media marketing, content marketing, and pay-per-click advertising. These methods are more consumer-oriented and may not reach or convince the commercial clients you seek. Again, your success will depend on your niche and finding the right messages to appeal to it.
About Raiven
Raiven is the leading group purchasing program and procurement software platform for contractors and enterprises, enabling them to digitally transform their procurement process and obtain significant discounts on equipment, materials, and business essentials. Raiven's cloud-based procurement platform helps businesses purchase smarter and more efficiently through patent-pending AI algorithms that find in-stock products at the lowest prices. Learn more at Raiven.com and on LinkedIn.