Market Memo

Among the ways we can appreciate the accomplishments of the Top 500 remodeling companies (which are compiled in our newly published annual listing) is to drill down on the source of their new business.

On the Top 500 application we ask remodelers to break out the percentage of their jobs that come from previous customers, the percentage from referrals and the percentage from new marketing initiatives. I sorted the Top 500 spreadsheet according to those with the highest percentage of repeat business and found some very classy remodeling organizations.

I have a great deal of respect for those companies that continually manage to draw new business from old customers.

Don’t get me wrong. I also respect those who grind it out year-in and year-out working a system that generates new leads that are scientifically captured then pitched and re-pitched. This is truly the American Way ­– growth through sheer force of will.

But when it comes to defining success in the remodeling business – providing excellent quality while earning a good profit – there is not a better barometer than those who’ve built businesses that are nearly self-sustaining through the amount of business that comes in from existing customers.

Below is a list of the 40 or so remodeling companies that drew at least 40 perecent of their new business last year from previous customers. Among them are a mix of design/build firms as well as speciality companies. The list shows tht repeat business is not the province of one type of company.