November 19, 2008

Lonny Rutherford
CGR, CGP, CAPS

NAHB Remodelers Chair
Farmington, N. M.
Home Owners Cut Back on Remodeling in Third Quarter
Education Needed to Sell Green Remodeling Jobs
Aging-in-Place Market a Bright Spot for Housing
Learn About Lead Paint Rule by Purchasing Audio Seminar
Sign up for NAHB Remodeler Committees - 2009 Appointments
Join NAHB Remodelers at the International Builders' Show
Sign Up for Designation Courses and Education Sessions at IBS
Register Online for the 2009 Builders' Show in Las Vegas
Celebrating the Class of 2008!
Send Your Leaders to Spring Board - The NAHBR Leadership Grant
Easy, New Remodeler of the Month Application
Opportunities Available to Rehab Foreclosed Homes
What to Do When Money Is Tight
Improve Daily Operations Using Available Technology
Member Profile: Professional Membership
Member Profile: Lessons from a Marketing Expert
Get Your Winning Edge… Enter the 2008 Best of 50+ Housing Awards Today!
Members, Combine GM $500 Private Offer With Red Tag Event
Save $25 on Hertz ‘Green,’ ‘Fun’ or ‘Prestige’ Weekly Rentals
UPS Offers Up to 30% Discount to NAHB Members on Shipping
Williams Scotsman Offers One Month Free Rent, $50 Gas Gift Card
 
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Member Profile: Lessons from a Marketing Expert

Robert Kraay

President, RT Marketing, Inc.
Hickory, N.C.  

Robert Kraay is not a builder or remodeler, but knows the industry almost as well as a seasoned veteran. Through his communication firm, RT Marketing, he’s served clients in the field since 1989. In addition, he worked for six years as the executive officer of his local HBA, the Home Builders Association of Hickory-Catawba Valley (HBAHCV). As a result, Kraay has insights into business survival strategies in general, and for the building industry in particular.

Soon after Kraay launched his company, a friend who was a remodeling contractor asked him for help with a customer newsletter. The cost for researching, writing and designing such a newsletter from scratch was cost-prohibitive. However, Kraay soon came up with an alternative approach at a more affordable price. In his new model, he spread the research and writing costs among a number of builder clients in non-competing markets, and then customized the newsletter content and look for each client — and he was soon meeting a unique need in the marketplace.

Lean Times

In the early 1990s, Kraay recalls, home remodeling markets across the country experienced a significant downturn — in some ways, similar to today’s situation. Kraay helped his clients succeed during that period by focusing on one of the fundamentals of business. “When a market is contracting, it’s a common reaction for businesses to slash their marketing budgets, which is generally the worst step they can take,” he observes. “But if you’re able to increase your market exposure during lean times, you have a great opportunity to gain market share — because you remain visible while competitors are dropping from view. It takes a lot of discipline, but our clients have seen that it works.”

While the remodeling marketplace was getting back on its feet, Kraay’s company was busy expanding its services to include website, advertising, and direct marketing design. In addition, Kraay began attending IBS and national remodeling events and joined NAHB. Eventually, he decided to join HBAHCV, he says, “as a way of giving back to my local builder community.” During the next few years, he became so closely involved with HBAHCV that when the EO retired in 1999, Kraay applied and was hired for the position.

Back in the Saddle

In 2006, Kraay left HBAHCV to resume full-time leadership of his own company, with a new goal. “In the ‘90s, we had been primarily a product-focused company: newsletters, websites and so on,” he explains. “After I returned, we expanded our services to include the development of marketing plans and strategies. As a result, we’ve diversified the services we provide and also increased our value to clients.”

Kraay’s firm currently consists of four full-time employees. “As a small business ourselves, we can relate to many of our clients,” says Kraay. “In the early ‘90s, we actually grew larger, but I scaled back our operations because we weren’t going in the direction I wanted. I’ve seen too companies that grew too quickly, and ended up with labor headaches, a loss of focus and problems maintaining quality. I’m really happy with where we are.”

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