A contractor marketing strategy can be the difference between a construction company that struggles to stand out and one that consistently attracts the right customers. But for many contractors, competing with larger companies that have bigger budgets, more resources, and aggressive advertising campaigns can feel impossible.
With private equity entering the construction industry and larger companies investing heavily in marketing channels like Google Ads, smaller contractors are asking an important question:
How can a local construction company compete without spending millions on marketing?
According to Mindy Lepp, founder of Lepp Design, the answer is not always spending more money. It’s about building strong local relationships, understanding your audience, using technology correctly, and creating a focused marketing plan that produces results.
In this episode of the Business Success Tips Podcast, host Paul Sanneman sits down with Mindy to discuss how contractors can improve their marketing strategy, use AI effectively, avoid wasting marketing dollars, and create a plan that helps their business grow.
Small Contractors Can Compete by Building Strong Local Relationships
Mindy explained that one of the biggest advantages smaller companies have is their ability to build strong connections within their local communities.
While larger companies may focus on reaching a nationwide audience, many contractors are trying to win business in a specific geographic area.
That creates an opportunity.
“One is building that local community relationship where everybody knows you.”
Mindy shared that contractors can strengthen these relationships by:
- Participating in community events
- Being active on social media
- Following other local pages
- Boosting Facebook posts so more people in their area see them
For local contractors, marketing is not always about reaching the most people.
It’s about reaching the right people.
How Contractors Should Use AI in Marketing
Artificial intelligence has changed the way businesses approach marketing. But Mindy believes contractors should use AI as a tool, not a replacement for human input.
When AI first became popular, many businesses wondered whether they could let robots handle everything.
But Mindy explained that the best approach is using AI as a starting point.
Contractors can use AI to help:
- Write social media captions
- Create website copy
- Develop advertising ideas
However, the content still needs a human review.
“It has to be a starting point and not just taken out of the box.”
Mindy explained that people can often recognize when AI-generated content has not been reviewed because it can sound robotic or generic.
She shared that AI has improved over time, but businesses still need to make sure the messaging matches their audience and accurately represents their company.
How Much Should Contractors Spend on Marketing?
One of the biggest questions contractors have is:
How much should I actually spend on marketing?
Mindy explained that across the industry, a common recommendation is around 1% of overall gross revenue.
That marketing budget can include:
- Vehicle wraps
- Yard signs
- Mailers
- Website
- Other marketing activities
The key is to work backward.
First, understand your revenue.
Then determine what percentage can be dedicated to marketing.
From there, contractors need to decide where that money should go.
Your Website Should Be Your Number One Marketing Priority
Before investing heavily into marketing campaigns, Mindy emphasized the importance of having a strong website.
Today, potential customers often research a company online before making contact.
That means contractors need a website that attracts the right audience.
Mindy explained that many companies have websites that look fine but are not actually helping them generate business.
A website should not just exist.
It should communicate who you are, who you serve, and why customers should choose you.
Stop Guessing: Create a Marketing Plan Before Spending Money
One of the biggest mistakes Mindy sees contractors make is spending money on marketing without a clear strategy.
Many businesses simply react when opportunities come up.
They might buy a magazine ad because someone called them.
They might try a new platform because another company suggested it.
But without a plan, they don’t know whether those efforts are actually working.
Mindy explained that when companies approach Lepp Design, the first step is research.
They spend time understanding:
- Who the company is
- Who their target market is
- How they can reach that audience
- What marketing strategies make sense
The result is a detailed marketing plan that helps the company move forward with direction instead of guessing.
Why Tracking Marketing Results Matters
One of the biggest problems Mindy sees is contractors not tracking their marketing efforts.
She explained that some marketing activities, such as brand awareness campaigns or billboards, can be difficult to measure.
Someone may see a billboard but later say they found the company through Google.
However, there are still ways businesses can track their efforts.
Mindy suggested using tools like:
- Google Analytics
- Incoming link tracking
- Unique QR codes for different marketing campaigns
For example, a company could create different QR codes for:
- Door hangers
- Vehicle wraps
- Print advertisements
Then, they can see which campaigns are actually generating activity.
Without tracking, contractors may continue spending money on marketing that is not producing results.
Marketing Should Be About Results, Not Just Looking Good
Paul shared that marketing companies often fall into three categories:
- Companies focused on making things look impressive
- Companies focused only on numbers like followers and views
- Companies focused on whether marketing actually makes money
Mindy explained that Lepp Design focuses on the third category.
A website may not win awards, but if it helps generate sales, that is what matters.
“Sometimes the most simple website is going to be the most effective, never going to win an award, but it’s going to convert sales.”
The goal is not just attention.
The goal is business growth.
Marketing and Sales Need to Work Together
Another challenge contractors face is the disconnect between marketing and sales.
Sometimes marketing teams generate leads, but sales teams believe the leads are not good enough.
Mindy explained that marketing and sales are closely connected.
While Lepp Design is not a sales company, they try to understand what happens after leads are generated.
They work to have conversations with sales teams and understand:
- Are leads converting?
- Are there areas that need improvement?
- What can marketing do differently?
Because ultimately, marketing only works when it supports the entire business.
Why a Smaller Marketing Company Can Make a Difference
One thing that separates Lepp Design is the personal relationship they build with clients.
Mindy described the company as a “remote marketing department.”
Instead of being just another vendor, they become an extension of the company.
She explained that they know their clients, understand their businesses, and genuinely care about their success.
Lepp Design is a small team of about five people, which allows them to maintain close relationships with the companies they work with.
Get a Better Understanding of Your Marketing Strategy
For contractors who are unsure whether their marketing is working, Mindy offers a quick marketing review.
She explained that this includes reviewing a company’s website and social media presence, then providing recommendations based on her experience working in the building industry.
After that, companies can decide whether they want to move forward.
The goal is to help businesses understand where they currently stand and what opportunities they may be missing.
Watch the Full Episode With Mindy Lepp
Marketing does not have to be about having the biggest budget.
For contractors, success often comes from having a clear strategy, understanding their audience, tracking results, and building strong relationships in their communities.
In this episode of the Business Success Tips Podcast, Paul Sanneman and Mindy Lepp discuss how contractors can improve their marketing, compete with larger companies, and make smarter decisions with their marketing dollars.
Watch the full conversation here: Scan the QR Codes or Click the below
