Benefits and Drawbacks of Large vs. Small Home Improvement Contractors

When it comes to home improvement, it is only natural for us to want to get the job done in the most efficient and affordable way possible. The following article focuses on the differences between small and large contractors and how you can benefit from both.

smaller contractors are more devoted to their customers and provide more personable servicesSo what defines the size of a contractor? It could be mainly addressed by the company or person’s annual revenue. Small contractors usually have less than a $1,000,000 and for the most part less than three employees at a time. Mid-sized contractors make more than that, but still no more than about $10,000,000 and have up to 15 employees. Large contractors are the major movers and shakers on the market, earning large revenues each year and having a large number of offices and employees.

The way these companies operate depends on their size and, generally speaking, we can pinpoint a few differences. The following is not the case for all contractors, whatever their size may be, but it’s a generalization for the majority of contractors.

Small Contractors

They are usually businessmen who are also very often experts in a handful of specialty trades and they have to juggle a large amount of hats to run their business. Financials, marketing, estimates and so forth are all things a contractor of this size will be responsible for. This means they have a very small team and they are constantly busy. However, this also means that they are most likely to provide the best service for a specific specialty trades job, and they are very committed to their individual customers – usually taking on one customer at a time.

Medium Contractors

This size of contractor has gone on to have a viable management team. They are capable of handling multiple projects at the same time, but they still have people covering more than one position. They still maintain a respectable level of dedication to their customers and can perform larger jobs now.

Large Contractors

large contractors are good for big additions and remodels while small contractors are better for specific specialty trade jobsLarge contractors are usually franchised, may be nationwide, and usually have several offices. A contractor of this size operates more like a factory business, having more than enough people to focus on home renovation as a product rather than a service. They have a large management team with different aspects focused on areas of experience, but this means that each individual customer is not as important. For a large addition or remodel, the bigger the contractor the better.

The advantages and disadvantages of different-sized companies can be summarized, in general, as follows:

Small contractors – like CraftPro – have the advantage of being completely devoted to the project they are working on, so you will have their full and undivided attention. They are also able to offer the best prices due to lower overhead. On the other hand, a company of that size will not be able to complete things with haste, so expect them to be able to work with smaller projects over longer periods of time. For example, at CraftPro we know our limits and we know what we are and aren’t good at. We only take on jobs that are within our specialties and then we focus all our energy on the satisfaction of that customer.

Medium contractors offer a good balance between prices and services offered. They will be in many ways the best of both ends of the spectrum between small and large companies. There is also the fact that they might still not be able to manage huge projects if you need such services.

Large contractors will be the perfect choice for a large and extensive project that requires as much manpower as possible. They will possess a pool of resources perfect for the job that smaller companies may never go near in terms of magnitude. You will almost never work with the real shareholders of such a company, making it closer to a corporate enterprise than a small company with an easily identifiable face.

This article was provided by Ella Andrews and co-authored by Richard D’Angelo. Ella Andrews is a dedicated blogger and writer who has a great passion for home decoration and home remodeling projects. She is continuously searching for sources of motivation and inspiration. She presently contributes articles primarily about home improvement and house maintenance themes, as this what inspires her the most.

Check out the Google Plus profile of me, Richard J. D’Angelo, President of CraftPro Home Improvements, and this article’s co-author, editor and publisher. You can also visit CraftPro on Google+ and join our community of home improvement, maintenance and renovation professionals.

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3 thoughts on “Benefits and Drawbacks of Large vs. Small Home Improvement Contractors

  • Richard J. D'Angelo Post author

    Bob and Randal, thank you both! As for the writing, this was a collaborative piece so Miss Andrews deserves credit of course. And Randal I’m flattered by your confidence, especially coming from someone with so much experience in the industry. CraftPro just reached our 18-month mark and we are growing steadily, keeping customer satisfaction at the center of everything we do. I appreciate both of your comments. It’s always good to hear from colleagues.