Unlicensed Contractors: How to Protect Your Customers (And Your Bottom Line)
As reputable home remodeling professionals, we all know the type. The “third bid” that comes in incredibly cheap. The customer who needs work re-done after calling a company with no website, email address, or BBB listing. Contractors who promise your potential customers the moon but put none of it in writing.
Unlicensed contractors are a threat to your customer’s home and your business. You may not realize just how common unlicensed contractors are.
Consider these nationwide stings than run for just a few days, and catch hundreds of fly-by-night illegal contractors:
- Southern Utah arrests 170 unlicensed contractors in 3 weeks, and imposes more than half a million in fines.
- Pinellas County FL arrests 152 unlicensed contractors in 3 DAYS, including one who was visibly drunk.
- Fort Myers FL arrests 14 unlicensed contractors in 2 days, simply by posting a fake project for bid on Craigslist.
How to Communicate Value & Credibility
The trouble with unlicensed contractors is that many homeowners don’t understand how to properly vet home improvement pros. Many are also unaware of the risk of hiring a fly-by-night company.
Your in-the-home staff should communicate that you are:
- Licensed
- Insured
- Permit-holding
- And experienced at exactly the sort of project they need done!
As a homeowner myself, I recently received 3 quotes from licensed & insured fencing contractors. Working with remodelers frequently, I understand the value of licensure, but not one of three sales reps brought it up!
You should coach your service technicians and sales staff to bring up:
- The risk of unlicensed and uninsured contractors – serious financial liability!
- Evidence of your experience with similar projects – photos and reviews from your previous work can live on your website and make a great selling tool, as well!
- How to spot unlicensed contractors – the perfect opportunity to show off your great BBB listing.
So there you have it! Now you know the scale of unlicensed contracting today, and how to combat the threat to keep your customers safe.
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