NFIB

New Homeowners Can Be a Gold Mine for Small Businesses
03/ 14/ 2002

It's easy to see that new homeowners are a gold mine for small businesses. A recent InfoUSA survey of new homeowners throughout the United States found that over 90 percent need to locate new sources for services such as healthcare, dry cleaning, lawn care, daycare and so on. More than 50 percent need electronic equipment such as TVs, stereos and CD players. And nearly 50 percent need household items such as refrigerators, dishwashers, washers and dryers.

New owners often establish lasting relationships with local businesses almost immediately, and it's estimated that the majority of a new household's initial spending and contacting of new businesses takes place in the first 90 days after moving in. It's clear that small businesses need to find out about new arrivals to the community quickly and contact them before the competition--in today's Workshop, Jeffrey Moses explains how.

One of the best ways to find out about new homeowners is through local real estate offices, many of which will share information about recent sales. Other ways include contacting local title offices, combing through records of city/county tax bureaus and contacting local welcome wagon organizations. Policies of these companies and government offices vary. Some provide information freely, while others prohibit distribution of information.

A systematic way to get information is through local and national mailing list companies, which can be found under "Mailing Lists" in your Yellow Pages or in any of the major search engines. Several of the largest national companies, such as Hugo Dunhill (800.216.7433) and American Business Information (800.332.7430), have divisions dedicated to gathering information about new homeowners throughout the country.

When contacting these local or national companies, make sure that you ask how often their personnel searches databases to locate new owners. Information that's more than a few months old is still valuable, but it's better to have lists that are updated every two to four weeks. Lists can be provided weekly or monthly so that you can continually contact new arrivals.

When sending direct mail to new homeowners, always include a special offer welcoming them to the area with a special discount or offer. Postcards are effective, relatively inexpensive and non-threatening in light of the recent anthrax attacks through the mail.

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