As the East Coast's oldest architecture firm, Baskervill has grown by expanding into new industry segments and by acquiring several firms offering complimentary services and expertise. By 2008, the full-service Richmond, Virginia, firm, which offers architecture, engineering and design services, had grown to 130 people in two offices and revenues of $20 million.
But when the recession hit and credit crunch ensued, commercial construction—which made up about 85% of Baskervill's revenues—halted. Overnight, projects were shelved, scrapped or scaled down, throwing Baskervill, its competitors, and the construction industry into a tail spin.
"We immediately saw increased competition," says Tracey Gould, marketing director. "Where we once would see maybe five to eight competitors at a pre-proposal meeting, we were suddenly seeing 30 to 40 to 50 or more. We also saw very large out-of-town firms bidding on small local projects as those firms scrambled to get any work they could. Meanwhile, the fees became extremely competitive, and we saw firms bidding at cost or even at a loss just to get work."
To remain competitive in an over-saturated market, without becoming a commodity, Baskervill kept its fees in line rather than cutting them. The firm decided to stand on its reputation and for the quality of its work and ramp up—rather than eliminate—its marketing efforts.
The company used email marketing and social media to position itself as a market leader, and as a result awareness increased significantly and business is starting to increase.
Read the complete case study to learn what they did.
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